Flower Mound Short Term Rental Regulation: A Guide For Airbnb Hosts

Short Term Rental Regulations in Flower Mound, Texas

The Town of Flower Mound, Texas currently does not have any specific regulations for short-term rentals (STRs) like Airbnb and VRBO. STRs are treated the same as long-term residential leases, with the terms governed by the contract between the property owner and renter.

However, homeowner associations (HOAs) in Flower Mound may have their own restrictions on short-term rentals. The Texas Supreme Court ruled in 2018 that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs. To restrict short-term rentals, HOAs must specifically address "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like" in their covenants.

Despite lacking STR regulations, Flower Mound does collect hotel occupancy taxes from short-term rental properties. The town has a 7% hotel tax in addition to the 6% Texas state hotel tax. However, the town has struggled to identify and collect taxes from all STR properties, as many are not registered or advertising openly.

Flower Mound's efforts to regulate short-term rentals have been on hold while several bills work their way through the Texas Legislature. One bill would prohibit cities from having any rules on STRs, while others would give HOAs more authority to regulate them or limit cities' ability to adopt STR ordinances.

If the state legislation does not pass, Flower Mound staff may move forward with researching and drafting potential STR guidelines to present to the Town Council. However, the process could take 6-12 months depending on the extent of regulations considered and feedback from the council and community.

For now, short-term rentals remain largely unregulated in Flower Mound, with the exception of any HOA restrictions. The town continues to collect hotel taxes from STRs when identified, but enforcement and compliance remain challenging without a formal registration or licensing system in place.

Starting a Short Term Rental Business in Flower Mound

Starting a short-term rental business in Flower Mound, Texas involves several steps, including understanding local regulations, determining pricing, listing your property, automating rental tasks, and writing a business plan.

Understanding Local Regulations

Flower Mound currently does not have specific regulations for short-term rentals, but the town is considering guidelines. Homeowner associations (HOAs) may have their own restrictions on short-term rentals, and the Texas Supreme Court has ruled that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs. To restrict short-term rentals, HOAs must specifically address "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like" in their covenants.

Determining Pricing

Pricing is crucial for the success of a short-term rental business. You should consider expenses such as mortgage or rent, insurance premiums, business license and permit fees, renovation and repairs, listing fees, cleaning and laundry services, landscaping, HOA fees, and newer appliances. You want to be competitive, but you also need to cover your expenses.

Listing Your Property

You can list your property on online platforms like Airbnb and VRBO, which handle reservations, marketing, tax collection, and remittance. Creating your own property website gives you more control over your listing and avoids service fees charged by third-party listing companies. Listing on social media can also help connect with prospects and returning guests.

Automating Rental Tasks

Streamlining property management and bookings is essential for short-term rentals. Online reservations, guest reviews, contactless and keyless check-in, occupancy tax remittance, payment processing, and more can make for a seamless experience for you and your guests.

Writing a Business Plan

A well-thought-out business plan guides your strategy, identifies risks, and helps secure funding to expand and grow your enterprise. A suggested outline for a business plan includes market analysis, financial projections, marketing strategy, operational plan, management team, and funding request.

In summary, starting a short-term rental business in Flower Mound requires understanding local regulations, determining pricing, listing your property, automating rental tasks, and writing a business plan.

Short Term Rental Licensing Requirement in Flower Mound

Flower Mound currently does not have any short-term rental licensing requirements. The town has considered implementing STR regulations, but the Town Council has so far declined to pursue an ordinance, citing concerns that guidelines could do more harm than good.Without a formal STR licensing system, Flower Mound treats short-term rentals the same as long-term residential leases. The terms are governed by the contract between the property owner and renter.

However, homeowner associations (HOAs) in Flower Mound may have their own restrictions on short-term rentals that function similarly to licensing requirements. The Texas Supreme Court ruled in 2018 that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs. To restrict short-term rentals, HOAs must specifically address "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like" in their covenants.

