FAYETTEVILLE -- The city has hit its cap on the number of standalone short-term rentals that can operate legally.
The City Council in July set the maximum number of Type II short-term rentals allowed at 475. Type II short-term rentals are ones that have no full-time occupant and are rented out to guests most of the year. The council did not put a limit on the number of Type I short-term rentals, which have a full-time occupant and are only rented out for a portion of the year.
Owners of short-term rentals must get a business license and building safety inspection to operate legally in the city. Type II rental owners have to take the additional step of getting a conditional use permit from the Planning Commission.
Any Type II rental owners who have not gotten a business license and permit can apply on the city's website to be placed on a wait list, according to a Wednesday news release from the city. Staff will process applications on a first-come, first-served basis, the release says.
Staff will contact applicants and give them 30 days to send required information as licenses become available, according to the release. After 30 days, the license will be offered to the next applicant on the wait list, the release says.
Any Type II applications submitted to the city before the cap was reached still have a chance to complete the review process and receive a license, according to the release. Operating or advertising a short-term rental before a license is issued is prohibited and subject to penalties and utility shutoff, the release says.
Licenses for Type I short-term rentals are still available for properties where a long-term resident is present. Type I licenses require a long-term resident present at least nine months of the year and proof of Homestead Tax Credit or long-term lease agreement.
For more information, contact the city's business license clerk at (479) 575-8352 or [email protected].