Overview: Are Short-Term Rentals Allowed in Siloam Springs, AR?

Yes, short-term rentals are allowed in Siloam Springs, Arkansas. However, the city is in a transitional period regarding specific regulations for short-term rentals. As of the most recent available information (December 2023), the city was in the process of developing comprehensive short-term rental ordinances but had tabled pending legislation. Currently, short-term rentals operate under general business licensing requirements with proposed regulatory frameworks under consideration.

How to Start a Short-Term Rental Business in Siloam Springs

Step 1: Business Licensing

To legally operate a short-term rental in Siloam Springs, you must obtain a business license from the city. The city offers a specific category for "Short-Term Rental (Small Hotel / BnB)" on their business license application.

Step 2: Compliance Planning

Given that comprehensive regulations were being developed as of December 2023, prospective operators should:

• Monitor city board meetings for updates on short-term rental ordinances
• Ensure compliance with all existing zoning and housing regulations
• Stay informed about any new requirements that may be adopted

Step 3: Property Preparation

Properties must meet standard housing and safety requirements, with potential future requirements including safety inspections and occupancy limits.

Required Documents, Permits, Licenses, and Guidelines

Current Requirements (As of December 2023):

Business License Application (Required)

• Complete application form provided by the city
• Check "Short-Term Rental (Small Hotel / BnB)" category
• Business owner information
• Property address and building details
• Local 24-hour emergency contact information
• Proof of building ownership or management rights

Home Occupation License (Potentially Applicable)

• If operating from a residential property as a home-based business
• Maximum 30% of floor area utilization
• No excessive noise, dust, or disturbances
• No additional parking beyond normal residential use
• No advertising signs permitted
• No non-residential structural alterations
• No commercial deliveries requiring non-passenger vehicles
• No exterior manifestations of business activity

Proposed Requirements (Under Consideration as of December 2023):

Operating Conditions (If adopted):

• Valid business license for each dwelling unit
• Proof of hotel/motel tax remittance to city
• Safety inspection by city staff
• Posting of noise ordinance and parking restrictions
• Prohibition of special events (parties, weddings, etc.)
• Two equally accessible off-street parking spaces per unit
• Maximum occupancy of three guests per bedroom

Specific Regulations for Short-Term Rentals

Current Regulatory Status

As of December 2023, Siloam Springs does not have finalized comprehensive short-term rental regulations. The city board was considering but had tabled Ordinance 23-31, which would have implemented the following framework:

Proposed Cap System (Under Consideration):

• Annual Permit Limit: Maximum of 30 short-term rental permits approved per year
• Individual Ownership Limit: Maximum of 4 short-term rentals per person
• Grandfathering: All existing short-term rentals operating as of the ordinance date would be grandfathered in
• Housing Stock Protection: Originally proposed 1% of total housing stock limit

Operational Requirements (Under Consideration):

• Safety Compliance: Access granted to city staff for safety inspections
• Tax Compliance: Proof of hotel/motel tax remittance required
• Occupancy Limits: Maximum three guests per bedroom
• Parking Requirements: Two off-street parking spaces per unit (garages/carports ineligible)
• Event Restrictions: No special events, parties, or gatherings permitted
• Information Posting: Required posting of noise ordinance and parking restrictions

Zoning Considerations

Short-term rentals must comply with existing zoning laws. The Home Occupation License provides guidance for residential-based operations, limiting business activity to 30% of floor area and prohibiting external manifestations of business activity.

State-Level Considerations

According to available information, Arkansas state sales tax applies to the rental of lodgings, and hosts are responsible for collecting and remitting this tax.

Contact Information for Local Authority

City Hall - Business Licensing

• Address: PO Box 80 / 410 N Broadway, Siloam Springs, AR 72761
• Phone: 479-238-0927
• Services: Business license applications, home occupation licenses

Planning Department

• Senior Planner: Ben Rhoads
• Contact: Through City Hall
• Services: Zoning compliance, ordinance development

City Board

• Location: Siloam Springs City Hall
• Meeting Schedule: Regular meetings (contact City Hall for specific dates)
• Function: Final approval of ordinances and regulations

Source Pages

1. Siloam Springs Planning Commission Approves Change on Short-Term Rentals - March 3, 2023

2. Siloam Springs Business License Application - February 15, 2023

3. Board Tables Short-Term Rental Ordinance - December 13, 2023

4. Summer Vacation Rental Management - Siloam Springs Overview - General market information

5. Siloam Springs GIS Portal - Zoning Maps

Important Disclaimers and Recommendations

Regulatory Monitoring Required: The short-term rental landscape in Siloam Springs is evolving. Prospective investors should regularly monitor city board meetings and communicate with the Planning Department to stay current on regulatory developments.

Legal Compliance: Ensure full compliance with all current and future regulations. The proposed cap system and operational requirements, if adopted, will significantly impact operations.

Professional Consultation: Consider consulting with local legal and business professionals familiar with Arkansas hospitality regulations and Siloam Springs municipal requirements.

Tax Obligations: Arkansas state sales tax on lodging applies and must be collected and remitted by operators.