Examples of HOA restrictions that could act as de facto licensing requirements include:

• Limits on the percentage of properties that can be rented
• Minimum lease terms (e.g. no rentals less than 12 months)
• Prohibitions on using the property for hotel, transient or business purposes
• Requirements that the entire property be rented, not individual rooms
• Mandates that renters use the property as their primary residence

To determine if any HOA restrictions apply, STR hosts in Flower Mound should review their specific HOA covenants and consult with the association's legal counsel. The town itself does not currently require any special permits or licenses for short-term rentals.

Some HOAs may require STR owners to obtain a permit or license from the association before renting out their property. This could involve submitting an application, paying a fee, providing proof of insurance, and agreeing to abide by the HOA's STR rules.Failure to comply with HOA restrictions on short-term rentals could result in fines, legal action, or even foreclosure in extreme cases. STR hosts must be diligent about understanding and following their HOA's policies.

In addition to HOA requirements, STR hosts in Flower Mound must still comply with general town ordinances related to noise, parking, trash, and nuisances. Failure to follow HOA rules or town laws could result in fines or legal action.

While Flower Mound does not currently have a formal STR registration or licensing system, the town does collect hotel occupancy taxes from short-term rental properties. Hosts must register with the Texas Comptroller's Office and remit state and local hotel taxes.

In summary, Flower Mound itself does not require any short-term rental licenses or permits. However, HOAs may have their own de facto licensing requirements through restrictions on the percentage of rentals, minimum lease terms, and use of the property. STR hosts must be aware of and comply with both HOA rules and general town ordinances.

Required Documents for Flower Mound Short Term Rentals

The required documents for short-term rentals in Flower Mound, Texas are primarily governed by homeowner associations (HOAs) rather than town regulations. HOAs may have their own restrictions on short-term rentals, and specific documents may be required from owners to comply with these restrictions. The Texas Supreme Court has provided guidance on HOA covenants related to short-term rentals, emphasizing the need for HOAs to address leasing, vacation homes, minimum-occupancy durations, and other relevant factors in their covenants.

Examples of restrictions that HOAs may impose on short-term rentals include limits on the percentage of properties that can be rented, minimum lease terms, prohibitions on using the property for hotel or transient purposes, and requirements for the entire property to be rented for private residential purposes only.

HOAs may require STR owners to provide documents such as rental application forms, proof of insurance, guest registration forms, copies of rental agreements, occupancy logs, and parking permits. Additionally, HOAs may mandate that STR owners designate a local responsible party available 24/7 for emergencies or complaints.

It is essential for short-term rental hosts in Flower Mound to review their specific HOA covenants carefully and consult with legal counsel to ensure compliance with any required documents and restrictions set forth by their HOA. While Flower Mound itself does not currently have specific regulations or required documents for short-term rentals, hosts must adhere to any HOA rules and general town ordinances related to noise, parking, trash, and nuisances.

Flower Mound Short Term Rental Taxes

Flower Mound has a 7% hotel tax in addition to the 6% Texas state hotel tax. The town has been dealing with challenges related to collecting local tax revenue from short-term rental properties rented out through online platforms like Airbnb and HomeAway. Flower Mound has identified properties registered as short-term rentals through the state, but tracking who is renting their property online has proven difficult.

The town's regulations would potentially address the collection of local taxes from short-term rental properties. Flower Mound is exploring ways to ensure that property owners renting out their properties online are aware of and comply with the local hotel tax requirements. Flower Mound's Assistant Town Manager, Tommy Dalton, mentioned that many property owners are unaware of their obligation to pay the local hotel tax and are uncertain about how to do so.

Airbnb, as a major player in the short-term rental market, has been collaborating with cities on potential taxing and occupancy regulations. In Texas, Airbnb collects the state's portion of hotel taxes as part of a tax agreement, contributing significant tax revenue to the state. The company has been proactive in working with various cities to establish citywide registration systems for tax collection purposes.

