Overview: STR Status in Conway, AR

YES, short-term rentals ARE allowed in Conway, AR under specific regulations and licensing requirements. As of January 2022, all STRs operating within Conway city limits are required to obtain and maintain a Short-Term Rental License per Ordinance O-21-94.

How to Start a STR Business in Conway, AR

Step-by-Step Process

1. Verify Zoning Eligibility: Ensure your property is a legally permitted and zoned single-family dwelling
2. Obtain Required Insurance: Secure commercial liability coverage of at least $1,000,000
3. Schedule Inspections: Contact Building Inspector and Fire Marshal for initial compliance inspection
4. Apply for Licenses: Submit both STR License and A&P Tax Permit applications
5. Prepare Information Packet: Create tenant information packet with all required disclosures
6. Designate Local Representative: Appoint a local property representative available 24/7
7. Pay Annual Fees: Submit $100 STR license fee and any applicable taxes

Required Documents, Permits, and Licenses

Primary Licenses and Permits

1. Short-Term Rental License

• Annual fee: $100
• Required for each STR unit
• Must be maintained at all times
• Non-transferable between properties or owners

2. A&P Tax Permit (Advertising & Promotion)

• No charge for permit
• Required to collect 2% A&P tax on gross receipts
• Monthly reporting and remittance required

3. Certificate of Insurance

• Commercial liability policy minimum $1,000,000
• Property must be insured as Short-Term Rental
• Must be current and maintained

4. Proof of Inspection

• Fire Marshal inspection required
• Building Official inspection required
• Compliance with Arkansas Fire Prevention Code
• Initial application only (not required for renewals)

Specific Regulations for Conway, AR

Zoning and Use Requirements

• STRs may only occur in legally permitted and zoned single-family dwellings
• All other transient use must meet bed & breakfast, hotel, or motel standards
• Conway Zoning Code Section 601.29 (H) governs STR use

Parking Requirements

• One (1) off-street parking space per bedroom rented
• Where on-street parking is available, up to two (2) spaces may count toward this requirement
• Must be clearly designated and available

Occupancy and Guest Management

• Maximum occupancy must be clearly posted
• Must maintain 24/7 local property representative contact
• Representative must respond within one (1) hour to complaints
• Remedial action required to resolve issues

Information Packet Requirements

Must be placed prominently in rental property and include:

1. Maximum occupancy information
2. Noise and use restrictions
3. Off-street parking location
4. Trash storage rules and collection schedule
5. Local property representative contact information
6. Evacuation routes
7. Guest responsibility regarding compliance with regulations
8. Notification of potential fines for violations

Operational Compliance

• Collect and remit all applicable A&P taxes monthly
• Maintain current license and insurance
• Comply with all city codes and ordinances
• Respond to code enforcement issues promptly

Taxes and Financial Requirements

A&P Tax (Advertising & Promotion Tax)

• Rate: 2% of gross receipts
• Payment Schedule: Monthly
• Due Date: On or before the 20th of each month for preceding month
• Discount: 2% discount if paid by 20th of month
• Penalties: 5% penalty after 30th day, up to 35% aggregate
• Interest: 10% per annum on unpaid taxes

License Fees

• STR License: $100 annually
• Late Fees:
  • March 1: 10% late fee
  • April 1: 30% late fee
  • May 1: License revoked
• A&P Permit: No charge

Annual Renewal Requirements

• Updated License Application
• Proof of Insurance
• Local Property Representative Information
• $100 license fee
• Deadline: January 31st each year

Contact Information

Primary Contacts

City Clerk's Office (License Applications)

• Address: 1111 Main Street, Conway, AR 72032
• Phone: (501) 513-3501
• Email: denise.hurd@conwayarkansas.gov
• Hours: 8:00 AM - 12:00 PM, 1:00 PM - 4:30 PM

Building Inspections

• Email: permits@conwayarkansas.gov

Fire Marshal

• Phone: (501) 450-6148

A&P Tax Administration

• Contact: Lisa Stephens CPA, PLC
• Address: 715 Front Street, Conway, AR 72032
• Phone: (501) 327-2834
• Fax: (501) 327-6663

A&P Tax Payments

• Mail: Conway A&P Commission, PO Box 1404, Conway, AR 72033-1404
• In Person: Centennial Bank – Main Office, 620 Chestnut, Conway, AR 72032
• Online: conwayark.com > Forms and Resources > Pay A&P Taxes Online

Municipal Contact

• General City Information: (501) 450-6100
• Address: 1111 Main St, Conway, AR 72032

Enforcement and Penalties

License Enforcement

• Late renewal penalties escalate monthly
• License revocation for non-compliance
• City retains right to inspect and enforce compliance

Tax Enforcement

• Penalties and interest on unpaid A&P taxes
• Regular audits and record-keeping requirements
• Three-year record retention requirement

Source Documents

1. Short-Term Rental Initial License Info & Applications (2025)

   • media.conwayarkansas.gov/media/documents/Short_Term_Rental_Initial_License_Info__Apps_2025.pdf

2. City Announcement - STR License Requirement

   • conwayarkansas.gov/news/short-term-rentals-now-required-to-obtain-and-maintain-license/

3. Ordinance O-21-94

   • media.conwayarkansas.gov/conwayarkansas-media/archive/ordinances/2021/O-21-94.pdf

Important Note: This guide specifically addresses Conway, Arkansas regulations. The provided content also included information about Conway, New Hampshire, which has different regulations and was not included in this analysis per your instructions to focus only on Conway, Arkansas content.