Sound Advice for Investors of Scottsdale Rental Properties

It has come to my attention that many of my Scottsdale investor clients have forgotten to register their Scottsdale residential rental properties with the State of Arizona and the City of Scottsdale.

The Arizona Revised Statute § 33-1902(A) states that an owner of residential rental property shall maintain with the Assessor in the county where the property is located information required by this section in a manner to be determined by the Assessor. If you have not yet registered your Scottsdale rental property, please go to this website and register your property and get all the juicy details of compliance.

In addition, the City of Scottsdale requires that you pay a “Transaction Privilege Tax” on the rental units located within the City of Scottsdale if you have three or more residential units rented or available for rent in the State of Arizona or if you are a broker (like me). I know this information firsthand  because I was just audited – not much fun and very expensive as the tax had accumulated to quite a hefty amount.  The rate is 1.65% of the taxable rental income paid on a monthly basis or all at once if you are audited.  Click here for frequently asked questions about the Scottsdale tax for Scottsdale rental properties.  You can get your application by clicking here.

Actually, this Scottsdale rule applies to many Phoenix metro cities.  Click here to view the FAQ for Phoenix rental properties. Click here for the Phoenix licensing application.

Parting words?  Oh yes, have fun – shun the pain!  You can’t expect to have all the benefits of rental property ownership in Scottsdale without a little bit of pain, right?