El Paso County, Texas Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in El Paso County, Texas?

El Paso County, Texas currently does not have a comprehensive short-term rental ordinance in place. However, there are some county-level guidelines and ongoing discussions about potential regulations for vacation rentals like Airbnb and VRBO.

The El Paso County Planning and Community Development Department has published "Good Neighbor Guidelines" for short-term rentals. These non-binding recommendations aim to mitigate potential nuisances and encourage responsible hosting practices. Key provisions include providing neighbor contact information, limiting noise after 10pm, prohibiting excessive trash and parking, and informing guests about local laws.

While these guidelines are not strictly enforced, the county is considering stronger oversight measures. Possibilities include dedicated enforcement teams, fines for non-compliance, and a "three strikes" policy that could revoke permits for repeat offenders. However, many hosts appreciate the current hands-off approach and view El Paso as a relatively Airbnb-friendly market compared to other major Texas cities.

At the city level, El Paso is actively exploring short-term rental regulations. Proposed changes being discussed include:

• Requiring permits and collecting a 17.5% hotel occupancy tax
• Limiting the density/number of STRs operating in one area
• Implementing parking, occupancy, and site plan requirements
• Establishing quiet hours and property cleanliness standards

These potential rules have raised concerns among some short-term rental owners. They argue that new taxes and restrictions could significantly impact their businesses, costing them thousands of dollars. Hosts have voiced that the proposed hotel tax is unfair since they lack the additional revenue streams that hotels have.

City officials maintain that they are seeking to balance the interests of STR operators and the broader community. The ordinance discussions date back to 2018, with El Paso looking to join other Texas cities that have implemented STR regulations over the past decade. Community input meetings are ongoing, and the city aims to present a final recommendation to the City Council in Spring 2023.

Starting a Short-Term Rental Business in El Paso County

Given the current lack of a formal regulatory framework, the process for starting a short-term rental in El Paso County is relatively straightforward:

1. Ensure your property complies with the county's voluntary "Good Neighbor Guidelines" for vacation rentals.
2. List your rental on platforms like Airbnb, VRBO, or other STR marketplaces.
3. Collect and remit any applicable taxes, such as the potential 17.5% hotel occupancy tax being considered by the city.
4. Stay informed about ongoing policy discussions and be prepared to adapt your business model if new city or county regulations are implemented.
5. Maintain open communication with neighbors and be responsive to any concerns that may arise.

For specific questions about short-term rental zoning and regulations, contact the El Paso County Planning and Community Development Department at 915-212-0104. As the regulatory landscape continues to evolve, it's important for hosts to closely monitor the latest developments and engage in the public feedback process.

Short-Term Rental Licensing Requirements in El Paso County

Currently, El Paso County does not have a formal licensing or permitting process for short-term rentals. The county has published voluntary "Good Neighbor Guidelines" but these are not legally binding requirements.

However, STR operators in unincorporated parts of the county should be aware that certain municipalities within El Paso County do have their own licensing rules:

1. Colorado Springs requires STR permits, with different rules for owner-occupied and non-owner occupied properties. There are zoning restrictions on where STRs can operate.
2. Manitou Springs caps STRs at 2% of residential structures and requires them to be 500 ft apart. Hosts must obtain a Minor Conditional Use Permit from the planning commission and rent a minimum of 21 days per year to maintain it.

So while the county itself does not issue STR licenses, it's important to check if your property falls within a city limit that has its own regulations. Failure to comply with municipal licensing requirements can result in fines and penalties.

Additionally, all short-term rental operators in Texas must collect and remit the state's 6% Hotel Occupancy Tax:

1. For reservations booked on Airbnb or Vrbo, the platforms will collect and remit this tax on your behalf
2. For direct bookings, hosts must submit the tax themselves by the 20th day of the following month

El Paso city officials are considering implementing a 17.5% hotel occupancy tax on STRs to match what hotels pay. This has raised concerns among hosts who feel it is an unfair burden since they lack the additional revenue streams of hotels.

The city is also exploring other regulations such as:

1. Requiring city-level STR permits
2. Limiting the density/number of STRs in certain areas
3. Implementing parking, occupancy, and site requirements

These proposed changes have not been finalized yet. The city is holding community input meetings through March 2023 to gather feedback before presenting recommendations to the City Council.

To stay informed on any official county or city licensing requirements, STR operators can contact:

1. El Paso County Planning & Community Development: 915-212-0104 or [email protected]
2. El Paso City Development Customer Service: 915-212-0104 or visit the city's STR information page at www.elpasotexas.gov/short-term-rentals

In summary, while El Paso County does not currently require STR licenses, certain cities within the county do have permitting rules. All Texas STR operators must also collect state hotel taxes. Hosts should closely monitor the evolving regulatory discussions happening at both the county and city level to ensure they remain in compliance.

