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The original item was published from 1/31/2022 1:10:20 PM to 2/21/2022 5:05:00 PM.

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Posted on: January 31, 2022

[ARCHIVED] Short-term Rental Grace Period Ends Feb. 21

An image of a sign with "rent" written on it. Text: Short-term rental deadline Feb. 21

Jan. 31, 2022
  
Contact: Jonathan Curth, AICP
Development Services Director
479-575-8308
jcurth@fayetteville-ar.gov

Short-term Rental Grace Period Ends Feb. 21

FAYETTEVILLE, Ark. — An important deadline for short-term rental (STR) operators is quickly approaching. In accordance with legislation passed last year by Fayetteville City Council, all STR operators within the city are required to secure a business license for each rental property. City Council also voted to extend the initial “grace period” for existing STR operators from six months to nine months.

The nine-month grace period for securing a business license ends on Feb. 21, 2022. After this date, properties without an issued STR license may be required to go before the City’s Planning Commission for conditional use permitting consideration. The City encourages STR operators to send in applications as soon as possible to take advantage of the final weeks of the grace period and the streamlined process it offers for coming into compliance with City code.

Additionally, all STR operators must register with the City’s Landlord’s Representative Registry: https://www.fayetteville-ar.gov/3984/Landlords-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 estimates there are approximately 500-600 STR units in Fayetteville. However, until recent legislation was passed regarding the regulation of STRs, they were classified as hotels/motels in the zoning code. This prevented 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 nine-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 here: https://www.fayetteville-ar.gov/297/Business-License.

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 email 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 nine-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.

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