Today I am pleased to share a guest post written by an Arizona lawyer. Spencer Cashdan (see his bio after the post) offered a piece on an extremely timely topic: renting your home during Super Bowl season (or, really, anytime paying vacationers come to town).
If this question has ever intrigued you—or if you find yourself on the lessee end of the exchange, his leasing tips could be very valuable.
(And if you decide to rent your space, consider whether to tout it as a Super Bowl bargain, or if doing that would unduly rankle the Big Game organizers.)
Without further ado, here’s Spencer:
Each year, the Valley hosts myriad events such as the Waste Management Phoenix Open and the Barrett–Jackson Collector Car Auction that attract out-of-state guests. This season, more visitors than ever will come to town in 2015 for the NFL Pro Bowl and the Big Game.
With more than 1 million people expected to flock to Phoenix, short-term rentals are in high demand. Valley homeowners have turned to renting out their property to capitalize on the influx of activity and money that we will see this upcoming year.
However, short-term or vacation rentals can have their own set of legal issues. That’s why I offer the following “Legal Leasing Tips” for homeowners.
Q: Is it legal in Arizona to rent property for a short-term lease?
A: Some homes are subject to covenants, conditions and restrictions (CC&Rs) that address the issue of whether short-term rentals are permitted. Absent any such recorded restriction affecting a home, renting your home is legal. However, acting as a broker to help rent another person’s home for them is not legal (unless you have a real estate license) because that is acting as a broker without a license.
Q: In creating a short-term rental agreement, are there any statutes or acts that must be included?
A: Any rental agreement must comply with the Arizona Residential Landlord and Tenant Act. This act outlines many of the rights and responsibilities for both the landlord and the tenant.
Q: What do homeowners need to have in order to keep their home and valuables protected?
A: As for valuables in the home, they should either be removed prior to the renter’s occupancy, or the homeowner must take a sufficient security deposit to cover the cost of damage/stolen items. To ensure protection to homeowners, a credit check/background check can be performed to see if the renter has any past violations.
Q: From a visitor’s standpoint, what should they look for before entering into a rental agreement?
A: A visitor/renter needs to make sure that the purported owner of the property is, in fact, the owner, and has the authority to rent the property. These issues don’t often present themselves in a short-term one-week rental, but you never know. It’s easy to check ownership of property in Maricopa County—that information is free on the Maricopa County website, so it’s worth checking before signing a rental agreement.
With vacation rental rates ranging anywhere from $50 to $4,000 a night, keeping both parties safe in a rental agreement is ideal for the upcoming season of activity. Educated homeowners who take the necessary precautions before entering into an agreement will have little to worry about in terms of renting out their home.
About the Author: Spencer W. Cashdan is a member of the Arizona law office of Dickinson Wright PLLC. Cashdan is ranked among the Best Lawyers in America list, and represents clients in a broad range of real estate transactions for both unimproved real property and improved real property, including shopping centers, office buildings, hotels, industrial parks, mixed use developments and master planned communities. In addition to Arizona, Dickinson Wright has law offices in Michigan, Nevada, Ohio, Tennessee, Washington D.C. and Toronto. Across over 40 practice areas, their team of 350 lawyers service a range of clients from Fortune 500 companies to small and emerging businesses and government entities, nonprofits and individuals.Follow @azatty