Should You Rent Out Your Pinetop Cabin?

Thinking about turning your Pinetop cabin into a rental to help cover costs or create income? You are not alone. Many second‑home owners in the White Mountains weigh short‑term rentals against long‑term leases and wonder which path fits their goals and lifestyle. In this guide, you will get local rules, real numbers, and a simple checklist to help you decide with confidence. Let’s dive in.

What Pinetop requires

Permit and local rules

Before you advertise or host a single guest, you need a Town of Pinetop‑Lakeside short‑term rental permit. The town lists an annual $250 fee and an online application. The permit will not be activated until you provide the required documents. You must display the permit number in all ads and post it near the primary entrance of the property. You also must notify neighbors and list a 24‑hour emergency contact who can respond within the town’s required timeframe. Review the full requirements on the town’s short‑term rental permit page and in Chapter 5.28 of the town code.

Taxes and state licensing

In Arizona, stays under 30 days are treated as transient lodging. You must register for a state Transaction Privilege Tax (TPT) license and report lodging activity under the correct business code. Online lodging marketplaces may collect and remit taxes on bookings made through their platforms. Even so, you are responsible for registration and correct filing. See the Arizona Department of Revenue’s guidance on short‑term lodging and TPT and how online lodging marketplaces affect your reporting. The town lists a combined lodging tax of 12.38 percent for Pinetop‑Lakeside.

Insurance and compliance details

The town requires proof of liability insurance, often shown as at least $500,000 in aggregate coverage or platform coverage that meets the threshold. You must provide a locally available emergency contact and complete neighbor notifications before your first rental. The town code provides civil penalties for violations. Build these compliance items into your timeline and budget.

HOA and property constraints

Some HOAs restrict or ban short‑term rentals. Private roads, well or septic capacity, parking limits, and local fire or noise ordinances can also shape how you operate. Confirm these details early so you are not surprised later.

Pinetop rental market at a glance

What drives demand

Pinetop‑Lakeside sits in Arizona’s White Mountains, a four‑season playground. Visitors come for hiking, fishing, summer cool‑downs, fall colors, and winter snow sports at Sunrise Park Resort. Demand typically peaks in summer, holiday weeks, and select winter weekends. Shoulder seasons can be variable.

ADR, occupancy, and seasonality

Recent market summaries for Pinetop‑Lakeside commonly show a typical Average Daily Rate in the range of about 200 to 300 dollars, with average occupancy often in the low‑to‑mid 40 percent range. Individual results vary by property quality, size, and location. Expect strong seasonality with higher demand in summer and holiday periods. To gauge your address, review a vendor’s market summary for Pinetop‑Lakeside and pull comps for similar cabins.

Long‑term leasing baseline

Recent rental market reports for ZIP 85929 show average monthly rents near 2,000 dollars as of early 2026. Long‑term leases tend to be steadier with less operational effort, though upside is limited by monthly rent ceilings.

What you could earn: simple examples

These examples use market‑level assumptions to show how the math works. Always build an address‑level pro forma using your cabin’s likely rates and seasonality.

• Example A, Base STR: ADR 250 dollars, occupancy 45.7 percent. That is about 167 nights per year and roughly 41,700 dollars in gross booking revenue. The town lists a combined lodging tax of 12.38 percent, which is collected from guests and remitted to the state and local jurisdictions.
• Example B, Conservative STR: ADR 200 dollars, occupancy 30 percent. That is about 21,900 dollars in gross bookings. Use this as a stress test if you want a safety margin.
• Example C, Long‑term: At 2,000 dollars per month, gross annual rent is about 24,000 dollars. Operating effort and costs are typically lower, and tenants often pay some utilities, but there is less upside.

Note: Treat lodging taxes as pass‑through. You collect them from guests and remit them. Do not count lodging tax as income.

Owner‑managed vs manager‑managed

Many owners start by self‑managing. Others hire a full‑service vacation rental manager. Here is how to think through the tradeoffs.

If you self‑manage

You handle pricing, marketing, guest communication, cleaning coordination, minor maintenance, and compliance tasks. Plan for:

• Platform fees of about 3 percent in a split‑fee model or a host‑only fee near 14 to 16 percent depending on platform and setup. Model both cases since fees vary. See how Airbnb service fees can differ by listing type.
• Turnover cleaning at 75 to 250 dollars per clean, based on size and scope. The more short stays you attract, the more often you pay for cleaning.
• Utilities and supplies that you cover for guests. Many Pinetop cabins land around 150 to 500 dollars per month depending on season and heating.
• A maintenance reserve of about 5 to 10 percent of gross to handle wear and tear, repairs, furniture, and small capex.
• Winter and wildfire readiness. Budget for snow removal, HVAC checks, chimney or wood‑stove servicing, and defensible space. Local news highlights Firewise efforts as a real need in the area.
• Insurance with a short‑term rental or landlord endorsement. Many standard homeowner policies do not fully cover STR activity. Confirm coverage limits and exclusions with your insurer.

If you hire a manager

Full‑service managers in resort markets often charge roughly 18 to 35 percent of gross revenue. In return, a manager may handle pricing, marketing, guest messaging, cleaning oversight, basic maintenance scheduling, and reporting. Your net will be lower than self‑managing, but your time commitment and stress drop. Get multiple quotes and compare what each manager includes.