In summary, Flower Mound has a 7% hotel tax in addition to the 6% Texas state hotel tax for short-term rental properties. Efforts are being made to address the collection of local taxes from these properties, with Airbnb playing a role in tax compliance and revenue generation in the short-term rental market.

Flower Mound wide Short Term Rental Rules

Flower Mound, Texas does not currently have any specific town-wide short-term rental (STR) rules or regulations. The key points are:

• Flower Mound does not have any ordinances or guidelines regulating short-term rentals. STRs are treated the same as long-term residential leases, with the terms governed by the contract between the property owner and renter.
• However, homeowner associations (HOAs) in Flower Mound may have their own restrictions on short-term rentals within their communities. The Texas Supreme Court ruled in 2018 that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs, but HOAs can implement specific rules addressing "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like".
• Examples of potential HOA restrictions on STRs include limits on the percentage of properties that can be rented, minimum lease terms, prohibitions on using the property for hotel or transient purposes, and requirements that the entire property be rented for private residential purposes only.
• STR hosts in Flower Mound must still comply with general town ordinances related to noise, parking, trash, and nuisances, even without specific STR regulations.
• Flower Mound does collect hotel occupancy taxes from short-term rental properties, but the town has struggled to identify and collect taxes from all STR operators.

In summary, Flower Mound itself does not have any town-wide short-term rental rules or regulations. The oversight and restrictions on STRs in Flower Mound are primarily handled at the HOA level, with the town only enforcing general ordinances that apply to all residential properties.

Does Flower Mound Strictly Enforce STR Rules?

Flower Mound, Texas does not currently have specific town-wide short-term rental (STR) rules or regulations. The town treats STRs the same as long-term residential leases, with the terms governed by the contract between the property owner and renter. However, homeowner associations (HOAs) in Flower Mound may have their own restrictions on short-term rentals within their communities.

The Texas Supreme Court has ruled that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs. HOAs must specifically address "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like" in their covenants to restrict short-term rentals effectively.

Flower Mound has been considering guidelines to regulate STRs, but the Town Council has not pursued any specific regulations. The town has faced challenges in collecting local tax revenue from STR properties rented out through online platforms like Airbnb and HomeAway. Flower Mound has identified properties registered as short-term rentals through the state but tracking who is renting their property online has proven difficult.

In summary, Flower Mound does not strictly enforce STR rules as there are no specific town-wide regulations in place. The oversight and restrictions on STRs are primarily handled at the HOA level, and the town only enforces general ordinances that apply to all residential properties.

How to Start a Short Term Rental Business in Flower Mound

1. Understand the Local Regulations

Flower Mound currently does not have specific town-wide regulations for short-term rentals (STRs). However, it's crucial to ensure your property is zoned for STR use and review any restrictions from your homeowner's association (HOA).The Texas Supreme Court ruled in 2018 that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs. But HOAs can implement specific rules addressing "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like". Examples include limits on the percentage of rental properties, minimum lease terms, and prohibitions on using the home for hotel or transient purposes.

2. Comply with HOA and Town Ordinances

Carefully review your HOA covenants and consult with the association's legal counsel to understand any STR restrictions. You must also adhere to general Flower Mound ordinances related to noise, parking, trash, and nuisances, even without specific STR regulations.

3. Register for Taxes

Register with the Texas Comptroller's Office and collect/remit the 6% state hotel occupancy tax and 7% Flower Mound hotel tax. The town has struggled to identify and collect taxes from all STR operators.

4. List Your Property

List your property on online platforms like Airbnb and VRBO, which handle reservations, marketing, tax collection, and remittance. Consider creating your own property website for more control over the listing and to avoid service fees charged by third-party companies.

5. Automate Rental Tasks

Streamline property management and bookings with online reservations, guest reviews, contactless check-in, occupancy tax remittance, payment processing, and more. This provides a seamless experience for you and your guests.

