New Rules Set for Holiday Island Short-Term Rentals

The Holiday Island City Council recently approved a new ordinance to regulate short-term vacation home rentals within the city limits. The ordinance aims to balance the interests of full-time residents with the booming short-term rental market. Here's an overview of the key provisions of the new regulations:

Permits Required Property owners must obtain a conditional use permit that is reviewed and approved by the Holiday Island Planning Commission. Permits must be renewed annually and are subject to compliance reviews. The permit fee is $150 initially, but renewals are free if the owner has a current business license.

Occupancy Limits Maximum occupancy of rental units is restricted based on the number of bedrooms, capped at three guests per bedroom plus two additional guests. Occupancy must adhere to limits set in the Arkansas Fire Prevention Code. This aims to reduce noise, parking congestion, and other impacts of overcrowded rentals.

Parking Rules On-street parking is prohibited due to the narrow streets on the island. Unless the Planning Commission grants an exception, rentals must provide adequate on-site parking. This promotes public safety and avoids blocked access for residents and emergency vehicles.

Inspections and Fines City officials may inspect rental properties in response to safety complaints. Violations can result in fines from $250 for a first offense up to $1000 for a third offense and permit revocation. This allows code enforcement to take action against problem properties.

Emergency Passage Despite passing on the first reading, the ordinance was approved with an emergency clause without the customarily required second and third readings. The Council felt it essential to get regulations in place promptly to maintain neighborhood character.

Business License Rules Tabled A related proposal to update business license regulations was tabled for consideration at a future meeting. The Council wanted to tackle short-term rental rules first.

According to Mayor Dan Kees, the intent of the ordinance is not to discourage vacation rentals but rather to give the city some control to protect residents' health, safety and neighborhood quality. He believes the rules will help prevent problems without hampering the local rental industry.

As short-term rentals continue to proliferate through home sharing sites like Airbnb, communities across the country are grappling with regulating this new trend while balancing economic benefits with quality-of-life concerns. Holiday Island now joins the many cities and towns setting local rules to enforce standards for these pseudo-hotels operating in residential areas.

With tourism on the rise in many regions, cities have the challenging task of balancing economic growth from short-term rentals with the need to preserve neighborhood character and housing availability for long-term residents. Implementing permit systems, occupancy limits, and other regulations can be a fair compromise. But effectively enforcing these rules once in place remains an ongoing challenge.