Short-term rentals in River Oaks, explained properly.

All permits issued under the article are valid for one year from the date of issuance (Sec. 4.11.005(a)). A permit is public information, and the City keeps a database of permitted rentals on its website showing property address, permit number and permit date (Sec. 4.11.005(d)).

A permit to operate a short-term rental is not transferable to another owner, operator or location (Sec. 4.11.005(c)). The purchaser of a short-term rental must give the director current application materials, revised for the new ownership, within 30 days of the closing date, and, because the permit is nontransferable, must also pay a permit renewal fee from the fee schedule (Sec. 4.11.004(l)). The fire marshal conducts an inspection to verify compliance as part of a change of ownership (Sec. 4.11.004(o)(2)(D)). The text bars transfer but also sets a post-closing filing for the buyer, so the two clauses can be read as a bar or as a short re-application path; the rule is marked for review.

An application is made on City forms with the Appendix A fee and must include: the owner's name, address, contact information and signature (or a signed owner authorization); the name, address and phone number of a 24-hour contact; the City hotel occupancy tax registration number; a parking plan; a dimensioned floor plan showing maximum occupants, bedrooms, safety features and evacuation routes; any homeowners' association name, contact and rules; proof of liability insurance; a current county tax certificate showing taxes paid to the current year (a printout from the county website is acceptable); a copy of the proposed host rules; and a statement that the owner complies and will continue to comply with the article and the Code (Sec. 4.11.003). The application fee is nonrefundable whether or not a permit is issued (Sec. 4.11.005(b)).

Proof of liability insurance is part of the permit application. The City, its officials, employees, agents and officers must be named as an "additional insured" on all policies; the policy should provide a minimum liability coverage of $1,000,000.00; and each policy must be endorsed to give the City at least 30 days' notice of cancellation, nonrenewal or material change, or at least 10 days' notice for nonpayment of premium (Sec. 4.11.003(7)).

The fire marshal performs periodic inspections of each short-term rental property, and no permit is issued until the premises pass an inspection (Sec. 4.11.004(o)(1)). The fire marshal may perform an initial inspection on application and annual fire inspections, and an inspection on a change of ownership. If a premises fails, the City gives written notice and sets a reinspection date; a reinspection fee is charged after the third reinspection; and a property cannot be occupied as a short-term rental while its fire marshal status is noted as in violation. The owner or operator is responsible for annual independent inspections of the fire extinguishers. An owner or operator may refuse consent to an inspection, in which case the fire marshal may seek an administrative search warrant (Sec. 4.11.004(o)).

The owner must designate the name and contact information of an operator, who must be a local responsible party available in person or by phone at all times while occupants are on the premises. If called, the operator must be able to be, and must be, present at the premises within one hour of a call from the director, and must be authorized to make decisions regarding the premises and its occupants (Sec. 4.11.004(i)). The Code defines the operator as the owner or the local responsible party managing the property on behalf of the owner (Sec. 4.11.002).

The Code defines the operator as the owner or a local responsible party managing the rental on behalf of the owner (Sec. 4.11.002), and requires the owner to designate an operator who is a local responsible party, available at all times while guests are present, able to reach the premises within one hour of the director's call and authorized to make decisions for the premises (Sec. 4.11.004(i)). Whether the owner occupies the home as a primary residence is only one factor the zoning board of adjustment may consider when deciding a special exception from the density limit (Sec. 4.11.004(p)(2)(E)).

The owner must register with the City to pay hotel occupancy taxes before the permit application is submitted, and the registration number is part of the application (Secs. 4.11.003 and 4.11.004(m)). The tax is levied at the maximum tax then allowed by law on rooms costing $2.00 or more per day; the Taxation chapter hasn't been reviewed yet, so the City rate isn't shown here. It does not apply to an extended stay occupant (30 consecutive days or more). Owners collect the tax quarterly and report the consideration paid, tax collected and any other information required. Subsection (n) says the report is due on the last day of the month after each quarter, while subsection (n)(1) says reports and payments are due by the 15th day of the month after each quarter, and that a 10% penalty is added for each month in arrears if payment is not received 30 days after that 15th day; because the two due dates differ, the filing deadline is marked for review. On failure to file or pay, the City may assess the tax owed and fix a lien on the property.

The permit application fee is the amount established in Appendix A, fee schedule, of the Code of Ordinances; it is nonrefundable and paid when the application is made, whether or not a permit is issued (Secs. 4.11.003 and 4.11.005(b)). A permit renewal fee, charged to a buyer after a change of ownership, is also "as described in the fee schedule" (Sec. 4.11.004(l)). The City fee schedule hasn't been reviewed yet, so no dollar amount or schedule date is shown here.

An owner may not rent or lease a short-term rental for a period of more than thirty days or less than twenty-four hours (Sec. 4.11.004(a)). The definition of a short-term rental covers lodging for a period of not more than thirty days, and the hotel occupancy tax does not apply to an extended stay occupant of 30 consecutive days or more (Secs. 4.11.002 and 4.11.004(m)(2)).

