Hotel Occupancy Tax In addition to adhering to the above rules, Houston imposes a 7% hotel occupancy tax on short-term rentals. This local tax is in addition to the state hotel occupancy tax of 6%, making the total tax rate 13% on STR income for hosts in Houston.
Texas has no blanket restrictions on short-term rentals. Prohibitions on such use must come from the HOA or the local municipality.
Airbnb hosts in Houston enjoy significant earnings potential, with an average annual revenue of $36,400. Certain neighborhoods, like the Fourth Ward, Second Ward, and Midtown, offer above-average monthly rental income and occupancy rates, making them particularly attractive for investors.
Texas authorities do not require Airbnb properties to be licensed or permitted at the state level. Meanwhile, the majority of Texas cities have enacted their own short term rental regulations ing to which (typically annual) STR licenses, permits, or registrations are needed.
In Houston, Airbnb hosts must navigate a series of legal requirements to ensure their short-term rental complies with local laws. This involves obtaining necessary permits, adhering to safety and habitability standards, and maintaining appropriate insurance coverage.
Most HOA's won't allow for a rental less than 30 days, but you should always check with your HOA. Having short-term rentals could potentially raise the insurance for your community, passing on these costs to all the homeowners.
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.
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.
Texas has no blanket restrictions on short-term rentals. Prohibitions on such use must come from the HOA or the local municipality.