Short-term Residential Rentals

This summarizes current regulations. In case of conflict between the website and the most recently adopted ordinance, the ordinance prevails. 

Most recent complete ordinance relating to Short-term Residential Rentals

Purpose of STR Regulations

The purpose of the STR regulations, as outlined in Ordinance No. 6399 and in summary below, is as follows:

  • Minimize negative secondary effects of STR use on surrounding neighborhoods, while also preserving neighborhoods’ character
  • Address traffic, noise and density impacts
  • Ensure health, safety and welfare of neighborhoods, as well as of STR renters, occupants and guests
  • Limit the number of licenses to ensure long-term availability of the affordable housing stock
  • Ensure enforcement of these standards, and collection and payment of fees and applicable taxes

STR Business Licensure

STR owners must maintain a Short-Term Residential Rental Business License at all times, and agree to collect and remit all applicable taxes on all pertaining gross receipts. The STR license must be displayed in a prominent location within the interior of the STR; a copy must also be provided for each responsible tenant. The license number must also be prominently displayed on the following: each online advertisement, sign, circular, card, telephone book or newspaper ad representing the STR.

Business License Fees

The initial and subsequent annual STR fee/occupation tax is based on the maximum overnight occupancy authorized by the STR license.

STR licenses issued during any part of any calendar year must be renewed the succeeding year. Annual License fees are due on January 1. Late fees will apply.

Each STR license application must:

  • Identify the name, address, phone number and email contact information of the local contact person.     
  • Include a floor plan that labels each room and the structures of the property, including the total square footage of living space; number bedrooms and the square footage of each; and the number of required off-street parking spaces.
  • Provide the City of Hot Springs Certificate of Occupancy. One purpose of the Certificate of Occupancy inspection is to ensure compliance with fire and building codes.
  • If the proposed STR site is in Zoning Districts R-1, R-2, R-3, R-4 or R-L, the applicant must obtain a valid special use permit, issued by the City's Planning and Development Director.
  • Be accompanied with all required annual fees. The applicant must renew and/or amend the license if there is a change in any fact stated in the application. The annual license fee cannot be prorated for any portion of the calendar year.

Maximum Number of STR Licenses in Residential Zones

The maximum allowable number of STR business licenses for sites located within Zoning Districts R-1, R-2, R-3, R-4 and R-L, other than a horizontal property regime, shall not exceed 500 per calendar year. The renewal of existing licenses will be given priority over initial applications for new STR sites.

Separate Properties

A separate STR Business License must be obtained for each separate STR unit, including every separate STR site that is advertised. Such an STR License will authorize the licensed owner to transact and carry on transient use of residential property only at the specified location, and in the manner and subject to the limits designated in each specific license.

STR licenses are not transferable to other persons or locations, except for the following:

  • Amendments to any information provided on the license that are made within 30 days of any change of owner, a change of the owner representative, a change in the local contact person, a change in any material fact upon which the license was issued or if any other person acquires an ownership interest in the STR site.
  • In the event that STR ownership transfers to an immediate family member by means of a gift or testamentary transfer, the new owner of the property shall also acquire ownership of the existing short-term rental license until its expiration without paying additional fees. The new property title owner shall, within 30 days of transfer of ownership of the transient rental site, update the information provided on the license issued via an online portal established by the City and on the City's website, and shall provide all information and prerequisites required therein.

License Denial, Suspension or Revocation

The City Manager or his/her designee may deny any application for an STR business license, or suspend or revoke a license, as a result of a failure to comply with the STR requirements. Continuing to advertise for or operate any type of STR in the City of Hot Springs without a business license may result in the forfeiture of the certificate of occupancy for such use.

Any applicant or license holder whose license has been revoked will be ineligible for a two-year period from applying for a new license. 

Penalties

Failure to comply with any of the STR provisions shall be subject to the following fines, penalties and forfeitures:

  • $1,000 for the first offense or violation
  • $2,000 for the second offense or violation
  • $4,000 for each subsequent offense or violation
  • If a prohibited action continuous in respect to time, the fine or penalty for allowing the continuance shall be $500 for each day it is unlawfully continued

In addition, the City Manager or his/her designee may also order the disconnection of municipal water service to any person, firm or corporation who violates any provision of the City's building and development codes. This includes, but is not limited to, failure to secure proper permits, failure to obtain required inspections and/or commencement of operations, business or structure occupancy prior to issuance of a certificate of occupancy. (Ord. No. 4887, §1, 7-3-00).

Contact Us

  1. Terry Rowton STR Coordinator - sized

    Terry Rowton

    STR Coordinator

    trowton@cityhs.net

     

    Planning & Development Department

    Hot Springs City Hall – First Floor

    133 Convention Boulevard

    Hot Springs, AR 71901

     

    Ph: (501) 762-5173

STR License Renewal Fees: 

Save dollars by completing your renewal in the first quarter!  Annual license fees are due on the first business day of January each year, and late fees begin in March. 

Penalties are accrued, if not paid by: 

March 110%
April 130%
May 1
Lapsed License


IMPORTANT LINKS web-STR-application Opens in new window

NOTE:  Everyone must use the "Apply for a New Short Term Residential Rental Business License” on the first page of the application form. 


KEY DATES

  • Dec. 1, 2021: Begin accepting Certificate of Occupancy Inspection Request Forms
  • Jan. 4, 2022, (8 a.m.):  Application period begins for:
    • Renewals of STR licenses
    • Special Use Permits (for prospective NEW licensees in Residential Zones: R-1, R-2, R-3, R-4, R-L)              
    • NEW STR licenses if NOT in a Residential Zone   
    • NEW STR licenses if in Horizontal Property Regimes (HPRs; aka, condos)
  • Jan. 21, 2022: Review of Special Use Permit applications begins

THINGS TO KNOW

  • Inspection Required

    • CO inspection by City Inspector is required for prospective STR properties.  
    • Without the City-issued Inspection Report, the STR license application cannot be completed.
    • CO inspection and Special Use Permit are both required for new license applicants in Residential Zones (unless deemed exempt).
    • The CO inspection fee is $50. If the inspection is not passed, new fees apply to subsequent inspections.
  • STR Rental Cap
    • Residential Zone Cap is 500 licenses.
    • Residential Zones (R-Zones) are R-1, R-2, R-3, R-4, and R-L.
    • Exempt from Cap are non-residential zones – PD, C, VL and A zone districts
    • More than 300 R-zoned licensees are eligible for renewal.
    • 150 new applications for residentially-zoned STR’s will be accepted.
  • No Waitlist
    • R-zone STR licenses will not be issued once the cap is met in a given year.  
    • No waitlist exists.  

REQUIRED ATTACHMENTS

with the STR LICENSE APPLICATIONS

Applications with all required attachments will be time-stamped as eligible for review. Applications without attachments are ineligible for review or approval.

  1. City-issued Inspection Report 
  2. Approved Special Use documentation (if in Residential Zone and a new licensee) 


SIGN-UP FOR STR NOTIFICATIONS

To receive text messages or email updates relating to STR regulations, visit Notify Me and select the "Short-term Residential Rental" checkbox under the "News Flash" section at the bottom of the page. 

  1. Sample STR Inspection Form available online

    A sample copy of the Short-term Residential Rental Inspection Form is available at www.cityhs.net/STR. Read on...
  2. Board updates STR ordinance (12-7-21)

    The Board passed Ordinance O-21-51, regulating short-term residential rental businesses (STRs) within the City of Hot Springs and amending ordinances No. 6375, No. 6382 and No. 6399. Read on...
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