Denton Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Denton, Texas?

Short-term rentals (Airbnb, VRBO) are permitted in Denton, Texas, but operators must adhere to specific regulations. As of February 1, 2020, all short-term rental operators are required to apply for a Short-Term Rental (STR) Registration with the City of Denton.

The 2019 Denton Development Code outlines the regulations, including minimum standards, restrictions, and a requirement to pay a hotel occupancy tax monthly. The city enforces these regulations and provides a 24-hour complaint hotline for neighbors to report violations1.

Additionally, the 5th Circuit Court of Appeals ruled it unconstitutional for city ordinances to require short-term rental operators to have a primary residence in the city3. This decision led to Denton removing the primary residence requirement for short-term rentals5.

Starting a Short Term Rental Business in Denton

Launching a short-term rental (STR) business in Denton, Texas, involves several steps and adhering to specific regulations. Here's a streamlined guide to help you navigate the process:

Research regulations: Familiarize yourself with Denton's short-term rental regulations, as outlined in the 2019 Development Code1. These rules and restrictions ensure that operators meet certain standards and requirements.

Ensure property compliance: Make sure your property meets all necessary requirements, such as parking and floor plan standards3. This will help avoid potential issues during the permit application process.

Gather required documents: Collect all necessary documents for the permit application, including a detailed floor plan, certificate of occupancy, and proof of liability insurance3.

Submit application and fee: Submit your application and the required fee to the City of Denton1. The application can be found under "Helpful Resources" on the Short-Term Rentals page1.

Obtain annual STR permit: Once your application is approved, you will receive an annual Short-Term Rental (STR) permit3. This permit must be displayed at your property.

Register with platforms: Register your property on popular rental platforms like Airbnb and VRBO to list your property for short-term rentals3.

Comply with taxes: As a short-term rental operator in Denton, you are required to pay a hotel occupancy tax every month3.

By following these steps and adhering to Denton's short-term rental regulations, you can successfully launch and operate your STR business in the city. Remember to stay informed about any updates to the regulations, as they may change over time.

Short Term Rental Licensing Requirement in Denton

To operate a short-term rental (STR) in Denton, Texas, property owners must adhere to specific licensing requirements. Here's what you need to know:

• Registration Process: Property owners must submit an application for short-term rental registration to Development Services, located at 401 N Elm Street in Denton, Texas. Incomplete applications will not be accepted1.
• Cost and Validity: The registration fee is $100 and is valid for one year. Once the yearly permit is issued, a notice will be sent to all property owners within 100 feet of the rental property, including contact information for a 24-hour complaint hotline1.
• Regulations and Monitoring: The 2019 Denton Development Code outlines regulations for STRs, requiring property owners to meet certain minimum standards and restrictions. The city monitors properties and responds to complaints1.
• Prohibition and Tax: The regulations do not prohibit STRs, but they allow the city to monitor the properties and set certain Hotel Occupancy Tax. Short-term rentals are required to pay a hotel occupancy tax every month1.
• Enforcement: Denton strictly enforces its STR regulations, and hosts found in violation can face fines or permit revocation3.

Required Documents for Denton Short Term Rentals

The process of applying for a short-term rental (STR) in Denton, Texas involves submitting various documents to meet the city's standards and restrictions. The required documents for Denton short-term rentals include:

• Proof of ownership
• Site plans
• Floor plans
• Parking plans

These documents are essential for demonstrating compliance with the regulations outlined in the Denton Development Code1. Once the yearly permit is issued, a notice will be sent to all property owners within 100 feet of the rental property, including contact information for a 24-hour complaint hotline3. It's important to ensure that the application is complete, as incomplete applications will not be accepted by Development Services staff3.

Denton Short Term Rental Taxes

The City of Denton requires short-term rental (STR) operators to pay a hotel occupancy tax each month. The local hotel occupancy tax is 7% of taxable revenue, where taxable revenue is calculated as gross revenue less exemptions. The reporting forms and payments for the hotel occupancy tax are due by the 20th of the month following the prior 30-day reporting period. For instance, forms and taxes for March revenue are due by April 20th. Failure to make the payment by the due date may result in penalties and interest, as outlined in Chapter 10 of the Denton Development Code1.

