Hot Springs Short-Term Rental Regulations

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Permit & Licensing

Short-Term Residential Rental Business License

This permit type does not require primary residence.

Application Process

Apply online via the City's STR portal; requires a City Certificate of Occupancy inspection for fire/building code compliance, a labeled floor plan, and (in residential zones) an approved Special Use Permit before the license application is eligible for review.

Tax Obligations

Combined rate: 14.5% of gross rental income.

Collection: Owner/operator must collect and remit applicable taxes on all gross receipts from the transient use site

Rental Limits

Hot Springs does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Overnight occupancy limited to 2 persons per bedroom plus 2; daytime (non-overnight) occupancy may not exceed the overnight maximum plus 50%

Zoning & Restrictions

STRs require a city business license citywide. Properties in residential zoning districts (RR, RS, RN-1 through RN-6) must first obtain a Special Use Permit from the Planning & Development Director; non-residential zones (C-TR, CN, CMU, CG, CBD, IL, IH, IMU) do not need one. The number of STR licenses allowed in residential zones is capped at 400 per calendar year (reduced from 500, effective Jan. 1, 2023); non-residential zones and certain pre-existing condos/horizontal property regimes are exempt from the cap.

Insurance & Safety

Insurance

Hot Springs does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Certificate of Occupancy inspection required to confirm fire and building code compliance before licensing
• Local contact person must be available 24/7 and able to be physically present at the property within 60 minutes of a complaint
• Posted signage/info required inside the unit: owner/local contact info, emergency numbers, parking limits, trash pickup schedule, noise ordinance copy, Good Neighbor Brochure

Penalties for Non-Compliance

• $1,000 for the first offense or violation
• $2,000 for the second offense or violation
• $4,000 for each subsequent offense or violation
• $500 per day for each day a continuous violation persists

Compliance Checklist

Follow these steps to legally operate a short-term rental in Hot Springs:

1. Meet safety requirements. Certificate of Occupancy inspection required to confirm fire and building code compliance before licensing. Local contact person must be available 24/7 and able to be physically present at the property within 60 minutes of a complaint. Posted signage/info required inside the unit: owner/local contact info, emergency numbers, parking limits, trash pickup schedule, noise ordinance copy, Good Neighbor Brochure.
2. Apply for Short-Term Residential Rental Business License. Submit application + $200 minimum ($50/person/year) fee.
3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
4. Collect and remit taxes. 14.5% on all bookings.
5. Renew annually. $200 minimum ($50/person/year) renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Hot Springs?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Hot Springs requires a Short-Term Residential Rental Business License.

Does Hot Springs require a short-term rental to be your primary residence?

No. Hot Springs allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Hot Springs?

Hot Springs does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Hot Springs?

Short-term rental stays in Hot Springs are subject to a combined 14.5% in lodging taxes. This combines 6.5% Arkansas State Sales & Use Tax + 2% Arkansas State Parks & Tourism Tax + 1.5% Garland County Sales Tax + 1.5% Hot Springs City Sales Tax + 3% Hot Springs Advertising & Promotion (A&P) Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Hot Springs?

Operating without a permit can cost up to $500 per day for continuing violations.