Do you like drama? Then you’ll love what’s happening in Bella Vista, Arkansas, right now, specifically in the short-term rental arena. If you’re an investor, you’ll need to know what’s happening, so let’s talk about that.
The drama in Bella Vista, Arkansas, is centered around the fact that Bella Vista put a cap on how many short-term rentals can exist within the city limits. But that cap has been paused for now due to a lawsuit from short-term rental property owners.
If you’re following the story, stick around, as I’ll explain everything that’s going on in Bella Vista, Arkansas.
Video:
Bella Vista Short-Term Rental Recap
If you weren’t aware, Bella Vista recently put a cap on how many short-term rentals can be owned within the Bella Vista city limits. The cap is set at 600 properties, and of course, short-term rental means anything under 30 days.
Obviously, there will be mid and long-term rentals, but this permit is specifically for short-term rentals.
All short-term rentals need permits before property owners can rent their properties. The permits ensure that they’re safe and ready to rent–you know, the usual things regarding allowing others to stay in your property in exchange for payment.
The drama involves several people not being happy about the cap for obvious reasons. They bought homes there for all the fun things, and when this came out, people were upset.
Short-Term Rental Permits Paused
Drama comes from the short-term rental cap being paused. There’s a counter-lawsuit against Bella Vista, which is forcing its hand to pause the cap until a judge decides what needs to be done in this ongoing drama.
As of August 2023, there’s no permitting process, and nothing is happening because the court needs to decide if this is the legal thing to do in Arkansas. A judge recently declared that all caps need to stop until this entire court battle is resolved.
This is seen as a good thing for those who don’t want the cap, and they’re considering this a win.
How Are They Fighting For This?
So what law are they using for this? Is the law local to Bella Vista, or is it an Arkansas state law? Before I answer that question, let me explain a little side note.
Arkansas put a law into the books that states that HOAs and POAs are not allowed to stop people from using their houses as short-term rentals. Since this law is in the books, it allows people to create a lawsuit against Bella Vista for putting a cap on how many short-term rentals there can be within the city limits.
That’s how it all happened. There’s more freedom within Arkansas to challenge city ordinances due to the state laws.
Why Did Bella Vista Do This?
The bigger question is–why did Bella Vista do this in the first place? I have two theories about this, so let’s get into them.
The first reason is that they didn’t want to have a lot of people staying in the short-term rentals going through Bella Vista all the time. About two years ago, they opened up the I-49 bypass that went around Bella Vista. Before that, a lot of traffic drove straight through the city. It was crazy, especially when I first moved to the area.
Once the bypass diverted traffic around Bella Vista, the city began growing exponentially because the only traffic going through there were those who lived in the area. This opened up several commercial spaces, businesses, and other things.
The second reason I think they did this is that they want to clamp down on an exorbitant amount of short-term rentals due to how affordable housing is there. People can buy homes, use the trails, and contribute to the economy, so they put a cap of 600 on short-term rentals.
Short-term rentals take away long-term income for the locals.
Side note: Eureka Springs did this about 2-3 years ago because it’s a heavy tourist area. The city is part of Northwest Arkansas, but it’s on the far-eastern side of NWA, and it’s wedged between Branson and NWA. So it’s a little bit like a pass-through city, but it’s a cool town with several things to do up there. But it’s difficult to build a city with only short-term rentals.
Bella Vista saw this and wanted to do the same thing. Of course, there’s some influence around hotels because, let’s be real for a minute, it’s hard to convince a hotel chain to build a $10 million in downtown Bentonville, Bella Vista, or anywhere else in NWA.
The reason for this is there are so many affordable houses in Bella Vista and most of the area, so property owners want to take advantage of that and rent their properties for short-term use.
Does This Affect Moving to Bella Vista?
So how does this affect you moving to Bella Vista? People moving to Northwest Arkansas and Bella Vista, specifically, can still take advantage of the many perks of Bella Vista. You can still buy amazing and affordable houses, take advantage of the many trail systems and lakes, and enjoy the many recreational facilities in town.
Here are several more activities you can enjoy when moving to Bella Vista:
- Pickleball courts
- Frisbee golf
- Pools
- Golf–regular and mini-golf
- Shooting ranges
There is so much going on in Bella Vista, and even with this lawsuit going on, you won’t be affected if you don’t own property that you’re trying to rent out for fewer than 30 days. If you want to move here, remember it’s an amazing place to work and play.
It really is a little slice of heaven, and it’s an amazing place to live despite this drama within Bella Vista.
Conclusion
The drama in Bella Vista might continue for a while, given the speed at which the legal system moves. And even if this lawsuit doesn’t affect you directly, it impacts whether or not you can own a property and rent it out for fewer than 30 days.
However, it’s such a great place to work and play, and if you’re interested in seeing the area, let me know. I can give you the $10 tour.