Short-term rentals in Rowlett, explained properly.

A short-term rental permit is non-transferable and may not be assigned or transferred to another person or entity. An attempt to transfer a permit or to use another person's permit may be grounds for revocation (Sec. 10-464). It is also unlawful to advertise a rental under a permit number assigned to a different person, address or dwelling unit (Sec. 10-476).

Renewal needs a completed application and the renewal fee, and the administrator must approve it if the application satisfies the conditions of the division and other City rules (Sec. 10-457). A renewal application may be filed beginning 30 days before expiration, with a signed statement that the information is unchanged or that updates are accurate (Sec. 10-458(b)). A renewal application filed after the most recent permit has expired is treated as an application for a new permit (Sec. 10-458(c)). If a complete renewal application is filed less than 30 days before expiration, the administrator may in his or her sole discretion grant a one-time extension of the current permit of up to ten days (Sec. 10-458(d)). If a permit is not renewed, the use must stop no later than the date the permit or any extension expires (Sec. 10-480).

The initial inspection is conducted before occupancy and after an approved application is submitted; inspections are also performed quarterly and when a complaint alleges a violation of a City health or safety code (Sec. 10-461(b)). Each rental must have working smoke detectors, working type A fire extinguishers and working carbon monoxide detectors as required by City building and fire codes, and the owner is responsible for annual independent inspections of all fire extinguishers (Sec. 10-461(c)). Life-safety or critical deficiencies must be corrected before occupancy, and the property must be served by electricity, water and sanitary sewer (Sec. 10-461(d), (f)). A reinspection fee may be charged after a failed inspection, under the master fee schedule, which was not read (Sec. 10-461(a), (e)).

It is unlawful to operate a short-term rental without host protection or comparable liability insurance providing coverage of up to $1,000,000.00 per occurrence. A certificate of insurance must be on file with the administrator, proof is required at the time of application, and notice of cancellation must be given to the administrator within 30 days (Sec. 10-460).

The owner must designate a local point of contact who can be reached in person or by phone at all times while occupants are on the premises. If called by the administrator or designee, the contact must be able to be present at the premises within one hour, must be authorized to make decisions about the premises and its occupants, and may be required to accept service of a citation, which does not release the owner from liability (Sec. 10-459). The contact's name and a 24-hour local telephone number must also appear in the guest safety notice (Sec. 10-473(1)).

It is unlawful for an owner to fail to pay hotel occupancy taxes required under state law and the taxation article of the Rowlett Code. On request of the administrator or the finance department, the owner must remit within 30 days an accounting of all occupants who rented the premises and the hotel occupancy taxes paid (Sec. 10-463). The permit application must include the City registration number for hotel occupancy tax (Sec. 10-458(a)(4)). The City's hotel occupancy tax rate and the taxation article were not read, 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.

It is unlawful to rent, allow, provide or advertise for more than two persons per bedroom, plus two additional persons (Sec. 10-465(a)). Regardless of bedroom count, 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. 10-465(b)). A visual inspection by a City employee of more than 12 persons at the premises is prima facie evidence of, and probable cause for a citation for, a violation (Sec. 10-465(c)).

The maximum of four motor vehicles allowed to be parked at a short-term rental must be in off-street parking spaces as shown on the parking plan submitted with the permit application. It is unlawful to permit more vehicles than that or parking on an unapproved surface, for an occupant to park on a residential street, or to allow occupants to park or occupy a motor home, recreational vehicle, boat, commercial vehicle or otherwise prohibited motor vehicle on the premises or on a residential street (Sec. 10-466). Paving or covering pervious soil to create extra parking without prior City approval is unlawful (Sec. 10-468(b)).

It is unlawful for an owner to rent or lease a short-term rental for a period of less than 24 hours (Sec. 10-467). Separately, the Division's definition covers lodging for less than 30 consecutive days (Sec. 10-453).

