Short-term rentals in Waco, explained properly.

Sec. 13-465 defines short-term rental type I as an owner or designated operator occupied residential property, type II as a single-family or duplex residential property that is not part of a multi-family residential use and is run without the owner or designated operator living on site, and type III as a multi-family residential property (a multifamily building or multiple detached single-family dwellings on a single lot) run without the owner or designated operator living on site. For all three types, short-term lodging is provided to only one group at a time per dwelling unit. Non-conforming single-family residential properties that contain more than one dwelling unit rent to only one group at a time. A group is a unit of persons together under a single reservation. The definitions were amended by Ord. No. 2023-221 (3-21-23). The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-467(a)(4) requires a non-refundable license fee for the amount established with the application, and Sec. 13-469 says a fee is charged when the license is issued and again at renewal, with the fee set by the city council. The fee amounts and the date of the fee schedule are not shown in the article. The initial license fee was waived in 2018 for facilities that already held a special permit (Sec. 13-468(b)). The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-468(a) makes a license valid for two years from the date of issuance and renewable by applying under Sec. 13-467. Sec. 13-471(a)(3) shows that a license has to be renewed before it expires for a facility to keep the exemption for special permits held on August 1, 2017. Facilities with existing special permits or allowed by right on August 1, 2017 had to obtain a license on or before February 28, 2018 (Sec. 13-468(b)). The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-467(a) lists: (1) name, street address, mailing address, email and telephone number of the applicant, owner and designated operator; (2) if the applicant or owner is a partnership, corporation or LLC, the names of all partners, directors, members and officers; (3) a scaled site plan that meets the site development requirements of Chapter 28, showing property lines, existing and proposed structures, proposed signage and site improvements such as parking, fences and landscaping; (4) the non-refundable license fee; (5) proof that the applicant has no delinquent hotel occupancy taxes due on the property; and (6) proof that a life safety inspection has been approved by the inspection services department (initial application). We haven't reviewed the City's own application form yet. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-467(a)(6) requires proof that the inspection services department approved a life safety inspection of the property for the initial application; it is not required for structures that attained a certificate of occupancy through construction or renovation within the last year. Sec. 13-470(c) says the inspection includes, but is not limited to, smoke detectors, at least one operable egress window per bedroom, an evacuation plan posted conspicuously in each sleeping area, repair of any exposed wiring, a water heater inspection, required safety measures for pools (if applicable), and exterior stairwells (if applicable). The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-471(e)(1) sets the maximum number of adults allowed to reside in a short-term rental facility at two adults per bedroom plus two additional adults per rental unit. Sec. 13-471(e)(2) adds that in R-E, R-1A, R-1B and R-1C zoning districts a short-term rental type I or type II may not be occupied by more than four individuals unrelated by blood, marriage, or adoption at any given time. The license sets the occupancy limit, which must appear on the posted sign and in listings. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-471(b) says its requirements do not apply to properties in the C-4 central commercial zoning district. Otherwise a minimum of one off-street parking space is required per rented room, improved under the City's Parking and Access Design Standards and article VII of Chapter 28 before the license is issued. No on-street parking is allowed for guests except on streets classified as a collector or arterial where on-street parking is not restricted. We haven't reviewed Chapter 28 yet. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-470(d) says functions such as meetings, receptions, weddings and other social events provided for compensation or held by guests are not permitted as part of a short-term rental facility unless the facility is located in a commercial zoning district. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-470(a) requires the licensee to comply with the noise requirements of article VII of chapter 16 of the Code, and Sec. 13-470(b) requires compliance with all building, electrical and other codes and ordinances of the City. We haven't reviewed Chapter 16 yet, so the noise limits themselves are not shown here. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-470(e) requires a sign posted conspicuously in the common area of each unit, provided by the planning services department, with (1) the name and contact information of the owner and/or designated operator, (2) the license number, and (3) the occupancy limits and requirements in the license. The planning services department also furnishes the contact information to owners of real property within 200 feet of the rental. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-470(f) requires the license number and occupancy limit in all marketing materials, advertisements and online listings for the rental. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-471(c): in R-E, R-1A, R-1B and R-1C zoning districts no sign is permitted on the premises except a non-illuminated name plate no larger than one square foot. In all other residential zoning districts a sign may not exceed four square feet, may not be taller than four feet, and the front yard setback is five feet from the property line. In office and commercial districts, signage follows article VIII of chapter 28, which we haven't reviewed yet. The design for a sign must be submitted with the site plan during the application. Under Sec. 13-471(d), if the property is residentially zoned, all lighting must be directed toward the establishment and not at adjacent properties. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-472 lists the grounds: (1) the licensee, designated operator or guest violated or failed to meet any provision of the article or a license condition; (2) a violation of any federal, state or city law pertaining to use of the property as a short-term rental facility; (3) the police chief or fire chief determined the facility would pose a serious threat to public health, safety or welfare; or (4) the applicant made a false statement of material fact on the application. Penalty amounts for violations are not shown in the article. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

Sec. 13-473 requires the director of planning services to give written notice, in person or by certified mail, of a denial, suspension or revocation and the reasons. A person may appeal to the city council by writing to the city secretary within 15 days after the applicant or licensee receives the decision. The hearing is set for the next regular council meeting that is more than six days away, and the council decides within ten days of the hearing. A licensee shall not operate during the appeal. On an appeal of a denial of an initial application, the appealing party must present evidence clearly indicating the director was incorrect; on an appeal of a suspension, revocation or refusal to renew, the director must present evidence clearly indicating the stated grounds existed. The article covers bed and breakfast facilities and short-term rental facilities together; this page covers only short-term rentals.

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.