Open Letter to The Residents of Bentonville, Mayor of Bentonville, Bentonville City Council, and Hoteliers of Bentonville 

From: Jeremy Rose, Owner of The Bike Inn, Bentonville

Dec 5, 2024,

Dear Bentonville Residents, Mayor, City Council Members, and Fellow Hoteliers, 

I am writing to bring to your attention an issue of critical importance to the future of Bentonville’s housing market, tourism economy, and community fabric. As the owner of The Bike Inn, a business operating in a commercial zone and offering transient lodging to visitors, I have observed first-hand the challenges posed by the lack of regulation on short-term rentals (STRs) in our city. Through this letter, I aim to highlight why thoughtful STR regulation is essential for Bentonville and how other cities’ policies can serve as a model for our own. 

The Discrepancy Between Business and Residential STRs 

Operating a transient lodging facility (rentals less than 30 days) in Bentonville’s business zones requires adherence to strict regulations, including obtaining a business license, meeting stringent safety and occupancy standards, and paying lodging taxes. These requirements ensure compliance with laws that protect guests, support the local economy through tax contributions, and maintain operational standards. 

However, residentially zoned STRs, often listed on platforms like Airbnb, operate under minimal oversight. This discrepancy places commercial STR operators at a significant disadvantage. Residential STR hosts often bypass business licensing, lodging taxes, and occupancy restrictions. As a result, the playing field is far from level, penalizing those who have invested in and complied with Bentonville’s business regulations. 

Why Other Cities Regulate STRs

Cities across the U.S. with outdoor recreation-driven economies have implemented STR regulations to balance the benefits of tourism with the needs of their local communities. Here are a few examples: 

• Aspen, CO: Requires STR permits and zoning compliance to preserve housing stock for residents.
• Bend, OR: Mandates permits and spacing requirements to prevent neighborhood oversaturation.
• Moab, UT: Limits new STR permits and enforces operational guidelines to control housing costs.
• South Lake Tahoe, CA: Bans STRs in residential areas to maintain neighborhood integrity. 

The common thread among these cities is the recognition that unregulated STRs can have far-reaching consequences. By learning from their experiences, Bentonville can craft policies that protect residents, support local businesses, and sustain tourism. 

The Consequences of Unregulated STRs 
Allowing STRs to operate without oversight has significant negative impacts on communities: 

• Hyper-Inflated Housing Costs: The conversion of residential homes into investment properties drives up housing prices, making it increasingly difficult for local workers to afford to live in the city.
• Loss of Community Cohesion: With homes frequently rented to transient visitors, neighborhoods lose their sense of connection and identity.
• Erosion of Workforce Availability: Rising housing costs force workers to move further away, creating labor shortages that affect local businesses.
• Increased Crime: Unregulated STRs can lead to increased disturbances, noise complaints, and even criminal activity due to the lack of accountability.  

A Path Forward for Bentonville

To address these issues, Bentonville should consider implementing the following measures: 

• STR Licensing: Require all STR operators to obtain a business license and meet health and safety standards, regardless of zoning.
• Zoning Restrictions: Limit STRs in residential neighborhoods or impose caps to prevent oversaturation.
• Tax Compliance: Ensure all STR operators collect and remit lodging taxes.
• Community Input: Involve residents and business owners in shaping STR regulations to reflect Bentonville’s unique needs. 

By adopting these measures, Bentonville can create a fair and sustainable STR ecosystem that benefits visitors, businesses, and residents alike. 

Conclusion 

Bentonville’s identity as a vibrant, welcoming, and thriving community is at stake. By addressing the challenges posed by unregulated STRs, we can preserve what makes our city special while ensuring that tourism continues to be a cornerstone of our economy. I urge you to take a hard look at this issue and consider implementing regulations that align with the best practices of other cities. 

Thank you for your time and attention to this matter. I look forward to working together to create a better future for Bentonville. 

Sincerely, 

Jeremy Rose
Owner, The Bike Inn Bentonville, Arkansas