Houston extends short-term rental registration deadline to October 1

Short-term rental (STR) operators in Houston, Texas, now have until October 1 to register with the city. Under a new STR law passed in April, registration was originally scheduled to start August 1, but the city has faced technical challenges with its new registration system. Enforcement of the ordinance begins January 1, 2026.

The new regulations are designed to address STR issues including disruptive parties and crime. The law defines an STR as a dwelling unit offering rentals 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. 

STR operators must also 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.

Meanwhile, in Dallas, an appeals court recently upheld an earlier court ruling prohibiting Dallas from enforcing a law limiting where STRs can operate. A judge suspended enforcement of that ordinance in 2023 until a lawsuit challenging the rules was decided, meaning there’s now no STR law in force.

The city hasn’t commented on the latest ruling, but Dallas STR hosts are looking for clarity on how they should operate. They say they’d like to work with the city to develop another legal framework for STR operation ahead of the World Cup, which will be hosted in Dallas and other cities in 2026. That event is expected to bring an influx of visitors looking for accommodations.

Texas STR operators are required to follow lodging tax rules. All STRs in Texas are subject to state hotel occupancy tax (HOT). Operators must register with the Texas Comptroller’s office, collect taxes, and file state occupancy tax returns. Airbnb and Vrbo are required to collect the state portion of the tax for all bookings on their sites. Operators don’t need to register with the state or file state HOT returns if an STR marketplace collects all state lodging taxes for their properties. 

Local tax rules also apply. Houston operators must register for Houston HOT, collect the tax from guests, and pay it quarterly. In Dallas, lodging tax regulations are separate from the STR ordinance that was struck down, and Dallas STR operators are required to register with the city for an occupancy tax license, collect city lodging taxes from guests, report collections, and pay the taxes to the city. Airbnb and Vrbo collect occupancy taxes for Houston listings, but not for those in Dallas. STR operators are responsible for any lodging taxes not collected on their behalf.

Avalara MyLodgeTax can help Texas STR 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 vacation rental tax guide for more on lodging taxes in the state.