Can I rent out my casita in Arizona?
Updated October 12, 2026
Short answer: yes. In Mesa, Tempe and other Arizona cities over 75,000 people, the city can't stop you renting a casita long-term and can't require you to live on the property. Short-term (Airbnb-style) rentals are allowed too, but need a city license, and for casitas finished after September 14, 2024, the city may require you to live on the property. Your HOA can add its own limits.
Long-term rentals (90 days or more)
This is what Arizona's ADU law (A.R.S. § 9-461.18) protects. A long-term rental means a lease of 90 days or longer, or month to month. Your city can't:
- ban renting the casita, or the main house, as a separate long-term rental;
- require you, the owner, to live on the property;
- require the tenant to be a relative, employee or anyone else you already know.
That means you can live in the house and rent the casita, live in the casita and rent the house, or rent out both. You set the rent.
Short-term rentals (29 days or less)
Arizona cities can't ban short-term rentals outright, but they can license and regulate them (A.R.S. § 9-500.39). A 2025 law, HB 2928, added one rule aimed at casitas:
- If your casita's final approval was issued on or after September 14, 2024, the city may require the owner to live on the property in order to rent it short-term.
- Casitas approved before then aren't covered by that rule.
Check whether your city has adopted the owner-occupancy rule before counting on Airbnb income.
What Mesa and Tempe require for short-term rentals
| Mesa | Tempe | |
|---|---|---|
| City license | Yes, $250 a year per unit | Yes, $250 a year per property |
| Who can apply | The property owner | The owner, before listing |
| State sales tax (TPT) license | Required | Required |
| Emergency contact | Required | 24-hour contact required |
| Notify neighbors | Yes | Yes |
| Liability insurance | $500,000 per unit (at renewal) | $500,000, or covered by the platform |
Short-term stays also pay lodging taxes; in Tempe the combined rate is about 14%. Since January 1, 2025, cities no longer charge sales tax on residential rentals of 30 days or more.
The 30 to 89 day gap
A fixed lease of 30 to 89 days isn't a short-term rental under Mesa's or Tempe's license rules, but it also isn't the "long-term rental" the ADU law protects. Month-to-month leases count as long-term. If you're planning mid-length stays (traveling nurses, for example), ask your city how it treats them.
Your HOA can still say no
The state law limits cities, not private covenants. If your CC&Rs restrict rentals, set a minimum lease length or ban short-term rentals, those rules still apply. See Can my HOA stop a casita?
Type your Mesa, Tempe or Gilbert address. CasitaFlow pulls your parcel and zoning and shows the largest casita allowed, the setbacks, and a drawing of where it fits. Free, no account needed.
Common questions
Can I rent out my casita in Arizona?
Yes. In cities with more than 75,000 people, including Mesa and Tempe, the city can't stop you renting a casita long-term (a lease of 90 days or more, or month to month), can't require you to live on the property, and can't require the tenant to be family. Your HOA's rules can still limit rentals.
Can I Airbnb my casita in Mesa or Tempe?
Usually, with a short-term rental license from the city ($250 a year in both). For a casita whose final approval was issued on or after September 14, 2024, state law lets cities require the owner to live on the property to rent it short-term, so ask your city before you plan on it.
Do I have to live on the property to rent out my casita?
Not for a long-term rental. Cities can't require it. For short-term rentals of a newer casita, cities may require it.
Can I rent out both the house and the casita?
Yes, as long-term rentals. The law says cities can't prohibit renting either the house or the ADU as separately leased long-term rental housing.
Can I sell my casita separately from my house?
The ADU law doesn't provide for that. The casita stays part of your lot unless the land is formally split, which is a separate city process.
Sources: A.R.S. § 9-461.18; A.R.S. § 9-500.39; HB 2928 (2025); Mesa short-term rental license; Tempe short-term rental license. Not legal or tax advice.