Bentonville Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Bentonville

Bentonville, Arkansas, a vibrant city in the heart of the Ozarks, has seen a surge in short-term rental activity in recent years. As the demand for vacation rentals grows, the city has implemented regulations to ensure the industry operates responsibly and in harmony with local communities.

According to the Bentonville Municipal Code, short-term rentals, defined as residential properties rented for periods of less than 30 consecutive days, are permitted in certain zoning districts. However, hosts must obtain a Short-Term Rental Permit from the city's Planning Department.

The permit application process involves submitting various documents, including proof of property ownership, a site plan, and a detailed operations plan outlining measures to address potential impacts on the neighborhood. Additionally, short-term rental operators must comply with specific requirements, such as providing adequate parking, maintaining a valid business license, and adhering to occupancy limits based on the property's size.

Failure to obtain the necessary permit or comply with the regulations can result in fines and potential legal action from the city. Enforcement efforts are carried out by the Code Enforcement Division, which investigates complaints and conducts inspections to ensure compliance.

While the regulations aim to balance the interests of short-term rental operators and local residents, some hosts have expressed concerns about the perceived complexity and costs associated with the permitting process. Online forums like Reddit and Bigger Pockets have seen discussions among hosts sharing their experiences navigating the regulations in Bentonville and surrounding areas.

It's worth noting that short-term rental regulations can vary within different neighborhoods of Bentonville, as some areas may have additional restrictions or guidelines imposed by homeowners' associations or local ordinances. Prospective hosts are advised to thoroughly research the specific rules applicable to their desired rental location.

Overall, starting a short-term rental business in Bentonville requires careful adherence to the city's regulations and a commitment to responsible operation to ensure a positive experience for both guests and the local community.

Short-Term Rental Licensing Requirement in Bentonville

In Bentonville, Arkansas, short-term rental operators are required to obtain a Short-Term Rental Permit from the city's Planning Department to legally launch and operate their vacation rental business. Here are the key licensing requirements:

Short-Term Rental Permit: Property owners or authorized agents must apply for and obtain this permit, which involves submitting various documents and undergoing a review process by the city to ensure compliance with zoning regulations and operational standards.

The permit application typically requires submitting proof of property ownership, a site plan, a detailed operations plan outlining measures to address potential neighborhood impacts, and other supporting documents as specified by the city.

Business License: In addition to the Short-Term Rental Permit, hosts must also obtain a general business license from the city of Bentonville to operate their short-term rental as a commercial activity.

Zoning Compliance: Short-term rentals in Bentonville are only permitted in certain zoning districts. The city's Planning Department can provide guidance on the allowable zoning areas for vacation rentals during the application process.

Occupancy Limits: As part of the permitting process, the city establishes occupancy limits for each short-term rental based on the property's size and the number of bedrooms. These limits aim to prevent overcrowding and mitigate potential nuisances in residential neighborhoods.

Failure to obtain the necessary Short-Term Rental Permit, business license, or comply with the associated regulations can result in fines, penalties, and potential legal action from the city of Bentonville. The city's Code Enforcement Division is responsible for investigating complaints and conducting inspections to ensure compliance with the short-term rental ordinance.

It's important for prospective hosts to familiarize themselves with Bentonville's specific ordinances and initiate the licensing process well in advance of listing their property. Consulting with local real estate professionals or legal counsel can also provide valuable guidance in navigating the permitting requirements for short-term rentals in Bentonville.

Required Documents for Bentonville Short-Term Rentals

To legally operate a short-term rental in Bentonville, Arkansas, hosts must provide several key documents as part of the permit application process:

• Proof of Property Ownership: Applicants must submit documentation proving ownership of the short-term rental property, such as a copy of the property deed or title.
• Site Plan: A detailed site plan is required, showing the layout of the property, including the dwelling unit, parking areas, and any other relevant structures or features.
• Operations Plan: Hosts must provide a comprehensive operations plan outlining measures to address potential impacts on the neighborhood, such as noise control, trash management, and guest rules.
• Government-Issued Identification: A copy of a government-issued photo ID, such as a driver's license or passport, is required to confirm the identity of the short-term rental operator.
• Proof of Insurance: Applicants must provide evidence of adequate insurance coverage specifically for short-term rental operations, such as a vacation rental or short-term rental insurance policy.
• Business License Application: In addition to the Short-Term Rental Permit, hosts must complete an application to obtain a general business license from the city of Bentonville.
• Tax Registration: Short-term rental operators may need to provide documentation of their registration with the appropriate tax authorities to collect and remit applicable taxes on their rental income.
• Building and Safety Inspection: Depending on the specific property, the city may require a building and safety inspection to ensure the short-term rental meets all relevant codes and standards for habitability, fire safety, and guest occupancy limits.

While the exact requirements can vary based on the property's location or other factors, these core documents typically form the package needed to legally operate a short-term rental in Bentonville. It's crucial for hosts to carefully review the city's ordinances and application materials to ensure they provide all necessary information and documentation during the permitting process.

