Protecting Property Owners’ Right to Rent Out Their Land

Last year, the Goldwater Institute helped property owners in Sedona achieve a significant victory when the city made it a crime to rent residential property for fewer than 30 days.  Sedona defined “rent” very broadly, subjecting property owners to punishments of up to six months in jail and/or a $2,500 fine for engaging in a wide range of activities, including purchasing a time share, contracting for home improvements, and even hiring a babysitter!  The city attempted to circumvent Prop. 207 by masquerading a property regulation as a health and safety ordinance, arguing it is exempt from the law. Thanks in part to the Goldwater Institute’s legal work, the courts saw through the façade and ruled that cities can’t avoid Prop. 207 by merely claiming to advance public health without offering any evidence.  Now the case has been sent back to the trial court to determine whether the city’s weak health and safety rationale passes muster, and we’ll be pairing with local counsel to represent property owners and ensure cities aren’t allowed to skirt these important property rights protections.