The Fayetteville, Arkansas, Planning Commission voted 6-2 to recommend stripping a rule requiring short-term rental owners to get a permit from the commission before they can start operating. They would still have to obtain a business license and a safety inspection to operate legally in Fayetteville. Both Type 1 and Type 2 rental owners must pay the city's 2 percent hotel, motel, and restaurant tax, as well as secure vacation rental or short-term rental insurance coverage. They additionally must designate a representative who can be at the unit within three hours in emergencies, while no more than 2 percent of all residential units in Fayetteville are allowed to be Type 2 rentals. Planning Commission meetings have included 22 permit requests since the regulations' adoption in April 2021, with 10 featured on the commission's agenda; a total of 53 applications have been submitted since the conclusion of the compliance grace period. Britin Bostick, Fayetteville's long-range planner, said the city has so far issued 339 business licenses for short-term rentals, including 63 for Type 1 properties and 276 for Type 2. City staff turned down 103 applications due to incomplete business licenses. Bostick said with so many applicants and so few complaints, city staff think any future problems can be settled with the business license enforcement mechanism, which allows staff to administratively revoke licenses of troublesome short-term rental owners.
Fayetteville Flyer (09/13/22) Todd Gill