Houston short-term rental hosts face new permit fees and deadlines

Short-term rental (STR) operators in Houston, Texas, will need to register with the city and follow other new rules under an ordinance passed by the City Council. The regulations are designed to address STR issues such as disruptive parties and crime.

Under the law, an STR is defined as a “dwelling unit or any portion of a dwelling unit that is rented out or offered to be rented out for a period of less than 30 consecutive days.”

Operators are required to have a valid certificate of registration to operate or advertise an STR within city limits. Each unit must have a separate certificate. To apply, hosts must pay a $275 application fee plus a city administrative fee. Applicants are required to provide information including a 24-hour emergency contact, proof of ownership or permission from the owner to operate an STR, and acknowledgment that the use of the property as an STR doesn’t violate any rules or restrictions. Registration certificates are nontransferable.

Operators may apply for permits beginning August 1, 2025. That’s when the city’s STR website will go live. The site will offer a registration portal, interactive map, and a list of approved STRs. The city will also provide in-person registration at the Houston Permitting Center. A 24-hour hotline will be available for residents to report concerns about STRs, which will be routed to the appropriate city department. 

Operators have until January 1, 2026, to come into compliance. More than 8,500 STRs are already operating in Houston, according to the Houston Administration and Regulatory Affairs Department.

According to the law, STR operators must agree to the following rules:

• Display an approved registration certificate and emergency contact information at a “conspicuous location” inside the STR’s front entrance
• Comply with regulations on noise, safety, and waste disposal
• Require a minimum of one night for rentals
• Submit proof of human trafficking awareness training

STRs aren’t allowed to advertise as event spaces.

Violating the ordinance can result in a fine of up to $500 per day and revocation of the registration certificate. The law also requires STR marketplaces such as Airbnb and Vrbo to take down noncompliant listings within 10 days of notification by the city.

The ordinance requires Houston STR operators to comply with lodging tax rules. They must register for Houston hotel occupancy tax (HOT), collect the taxes from guests, and pay them quarterly.

All STRs in Texas are also subject to state hotel occupancy tax. Operators must register with the Texas Comptroller’s office, collect taxes, and file state occupancy tax returns. Registration and filing aren’t required if an STR marketplace collects all state hotel occupancy taxes for the property. Airbnb and Vrbo are already required to collect the state portion of the tax for bookings on their sites, and they also voluntarily collect Houston HOT. 

Avalara MyLodgeTax can help short-term rental hosts automate and simplify city and state lodging tax compliance, from registration to tax return filing. If you have tax questions related to Texas vacation rental properties, drop us a line and we’ll get back to you with answers. See our Texas Vacation Rental Tax Guide for more on short-term rental taxes in the state.