Airbnb Laws in Arkansas: Find Updated AR Short-Term Rental Laws

Fayetteville, Arkansas

New Airbnb Laws and Regulations Implemented – Insurance Requirement Included

As of March 2021, Fayetteville short-term rentals will have to abide by new Airbnb laws and regulations. New regulations separate short-term rentals into two types of categories. Type 1 is defined as a full-time residence with periods of temporary leasing such as when the resident goes out of town. Type-2 is for full-time short-term rentals. The City of Fayetteville now has a licensing requirement unless the host meets the following requirements:

• The owner of the dwelling unit or operator of the short-term rental possess a valid and current business license for the dwelling unit and fully complies with all legal requirements and duties imposed herein with respect to each and every short-term rental
• The owner has designated an agent, where said agent fully complies with all legal requirements and duties imposed herein with respect to every short-term rental. The owner may serve as their own agent.
• The owner of the dwelling unit or operator of the short-term rental provides proof of a valid and current insurance policy, which fully covers each unit when operated as a short-term rental unit.
  • While the City of Arkansas is trying to do the correct thing and requiring vacation rental hosts to obtain insurance, it’s important to note that a standard Homeowner’s policy WILL NOT provide adequate coverage when operating a short-term rental business. This is due to standard Homeowner’s policies only providing personal liability, meant to cover ‘personal acts of negligence’. In order to have adequate insurance for your Airbnb rental operations, you will need to upgrade to a short-term rental policy like the one offered by the nation’s leading insurance provider.

Hot Springs, Arkansas, Short-Term Rental Laws

Airbnb Laws in Hot Springs, AR

Hot Springs, Arkansas, boasts natural beauty, thermal springs, and vacation spas galore. To balance tourism with neighbor satisfaction, Hot Springs regulates short-term rentals under City Code Title 16, Ch. 10, and a series of Board-adopted ordinances. Beginning in 2021, the City created a licensing program to balance tourism with neighborhood quality of life and safety; later amendments with Ord. No. 6435 added a residential-zone license cap, refined appeals, inspections, and condo/HPR rules. 

• Licensing & Registration: All STR operators must maintain a Short-Term Residential Rental Business License and agree to collect and remit applicable lodging taxes on all gross receipts. Annual STR license fees in Hot Springs are based on maximum overnight occupancy and calculated at $50 per person, per year with a $200 minimum. Licenses are valid for one year and are non-transferable (except for certain family transfers), with fees due on January 1^st of each year. Renewal reminders and forms are available on the City’s STR Business License Requirements & Details page. 
• Applications are submitted through the STR Business License Portal and must include: 
• Complete the Short-Term Rental Home Inspection Form by scheduling a Hot Springs STR inspection. Applications for vacation rental home licenses in Hot Springs should include: name and contact details of a local contact person available 24/7; a floor plan showing each room, square footage, and required off-street parking spaces; a valid Certificate of Occupancy to verify compliance with building and fire codes; all required annual fees at submission; proof of Special Use Permit if located in a residential zoning district (RR, RS, RN-1 through RN-6); and a monthly written log of required smoke detectors that shows these items as functioning. Late fees apply as follows: March 1: +10% penalty; April 1: +30% penalty; May 1: License marked lapsed. 
• Zoning: Hot Springs allows STRs in both residential and non-residential zoning districts, but residential zones (RR, RS, RN-1 through RN-6) are subject to the City’s residential license cap of 400. Non-residential zones (C-TR, CN, CMU, CG, CBD, IL, IH, IMU) remain open for new STR licenses. If more than 400 licenses exist as of January 1, those above the cap may continue renewing, but no new residential licenses will be issued until the total falls below 400. 
• Occupancy Limits & Stay Length: A STR is defined as the rental of a legally permitted dwelling for fewer than 30 consecutive days. Maximum overnight occupancy is determined during inspection and is printed on the STR license. However, occupancy for STRs cannot exceed two guests per bedroom, plus two.  
• Insurance: The City does not currently require proof of STR-specific insurance, but owners are strongly advised to carry commercial-grade STR insurance coverage that includes property, liability, and business income protection. 
• Advertising: The license number must be prominently displayed inside the STR unit (in a visible location), on every online listing, advertisement, sign, or printed promotional material, and a copy must also be provided to each responsible tenant. 
• Noise & Quiet Hours: STRs must comply with the City’s Noise Control Ordinance, with quiet hours from 10 p.m. to 7 a.m. Amplified music, loud gatherings, or unruly behavior are prohibited. 
• Parking & Property Care: STRs must provide adequate on-site parking as detailed in their approved application and maintain the property in a clean, safe, and sanitary condition. Failure to manage trash, yard maintenance, or guest behavior can result in citations or license suspension. 
• Point of Contact Person: A local contact person must be available 24 hours a day to respond to complaints within 60 minutes and correct violations (including noise, parking, or occupancy issues). The contact’s name and phone number must be included in all guest materials and on file with the city. 
• Taxes: STR operators must collect and remit all applicable taxes, including the 3% City Short-Term Rental Tax. Registration and monthly filings are completed through GovOS. Tax payments are due no later than the 20^th of the month, even if there was no rental activity.  
• Enforcement & Penalties: Violations of the City’s short-term rental regulations may result in fines of $1,000 for the first offense, $2,000 for the second, and $4,000 for each subsequent violation. If a prohibited action continues over multiple days, an additional $500 per day penalty may be imposed until the issue is resolved. The City of Hot Springs may also disconnect municipal water service for serious or repeated building and development code violations. Continuing to operate without a valid license can lead to revocation and two-year ineligibility for reapplication. 
• More Information: Find more information about Hot Springs, AR, Airbnb registration, and vacation rental laws on the Hot Springs STR Business License Requirements & Details page.