Rental activity within the Police Jurisdiction and City Limits of Fairhope requires a business license from the City of Fairhope. If you rent your property for a term of less than 180 days, you are also liable for lodging tax.

What ordinance pertains to this?

Ordinance 1233, Chapter 8: The Business Licenses, Taxes and Regulations ordinance

When was this ordinance passed?

The ordinance became effective Jan. 1, 2005.

What are the licensing requirements and fees?

Licenses fees start at a minimum of $100 inside City Limits and half of that in the Police Jurisdiction.

The fees are due on the first of January every year.

What happens if I’m not compliant?

Any person, firm or corporation who operates a business without first obtaining a license will be assessed a $50 fee in addition to the regular license cost and any other penalties provided for in the fee schedule.

What if I have multiple rental properties?

Business licenses are location specific. You must obtain a business license for each rental property you own.

How do I obtain my business license?

Submit business license application to the City of Fairhope, P. O. Box 429, Fairhope, AL  36533. For questions contact Jennifer Olmstead, Revenue Officer, City of Fairhope, 251 928-2136

Short-term Rentals?

Includes any person, firm, entity, partnership, trust, corporation, association or organization that is renting a dwelling for less than 30 days are not allowed in R-1, R-2, R-3 zoning districts.  Short-Term Rentals shall only be allowed in the R-4, R-5, B-1, B-2, B-3a and B-3b zoning districts.  Short-Term Rentals shall be subject to the Business License Code of the City of Fairhope.

 Short Term Rental Ordinance [PDF]