Required Documents for El Paso County Short-Term Rentals

Currently, El Paso County does not have a formal licensing or permitting process for short-term rentals. The county has published voluntary "Good Neighbor Guidelines" but these are recommendations, not legally binding requirements.

As such, there are no county-level documents that STR operators must submit to legally run their business. However, all hosts in Texas are required to collect and remit state hotel occupancy taxes:

Texas Hotel Occupancy Tax Permit: This permit allows you to collect the state's 6% Hotel Occupancy Tax from guests and remit it to the Comptroller's office. You can apply for the permit online through the Texas Online Tax Registration Application or submit Form AP-201 by mail.

While not mandatory, El Paso County recommends that STR operators follow these "Good Neighbor" best practices:

1. Provide a local contact person's information to neighbors
2. Limit noise after 10 PM
3. Ensure guests park in designated areas and do not block access
4. Maintain the property in good condition
5. Inform guests of any relevant local rules or restrictions

It's important to note that certain cities within El Paso County, such as El Paso and Socorro, are considering implementing their own STR ordinances. These may require city-specific permits, tax collection, and other regulations. For example:

1. The city of El Paso is exploring a 17.5% hotel occupancy tax on STRs
2. Socorro requires STRs to get an annual permit and follow occupancy limits

So while the county itself does not currently mandate any STR licenses, it's critical to check if your property falls within city boundaries that have their own rules. Failure to comply with municipal requirements can result in fines and penalties.

To stay informed on any new county or city STR regulations, you can contact:

1. El Paso County Planning & Community Development: 915-212-0104
2. El Paso City Development Customer Service: 915-212-0104 or visit the city's STR info page at www.elpasotexas.gov/short-term-rentals

As the STR regulatory landscape evolves, El Paso County hosts should diligently monitor communications from both county and city officials to ensure they have all required licenses and are meeting local standards.

El Paso County Short-Term Rental Taxes

While El Paso County itself does not currently levy any taxes specific to short-term rentals, all STR operators in Texas are required to collect and remit the state's Hotel Occupancy Tax (HOT). This tax applies to any property rented for less than 30 consecutive days.

The state HOT rate is 6% of the cost of the room, not including any food or services. For reservations booked through online platforms like Airbnb and Vrbo, the companies will automatically collect and remit this tax on behalf of the host.

For direct bookings, STR owners are responsible for collecting the 6% tax from guests and submitting it to the Texas Comptroller's office. Payments are due on the 20th day of the month following the rental period. Late payments incur a 5-10% penalty depending on how overdue they are.

In addition to the state tax, the city of El Paso is considering implementing its own HOT on short-term rentals. The proposed rate is 17.5%, broken down as follows:

• 6% State
• 2.5% El Paso County
• 2% Ballpark
• 2.5% Capital and Debt Service
• 1.5% CVB (Convention and Visitors Bureau)
• 1.5% Visit El Paso (destination marketing)
• 1.5% MCAD (Museums and Cultural Affairs Department)

If passed, this would bring the total occupancy tax on El Paso STRs to 23.5%. Some hosts have expressed concerns that this additional tax burden could make their properties less competitive compared to traditional hotels that have other revenue streams.

The city believes the tax is necessary to level the playing field and adequately fund municipal services impacted by STRs. Officials are holding community feedback sessions through March 2023 before presenting a final recommendation to the City Council.

Tax Deductions for STR Operators

Short-term rental hosts can typically deduct many of the expenses involved in running their business. Allowable write-offs may include:

• Mortgage interest and property taxes
• Maintenance, cleaning, and repairs
• Insurance premiums
• Utilities paid by the owner
• Supplies for guests (toiletries, linens, etc.)
• Fees charged by rental platforms like Airbnb
• Depreciation of furniture and appliances

The amount of the deduction depends on the percentage of the year the property is rented out. If you use the rental for personal purposes for more than 14 days a year, or more than 10% of the total rental days, you must divide expenses between rental use and personal use.

It's recommended to keep detailed records and consult a tax professional to ensure you are properly writing off STR expenses and complying with all tax obligations at the federal, state, and local levels. As El Paso's short-term rental regulations evolve, staying informed will be critical for hosts to remain in good standing.

Texas-Wide Short-Term Rental Rules

While El Paso County itself does not currently have a comprehensive short-term rental ordinance, there are several state-level laws and regulations that apply to all STR operators in Texas, including those in El Paso.

Texas Hotel Occupancy Tax

The most significant statewide requirement is the Texas Hotel Occupancy Tax (HOT). This 6% tax applies to the rental of all rooms costing $15 or more per day, for periods of less than 30 consecutive days.

