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.

Current Status

Fayetteville City Council voted, unanimously, on April 20, 2021 to enact legislation to regulate STRs throughout the city. 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. 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 conditional use permit (CUP) is required for a Type 2 short-term rental prior to the City issuing a business license, except during the twelve-month grace period. Click here to access the CUP checklist. Please reach out to Planning at 479-575-8267 with questions regarding the CUP application process.

Grace Period (Ends May 21, 2022)

One-Year Start-up Period. After the enactment of the short-term rental ordinance, existing short-term rental operators have twelve months to obtain a business license and be considered in compliance. After the twelve-month start-up period, all existing short-term rental units must have a business license to be considered in compliance. New short-term rental units are required to obtain a business license before operating. All requirements must be completed and the license approved by City staff within 60 days for applications received by May 21 for Type 2 STRs. Any applications for Type 2 STRs received after May 21 will be required to obtain a CUP first.

Owners seeking to operate a Type 2 short-term rental within twelve months of the enactment of this code section shall be granted a CUP 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 CUP granted by this subsection.

Owners seeking to operate a Type 2 short-term rental who have failed to obtain such CUP and business license prior to the end of the twelve-month start-up period will be required to follow normal procedures and apply to the Planning Commission to request a CUP 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 twelve-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.

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 click here for more information.

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 email 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 is required as of June 18, 2021.

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.