Ducey: Airbnb law strikes a blow for free markets, innovation

PHOENIX — Gov. Doug Ducey is explaining why he signed a new law that allows people with one home, or dozens, to rent them out for weekends no matter what local cities and neighbors think.

The new law, which takes effect Aug. 6, overrules any existing or future city ordinances that limit short-term rentals. Communities will be allowed to regulate only things like noise and parking rules.

Ducey, in a ceremonial bill signing Wednesday engineered by Airbnb, one company that arranges such rentals through its internet app, touted the change as good for visitors seeking alternatives to hotels and resorts, and for homeowners who can make some money.

“For thousands of hardworking citizens, opening up their home to out-of-state guests provides the financial breathing room they need to provide for their family or enjoy an extra expense that they otherwise couldn’t afford,”Ducey said.

The law covers more than those renting out a bedroom, or their home. There is no limit on the number of properties an investor could buy and days a home could be rented out — and all in the same residential area —potentially turning an area into a vacation rental zone. Asked whether that could change the character of neighborhoods, Ducey responded, “I’m not going to answer these hypotheticals.”

“The markets adjust,” he said. “Somehow we survive people making entrepreneurial decisions, and innovative apps like this provide convenience and cost-sharing opportunities.”

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The League of Arizona Cities and Towns agreed not to oppose the measure after it was amended to preserve local health and safety ordinances.

Some at the Capitol did oppose the bill. “I didn’t move into a neighborhood to have the house next door to me turned into a weekly rental property,” said Sen. John Kavanagh, R-Fountain Hills, in voting against it earlier this year.

The question of what the neighbors might think did not arise Wednesday: The ceremony was at the secluded home of Ed and Lynn Newhall, Airbnb hosts whose property far off the street — and not near any other homes — has been in their family for three generations. Gubernatorial press aide Daniel Scarpinato said the location was chosen by Airbnb.

Ducey put the number of Arizonans renting out properties at more than 100, saying 131,000 guests stayed at Airbnb facilities in the state last year.

This isn’t Ducey’s first foray into what he says is expansion of the “sharing economy.” Last year he signed a measure to lift various regulations from ridesharing services like Uber and Lyft.

Ducey said Arizonans should look for more bills of this type. “I’m not here to block new ideas and good ideas,” he said. “I’m here to make it easier for entrepreneurs and business owners and would-be entrepreneurs to get into business.”