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1. What do I need to apply for my Short-Term Rental (STR) business license?

To apply for a business license, you will need the property owner’s information including legal name, mailing address, immediate contact phone number, and immediate contact e-mail address. You will also need: 

• Information for the dwelling unit subject to the application, inclusive of the physical street address assigned by the City.
• The type and total number of dwelling units located on the lot of record containing the dwelling unit subject to the application.
• If the owner is not their own agent, the owner designated agent’s information including legal name, mailing address, immediate contact phone number and immediate contact e-mail address.
• Proof of vacation rental or short-term rental insurance coverage.
  • Policy must list the short-term rental property address and have a rider or statement indicating the property is covered when being used as a short-term rental. An insurance binder, summary, or EOI may be submitted.
• Proof of ownership or long-term lease agreement. Please provide one of the following items to show proof of ownership for the short-term rental property.
  • Warranty Deed
  • Property Tax
  • Mortgage statement from bank with property owner name and property address
  • Homestead Tax Credit
  • Long-term lease agreement stating property can be used as a short-term rental
• Hotel, Motel, Restaurant (HMR) Tax Forms if required.
  • HMR Data Sheet
  • HMR Gross Receipts Tax Report (for future use to report receipts)
• An approved Conditional Use Permit for Type 2 units in a residential zoning district prior to the City issuing a short-term rental business license. Check the zoning of your STR property on our Zoning Map.
• Any additional data as deemed necessary or desirable for license approval by the Development Services Director.
  
  
  

2. How much does an STR business license cost?

Fees include a $47 application fee and a $20 inspection fee. All business licenses expire on October 31st each year. Renewal fees for short-term rentals are $47. Late fees are assessed as follows after the license expires on October 31st: November - $58; December - $61; January 1 or after - $72.

3. What to expect after applying.

The application process could take up to four weeks and includes the following.

• Planning Review - call 479-575-8267 for questions regarding zoning regulations and density cap.
• Accounting Review - call 479-575-8287 for an HMR packet or with questions regarding HMR requirements.
• Building Safety Inspection - call 479-575-8238 with questions regarding the life safety inspection. View the inspection checklist.

4. Which residential zoning districts require a conditional use permit?

R-A; RSF-.5; RSF-1; RSF-2; RSF-4; RSF-7; RSF-8; RSF-18; RI-12; RI-U; RMF-6; RMF-12; RMF-18; RMF-24; RMF-40; NC.

Check the zoning of your STR property on our Zoning Map.

5. Could my CUP application for a Type 2 STR be denied?

Conditional Use Permits for short-term rentals in residential zoning districts may be subject to denial or additional conditions based upon the Planning Commission's findings on the following factors:

1. Adequate parking infrastructure;
2. Adequate adjoining or nearby streets for on-street parking;
3. Frequency or concentration of nearby licensed Type 2 short-term rentals; and
4. Prior zoning or code violations.

6. What is the density cap for Type 2 STRs?

A city-wide density cap of 2% of all dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units are determined from current United States Census Bureau and/or American Community Survey numbers, whichever number is higher. A conditional use permit may not permit:

(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap. Type 2 short-term rentals in commercial and mixed-use zoning districts where hotel/motels are permitted by right shall not contribute to the city-wide density cap.

(b) More than 10% or a single unit whichever is greater; of total dwelling units as Type 2 rentals within a multi-family dwelling complex.

(c) Individual 2-, 3- and 4-family buildings that are owned by the same person or entity and are not a part of a multi-family complex shall have no more than one (1) Type 2 short-term rental unit per building complex.

(d) Where attached residential units are held separately through condominium association, horizontal property regime, fee simple, or similar ownership structure, no cap shall be applied to buildings with attached residential dwellings. Structures of attached residential dwellings where applicants seek more than 10% of total units for licensing as Type 2 rentals shall be evaluated by the Building Safety Director and/or Fire Marshal for adequate fire protection as defined by the adopted Arkansas Fire Prevention Code. Where inadequate fire protection is identified, improvements may be required prior to issuance of a business license.

Type 2 short-term rentals may be permitted in all zoning districts where hotel/motel uses are permitted by right and shall not count towards the Type 2 short-term rental density cap in these districts except in multi-family buildings as specified in Chapter 118 of the Fayetteville City Code.

7. What are the requirements for operating an STR?

Short-Term Rental Operating Requirements