Targeting short-term rentals From the cover
What’s being done
Mapping it out
After a public comment session in March where nearly 40 residents had complaints on STRs, City Council members Sallie Alcorn and Amy Peck requested the administration evaluate the feasibility of registering or permitting STRs in Houston. By April, the Administration and Regulatory A airs Department started to gather data and facts to develop potential regulations. Julian Ramirez, Quality of Life Committee chair and an at-large council member, said regulations could require STR owners to register their properties with the city. “Hosts will be required to keep the registration current and will have to pay insurance and a fee of some kind,” he said. “If they fail to do any of these things, there will be a penalty between $100-$500 for each violation.” Ramirez said there could also be provisions under which a registration can be revoked, including: • If false information was provided in the application • If important changes were not reported to the city • If there are two or more instances when the city had to lessen a nuisance • If there are two or more citations that resulted in two or more convictions for violations • If someone who is staying at an STR or the owner was convicted of a listed criminal o ense Once a registration is revoked, Ramirez said the city will go to the platform where the rental was listed, such as Airbnb or VRBO, and have the property delisted. The proposed regulations need to be approved by Houston City Council before moving forward and are subject to change.
growth over the last ve years, but it’s strong year-over-year growth,” Gallagher said. However, while he said listings have not increased signicantly, the revenue has doubled in the last ve years. In October 2019, 920 listings brought in about $760,000 in revenue with a 53% average occupancy rate, which is the percentage of available space that is being used. In 2024, the 1,096 available listings accumulated $1.44 million with the same occupancy rate. Gallagher said the increase in revenue is attributed to a rise in rates. In the ve ZIP code areas, the average daily rate is $182.74 per night, according to AirDNA data.
Bram Gallagher, director of economics and forecasting at AirDNA, a company that analyzes short-term rental data, said Houston markets have experienced a steady rise in short-term rentals over the past ve years. In Bellaire, West University and Meyerland, there were approximately 1,096 listings as of October. In October 2019, there were 920 listings—reecting a 19% increase. The most concentrated number of homes rented out were in the 77030 ZIP code, near the Texas Medical Center. The most available units across all ve ZIP codes contain one or two bedrooms. “It’s not incredibly shocking or dramatic
Number of short-term rentals
October 2019
October 2024
75 77005
Short-term rentals are accommodations that are available to rent for 30 days or less, according to the city of Houston.
-49.33%
38
77025
59
353
-11.33%
77005
313
77401
77030
77030
353
+58.07%
77025
558
610
99 77096
77096
+64.65%
163
90
288
40 77401
-40%
N
24
SOURCE: AIRDNACOMMUNITY IMPACT
In comparison
West University Place
Bellaire
Houston
Owners of homes being rented out in residential districts must pay hotel occupancy taxes. Those renting out homes in nonresidential districts must purchase a rental permit, provide sketches of oor plans and provide proof of insurance. In West U, it is illegal for properties in residential districts to be rented for less than 30 days.
Bellaire does not have a specic ordinance prohibiting or regulating short-term rentals.
Hosts must register their properties with the city and pay a fee to obtain a short-term rental permit. Owners must keep their registration current, have insurance and report any major changes to the city. They are subject to a ne or penalty for violations. Houston does not have specic laws that regulate short-term rentals, but ocials are looking to change that. Potential regulations include:
The city requires a certicate of occupancy for all occupants prior to the house being leased. The occupant or the landlord must come to the Development Services Oce and apply for a certicate.
SOURCES: CITIES OF HOUSTON, WEST UNIVERSITY PLACE, BELLAIRECOMMUNITY IMPACT
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