For STR reservations booked through online platforms like Airbnb and Vrbo, the companies automatically collect and remit the state HOT on behalf of hosts. However, for direct bookings, property owners are responsible for collecting the 6% tax from guests and submitting it to the Texas Comptroller's office by the 20th day of the following month.

Failure to properly collect and remit the state HOT can result in penalties and interest charges. The penalty is 5% of the total tax due if paid 1-30 days late, and 10% if paid more than 30 days late. Interest accrues on delinquent taxes at a rate of 12% annually.

Other State Regulations

In addition to the hotel occupancy tax, Texas has several other laws that may impact short-term rental operations:

• Property Code Section 92.152 requires all vacation rental agreements to be in writing and include specific disclosures about owner contact information, liability, and cancellation policies.
• Property Code Chapter 156 governs the relationship between STR owners and online listing platforms like Airbnb. It prohibits platforms from facilitating bookings for unlicensed properties in cities that require permits.
• Tax Code Section 156.001 defines a "hotel" as any building offering sleeping accommodations for less than 30 days. This broad definition encompasses short-term rentals.

While these state laws provide a baseline framework, many of the key regulations governing short-term rentals in Texas are determined at the local level by cities and counties. El Paso is currently considering implementing additional rules, such as a 17.5% municipal hotel occupancy tax and potential zoning restrictions on STR density and location.

As the regulatory landscape continues to evolve, it's critical for El Paso hosts to stay informed about their obligations under both state and local law. Consulting with a legal professional and tax advisor can help ensure full compliance and minimize risk.

Does El Paso County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, El Paso County appears to take a relatively hands-off approach to enforcing short-term rental regulations compared to other major cities in Texas.

Many hosts report operating STRs in El Paso without significant pushback from the county, noting a lack of strict permitting requirements or proactive enforcement efforts. This contrasts with cities like Austin, which has implemented a more rigorous licensing system and conducts regular audits to identify non-compliant properties.

While El Paso County has published "Good Neighbor Guidelines" for vacation rentals, these are voluntary best practices rather than legally binding rules. Hosts are encouraged to follow the recommendations around noise, parking, and trash to mitigate potential nuisances, but there are no formal penalties for non-compliance.

This lenient regulatory environment has led some to characterize El Paso as an "Airbnb-friendly" market. Hosts appreciate the ability to operate without jumping through excessive hoops or facing aggressive oversight from the county.

However, it's important to note that the city of El Paso is actively exploring ways to strengthen its short-term rental policies. Proposed changes include requiring city-level permits, implementing a hotel occupancy tax, and introducing density restrictions on the number of STRs allowed in certain areas.

These potential regulations have raised concerns among some hosts, who worry that stricter rules could negatively impact their businesses. But for now, the lack of a comprehensive city ordinance means that enforcement remains limited.

So while El Paso County may not strictly enforce STR rules at present, the regulatory landscape is evolving. Hosts should closely monitor the policy discussions happening at the city level and be prepared to adapt their operations if new requirements are put in place.

In the meantime, many hosts continue to operate STRs in El Paso despite the absence of formal county-level regulations. The consensus on forums like BiggerPockets and Reddit is that the market remains relatively accommodating to short-term rentals, though this could change as the city works to implement tighter controls.

How to Start a Short-Term Rental Business in El Paso County

Starting a short-term rental business in El Paso County is relatively straightforward given the current lack of a comprehensive STR ordinance. However, it's important to follow best practices and stay informed about potential regulatory changes. Here are the key steps to get started:

• Ensure your property complies with local guidelines: While El Paso County does not have binding STR rules, they do publish "Good Neighbor Guidelines" for vacation rentals. Review these recommendations around noise, parking, trash, and being responsive to neighbor concerns. Adhering to these guidelines can help prevent issues and maintain positive community relations.
• Register for a Texas Hotel Occupancy Tax permit: All short-term rentals in Texas must collect the 6% state Hotel Occupancy Tax from guests. Apply for a tax permit through the Texas Comptroller's office. For bookings made on platforms like Airbnb and Vrbo, the companies will automatically collect and remit this tax for you. For direct reservations, you'll need to collect the tax and submit it to the state monthly.
• Create a detailed listing on STR platforms: Craft an appealing property description that highlights your rental's unique features and amenities. Use high-quality photos and include pertinent details like bed configurations, parking availability, and house rules. Be transparent about your STR's location and proximity to local attractions.
• Implement a dynamic pricing strategy: Use tools like BNBCalc to analyze market trends and optimize your nightly rates. Consider factors like seasonality, events, and competitor pricing. Don't undervalue your property, but also avoid overpricing yourself out of the market. Experiment with different rate structures to find the sweet spot for your rental.
• Automate and streamline your operations: Utilize vacation rental software to manage bookings, guest communication, cleaning, and other day-to-day tasks. Establishing efficient systems from the outset will save you time and headaches as your business grows. Consider hiring a reputable local property manager if you need extra support.
• Prioritize the guest experience: Go above and beyond to create memorable stays for your guests. Provide thoughtful touches like local treats or toiletries. Check in with guests after arrival to ensure they have everything they need. Respond promptly to any concerns that arise during their stay. Earning positive reviews is key to standing out in the competitive STR market.
• Monitor El Paso's evolving STR regulations: The county of El Paso is actively exploring ways to strengthen its oversight of vacation rentals. This could include requiring permits, implementing occupancy taxes, and introducing zoning restrictions. Regularly check the city's website and attend public hearings to stay informed. Be prepared to adapt your business if new rules come into effect.

