Residential Rental for Individuals

Residential Rental is the rental of real property for a period of more than 30 days for residential purposes only and not commercial purposes.

Individual owners of taxable rental properties are required by law to obtain a transaction privilege tax (TPT) license with the Arizona Department of Revenue (ADOR), regardless if the owner rents the property themselves or employs a property management company (PMC). A license is only required for cities that impose a tax on residential rental activity.

See Additional Information for Property Owners

All payments made by the tenant or on behalf of the landlord are taxable.

See the following list. (This list is not inclusive.)

Common income sources:

• Rent
• Non-refundable and forfeited deposits
• Late payment fees
• Pet fees
• Federal rent subsidies (HUD)

Fees passed on to the tenant:

• Common area fees
• Maintenance charges
• Homeowner association fees
• Landscaper maintenance
• Property tax
• Pool Service
• Repairs and/or improvements