So you have done all the research, gathered the facts on the neighborhood, the HOA, the taxes, and the current rental statistics and have decided to purchase in Surprise. A little known fact about the city of Surprise, in addition to the city rental taxes of 2.2%, the city also requires that all owners of rental properties have a business license, including those whose properties that are professionally managed. These little unknown requirements by cities in Arizona can be quite costly if not followed. As a Phoenix Property Manager, we have been working with the cities for years to insure all our clients are in compliance.
In order to obtain a business license in Surprise or any other requiring city your property must first be listed as a legal class of “4-Residential Rental” with the county assessor office. The forms to complete this process in Maricopa county can be found on Maricopa County Assessor site. Failure to register as a rental with the county could be extremely costly with fines up to $150 per day. Once you are registered as “Residential Rental” you can apply for a City of Surprise business license. Failure to obtain the proper licensing could result in ordinance violations with hefty fines attached in any city that requires a license. So be sure to research all of the licensing requirements in the city that you purchase your investment property in or contact a local Property Manager to help you navigate smoothly through the process!