The City of Houston plans to impose regulations on the short-term rental market, like registering property with the city and paying a fee starting at $250-$275. The market includes properties on websites like Airbnb and the Expedia Group, as well as landlords and neighbors in certain neighborhoods.
Other requirements include complying with the Code of Ordinances regarding noise and sound levels, solid waste and litter control requirements, paying a hotel occupancy tax, and having a $1 million liability insurance policy effective during rental availability.
“We don’t want to ban short-term rentals because that would be illegal and unconstitutional,” said city council member Julian Ramirez. “What we want to do is get at the bad actors, the folks who are not following the rules, who are allowing tenants to disrupt the lives of others in the neighborhood who are conducting illegal activities out of the short-term rentals.”
A survey conducted through a portal said out of 188 responses, 58% support and 42% oppose the regulations.
Short-term rental owners must provide emergency information and can face fines for violations. Credit: Getty
Other requirements
The regulations require short-term rental owners to disclose the
maximum number of occupants,
emergency and non-emergency information,
the address to the nearest hospital or urgent care,
location of the nearest fire station,
floor plan with evacuation routes and safety measures,
a 24-hour emergency contact person, and
A conspicuous location, among others.
The guide says short-term rental (STR) registrations can also be revoked under certain circumstances, including failure to report timely payments of taxes and insurance and convictions of the owner, operator, or occupant for offenses like kidnapping, unlawful restraint, human trafficking, prostitution, and sexual assault, among several.
Violations would also be punished with a fine of $100-$500 for each violation, and each day a violation continues would be considered a separate violation. If an STR owner fails to list a certificate of registration number, if the registration number is invalid or expired, or if the certificate of registration has been revoked, the property will be delisted within 10 business days after receiving the city’s notification.
What stakeholders said
Landlords have expressed concerns over delays in registration approvals and enquired if homes can be rented while approvals are pending. Another asked if the city would consider an amendment grandfathering those who already pay Hotel Occupancy Taxes (HOT) so they can continue operating until they receive their certificates.
Also, since landlords do not get receipts from the platforms for paying these taxes, what proof can be offered to the City? They also said $1 million proof of insurance is too high and requires the landlord to be on one of the two major platforms to get this level of coverage, and will therefore be a barrier to entry and use of homes.
Airbnb responded saying it currently remits HOT taxes for its hosts. “Can the City accept the fact that an owner is on its platform as proof of HOT tax payment?” the company asked.
Airbnb also said requiring a registration certificate before a property can be rented or leased is problematic. They said $1M insurance coverage is high and hard to find, and even for umbrella coverage, hosts cannot get more than $500K. The Expedia Group, on the other hand, supported the regulations and placed no objections to most of them.
Landlords, Airbnb, and Expedia Group also objected to landlords’ criminal liability for tenant actions, citing their lack of control and knowledge over a tenant’s activities. Therefore, they did not agree to be held liable for those actions.
Derek Nesbitt, an Airbnb owner in Houston who started her business in the city in December 2023 and owns two Airbnb properties, said these regulations are important to implement.
“I know a lot of cities and states are not necessarily trying to ban Airbnb, but trying to avoid doing that, the best option would be to have these regulations set in place… It’s just more so a safety net for the community, the neighborhood, and the city itself.” Nesbitt said. “I believe it will only affect Airbnb owners if they do not comply or if their market is not a large market. So if their audience is not pretty big, then I could see it affecting them because now they have to pay all of these extra fees where they’re barely surviving because their market isn’t so big.”
She also believes the STR regulations will reduce the number of complaints against Airbnbs from neighbors.
What the data says
The Houston Administration and Regulatory Affairs Department identified 8,548 short-term rentals across the city (as of Oct. 10, 2024) with 6,719 (~79%) identified to the street address.
In one year ending 10th Nov. 2024, 2,756 out of 4,670 called the Houston Police Department, while 640 properties dialed 311.
The study also found that 77% of all STRs are located within a hotspot, or areas that received the highest volumes of HPD calls.
