Is Airbnb legal in Houston?

Brief Overview of Airbnb Regulations in Houston

As of 2024, Houston's regulatory landscape for Airbnb and short-term rentals (STRs) is evolving, aiming to balance the interests of hosts, residents, and local government. Central to this framework is the Hotel and Motel Ordinance, which governs short-term rentals defined as stays of less than 30 days. Here are the key components of the current regulations:

1. Registration and Permits: All short-term rental properties must be registered with the city. This registration process includes paying an annual fee (ranging from $250 to $275), providing proof of insurance, and demonstrating compliance with hotel occupancy tax obligations.

2. Safety and Building Standards: Properties must adhere to local building and housing standards that enforce minimum safety requirements, such as functioning smoke detectors, proper exits, and safe electrical systems. Regular inspections may be required to ensure compliance.

3. Taxation: Hosts are responsible for collecting and remitting a total of 13% in hotel occupancy taxes—7% to the City of Houston and 6% to the State of Texas. Accurate record-keeping is essential to avoid penalties.

4. Community Engagement: Hosts are encouraged to maintain open communication with their neighbors about their rental activities and ensure that guests comply with local rules, including noise ordinances.

5. Liability and Reporting: Hosts may face liability for criminal activities committed by guests, and properties can be subjected to enforcement actions if complaints arise. The city is considering a protocol for addressing violations, which may include fines ranging from $100 to $500.

6. Proposed Changes: The City Council is currently discussing additional regulations aimed at enhancing accountability, such as the requirement to post emergency information and occupancy limits within rental units. Ongoing public feedback is influencing these developments.

7. Enforcement: While existing regulations are in place, the city is still refining enforcement policies. Penalties could include fines, revocation of permits, and potential removal of listings from platforms like Airbnb and Vrbo for non-compliance.

As Houston continues to navigate the complexities of short-term rental management, it's essential for prospective hosts to stay updated on these changes and ensure compliance to foster a supportive relationship with the community.