Bentonville Short-Term Rental Taxes

Short-term rental operators in Bentonville, Arkansas, are responsible for collecting and remitting several taxes on their rental income:

1. State Sales Tax: Arkansas imposes a 6.5% state sales tax on short-term rentals. Hosts must collect this tax from guests and remit it to the Arkansas Department of Finance and Administration.
2. State Tourism Tax: In addition to the state sales tax, Arkansas levies a 2% tourism tax on short-term rentals. This tax must also be collected from guests and remitted to the state.
3. Benton County Sales Tax: Benton County, where Bentonville is located, charges a 1% county sales tax on short-term rentals. Hosts are required to collect and remit this tax.
4. City of Bentonville Advertising and Promotion Tax: The city of Bentonville imposes a 2% advertising and promotion tax, often referred to as a "lodging tax," on short-term rental stays. This tax helps fund tourism promotion efforts in the city.

In total, short-term rental hosts in Bentonville are responsible for collecting a combined tax rate of 11.5% on their rental income. This breaks down to 8.5% (6.5% state sales tax + 2% state tourism tax) remitted to the state, 1% to Benton County, and 2% to the city of Bentonville.

It's crucial for hosts to understand their tax obligations and maintain accurate records of all rental income and taxes collected. Failure to properly register, collect, and remit these taxes can result in penalties, interest charges, and potential legal issues with tax authorities.

Hosts should also be aware that tax rates and regulations are subject to change, so it's advisable to periodically review the latest requirements from the Arkansas Department of Finance and Administration, Benton County, and the City of Bentonville to ensure continued compliance.

Arkansas Wide Short-Term Rental Rules

While specific short-term rental regulations can vary across cities and counties in Arkansas, there are some statewide rules and guidelines that apply to vacation rental operators throughout the state:

1. Definition of Short-Term Rental: Arkansas generally defines a short-term rental as a residential property for less than 30 consecutive days. This definition is consistent with the state's lodging tax laws.
2. Lodging Tax Requirements: Short-term rental hosts in Arkansas must collect and remit applicable state and local lodging taxes, often referred to as hotel or tourism taxes. This includes the statewide 6.5% Arkansas Gross Receipts Tax and a 2% Arkansas Tourism Tax on rentals of less than 30 days.
3. Business Registration: While not explicitly required by state law, many cities in Arkansas mandate that short-term rental operators obtain a business license or permit to operate legally within their jurisdiction.
4. Safety Standards: Arkansas does not currently have statewide safety standards or inspection requirements specifically for short-term rentals. However, hosts must ensure their properties meet all applicable building codes and safety regulations enforced at the local level.
5. Fair Housing Laws: Short-term rental operators in Arkansas must comply with federal and state fair housing laws, which prohibit discrimination against guests based on protected characteristics such as race, disability status, or familial status.
6. Advertising Regulations: Arkansas has laws governing the advertising and marketing of short-term rentals, particularly related to truth in advertising and accurately representing the property and its amenities.
7. Property Rights: In 2019, Arkansas passed Act 1072, which prohibits cities and counties from enacting ordinances that outright ban short-term rentals. However, local governments can still regulate the industry for health and safety purposes.

While these statewide rules provide a broad framework, the specific regulations governing Arkansas short-term rentals are primarily determined locally by individual cities and counties. It's crucial for hosts to research and comply with the specific ordinances, permitting requirements, and tax obligations in their respective jurisdictions to avoid potential fines or legal issues.

Does Bentonville Strictly Enforce STR Rules?

Based on discussions from hosts on online real estate forums like BiggerPockets and Reddit, it appears that Bentonville does not have a strong reputation for aggressively enforcing short-term rental regulations compared to some other cities. While Bentonville has rules governing STRs, the general sentiment is that the city takes a relatively relaxed approach that allows vacation rental activity to operate with minimal interference from authorities.

Several BiggerPockets members who run short-term rentals mentioned facing little to no issues from the city when operating listings in Bentonville. One host directly stated they had multiple Airbnb properties in the area without experiencing any compliance crackdowns or penalties from local officials.

The lack of complaints about stringent enforcement on these forums is telling. In most discussions about challenging regulatory environments, hosts quickly voice frustrations when a location makes it difficult for Airbnb operators. However, there is a noticeable absence of such negative comments related to Bentonville's short-term rental rules and oversight.

While some cities like Little Rock have proposed tighter regulations on STRs, Bentonville does not appear to be following suit based on the anecdotal experiences shared by hosts. The city seems to be taking a more hands-off approach that enables vacation rental activity to proliferate.

So, in comparison to stricter markets, Bentonville emerges as an Airbnb-friendly environment based on the perspectives of many real estate investors on these forums. Hosts feel emboldened to operate vacation rentals in Bentonville without dealing with major legal hurdles from the city. Despite being officially on the books, the regulations do not appear to deter or shut down short-term rental operations significantly.

