Happy summer Mohave County!
I am excited to announce Mohave County’s new policy regarding Short-Term Rentals (STRs).
Short-Term Rentals are homes that are rented to guests for fewer than 30 consecutive days at a time, similar to motels and hotels. Mohave County currently has approximately 3,500 Short Term rentals, with the majority of them in Lake Havasu City.
Mohave County’s new policy establishes commercial classification for properties that are primarily operated as full-time short-term rentals. Our policy conforms with the Arizona Department of Revenue (AZDOR) guideline, which states: “Real property in Arizona that is devoted to producing income for the owner is generally considered to be commercially used, is classified as Legal Class One” and also “Properties that are available for either short term or extended stay occupancy are considered to be used commercially and should be classified as Legal Class One”. As your County Assessor, it is the responsibility of our office to assess property based on its current use. Homes that are primarily operated as year-round short-term rentals are being used in a commercial manner similar to motels and hotels.
Over the past year, the Mohave County Assessor’s office has reclassified more than 900 short-term rentals from Residential to Commercial. We will continue making these changes until all full-time short-term rentals are classified appropriately. We verify a property’s primary use through multiple sources, including listings on short-term rental platforms such as Airbnb and Vrbo, Residential Affidavit of Property Class Change form submitted by property owners, city STR license applications, advertisements, and other available information. Every classification change is carefully reviewed and confirmed to ensure the property is being used primarily as a short-term rental.
Mohave County is not changing the classification of owner-occupied primary residents, nor are we changing the classification of homeowners who rent their homes out during certain seasons, such as “snowbirds” while they are away. We are only changing the classification of properties that are primarily available as short-term rentals for most of the year, with rental periods of fewer than 30 days.
This policy allows homeowners with a casita or guest house on their primary residence to remain classified as residential, provided the property’s primary use remains residential.
If a property is reclassified as commercial, the assessment ratio will change from 10% to 15%, as required under Arizona law. This will result in an increase to the property’s taxable value for those properties that are primarily commercial in nature. This policy creates fairness by ensuring that year-round short-term rentals are classified consistently with motels and hotels that have long been assessed under the commercial classification.
As your Assessor, I take an oath to administer property valuation and classification “fairly and equitably”, and I take that oath very seriously. As short- term rentals became more prevalent throughout our residential communities, we recognized that continuing to classify year-round STRs as residential was no longer equitable when motels and hotels providing the same type of lodging were being assessed commercially. This policy reflects our commitment to applying the law fairly and consistently across similar property uses.
As your Assessor, my goal is not to increase taxes. As a conservative, I believe it is important to keep taxes as low as possible while also ensuring fairness for every business operating in Mohave County. This new policy creates greater consistency in how similar properties are valued and classified. I also anticipate that other counties with significant numbers of short-term rentals will look to Mohave County as they evaluate their own policies. In fact, many counties from around the country have already reached out to learn more about our approach.
I encourage all property owners who rent their homes on either a part-time or full-time basis to complete our Residential Affidavit of Property Class Change form. Providing accurate information helps us maintain correct records and ensures your property is classified appropriately.
This form is available at our Assessor Office locations in Kingman, Lake Havasu City, and Bullhead City, or on the Mohave County Assessor’s website under “Other Forms” at: https://www.mohave.gov/media/krfl5n24/residential-affidavit-of- property-class-change.pdf
Thank you for taking the time to stay informed about this important change. My office is committed to providing fair, accurate, and transparent property assessments for every property owner in Mohave County. If you have any questions, please don’t hesitate to contact us.
Kingman, 700 W. Beale St. (928)753-0703
Lake Havasu City, 2001 College Dr., Ste 93 (928)453-0702
Bullhead City, 1130 Hancock Rd. (928)758-0701
Mohave County Assessor Jeanne Kentch