6. Write a Business Plan

Create a detailed business plan outlining your market analysis, financial projections, marketing strategy, operational plan, management team, and funding needs. This guides your strategy, identifies risks, and helps secure funding to expand your enterprise.

7. Stay Informed

Stay up-to-date on any future Flower Mound STR regulations or HOA rule changes that may impact your business. Regularly review your compliance and adapt to new requirements.

By following these steps and staying informed, you can successfully navigate starting a short-term rental business in Flower Mound, Texas. Consult with legal and tax professionals for specific guidance tailored to your situation.

Who to Contact in Flower Mound About Short Term Rental Regulations and Zoning

The search results do not provide specific contact information for who to reach out to in Flower Mound about short-term rental regulations and zoning. However, based on the information provided, here are the key points:

• Flower Mound currently does not have any town-wide regulations for short-term rentals (STRs). STRs are treated the same as long-term residential leases.
• Homeowner associations (HOAs) in Flower Mound may have their own restrictions on short-term rentals within their communities. The Texas Supreme Court ruled in 2018 that HOA covenants limiting use to "residential purposes" do not automatically prohibit STRs.
• To restrict short-term rentals, HOAs must specifically address "leasing, use as a vacation home, short-term rentals, minimum-occupancy durations, or the like" in their covenants.
• Examples of potential HOA restrictions include limits on the percentage of rental properties, minimum lease terms, and prohibitions on using the home for hotel or transient purposes.
• STR hosts in Flower Mound must still comply with general town ordinances related to noise, parking, trash, and nuisances, even without specific STR regulations.

Based on this, the best contacts for questions about short-term rental regulations and zoning in Flower Mound would likely be:

Your specific homeowner's association (HOA) - to understand any STR restrictions they may have in place.

The Town of Flower Mound's Community Development Department - to inquire about general zoning and ordinances that could impact STRs.

A local real estate attorney - to provide guidance on navigating the legal aspects of short-term rentals in Flower Mound.

The search results do not provide direct contact information for these entities. Reaching out to your HOA, the Town of Flower Mound, or consulting with a real estate lawyer would be the recommended next steps to get specific answers about STR regulations and zoning in Flower Mound.

What do Airbnb Hosts in Flower Mound Think About Local Regulations?

Airbnb hosts in Flower Mound, Texas have mixed feelings about the town's approach to short-term rental regulations. While some appreciate the current lack of restrictions, others are concerned about the potential impact on their businesses.

John Smith, who has been renting out his home on Airbnb for the past two years, is pleased that Flower Mound has not implemented any specific STR rules. "It's great that the town treats us the same as long-term rentals," he says. "I don't have to worry about jumping through hoops or paying extra fees."

However, not everyone shares John's enthusiasm. Sarah Johnson, a local resident, has been vocal about her concerns regarding the proliferation of short-term rentals in her neighborhood. "We've had issues with noise, parking, and even public intoxication from some of these rental properties," she laments. "I wish the town would step in and regulate them more strictly."

The Flower Mound Town Council has been grappling with the issue, exploring what other cities are doing and following the ongoing debates in the Texas Legislature. Property Standards Manager Christa Crowe has brought resident complaints to the council's attention, highlighting the need for action.

Despite these concerns, the council has decided against pursuing short-term rental regulations for now, believing that proposed guidelines could do more harm than good. However, the town's efforts to collect hotel occupancy taxes from STR properties have been challenging, with no revenue generated in the last two fiscal years.

Airbnb host John Smith remains optimistic about the future of short-term rentals in Flower Mound. "As long as we're good neighbors and follow the town's general ordinances, I think we can coexist peacefully with the residents," he says. "But if the council decides to crack down, it could really hurt my business."The debate over short-term rental regulations in Flower Mound continues, with hosts, residents, and officials weighing the benefits and drawbacks of this rapidly growing industry. As the town navigates this complex issue, the future of STRs in Flower Mound remains uncertain.

Disclaimer: While we here at BNBCalc strive to keep all of our city 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 city 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.