Running a short-term rental in Carefree can be rewarding, but it comes with clear rules. The town requires a license, proactive neighbor notice, and specific insurance before you host. This guide walks you through the essentials so you can launch and operate with confidence.
Why STR rules matter in Carefree
Compliance is not just a box to check. It protects your property value, keeps guests safe, and builds goodwill with neighbors. Carefree’s ordinance sets practical standards for licensing, notice, operations, and insurance. Arizona law also limits how cities regulate STRs, which means you must follow a few layers of rules: town code, county rental registration, and state tax requirements see the Carefree code overview and state framework context A.R.S. § 11-269.17 summary.
Carefree STR licensing basics
Who needs a license and when
If you offer a dwelling for stays of less than 30 days, you need a Carefree short-term rental license for that property before you list or host. Each dwelling requires its own license. Operating without a current license is a civil offense with mandatory fines per Article 6-8.
Application steps and required documents
The town aims to issue a license within seven business days of a complete application unless there are grounds to deny. Be ready with:
- Owner and emergency contact information
- 24/7 local point of contact
- Arizona TPT license number for short-term lodging
- Proof of Maricopa County residential rental registration under A.R.S. § 33-1902
- Fire safety and evacuation map
- Proof of liability insurance or qualifying marketplace coverage
- Signed town safety attestation and required forms
- Nonrefundable $250 fee for application or renewal
Carefree also requires a short-term rental compliance inspection and a notarized Town Safety Attestation Form with your application see licensing provisions and town resources for forms and checklist Carefree rentals page. You must register your residential rental with the Maricopa County Assessor and keep information current A.R.S. § 33-1902. For TPT details, review the Arizona Department of Revenue’s short-term lodging guidance ADOR overview.
Renewal, fees, and recordkeeping
Calendar your annual renewal and keep a clean file: license certificate, neighbor notification attestation, insurance proof, inspection records, background checks, and all contact updates. The town code details reasons a license can be denied, suspended, or revoked, including false statements or certain violations see Article 6-8 licensing.
Neighbor notice and operating standards
Pre-rental notice requirements
Before your first listing or booking, you must notify nearby properties in writing. For single-family areas, that means all adjacent and both directly and diagonally across-the-street properties. For multi-unit buildings, notify all units on the same floor. Your notice must include:
- Town STR license number
- Property address
- 24-hour emergency contact name, address, and phone
- Owner or designee contact information
If contact information changes, you must re-notify within 15 business days. Carefree provides a prescribed form and requires you to attest to who you notified and how you delivered notice. Failing to notify triggers a civil fine, with a minimum amount set in the code neighbor notice rules.
Posting and on-call contact rules
Inside the dwelling, you must prominently display the town-required guest notice near the inside of the front door and the primary backyard door, plus a fire/evacuation map showing the address, 911, and owner contact details. Your license number must appear on all listings. A 24/7 emergency contact must be able to respond and, when public safety is dispatched, arrive in person within the time defined by the code. Noncompliance can result in civil penalties posting and operations and emergency contact obligations.
Guest conduct and nuisance prevention
Adopt clear house rules and share them with guests before check-in:
- No events or commercial uses
- Respect quiet hours and parking limits
- Follow trash, pool barrier, and pest control standards
- Comply with fire and life-safety requirements, including working alarms and extinguishers
The town’s code includes verified violation fines that escalate for nuisance and safety issues. Keeping communication open with neighbors and reacting quickly to concerns reduces complaints and risk operational standards and penalties.
Insurance and risk management
Policy types and coverage gaps
Standard homeowners policies often exclude business use and paying guests. Landlord policies can miss short stays. STR-specific policies or endorsements are typically needed to cover guest liability, contents, and business income. Carefree requires at least 500,000 dollars of aggregate liability coverage per property, unless your online lodging marketplace provides primary coverage of at least that amount. If you rely on marketplace insurance, obtain written proof that it is primary and meets the 500,000 dollar threshold insurance requirement and town forms page.
Liability, property, and loss-of-income
Consider three buckets:
- Liability: guest injuries, neighbor property damage, or defense costs
- Property: building and contents, including accidental damage by guests
- Loss of income: coverage for revenue lost after a covered claim
Match limits to your property value and occupancy profile. Keep certificates current and stored with your license records.
Vendor and platform considerations
- Require certificates of insurance from cleaners, pool techs, and handymen
- Confirm whether your platform’s coverage is primary or excess and what it excludes
- Align your policy with platform terms and ensure your license number appears on listings license and listing requirements.