It is unlawful to use or allow amplified sound equipment that produces sound audible beyond the property line between 10:00 p.m. and 9:00 a.m. (Sec. 10-469), or to allow occupants to congregate outside at the premises between 10:00 p.m. and 9:00 a.m. (Sec. 10-470). Noise violations result in a citation and may result in permit revocation. The required guest safety notice states quiet hours of 10:00 p.m. to 7:00 a.m. Monday through Saturday and 10:00 p.m. to 9:00 a.m. on Sunday, as per City noise restrictions (Sec. 10-473(3)); the City's general noise ordinance was not read.

It is unlawful to advertise, promote or allow a special event (banquet, wedding, reception, reunion, bachelor or bachelorette party, concert or similar large gathering) on the premises, and no one may post external signage advertising the property as a short-term rental (Sec. 10-472(a)-(c)). No one may permit use of the rental to promote illegal activities or for any commercial use other than an authorized home occupation, or permit tents, temporary structures, accessory buildings not intended for guest occupancy, recreational or camper vehicles, or other vehicles and outdoor areas that are not residential dwellings to be used as short-term rentals (Sec. 10-472(d), (e)). Converting a garage to living space or modifying the premises to add bedrooms for rental use is unlawful, and discovery of such unpermitted modifications is prima facie justification to deny or revoke a permit (Sec. 10-468(a)).

It is unlawful to advertise a short-term rental in any medium without the current permit number assigned by the administrator (Sec. 10-475), or to advertise using a number assigned to a different person, address or dwelling unit (Sec. 10-476). A copy of the approved permit must be posted at a conspicuous location inside the front entrance or entrances (Sec. 10-474).

The notice must include the owner's, operator's or local contact's name and 24-hour local telephone number; maximum occupancy, parking locations and trash collection location and schedule; the quiet hours; emergency and non-emergency numbers for police, fire and EMS with severe weather and disaster alert instructions; a floor plan showing evacuation routes; and a statement that failing to comply with these regulations is a violation of City ordinance that may result in criminal prosecution (Sec. 10-473). A copy goes in the permit application (Sec. 10-458(a)(9)). Trash and recycling bins may be put out only in compliance with City solid waste collection regulations (Sec. 10-471).

Every hosting platform must give any owner listing a Rowlett short-term rental through its service a notice, before the listing, stating that the Short-Term Rental article of the Rowlett City Code prohibits the short-term rental of premises within the City without an active short-term rental permit (Sec. 10-455(a)). Nothing relieves an owner, occupant or platform of state-law, tax, nuisance, property maintenance, building and fire code obligations, and no one may operate a short-term rental within the Lake Ray Hubbard Take Area in a way that does not comply with the regulations that apply there (Sec. 10-455(b)); those Take Area regulations were not read.

A person who violates any provision of the division is guilty of a misdemeanor, and each day a violation exists is a separate offense (Sec. 10-481(a)). Subsection (c) caps the fine at $2,000.00 for an offense affecting fire safety, zoning or public health and sanitation (including dumping of refuse) and at $500.00 for all other offenses. Subsection (d) separately says anyone who violates any provision of "this ordinance" is guilty of a misdemeanor and may be fined up to $2,000.00 for each offense. The two subsections state different caps for the same kinds of offenses, so the applicable cap for an offense outside fire safety, zoning or public health is unsettled in the text. A violation may also be enjoined by suit in the City's name (Sec. 10-481(e)). A culpable mental state is not required where the offense definition prescribes none (Sec. 10-481(b)).

A permit must be revoked if the holder has received more than two citations for violations of the division or any other Code provision within 12 months; failed or refused to comply with an express permit condition and remains in noncompliance ten days after written notice; knowingly made a false statement in the application; or otherwise become disqualified (Sec. 10-477(a)). Revocation is effective the day after personal service or three days from mailing, and the holder has ten days to file an appeal (Sec. 10-477(b), (c)). After a revocation, no second permit is issued to that owner or for that premises during the following permit year, which begins on the January 31 after the revocation (Sec. 10-477(d)). To contest a denial or revocation, the applicant or holder files a written hearing request within ten days of service of the notice; the hearing is held within 30 days of the notice of appeal; within ten days of the hearing decision a further appeal may go to the city appeal officer, who schedules a hearing within 20 days (Secs. 10-478, 10-479). An appeal does not stay a denial or revocation unless the administrator or appeal officer orders it (Secs. 10-478(e), 10-479(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.