Costs you should budget

Create a line‑item budget so there are no surprises. Key buckets include:

• Licensing and compliance: Town STR permit fee of 250 dollars per year, plus time for the application and neighbor notices. State TPT license registration applies.
• Lodging taxes: The town lists a combined lodging tax of 12.38 percent for Pinetop‑Lakeside. Some platforms collect and remit taxes on your behalf, but you still must register and file correctly.
• Platform and software: Depending on platform setup, you could pay about 3 percent or near 14 to 16 percent in host‑only fees. If you scale, you may add a channel manager or PMS.
• Cleaning and laundry: Priced per turnover, often 75 to 250 dollars per stay, and higher for larger homes or deep cleans.
• Utilities and internet: A blended 150 to 500 dollars per month is common for electricity, water, trash, internet, and streaming.
• Maintenance and reserves: Plan 5 to 10 percent of gross for repairs, appliance or furniture replacement, and small capex.
• Insurance: Ask your agent about a short‑term rental or landlord policy and liability limits that satisfy the town requirement.
• Seasonal expenses: Snow removal, ice melt, firewood if used, chimney servicing, and defensible space.

Taxes, financing, and records

• Income taxes: If you rent for fewer than 15 days in a year and otherwise use the cabin personally, the IRS lets you exclude that rental income from taxable income. Most active STRs rent more than that, which means your rental income is taxable and you must allocate expenses between rental and personal use. Read IRS Publication 527 and keep clean booking and personal‑use records.
• Sales and lodging taxes: Even if a platform collects tax, you must register with ADOR and keep proper documentation. ADOR provides forms such as Form 5018 when an online lodging marketplace remits on your behalf.
• Mortgage classification: Lenders treat second homes and investment properties differently. If the home is primarily income‑producing, it may be underwritten as an investment property with different down payment, rate, or reserves. Discuss your plan with your lender before you list.

Pros and cons for your lifestyle

Benefits you might like

• Potential to offset carrying costs or produce income.
• Flexibility to use the cabin when not rented.
• Ability to capture summer, holiday, and winter peak pricing.

Tradeoffs to expect

• Regular turnovers and guest messaging.
• Faster wear and tear, with more frequent repairs and restocking.
• On‑call needs to meet the town’s emergency contact standard and keep good neighbor relations.
• More complex taxes, insurance, and record‑keeping than a long‑term lease.

Your step‑by‑step checklist

1. Confirm the property is inside Pinetop‑Lakeside town limits and requires a local STR permit. Start your permit file and gather required documents.

2. Apply for an Arizona TPT license. Know which platform will collect lodging taxes and how you will report when they do.

3. Check HOA CC&Rs, road maintenance agreements, parking rules, and utility capacity. Resolve issues before you list.

4. Line up your local emergency contact and complete neighbor notifications. Prepare the emergency instructions you will post in the home.

5. Get the right insurance endorsement and keep proof on hand for the permit application.

6. Build a monthly pro forma by season. Use address‑level comps for ADR and occupancy. Run three scenarios: Low, Base, and High.

7. Price out cleaning, utilities, supplies, and a 5 to 10 percent maintenance reserve. Decide whether to self‑manage or hire a manager and plug in the fee.

8. Plan for winterization, snow removal, and wildfire mitigation work. Put these on a calendar.

9. Set up your listing with the required permit number displayed, and post the permit number near the primary entrance.

Bottom line

Short‑term renting in Pinetop can out‑earn a typical long‑term lease, but the income is seasonal and the work is real. Long‑term renting offers steadier cash flow with less effort and less volatility. Your best choice depends on your time, your risk tolerance, and your cabin’s specific appeal in each season. If you want clarity, build a conservative pro forma, verify your tax and insurance plan, and get quotes from a manager and local vendors.

Want a second opinion tailored to your address and goals? Reach out to Blaire Lometti for a quick strategy session on rental options, pricing, and resale value. If you are also exploring a sale or refi, ask for a market snapshot and Get Your Free Home Valuation.

FAQs

Do you need a permit to rent your Pinetop cabin short term?

• Yes. The Town of Pinetop‑Lakeside requires an annual short‑term rental permit, with a listed 250 dollar fee, before you advertise or host; see the town’s short‑term rental permit page.

What taxes apply to Pinetop short‑term rentals?

• Stays under 30 days are transient lodging subject to Arizona TPT and local lodging taxes; you must register with ADOR, and platforms may remit on your behalf, but you remain responsible for correct filing.

How much can a Pinetop cabin earn as an STR?

• Market summaries show ADRs around 200 to 300 dollars and average occupancy in the low‑to‑mid 40 percent range, with strong seasonality; actual results depend on your cabin and management.

Is long‑term renting more stable in Pinetop?

• Often yes. Recent area data shows near 2,000 dollars per month as a baseline for ZIP 85929, which is steadier but usually with less upside than a strong seasonal STR.

What insurance do you need for a Pinetop STR?

• Plan for a short‑term rental or landlord policy and confirm liability limits that meet the town’s requirement; many standard homeowner policies do not fully cover STR activity.

What should I do before listing a Pinetop STR?

• Secure your town permit, get your state TPT license, verify HOA rules, set up a local emergency contact, line up cleaning and maintenance, confirm insurance, and build a seasonal pro forma.