Short-term rentals are limited to no more than one-eighth (12.5 percent) of the total residential units on the block or in a multi-unit building, and at least one short-term rental is permitted per block or multi-unit building regardless of density (Sec. 4.11.004(p)(1)). An owner may apply to the zoning board of adjustment for a special exception to exceed the limit, and the board may weigh factors including neighborhood impact, quiet enjoyment, street and parking impact, whether the whole residence or a portion is rented, whether the applicant lives there as a primary residence, and other rentals on the block (Sec. 4.11.004(p)(2)). A rental lawfully in existence on the article's effective date is a nonconforming use outside the density limit; it counts as lawfully in existence if the City confirms in writing that the property was registered for hotel occupancy tax before the effective date and the tax account was not in arrears (Sec. 4.11.004(p)(3)). A block is defined as a tract bound by streets, public parks, railroad rights-of-way, shorelines or corporate limits (Sec. 4.11.002).

The maximum number of persons is two per bedroom plus two additional persons, and the cumulative total may not exceed twelve. In a short-term rental in a multifamily dwelling complex, the limit is two persons per bedroom plus one additional person (Sec. 4.11.004(b)). A room that does not meet the life safety requirements may not be used or advertised as a bedroom and does not count in the maximum occupancy calculation (Sec. 4.11.004(e)(5)).

Parking is restricted to the number of off-street parking spaces associated with the residential structure (driveway and garage, or spaces assigned to a specific unit) and to on-street parking immediately adjacent to the property's front lot line. It is otherwise unlawful for an occupant or invitee to park on a residential street near or across the street from the rental, or on an unimproved surface, and unlawful for an owner or operator to permit that. Vehicles are also subject to section 20 of the zoning ordinance (Sec. 4.11.004(c)).

Conduct involving amplified sound, excessive noise or other disturbances outside the short-term rental structure between 8:00 p.m. and 7:00 a.m. is unlawful, including on decks, porches, balconies, patios, hot tubs, pools, saunas and spas, in addition to the requirements of article 8.03 of the Code. Sleeping outdoors is also unlawful (Sec. 4.11.004(f)).

It is unlawful to advertise, promote or operate a special event, or to permit one to be advertised, promoted or operated, on the premises, including a banquet, wedding, reception, reunion, bachelor or bachelorette party, concert or similar activity that would assemble large numbers of invitees (Sec. 4.11.004(f)(4)).

It is unlawful to use or permit the use of a short-term rental for housing sex offenders; operating a structured sober, recovery or other purpose living home or similar enterprise; selling illegal drugs; selling alcohol or another activity that requires a permit or license under the Alcoholic Beverage Code; or operating as a sexually oriented business (Sec. 4.11.004(f)(5)).

On-premises signage advertising or identifying the short-term rental is not permitted (Sec. 4.11.004(g)).

The owner may not advertise or promote the rental, or allow another to do so, without including the occupancy limits, parking standards and city permit number for the listing (Sec. 4.11.004(h)). Any advertisement promoting the availability of a property in the city for rent for 30 days or less is prima facie evidence of use as a short-term rental (Sec. 4.11.008(b)).

The rental must have working smoke alarms meeting section 92.254 of the Texas Property Code (one on each floor level and one in each bedroom), a working carbon monoxide detector on each floor, and a mounted 2A:10B:C fire extinguisher within 75 feet of all portions of the structure on each floor. Gas appliances must be vented outside, each bedroom needs an emergency escape opening directly to the outdoors, an evacuation plan must be posted in each bedroom, and each bedroom must have interior access to a bathroom. A room that does not comply may not be used as a bedroom (Sec. 4.11.004(d) and (e)).

The owner or operator must post in a conspicuous location a packet with the maximum occupants; parking locations and the street and landscaping parking prohibition; quiet hours; HOA rules; the 24-hour local contact; cleanliness requirements; waste pick-up requirements; flooding hazards, evacuation routes and the emergency siren system; emergency and non-emergency numbers; and notice that failing to follow occupancy and parking requirements is a violation for which a guest may be cited (Sec. 4.11.004(j)). The rental agreement must attach all of that information (Sec. 4.11.004(k)). Waste receptacles may not be placed at the pickup location before 6:00 p.m. on the day before pickup and must be removed within 24 hours after 7:00 a.m. of collection day (Sec. 4.11.004(f)(3)).

If the owner fails or refuses to comply, the City may begin enforcement against the owner, including immediate issuance of a citation (Sec. 4.11.008(a)). If the director finds the owner, operator or person in control failed to comply with the article at least twice within a 12-month period, the director may revoke an existing permit or deny a renewal. If a property has three or more violations of the City Code, or of state or federal law, within the previous 24 months, the director may revoke a permit or deny an original or renewal application based on how often violations occurred, whether they were intentional or knowing, and how far they endangered public health, safety or welfare. After a denial or revocation, no new permit may be sought for the property for twelve months (Sec. 4.11.006).

The director's revocation or denial may be appealed to the city manager. The appeal must be filed with the director no later than the 20th day after the revocation or denial, must identify each alleged point of error with supporting facts and reasons, and must be sworn. The city manager or a designee must hear it within 10 days after the notice of appeal is filed and may affirm, modify or reverse, giving written notice of the decision. An appellant seeking judicial review must file a petition in a court of competent jurisdiction within 30 days after receiving the notice of decision (Sec. 4.11.007).

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.