Regulations, new taxes likely on the way for Airbnbs and home-sharing apps in Conway
New regulations on Airbnbs could be coming to Conway in 2020, and on Monday city council was briefed on what the changes might look like.
Earlier this year the city received complaints about renters of an Airbnb, so a committee of council instructed staff members to look at how other cities have handled the rise of short-term rentals and home stays in private homes. The complaint came from neighbors of a property in Conway that reportedly had renters openly using illicit drugs and foul language in a residential area.
Services like Airbnb allow a homeowner to rent part or all of their homes typically using special applications on smartphones. Potentially, anyone can rent the property as long as they have a valid identification card. Airbnb is maybe the most popular of these applications, but any short-term home sharing app will be regulated if the ordinance is approved.
No decision was made at Monday’s meeting of City Council. Outgoing Council Member Tom Anderson asked the vote be deferred until the newly elected council members had a chance to add input to the proposed ordinance.
Still, council debated the unapproved draft ordinance. The city currently has no regulations on the services.
Making short-term renters apply for a business license is a key part of the new regulations. It will open up the properties to accommodations taxes, city review and increased oversight. The homes must be a primary residence and officially permitted.
If caught operating a short-term rental without a business license or in a way that violates the rules, the homeowner could be held liable for violating Conway’s unified development ordinance.
Regulating this new trend in home renting has been a challenge cities across America have faced. To council member William Goldfinch, the city needs to do something to help protect the neighbors of the rentals.
“I hate regulations … but I recognize to some extent it is necessary,” he said.
Anderson said he would ideally like to see the city reserve the right to inspect any homes looking to be a short-term rentals. He is worried a home could get a business license without being a totally safe place for people to live in.
Making them register for a business license could make it look like the city is guaranteeing the short-term rentals will be safe, Council Member Jean Timbes added. She would also like to make sure the city isn’t permitting something that is unsafe for visitors to the city.
These rentals will also be subject to all other city regulations, Council Member Shane Hubbard said, which would give police the authority to get involved if drug users or other rule breakers occupy the home.
The city could revisit the issue on Jan. 6, which will also be Justin Jordan’s and Alex Hyman’s first meeting as city council members.
This story was originally published December 3, 2019 at 7:00 AM.
