Tucson Casita Buyers: Don't Assume Rental Rights

Arizona's recent legislative changes have made it easier to build and rent accessory dwelling units (ADUs), known as casitas, but buyers in Tucson need to look beyond the hype. Tony Ray Baker, team leader at REMAX Fine Properties, reports a surge in buyer interest for homes with rental-ready guest houses, driven by the desire to offset mortgages, house aging parents, or provide space for adult children. However, Baker cautions that the legal landscape is complex. House Bill 2720 (2024) and House Bill 2928 (2025) require larger cities and counties to allow ADUs on residential lots, and state law protects long-term rentals. Yet, setbacks, building codes, and permits still apply, and jurisdiction matters—a Tucson mailing address doesn't guarantee the home is within city limits. In areas like the Catalina Foothills, many homes fall under unincorporated Pima County, which updated its ADU regulations in December 2025 to allow long-term and short-term rentals. But short-term rentals face additional rules, and owner-occupancy may be required. Existing casitas may not be legally rentable if built under older codes or without proper permits. Homeowners associations can also impose deed restrictions that limit rentals, modifications, and parking. Baker emphasizes a thorough due diligence process: clarify the buyer's goal, confirm the property's jurisdiction, verify the casita's legal status, and review HOA documents. Financial projections should include realistic rental rates, vacancy, insurance, maintenance, utilities, and taxes. "I would much rather discover a potential problem before someone buys a home than have them discover it after closing," Baker says. As casitas become more common in Tucson listings, understanding these details is crucial to avoid costly surprises.