Short-term rental operators who fail to make the payment by the due date are subject to penalty and interest. The City of Denton's Customer Service accepts payments made by check or credit card (in lobby only). It's important to note that hotel tax audits are conducted on all hotels and could include short-term rentals.

Texas wide Short Term Rental Rules

In Texas, short-term rental regulations vary by city, and the state has not enacted a comprehensive statewide framework. However, some common elements can be found in many municipalities, such as registration requirements, occupancy limits, and hotel occupancy taxes. Here are some key points to consider:

• Many Texas cities, including Denton, require short-term rental operators to register their properties and pay a monthly hotel occupancy tax14.
• The 5th Circuit Court of Appeals ruled in 2023 that it's unconstitutional for city ordinances to require short-term rental operators to have a primary residence in the city3.
• Some Texas cities, like Denton, have removed the primary residence requirement from their short-term rental ordinances5.
• Legislative efforts have been introduced to prevent cities from passing restrictions on short-term rentals, which could impact local regulations4.

In summary, Texas short-term rental rules can vary significantly between cities, and the state does not have a unified approach to regulating these properties. It is essential for operators to research and comply with the specific regulations in their area.

Does Denton strictly enforce STR rules?

Based on posts on BiggerPockets and Reddit, Denton does enforce its short Denton enforces its short-term rental (STR) regulations, ensuring that operators comply with minimum standards and restrictions2.

The city has a 24-hour complaint hotline for neighbors to report violations2. While Denton is considered relatively friendly to Airbnb hosts, some operators still face challenges due to the regulations4.

For instance, a post on Bigger Pockets mentions that some hosts have had positive experiences with the city's STR regulations, while others have had negative experiences4. Another post on Reddit suggests that some hosts in Denton operate despite the rules4.

Overall, Denton's STR regulations aim to maintain a balance between supporting the growth of short-term rentals and preserving the quality of life for residents.

How to Start a Short Term Rental Business in Denton?

To start a short-term rental (STR) business in Denton, Texas, property owners must follow a step-by-step process to ensure compliance with local regulations. Here are the detailed steps:

1. Research Regulations: Thoroughly research all short-term rental regulations in Denton to understand the requirements and restrictions outlined in the Denton Development Code1.

2. Property Compliance: Ensure your property meets all the necessary requirements, such as parking, floor plans, and any other specific standards outlined in the regulations1.

3. Gather Required Documents: Collect all the necessary documents for the permit application, including proof of ownership, site plans, floor plans, parking plans, and any other documents specified by the city1.

4. Submit Application and Fee: Complete the application for a Short-Term Rental (STR) Registration and submit it along with the required fee to the City of Denton1.

5. Obtain Annual Permit: Upon approval, obtain the annual Short-Term Rental (STR) permit from the city, which will be valid for a period of one year1.

6. Register with Listing Sites: Once the permit is obtained, register your property with STR listing sites such as Airbnb and Vrbo to start listing your property for short-term rentals1.

This process ensures that property owners can legally operate a short-term rental business in Denton, Texas, while adhering to the city's regulations and requirements.

Who to contact in Denton about Short Term Rental Regulations and Zoning?

For questions on STR rules or to submit a permit application, contact the Denton Development Services Department at 940-349-8600 or devservices@cityofdenton.com.

What do Airbnb hosts in Denton on Reddit and Bigger Pockets think about local regulations?

Hosts on Reddit and BiggerPockets feel Denton's regulations are quite restrictive:

• "Denton makes it really hard to operate STRs legally" BiggerPockets
• "The enforcement and monitoring seems over the top" Reddit
• "I wish Denton was more Airbnb friendly" BiggerPockets

So in summary, hosts find the regulations burdensome but they must comply to legally operate short term rentals in Denton.