LANDLORD-TENANT: Is Your Rental Property Registered?
This is a law that gets ignored a lot. In most cases, I suspect it’s because landlords, especially those with only one or two homes, don’t know about the rule. But there are some, of course, who know but just don’t want to comply.
How wise is that? Well, I’m here to tell you “not very”.
In Arizona, the law states that, if you are going to rent out your home, you must register the property with the County Assessor’s Office. A.R.S. §33-1902. The purpose of this statute is not to make sure you will be a good landlord, but rather so the State can tax you at a higher rate than if the house were “owner occupied”. That, of course, is why many landlords, even if they know about the requirement, still do not register their rental property.
What are the consequences if you do not register your rental property with the County Assessor’s office? The statute does provide for civil penalties although, to be honest, those penalties are rarely imposed.
The potential consequence that does matter is that, if your tenant finds out you have not registered the property, and if that tenant gives you proper notice, and if you do not get the property registered within 10 days, the tenant may terminate the lease agreement and move out. This can be handy for tenants who have no other way out of the lease. If the landlord receives the notice but registers the property within the 10 days, the breach has been cured.
If you do decide to register, the process is simple and inexpensive (except for the increase in taxes). It costs $10 and takes about five minutes.
To learn more about the procedures, go to http://mcassessor.maricopa.gov/Assessor/ParcelApplication/ResRental.aspx
To find your nearest Assessor’s Office location in Maricopa County, you can follow this link: