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Short-Term Rentals
What is a Short-Term Rental
A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term basis, less than 30 days. Short-term rental units are allowed in any structure established as a permanent residential dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or structure not classified as a permanent residential dwelling may be used as a short-term rental.
Fayetteville City Council voted, unanimously, on April 20, 2021 to enact legislation to regulate STRs throughout the city. The enacting legislation went into effect May 21, 2021. STR owners are required to obtain an STR business license as defined in the enacted and amended ordinances.
Short-Term Rental Types
Type 1. A short-term rental where the principal use of the property remains as a full-time residence. The occupants or owner rent their primary residence as a short-term rental. Proof of ownership or long-term lease agreement for the subject property is required to be classified as a Type 1 rental. The occupant or owner must occupy the residence for 9 months of the year. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term rental.
Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists this property full-time as a short-term rental and has no intention of having permanent residents living in the property. A maximum of 475 Type 2 STR business licenses are permitted to be issued city-wide, per Ordinance 6672. A conditional use permit (CUP) is required for a Type 2 short-term rental in a residential zoning district prior to the City issuing a business license. Short-term rentals in non-residential zoning districts, mixed use zoning districts, or other zoning districts not listed in the FAQs are not required to apply for a conditional use permit. Access the CUP checklist here . Please reach out to Planning at 479-575-8267 with questions regarding the CUP application process.
Hotel/Motel/Restaurant (HMR) Tax
Short-term rentals are subject to the City of Fayetteville's 2% HMR tax. The City has entered into voluntary collection agreements with Airbnb and HomeAway/VRBO. If you have an STR listed on one of those platforms, it will collect and remit the 2% HMR tax on your behalf. STR owners and operators who list on any other platforms or by any other means are individually responsible for collecting the HMR tax from guests and remitting it to the City on a monthly basis. If you have questions concerning the HMR tax, you may contact the Accounting Division at 479-575-8281 or send an email to kmoore@fayetteville-ar.gov. You may also view our Frequently Asked Questions for more information.
How to Apply
Apply here for a Short-term Rental business license. Please refer to the FAQs to make sure you have all of the information and documentation required before starting the application process. Once your application is processed, you will receive an email with information on how to schedule your inspection. View the inspection checklist.
Legal Duties of License Holders
An owner possessing a short-term rental business license shall comply at all times with the requirements outlined here.
How to Renew
All business licenses expire October 31st each year. Renew your STR business license through our Citizen Self-Service portal. Navigate to your Dashboard, scroll down to My Licenses, and click Renew. Follow the prompts and submit the required documentation. Please note a notarized affidavit is required for the renewal process.
Landlord's Representative Registry
Register for the Landlord's Representative Registry. This is required for all STR properties.
Complaints
Persons who would like to submit a complaint about a short-term rental may call 479-444-3443, or send an email to planning@fayetteville-ar.gov. Please include time and description of the complaint event.
Contact Us
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Jessie Masters
Development Review Manager
479-575-8239
EmailDevelopment Services Building
125 West Mountain Street
Fayetteville, AR 72701
Helpful Numbers
Police Non-emergency
479-587-3560
Business License
479-575-8352
Building Safety Inspections
479-575-8238
Planning
479-575-8267
Accounting
479-575-8281
- What do I need to apply for my Short-Term Rental (STR) business license?
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To apply for a business license, you will need the property owner’s information including legal name, mailing address, immediate contact phone number, and immediate contact e-mail address. You will also need:
- Information for the dwelling unit subject to the application, inclusive of the physical street address assigned by the City.
- The type and total number of dwelling units located on the lot of record containing the dwelling unit subject to the application.
- If the owner is not their own agent, the owner designated agent’s information including legal name, mailing address, immediate contact phone number and immediate contact e-mail address.
- Proof of vacation rental or short-term rental insurance coverage.
- Policy must list the short-term rental property address and have a rider or statement indicating the property is covered when being used as a short-term rental. An insurance binder, summary, or EOI may be submitted.
- Proof of ownership or long-term lease agreement. Please provide one of the following items to show proof of ownership for the short-term rental property.
- Warranty Deed
- Property Tax
- Mortgage statement from bank with property owner name and property address
- Homestead Tax Credit
- Long-term lease agreement stating property can be used as a short-term rental
- Hotel, Motel, Restaurant (HMR) Tax Forms if required.
- HMR Data Sheet
- HMR Gross Receipts Tax Report (for future use to report receipts)
- An approved Conditional Use Permit for Type 2 units in a residential zoning district prior to the City issuing a short-term rental business license. Check the zoning of your STR property on our Zoning Map.
- Any additional data as deemed necessary or desirable for license approval by the Development Services Director.
- How much does an STR business license cost?
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Fees include a $47 application fee and a $20 inspection fee. All business licenses expire on October 31st each year. Renewal fees for short-term rentals are $47. Late fees are assessed as follows after the license expires on October 31st: November - $58; December - $61; January 1 or after - $72.