Short-term rentals in Grand Prairie, explained properly.

The nonrefundable permit application fee is $480.00 (Sec. 29-186(c)), and a nonrefundable renewal application fee of $480.00 accompanies any renewal application (Sec. 29-187(e)). Both amounts are written into the article as adopted by Ord. No. 11207-2022 on May 17, 2022. The City's master fee schedule hasn't been reviewed yet, so confirm the current amount with the City before you apply.

A short-term rental permit is not transferable and shall not be assigned or transferred to another person or entity. Any attempt to transfer a permit or to use another person's permit may be grounds for revocation (Sec. 29-185).

A permit expires on the last day of the month one year after the date of issuance, and cannot be renewed without a completed renewal application and payment of the fee (Sec. 29-187(a)). The renewal application must be filed beginning 30 days before expiry and must include updates to the original information, with a signed statement that nothing changed or that updates are accurate and complete (Sec. 29-187(b)). A renewal application submitted after the permit expired is treated as a new application under Sec. 29-186 (Sec. 29-187(c)). If a complete renewal application is submitted less than 30 days before expiry, the director may, in his sole discretion, grant a one-time extension of the current permit not to exceed 10 days (Sec. 29-187(d)). The renewal fee is $480.00 (Sec. 29-187(e)).

Before a permit is issued, the owner or operator must allow, within 10 days of receiving the City's notice, an on-site inspection by the city code compliance manager or designee to check minimum health and safety requirements for use and occupancy. If the inspection finds a violation of applicable city codes, the City gives written notice and sets a re-inspection date for correction before a permit is issued (Sec. 29-188). Separately, the owner or operator is responsible for obtaining annual independent inspections of the fire extinguishers in compliance with the City's current fire code (Sec. 29-191(e)).

The application must include proof of host protection or liability insurance commensurate with the operation of a short-term rental, providing coverage of up to $1,000,000.00 per occurrence. The policy must contain a provision requiring the insurer to give the director 30 days' notice of cancellation, and the owner or permit holder must pass on any notice of cancellation from the insurer within 3 days of receiving it (Sec. 29-186(d)(3)).

The local contact person, designated by the owner or operator, must be available 24/7 to respond in person within one hour to complaints about the condition, operation or conduct of occupants of the rental, and to take remedial action to resolve them. The owner or operator may be listed as the local contact (Sec. 29-182). The application must give the contact's name, address, email and 24-hour telephone number (Sec. 29-186(b)(7)), and the contact's details go in the guest brochure and the neighbor notice (Secs. 29-191(b)(1) and 29-189).

The Code lets the operator act through a managing agent or rental agent, who has the same duties as the principal (Sec. 29-182). The application lists both the owner and the operator and requires written verification from the owner, when applicable, that the operator is authorized to operate the premises as a short-term rental (Sec. 29-186(b)(5), (10)). A local contact person designated by the owner or operator must be available 24/7 and respond in person within one hour (Sec. 29-182). The owner remains liable for violations whether committed by the owner, operator, local contact person or occupant (Sec. 29-194(a)).

The application must verify that the owner or operator has no delinquent hotel occupancy taxes due on the premises (Sec. 29-186(b)(9)). Paying, and staying current on, all hotel occupancy taxes owed to the City under the Texas Tax Code is a condition of the initial and continued validity of the permit; failure to pay on time is a violation and may lead to revocation (Sec. 29-191(c)). A permit may also be denied or revoked if the owner is overdue in paying taxes, fees, fines or penalties to the City, or fails to document on request that all occupancy taxes have been paid (Sec. 29-195(a)(3)). Grand Prairie's hotel occupancy tax chapter and rate haven't been reviewed yet, so the City rate is not stated here and City and State taxes are not totaled. The State rate and filing rules are in the Texas section.

The owner or operator must provide, by mail, email or hand delivery, a written notice to neighbors within 200 feet of the property address saying a permit has been issued, and must give the City written verification within 10 days of issuance. The notice includes the permit number, the owner's and operator's identity, the local contact's name and contact information, and a City website address where the information is also posted. Neighbors must be told whenever the contact information changes (Sec. 29-189).

Any change of information provided on a short-term rental application form must be reported to the city within 10 days and kept continuously updated (Sec. 29-190). Failing to notify the City of changed information is a ground for denying or revoking a permit (Sec. 29-195(a)(4)).

Sec. 29-182 defines a short-term rental as a residential premise, or portion thereof, used for lodging accommodations to occupants for a period of not less than one nor more than thirty consecutive days, other than an ongoing month-to-month tenancy granted to the same renter for the same premises. The definition does not include a hotel, motel, bed and breakfast, executive suite or other non-residential use. An occupant is any individual living in, sleeping in or possessing a building or portion of it, whether or not paying rent or named in a lease.

It is unlawful to rent, allow, provide or advertise a short-term rental for occupancy by more than one person per 200 square feet (Sec. 29-192(a)). Regardless of bedrooms or square footage, it is unlawful for more than 12 persons, including children, to occupy a rental at one time, or for the owner or operator to allow occupancy above the maximum shown on the permit or renewal permit (Sec. 29-192(b)). A visual inspection of more than 12 persons by a city employee at the premises creates a rebuttable presumption of a violation (Sec. 29-192(c)). The application states the number of bedrooms and the applicable overnight and daytime occupancy limit (Sec. 29-186(b)(2)).

