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.

Current Status

Fayetteville City Council voted, unanimously, on April 20, 2021 to enact legislation to regulate STRs throughout the city. You may view the full ordinance here. 

The enacting legislation will go into effect May 21, 2021, at which point STR owners will be required to obtain an STR business license as defined in the enacted and amended ordinances which can be found here.

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. A copy of the Homestead Tax Credit 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 conditional use permit is required for a Type 2 short-term rental prior to the City issuing a business license, except during the 6 month grace period.

Grace Period

Six-Month Start-up Period. After the enactment of the short-term rental ordinance, existing short-term rental operators have six months to obtain a business license and be considered in compliance. After the six-month start-up period, all short-term rental units must have a business license to be considered in compliance. 

Owners seeking to operate a Type 2 short-term rental within six months of the enactment of this code section shall be granted a conditional use permit for such short-term rental without having to pay a fee or have a hearing before the Planning Commission. The conditions for such permit shall be full compliance with all terms and requirements of Chapter 118 Business Registry and Licenses and all other requirements of the Fayetteville Code, including full payment of all Hotel, Motel, and Restaurant Taxes to the City. Any future revocation of the business license shall also revoke the conditional use permit granted by this subsection.

Owners seeking to operate a Type 2 short-term rental who have failed to obtain such conditional use permit and business license prior to the end of the six-month start-up period will be required to follow normal procedures and apply to the Planning Commission to request a conditional use permit which will be issued or denied pursuant to the Planning Commission’s decision where not allowed by right. 

Type 1 and 2 short-term rentals seeking a business license or permit under the six-month start-up period that are currently operating in two-, three-, and four-unit buildings in which more than one unit is being used as a short-term rental may obtain a business license for all currently operating short-term rentals.

Complaints

Persons who would like to submit a complaint about a short-term rental may call 479.444.3443, or send an email to arichmond@fayetteville-ar.gov.  Please include time and description of the complaint event.

How to Apply

Click here to apply 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 automated email from Laserfiche with information on how to schedule your inspection. Click here to view the inspection checklist.

Landlord's Representative Registry

Please click here to also register for the Landlord's Representative Registry. This will be required starting June 18, 2021.