vacation rentals; number; population; cap

HB 2558 prevents Arizona cities and towns from banning vacation rentals entirely and limits their ability to regulate them. It allows cities to impose population-based caps or total caps on the number of vacation rentals, and requires owners to obtain local permits, provide emergency contact details, notify nearby residents, and maintain liability insurance ($500,000 minimum). The bill also mandates cities issue permits within seven business days and prohibits denial for most reasons except incomplete applications, unpaid fees, or certain criminal histories. This directly affects property owners renting short-term accommodations and cities managing local housing regulations.