By following these steps and remaining proactive, you can successfully launch and grow a short-term rental business in El Paso County. Focus on being a responsible operator, providing excellent guest experiences, and staying attuned to any regulatory developments. With diligence and care, you can thrive in this dynamic market.

Who to Contact in El Paso County about Short-Term Rental Regulations and Zoning?

For questions or concerns related to short-term rental regulations and zoning in El Paso County, the primary point of contact is the El Paso County Planning and Community Development Department.

You can reach them by phone at 719-520-6300 or visit their website at https://planningdevelopment.elpasoco.com/. The department's physical address is:

El Paso County Planning and Community Development
2880 International Circle
Colorado Springs, CO 80910

The Planning and Community Development Department can provide information on the county's voluntary "Good Neighbor Guidelines" for short-term rentals, as well as any updates on potential future regulations.

For questions specifically related to zoning, you can contact the El Paso County Zoning and Addressing Department at 719-520-6944.

In addition to these official resources, short-term rental hosts in El Paso County may find it helpful to connect with other local operators through online forums and communities. Some potentially useful groups include:

• The Colorado Springs Short-Term Rental Alliance (CSSTRA) Facebook group: https://www.facebook.com/groups/csstra/
• The Colorado Vacation Rental Owners (CVRO) Facebook group: https://www.facebook.com/groups/coloradovacationrentalowners/
• The AirBnB Hosting Forum on BiggerPockets: https://www.biggerpockets.com/forums/530-airbnb-hosting

These communities can be a great place to ask questions, share experiences, and stay informed about the evolving regulatory landscape for short-term rentals in El Paso County and beyond.

As always, it's important for hosts to do their own research and consult with legal professionals to ensure they are fully complying with all applicable laws and regulations. But by staying engaged with local authorities and connected to the broader STR community, El Paso County hosts can successfully navigate the challenges and opportunities of this dynamic industry.

What Do Airbnb Hosts in El Paso County on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in online real estate forums like Bigger Pockets and Reddit, Airbnb and VRBO hosts in El Paso County have mixed feelings about the potential new short-term rental regulations being considered by the city.

In a thread on the r/ElPaso subreddit titled "All dots are air bnb's….", some local residents expressed frustration with the growing number of short-term rentals in their neighborhoods. They worry that investors are snatching up available housing stock and driving up prices for regular homebuyers. One commenter said, "I can't wait until this shit dies. My neighborhood rarely has any homes come up for sale. One did this month and someone snatched it up and turned it into an Airbnb."

However, other El Paso hosts on Reddit have a more positive outlook. In response to a post on r/airbnb_hosts asking for advice about getting started with STRs in the area, one local host recommended considering properties in nearby Desert Hot Springs. They noted that this location is close to popular destinations like Palm Springs and Joshua Tree, but has lower costs and friendlier regulations. The host cautioned that bookings can be slim in the off-season summer months.

On the Bigger Pockets forums, some El Paso STR owners have expressed concerns about the city's proposed regulations, particularly the potential occupancy limits and 500-foot distance requirements between rentals. They worry these restrictions could significantly impact the viability of their businesses.

However, other hosts on Bigger Pockets are taking a wait-and-see approach, closely monitoring the ongoing policy discussions to see what changes are ultimately implemented. Many are hopeful the city can find a balanced framework that addresses community concerns without overly burdening STR operators.

At a recent city meeting covered by KTSM news, several local short-term rental owners voiced their thoughts on the proposed rules. One host, Anai J Padilla, urged officials not to compare El Paso's STR market to larger tourist destinations, arguing that many of their guests are returning residents visiting family rather than vacationers.

Another host shared that his elderly parents rent out a room in their home on Airbnb for just $30 a night to help cover property taxes. He emotionally appealed to the city not to impose burdensome new fees on small-scale operators like this.

Overall, the sentiment among El Paso County's STR host community appears to be one of uncertainty and concern as they await the outcome of the city's regulatory process. While some see proposed rules as a threat to their livelihoods, others are cautiously optimistic that a workable compromise can be reached. As the policy debates continue, hosts are making their voices heard through online forums and public meetings to help shape the future of short-term rentals in their region.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.