Illustrative Factors in Evaluating Actual Use of Short-Term Rental Properties
A Framework for Education, Training, and Public Understanding
Purpose
The purpose of this document is to explain the types of objective evidence that may be considered when evaluating the actual use of property operated as a short-term rental (STR).
This document is intended for reference and or educational purposes only. It does not establish policy, create legal standards, or replace Arizona statutes, administrative guidance, or applicable case law.
Guiding Principle
Arizona law requires the Assessor to classify property according to its actual use.
No single document, permit, advertisement, or activity determines a property's legal classification. Likewise, no single factor automatically excludes a property from any legal classification. Instead, the Assessor evaluates the totality of the objective evidence available for each individual property.
Category I: Statutory and Governmental Indicators
Examples include:
• Arizona TPT licensing for transient lodging
• Collection and remittance of transient lodging taxes
• Municipal STR registration or permits
• Municipal business licenses where required
• Local emergency contact requirements
• Compliance with municipal STR ordinances
• Occupancy limitations, parking plans, and required safety information
Why it may be relevant:
Government agencies frequently regulate transient lodging differently than ordinary residential occupancy. While these governmental requirements do not determine property classification, they may provide objective evidence regarding how the property is being used.
Category II: Industry Recognition
Examples include:
• Specialized STR insurance
• STR endorsements
• Increased liability limits
• Hospitality-related coverage
• Airbnb, VRBO, Booking.com, Expedia, and similar platforms
• Online reservation systems
• Dynamic nightly pricing
• Guest reviews and reservation calendars
Why it may be relevant:
These industries recognize that transient lodging differs operationally from ordinary residential occupancy and may provide objective evidence of actual use.
Category III: Operational Characteristics
Examples include:
• Frequent guest turnover
• Nightly occupancy
• Cleaning between guest stays
• Linen replacement
• Guest welcome materials
• Hospitality services
• Self-service check-in
• Electronic entry systems
• Professional STR management
• Continuous public availability for transient occupancy
Why it may be relevant:
These operational characteristics are commonly associated with lodging accommodations serving transient guests rather than traditional residential occupancy.
Category IV: Objective Documentary Evidence
Examples include:
• Public advertisements
• Reservation calendars
• Booking confirmations
• Municipal permits
• TPT licensing
• Insurance declarations
• Property management agreements
• Photographs demonstrating guest accommodations
When researching each individual STR noted from municipal lists, a Mohave County Property Class Change form should be requested from the property owner to help determine/clarify availability.
Why it may be relevant:
Documents often corroborate the property's operational characteristics and actual use.
Category V: Totality of the Evidence
No single factor determines legal classification. The Assessor evaluates all available evidence collectively to determine the property's primary actual use. This framework is not a checklist, point system, scoring matrix,
presumption, legal test, or substitute for Arizona law.
Guiding Philosophy
The Assessor does not begin with a desired classification and search for evidence to support it. Instead, the
Assessor begins with the available facts, objectively evaluates the totality of the evidence, applies the statutes enacted by the Arizona Legislature, considers applicable case law, and reaches the classification required by law.
Every property deserves an independent review based upon its own facts and circumstances.