The good news from the outset is that Texas does not have a requirement at the state level for special permits for STR businesses. This means you do not need to apply for a special state-level permit or license specifically for your short term rental.
Any residential property that is rented out on a short-term basis - for a period of fewer than 30 days is considered a short-term rental. Short-term rentals include homes that are listed for rent on sites such as Airbnb, VRBO Vacation Rentals, HomeAway, etc.
In Houston, all short-term rental operators must obtain a short-term rental permit before listing properties like those on Airbnb.
Texas has no blanket restrictions on short-term rentals. Prohibitions on such use must come from the HOA or the local municipality. Most restrictions on short-term rentals are stated in the HOA's declaration. The declaration is a contract to which all homeowners are parties.
There are many different types of public and commercial buildings. A general rule of thumb is that non-residential buildings and apartment complexes larger than fourplexes, and are either public or commercial.
The best way to strategize on short-term rental restrictions is to speak to a board member. At the same time, you can consult the CC&Rs' (Covenants, conditions, and restrictions) advice. Knowing the potential risks of getting around HOA's restrictions is important. And we highly recommend doing it the legal way.
The IRS considers vacation rentals to be residential real estate, so most accountants will use the 27.5-year depreciation period when calculating tax liabilities.