Overview: Are Short-Term Rentals Allowed in Little Rock, AR?

Yes, short-term rentals are allowed in Little Rock, Arkansas. The city is currently developing comprehensive regulations for short-term rentals (STRs), as evidenced by a working draft ordinance from August 2023. While specific local regulations are still being finalized, short-term rental operations are permitted and are subject to both state-level requirements and the emerging city framework.

How to Start a Short-Term Rental Business in Little Rock

1. Property Assessment and Compliance

• Ensure your property meets all zoning requirements for short-term rental use
• Verify that your property complies with building codes and safety standards
• Check homeowners association (HOA) restrictions if applicable

2. Business Registration

• Register your business with the Arkansas Secretary of State
• Obtain necessary business licenses at the local level
• Consider forming an LLC for liability protection

3. Insurance and Safety

• Secure appropriate insurance coverage for short-term rental operations
• Install required safety equipment (smoke detectors, carbon monoxide detectors, fire extinguishers)
• Ensure compliance with Americans with Disabilities Act (ADA) requirements where applicable

4. Platform Listing and Marketing

• Create listings on major platforms (Airbnb, VRBO, etc.)
• Develop marketing materials and professional photography
• Establish pricing strategies based on local market conditions

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Arkansas)

• Business License: Required for all commercial operations
• Sales Tax Permit: Must collect and remit Arkansas state sales tax
• Income Tax Registration: For reporting rental income

Local Requirements (Little Rock - Emerging Framework)

Based on the working draft ordinance, anticipated requirements include:

• Short-Term Rental Permit: City-specific permit for STR operations
• Zoning Compliance Certificate: Verification that the property is in an appropriate zone
• Safety Inspection Certificate: Demonstrating compliance with fire and safety codes
• Occupancy Limits Documentation: Establishing maximum guest capacity

Ongoing Compliance Documentation

• Regular tax filings and payments
• Guest registration records
• Incident reports (if required)
• Insurance documentation
• Annual permit renewals

Specific Regulations for Short-Term Rentals

Little Rock City Regulations (Developing)

The city is implementing a comprehensive regulatory framework that will likely include:

• Zoning restrictions limiting STRs in certain residential areas
• Permit requirements with application processes and fees
• Occupancy limits based on property size and type
• Parking requirements ensuring adequate off-street parking
• Noise and nuisance provisions protecting neighborhood character
• Safety standards including fire safety and building code compliance

Pulaski County Regulations

County-level regulations apply to properties outside Little Rock city limits:

• Standard business licensing requirements
• Health and safety code compliance
• Zoning ordinance adherence

Arkansas State Regulations

• Tax Collection: Required to collect and remit state and local taxes
• Business Registration: Must register as a business entity
• Consumer Protection: Compliance with Arkansas consumer protection laws
• Fair Housing: Adherence to fair housing regulations

Contact Information for Local Authorities

Little Rock Planning and Development Department

• Phone: (501) 371-4770
• Website: www.littlerock.gov/departments/planning-development/
• Address: Little Rock City Hall, 500 W. Markham Street, Little Rock, AR 72201

Little Rock Business License Division

• Phone: (501) 371-4850
• Website: www.littlerock.gov/departments/finance/business-license/

Pulaski County Planning Department

• Phone: (501) 340-8310
• Website: www.pulaskicounty.net/planning/

Arkansas Secretary of State (Business Services)

• Phone: (501) 682-3409
• Website: www.sos.arkansas.gov/business-commercial-services/

Arkansas Department of Finance and Administration (Tax Division)

• Phone: (501) 682-7025
• Website: www.dfa.arkansas.gov/

Important Considerations for STR Investors

Regulatory Evolution

Little Rock is actively developing its STR regulatory framework. The August 2023 working draft ordinance indicates that more specific local regulations are forthcoming. Investors should:

• Monitor city council meetings and planning commission discussions
• Subscribe to city newsletters and updates
• Consult with local attorneys specializing in real estate and business law

Market Analysis

• Research local tourism patterns and seasonal demand
• Analyze competition from hotels and other STRs
• Consider proximity to attractions, business districts, and transportation hubs

Financial Planning

• Budget for permit fees, taxes, and regulatory compliance costs
• Plan for ongoing operational expenses including cleaning, maintenance, and management
• Consider professional property management services

Community Relations

• Maintain positive relationships with neighbors
• Implement quiet hours and guest conduct policies
• Address complaints promptly and professionally

Links to Source Pages

• Little Rock Official Website: www.littlerock.gov/
• Arkansas Secretary of State Business Services: www.sos.arkansas.gov/business-commercial-services/
• Arkansas Department of Finance and Administration: www.dfa.arkansas.gov/

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Disclaimer: This guide is based on available information as of the document date. Short-term rental regulations are evolving, and investors should verify current requirements with local authorities before beginning operations. Consider consulting with legal and tax professionals familiar with Arkansas and Little Rock regulations for personalized guidance.