AZ HB2569

Prohibits cities and towns from banning or restricting vacation rentals and short-term rentals based on classification, use, or occupancy.

Prevents cities and towns from prohibiting fractional ownership of collectively owned dwelling units in use or occupancy periods of four weeks or more, or restricting owners from renting out their fractional ownership interest for any period of time.

Allows cities and towns to regulate vacation rentals, short-term rentals, and fractional ownership only for: public health and safety (fire codes, sanitation, traffic control), residential zoning and nuisance issues applied equally to other residential properties, and prohibition of specific illegal uses (sex offender housing, drug sales, adult-oriented businesses).

Applies the same prohibitions and limitations to counties as to cities and towns regarding vacation rentals, short-term rentals, and fractional ownership.

Requires owners of residential rental properties to maintain required information with the county assessor under state law.