Taxes, zoning, and HOA overlays
Lodging taxes and remittance basics
Arizona treats short-term lodging as taxable. You need an Arizona TPT license unless your bookings are exclusively through a registered online lodging marketplace that collects and remits for you. Even then, you should understand reporting and keep records that show taxes were handled properly ADOR short-term lodging guidance.
Zoning, occupancy, and parking
Carefree’s STR rules focus on safety and nuisance prevention. The code prohibits events and commercial functions, sets cleanliness standards between stays, and requires life-safety equipment, pool barrier compliance, and pest control at least every two months operations summary. Your listing should reflect parking limits, trash schedules, and quiet hours.
HOA/CC&R restrictions and approvals
Private communities can impose stricter rules or even prohibit STRs. Review CC&Rs and written HOA policies before you buy or list. Secure written approvals when required. Community enforcement is separate from town licensing, so you must satisfy both.
Compliance checklists and go-live timeline
Pre-listing compliance checklist
- Register your rental with the Maricopa County Assessor under A.R.S. § 33-1902 statute link
- Obtain an Arizona TPT license and understand marketplace collection rules ADOR overview
- Complete the Carefree STR application and inspection, pay the 250 dollar fee, and secure the license licensing article
- Bind at least 500,000 dollars of primary liability coverage or document qualifying marketplace coverage insurance rule
- Prepare and post the required in-unit notices and evacuation map posting rules
- Deliver neighbor notices and complete the town attestation neighbor notice
- Set up guest screening processes, including the required sex-offender background check within 24 hours of every booking, and create a secure records system for 12 months of retention screening requirement
30–60–90 day rollout plan
- Days 1–30: Finish county and state registrations, complete town application and inspection, bind insurance, draft house rules, and stage safety equipment. Set up listing templates with required license and TPT numbers.
- Days 31–60: Deliver neighbor notices, install postings, test your on-call response plan, and run a soft launch with limited availability to collect feedback.
- Days 61–90: Review guest feedback, refine house rules, confirm recordkeeping habits, and audit your listings for accuracy. Recheck town updates for any new forms or guidance Carefree rentals page.
Ongoing compliance and audits
- Reverify your emergency contact and re-notify neighbors within 15 business days if anything changes notice rule
- Update insurance certificates each renewal and store proofs
- Keep background check records for 12 months and verify your process after platform updates
- Monitor ADOR and town pages for changes to TPT and STR rules ADOR and Carefree code
Get expert help to stay compliant and profitable
A strong STR plan starts before you buy. We help you evaluate neighborhoods, review HOA rules, and model returns that account for licensing, insurance, and operating standards. If you already own in Carefree, we can streamline your compliance steps and position your listing for higher-quality guests.
Ready to align your investment with Carefree’s rules and your revenue goals? Schedule a Free Market Consultation with the Kapanicas Group. Our boutique, husband-and-wife team brings Scottsdale-area expertise, careful guidance, and professional resources to every STR conversation.
FAQs
Do I need a Carefree STR license if I only rent a few weekends a year?
- Yes. Any dwelling offered for stays under 30 days needs a Carefree STR license before listing or hosting, with a separate license for each property licensing article.
What has to be in my neighbor notice and who gets it?
- Notify adjacent and across-the-street properties (or all same-floor units). Include your license number, property address, 24-hour emergency contact, and owner or designee contact information. Re-notify within 15 business days if contacts change neighbor notice.
How much insurance do I need for a Carefree STR?
- At least 500,000 dollars of aggregate liability per property, unless your online lodging marketplace provides primary liability of at least that amount. Keep written proof for your file insurance requirement.
What county and state registrations are required?
- Register the rental with the Maricopa County Assessor under A.R.S. § 33-1902 and obtain an Arizona TPT license for short-term lodging. If a registered marketplace collects and remits TPT, keep documentation anyway A.R.S. § 33-1902 and ADOR overview.
What in-unit postings are required?
- Display the town-required guest notice at the inside of the front door and primary backyard door and post a fire/evacuation map with 911 and contact details. Include your license number on every listing posting rules.
Do I have to run background checks on guests?
- Yes. The code requires a sex-offender background check within 24 hours of every booking, or proof the platform performed one. Keep the record for 12 months and provide it to the town if requested screening requirement.
What are the penalties for operating without a license or violating rules?
- Operating without a license carries a minimum 1,000 dollar fine per violation. There are also fines for missing license numbers on listings, failing to notify neighbors, and verified nuisance or safety violations with escalating penalties penalties overview and operational penalties.