How to Start a Short-Term Rental Business in Bentonville

If you're interested in starting a short-term rental business in Bentonville, Arkansas, here are the key steps to follow:

1. Research the local market and regulations. Familiarize yourself with Bentonville's zoning laws, permitting requirements, and any restrictions on short-term rentals. Consult the city's Planning Department for guidance.
2. Identify a suitable property. Look for properties in zoning districts that allow short-term rentals. Consider factors like location, size, amenities, and proximity to attractions such as the Bentonville Square and mountain biking trails.
3. Obtain the necessary permits and licenses. Apply for a Short-Term Rental Permit and a general business license from the city of Bentonville. This process involves submitting various documents and undergoing reviews to ensure compliance with regulations.
4. Prepare your property for guests. Furnish and equip your rental to create a comfortable and inviting space. Ensure it meets all building and housing standards set by local codes.
5. Register for tax collection. Short-term rental operators in Bentonville must register with the appropriate tax authorities to collect and remit applicable taxes, including state sales tax, county tax, and the city's advertising and promotion tax.
6. Create compelling listings. List your property on popular vacation rental platforms like Airbnb and Vrbo. Craft an engaging description, showcase high-quality photos, and set competitive rates based on market research.
7. Implement a guest management system. Develop a strategy for managing bookings, guest communication, check-in/check-out procedures, and property maintenance. Consider hiring a professional property management company if needed.
8. Obtain necessary insurance. Protect your investment by securing appropriate insurance coverage for your short-term rental, such as liability insurance and vacation rental-specific policies.
9. Market your rental effectively. Utilize various marketing channels, including social media, to promote your listing and attract potential guests. Consider offering promotions or discounts during slower seasons.
10. Stay compliant and provide excellent service. Continuously monitor and adhere to any changes in local regulations. Respond promptly to guest inquiries and feedback, and maintain high standards of cleanliness and hospitality.

Starting a short-term rental business in Bentonville requires careful planning, compliance with regulations, and a commitment to providing a high-quality guest experience. By following these steps and seeking guidance from local authorities and professionals, you can successfully navigate the process and establish a profitable vacation rental business in this growing market.

Who to Contact in Bentonville about Short-Term Rental Regulations and Zoning?

To get accurate and up-to-date information about short-term rental regulations and zoning requirements in Bentonville, Arkansas, it's best to contact the city's Planning Department directly. This department oversees the development and enforcement of zoning ordinances, including those related to short-term rentals.

Bentonville Planning Department
Address: 305 SW A Street, Bentonville, AR 72712
Phone: 479-271-3122

Within the Planning Department, you can reach out to the following specific divisions for assistance:

Zoning Division
Phone: 479-271-3122

This division can provide guidance on zoning regulations, permitted areas for short-term rentals, and any specific zoning requirements or restrictions that may apply.

Code Enforcement Division
Phone: 479-271-3122

Code enforcement officers can answer questions about compliance with short-term rental ordinances, occupancy limits, and potential violations or complaints related to short-term rentals.

You can also try contacting the Bentonville City Clerk's Office for information on obtaining a business license or permit for short-term rental operations:

Bentonville City Clerk's Office
Phone: 479-271-3122

It may also be helpful to consult with local real estate professionals, property management companies, or legal counsel specializing in short-term rentals in Bentonville. They can provide valuable insights and guidance on navigating the specific regulations and requirements in the area.

Reaching out directly to the appropriate city departments and local experts will help ensure you receive accurate and reliable information about legally operating a short-term rental in Bentonville. Compliance with all applicable rules and regulations is crucial to avoid potential fines, penalties, or legal issues.

What Do Airbnb Hosts in Bentonville on Reddit and Bigger Pockets Think about Local Regulations?

After searching through posts on Reddit and Bigger Pockets, there are a few relevant comments from users discussing the regulations for short-term rentals in Bentonville, Arkansas:

On the r/bentonville subreddit, one user mentioned that the city has a working group looking at potential regulations for short-term rentals. They noted there are around 1,000-1,200 short-term rental properties in Bentonville, which accounts for approximately 4% of the housing stock. The user also stated that a proposal was being considered for a $25 registration fee for short-term rentals, which they viewed as a relatively low fee.

Another Reddit user commented that most members of the Bentonville City Council seem inclined to implement some form of short-term rental regulations. However, they suggested that significant public pressure and complaints would be needed to spur the council into action, as some members have ties to the real estate, construction, or banking industries, or own short-term rentals themselves.

In a Bigger Pockets forum thread, a user shared their experience acquiring a permit for a short-term rental property in Bentonville. While they did not provide extensive details, they mentioned the process involved submitting various documents and undergoing inspections to ensure compliance with regulations.

On the other hand, some hosts on these platforms indicated that they operate multiple short-term rentals in Bentonville without facing significant enforcement or crackdowns from local authorities. A few users suggested that the city's regulations are not being strictly enforced, allowing short-term rental activity to proliferate despite the official rules in place.

Overall, the sentiment among hosts on these forums seems mixed. While some acknowledge the existence of regulations and permitting requirements, others suggest that enforcement may be relatively lax, enabling short-term rental operations to continue without major legal hurdles from the city. However, it's important to note that these anecdotal accounts may not represent the full range of experiences or the potential consequences of non-compliance with local ordinances.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.