Tempe Occupancy Laws For SFR

[Kerns Churchill]

Hi Everyone,

I will be closing on a new SFR in Tempe, AZ soon, but am concerned about the occupancy laws. Tempe rental laws state that no more than three unrelated individuals can live at the same home. However, I have spoke to numerous ASU students and they all told me that it is not really enforced. I also see numerous Zillow listing for 4 and 5 bedrooms homes in the area that advertise for 4+ occupants.

Is this something I need to be worried about, as I plan to rent to 4+ students most likely? Does anyone know the consequences/fines if you are caught? Should I structure the lease a certain way to protect myself?

Thank you for any input!

[Jeremy Holden]

@Kerns Churchill

They have rules like this in all the municipalities. Part of it comes from it being a college town with old time brothel municipality legislation. Another part of it has to do with parking, health and safety. In theory it's not allowed but in practice alot of folks have 4+ unrelated tenants living together since it's a college town. The only time you'll have an issue is if your neighbors file complaints with the city. It's your goal like any rental to manage risk by thoroughly reviewing tenants during the application process. Better quality tenants are less likely to throw parties, pile up trash and disturb neighbors leading to city complaints.