Cottonwood, AZ short-term rental registration
In Cottonwood a short-term rental is registered with the city, and the file has to be complete from the start. Business registration and sales tax run through the same office, which usually means filing them together. If you sell, the buyer registers again in their own name.[4]
Every rule below links to the official source it comes from, verified October 2, 2026.
Can you rent short term in Cottonwood?
Register before you list
What you apply for: Short-term rental business registration
- Seasonal homes
- 164
- Housing units
- 7,237
- Residents
- 12,580
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleRegistration required
- City feeNone published
- Tax on each staySet locally
- Seasonal homes23 per 1,000
Cottonwood short-term rental registration
Cottonwood adopted regulations requiring registration of short-term rentals on March 7, 2023. Every short-term or vacation rental business in the city has to comply with the ordinance and with its requirements affecting public peace, health and safety. Applicants must provide proof of citizenship or legal residency at the time the application is made. Notice must be given to all neighboring properties where applicable. That means the property directly behind, the property directly across the street, the properties next door on both sides, and the diagonal neighbors. Three administrative rules shape the rest. The registration fee is non-refundable. The registration issued is non-transferable, so it does not pass to a buyer with the house. An incomplete application will not be processed. As in every Arizona city, the fee is capped by statute at the actual cost of issuing the permit or $250, whichever is less.[4]
What Cottonwood asks of you
Cottonwood adopted regulations requiring registration of short-term rentals on March 7, 2023, in ordinance 731.[4]
Every short-term or vacation rental business in the city must comply with the ordinance and with the requirements affecting public peace, health and safety.[4]
Applicants must provide proof of citizenship or legal residency at the time the application is made.[4]
Notice must be given to all neighboring properties where applicable: directly behind, directly across the street, next door on both sides, and diagonally.[4]
The registration fee is non-refundable, the registration issued is non-transferable, and an incomplete application will not be processed.[4]
What Arizona asks wherever you host
These rules apply at this address whatever the city decides.
Arizona cities may not ban short-term rentals. A restriction by classification, use or occupancy is allowed only where the statute lists it.[1]
A city permit fee is capped at $250, or at the city's actual cost of issuing it if that is lower. The application may ask for six things only.[1]
A city may make you notify the adjacent, opposite and diagonally opposite properties before the first booking. It may also require the permit number on every advertisement.[1]
Stays shorter than thirty consecutive days are taxed under the state's transient lodging classification. Longer stays fall outside it.[2]
What a guest pays on top of your nightly rate in Cottonwood
Each layer is set by a different authority, and not all of them are collected by the platform.
| Layer | Rate | Remitted to |
|---|---|---|
| Arizona transient lodging transaction privilege tax[3] | 5.5% | The state revenue department |
| City transient lodging tax[4] | Not published | The city |
Cottonwood handles business registration and sales tax through the same office as the rental registration, so the two are usually filed together rather than in sequence.[4]
What the census counts
How much of Cottonwood is already a second home
The Census Bureau counts 164 of Cottonwood's 7,237 homes as vacant for seasonal, recreational or occasional use. That is 23 out of every 1,000. It ranks Cottonwood 22nd of the 25 Arizona cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 22nd of 25
- Share of housing
- 23 per 1,000
- Median home value
- $324,100
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Cottonwood sits among its neighbors
Prescott Valley, AZ
License required
711 seasonal homes, 32 per 1,000 housing units.
Prescott Valley short-term rental rulesCamp Verde, AZ
No city ordinance
187 seasonal homes, 37 per 1,000 housing units.
Camp Verde short-term rental rulesPrescott, AZ
Registration required
2,144 seasonal homes, 84 per 1,000 housing units.
Prescott short-term rental rulesTempe, AZ
License required
1,294 seasonal homes, 15 per 1,000 housing units.
Tempe short-term rental rulesFAQ
Cottonwood short-term rental questions
Does a Cottonwood registration transfer with the house?
Which neighbors have to be notified?
What happens to an incomplete application?
Sources
- A.R.S. § 9-500.39, Limits on regulation of vacation rentals and short-term rentals, Arizona State Legislature, read on September 20, 2026
- A.R.S. § 42-5070, Transient lodging classification; definition, Arizona State Legislature, read on October 2, 2026
- A.R.S. § 42-5010, Rates; distribution base, Arizona State Legislature, read on October 2, 2026
- Short-Term Rental Registration, ordinance 731, City of Cottonwood, read on September 20, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on October 2, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb host fee calculator
What Airbnb takes on a booking under the 15.5% host-only fee or the old split fee, what the guest pays on top, and the payout that reaches you.
Airbnb house rules
Generate a complete PDF house rules document for your property: rules, schedule, amenities, emergency contacts.
Check-in instructions
The message a guest reads before getting in: access, keys, WiFi, parking, contact. English or bilingual output.