STR Business License Requirements

STR licenses are valid for the calendar year in which they are issued.

Each STR license application must:

  • 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.
  • 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.
  • 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.

Required Attachments with 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. Below are the required attachments:

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

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. Beginning Jan. 1, 2023, the Residential Zone cap will be 400. If there are more than 400 STR licenses in residentially zoned districts on Jan. 1, such licenses that exceed the 400 are subject to annual renewal. 

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.