The maximum number of motor vehicles at a short-term rental is the number of available off-street parking spaces. It is unlawful to allow or advise occupants or visitors to park more vehicles than that, to park on an unimproved surface, or to obstruct a sidewalk; unlawful for an occupant to park on a residential street near the rental; and unlawful to allow a motor home, recreational vehicle, boat, commercial vehicle or otherwise prohibited motor vehicle on the premises or on a residential street near the rental (Sec. 29-191(a)). Paving or covering pervious soil to create more parking needs the City's prior approval (Sec. 29-193(b)). The application includes a site plan showing the parking spaces (Sec. 29-186(d)(1)).

Each permit is issued with a unique number, which must be included in all advertisements for the rental, including internet booking sites. A copy of the permit must be posted at a conspicuous location inside the front entrance(s) (Sec. 29-184(b)-(c)).

Each rental must have working smoke and carbon monoxide detectors, with alarms, in accordance with adopted codes, and at least one working type A fire extinguisher. The owner or operator must obtain annual independent inspections of the extinguishers in compliance with the City's current fire code. The premises must otherwise comply with applicable Code of Ordinances requirements, including building and fire codes (Sec. 29-191(e)).

Each owner or operator must give occupants a brochure with the local contact person's name and contact information; the overnight and daytime occupancy limits; pertinent city and neighborhood information on quality of life, including parking restrictions, noise and amplified sound restrictions and trash collection schedules; and emergency information, including police, fire and medical numbers and instructions for severe weather and disaster alerts (Sec. 29-191(b)).

It is unlawful for an owner or occupant to place, or allow to be placed, trash on the premises before 7:00 p.m. the evening prior to scheduled pickup or on a day not scheduled for pickup by the city or its authorized solid waste transportation vendor (Sec. 29-191(d)).

It is unlawful for an owner, operator or any person to convert a garage to a living space, or to remodel, renovate, enlarge or otherwise modify the premises to add bedrooms for use as a short-term rental (Sec. 29-193(a)). It is also unlawful to pave or otherwise cover pervious soil to create additional on-premises parking without the City of Grand Prairie's prior approval (Sec. 29-193(b)).

Nothing in the article relieves anyone of other federal, state or local requirements, and nothing provides any property owner with the right or privilege to violate private conditions, covenants and restrictions applicable to the property that may prohibit use as a short-term rental (Sec. 29-194(b)). Whether a particular property's restrictions bar short-term rental use depends on its own recorded documents, which we haven't reviewed.

A culpable mental state need not be pleaded or proved; a violation that alleges none is a Class C misdemeanor punishable by a fine of up to $500.00 (Sec. 29-194(d)). If a culpable mental state is alleged and the offense governs fire safety, zoning or public health and sanitation, including dumping of refuse, the fine may not exceed $2,000.00 (Sec. 29-194(e)). Proof that a violation occurred at a rental creates a rebuttable presumption that the owner committed it, and the owner is not relieved of civil or criminal liability whether the violation is committed by the owner, operator, local contact person or occupant (Sec. 29-194(a), (c)). These penalties are in addition to other criminal or civil remedies (Sec. 29-194(f)).

A permit may be denied or revoked for false or misleading application information, advertising or renting without a valid permit, being overdue in City taxes, fees, fines or penalties (or failing to document occupancy tax payment), failing to report changed information, any violation of the article, or failing to timely provide required information (Sec. 29-195(a)). Before denial or revocation, the director gives a written warning explaining the deficiencies and a deadline to remedy them (Sec. 29-195(b)). Notice is in writing, served personally or by certified mail, and takes effect on personal service or 3 days after mailing (Sec. 29-195(c)). To contest, file a notice of appeal with the director within 10 days of the effective date, or the denial or revocation is sustained; the director forwards it to the Zoning Board of Adjustment within 3 business days, and the board holds a hearing within 20 business days of receiving it and decides at the hearing (Sec. 29-195(d)-(f)). An appeal does not stay the denial or revocation unless the director directs otherwise (Sec. 29-195(g)). After a revocation, no second permit is issued for the same premises for 1 year (Sec. 29-195(h)).

Texas Tax Code § 156.052 sets the state hotel occupancy tax at 6% of the price paid for a room, and § 156.051(a) applies it to rooms or spaces costing $15 or more a day. Section 156.001(b) makes a short-term rental (renting all or part of a residential property to someone who is not a permanent resident) a "hotel" for state and local hotel occupancy taxes. Stays of at least 30 consecutive days, with no interruption of payment, are not taxed (§ 156.101). Local hotel taxes are added on top and vary by city and county.

Whoever owns, operates, manages or controls a hotel must collect the state tax (Tax Code § 156.053), and the Comptroller's office treats short-term rentals the same way. The Comptroller does not issue printed hotel tax permits; a business that reports the tax sends Form AP-102 (Hotel Occupancy Tax Questionnaire) to the Comptroller. A short-term rental platform that has agreed with the owner to collect and remit state hotel tax files Form AP-102 itself, and an owner who rents only through such a platform does not collect and remit the state tax. An owner who takes bookings directly or through a platform that does not collect must collect and remit the state tax. Local hotel taxes are handled separately by the city and county.

Each calendar month is a reporting period, with the return and tax due to the Comptroller by the 20th of the following month (Tax Code § 156.151(b)). A taxpayer who owes less than $500 for a month or $1,500 for a quarter files quarterly, due the 20th day after the quarter ends (§ 156.151(c)). The Comptroller allows a 1% discount when the return is filed and paid on time.

Cities, some counties and special purpose districts may levy their own hotel taxes, generally up to 7%, and sports or community venue projects may add up to 2% (Dallas County up to 3%). Local hotel taxes apply to sleeping rooms costing $2 or more a day. The Comptroller collects only the 6% state tax; cities and counties collect their own local hotel taxes, so hosts should check with the city and county where the rental is.