May 25, 2020
Contact: Mary McGetrick
Long-Range Planning / Special Projects Manager
Fayetteville Short-Term Rental Business Licensing Now Underway
FAYETTEVILLE, Ark.— On April 20, 2021, Fayetteville City Council voted to enact legislation governing short-term rentals (STR) in order to regulate these types of rental units within the city. The ordinance, which goes into effect May 21, 2021, requires that all STR operators secure a business license for each rental unit. City Council provided a six-month start-up period in order for all operators to come into compliance by November 21, 2021. Beginning June 18, all STR operators will also need to register with the City’s Landlord’s Representative Registry.
An STR is defined as the leasing out of a furnished residential dwelling on a short-term basis, generally less than a month. City staff estimate that there are approximately 500 to 600 STR units in Fayetteville. However, Fayetteville has not had specific rules for STRs, and they are classified as hotels/motels in the zoning code. This prevents them from legally operating in a single-family district.
There are two types of STRs, and each type has different requirements or processes depending on whether an operator applies for a business license before or after the six-month start-up period. For detailed information about STRs, including definitions and requirements for Type 1 and Type 2 STRs, please go to www.fayetteville-ar.gov/str.
Business License Requirements for STRs
The Short-Term Rental ordinance requires that all STR operators secure a business license for each unit they rent. Business licenses may be applied for online at www.fayetteville-ar.gov/strbusinesslicense.The following information is required in order to obtain an STR business license:
- Physical street address of the rental property.
- The type and total number of dwelling units located on the lot containing the STR unit.
- If the owner is not the own agent, the owner-designated agent’s information, including legal name, mailing address, immediate contact phone number and immediate contact E-mail address.
- Documentation of approval of a life safety and egress inspection by the City Building Safety Division for the rental unit.
- Proof of vacation rental or STR insurance coverage
- Proof of application for remittance of Hotel, Motel and Restaurant Tax to the City of Fayetteville, and verification that all sales, use, and Hotel, Motel and Restaurant taxes are current.
- An approved Conditional Use Permit for Type 2 units licensed after the 6-month grace period.
Additional information about short-term rentals is available on the City’s website at www.fayetteville-ar.gov/str. The City’s Landlord’s Representative Registry can be accessed at www.fayetteville-ar.gov/landlord.