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 city-wide density cap of 2% of all dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. 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 firstname.lastname@example.org. 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.
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.
Persons who would like to submit a complaint about a short-term rental may call 479-444-3443, or send an email to email@example.com. Please include time and description of the complaint event.