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

• Ordinance No. 06410 - Amendment relating to condominiums (1/18/22)

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