Hot Springs

Business license

You need a short-term residential rental business license before you advertise or rent for periods of less than 30 days.[2] It's valid for the calendar year, and each rental address needs its own license.[1, 2]

Residential cap

Residential zones are capped at 400 licenses, and the city's page, updated 7/1/2025, says new residential-zone licenses aren't available and no waitlist exists.[1] Renewals get priority, and if the count drops below 400 after May 1, the portal reopens the second Monday of July until 400 licenses are issued.[2] Non-residential zones and horizontal property regimes filed before Jan 18, 2022 sit outside the cap.[1, 2]

Special use permit

Certain residential zones and planned developments set up after Jan 18, 2022 also need a special use permit from the planning director.[2] It's tied to your license, doesn't pass with the property, and costs the same as a conditional use permit.[2] The director's decision can be appealed within 30 days.[2]

Owner holds the license

The license is issued in the owner's name, and the code defines the owner as the person with fee title, so your landlord has to apply.[2] The license lists an owner representative who manages the rental under the owner's authority.[2] Managing a rental for an owner for pay may need an Arkansas real estate license, since the state's license law covers acting for another for pay to collect rent for the use of real estate.[6]

Fee and renewal

The fee is $50 per person of maximum overnight occupancy, with a $200 minimum, so an eight-guest limit costs $400.[2] The city's tax portal lists $200 for 0 to 1 bedrooms, up to $1,600 for 15 bedrooms.[3] Renew by the first business day of January, or you owe a 10% late fee on March 1, 30% on April 1, and the license lapses May 1.[2]

Local contact

Name a local contact who is available 24/7 and can be on site within 60 minutes when asked.[2] Not responding to two or more city calls is grounds for penalties.[2]

Occupancy and parking

Overnight occupancy is two per bedroom plus two, and daytime occupancy can't pass 150% of that.[2] Provide off-street parking that meets the Title 16 residential requirements.[2]

Posting and ads

Show the license number in every ad and inside the rental.[2] Post the owner and local contact details, emergency numbers, trash rules, the noise ordinance and the good neighbor brochure in the unit.[2]

Inspection

Pass an inspection for fire and building codes and get a certificate of occupancy before the license issues, and you can inspect up to 120 days early.[2] The city's page says a city certificate of occupancy inspection is now required only if the maximum occupancy changes from what's on the license.[1]

House rules

No commercial functions or similar events are allowed.[2] Guests must follow the noise and solid waste ordinances.[2]

State taxes

Furnishing rental houses and other accommodations to transient guests is subject to Arkansas gross receipts tax.[7] Lodging also falls under the 2% tourism tax.[5] A true month-to-month rental isn't taxable if it meets the rule's tests.[7]

Sales tax rate

The county's rate sheet lists a 9.5% combined sales tax: 6.5% state, 1.5% county and 1.5% city.[4] We didn't find a page saying whether the county and city sales taxes apply to lodging, so confirm with the state revenue office.

City lodging tax

Hot Springs charges a 3% tax on gross short-term rents not already remitted by an intermediary.[3] Returns are due monthly by the 20th, even for a month with no bookings, and late payments add 5% a month up to 35%.[3]

Booking platforms

The city works with Airbnb and Vrbo, which can remit the tax on bookings made through them.[3] You still have to file the monthly form.[3]

Fines

Fines are $1,000 for a first violation, $2,000 for a second and $4,000 for each after that, plus $500 a day for continuing violations.[2]

No license

It's unlawful to advertise or run a short-term rental without a license, and violations are strict liability.[2] Operating without a license can cost you the certificate of occupancy, and the city must order water disconnection for building code violations such as failing to get one.[2]

Suspension and revocation

The city manager can deny, suspend or revoke a license for non-compliance.[2] A revoked license holder can't reapply for two years, and you can appeal to the board of zoning adjustment within 30 days.[2]

Complaints

Neighbors can file complaints online or call the 24-hour hotline at 501-621-4665.[1]

State law

Two 2025 bills on how local governments regulate short-term rentals didn't become law.[8, 9] HB1445 was withdrawn and recommended for interim study on Apr 15, 2025,[8] and HB1790 failed on third reading on Apr 8, 2025 and died on the House calendar on May 5, 2025.[9]