HOUSTON, Texas – The city of Houston’s short-term rental ordinance will take effect next year, but owners and operators of short-term rentals need to start preparing their properties now.
KPRC 2 Investigates spoke with Tyler White, a realtor and co-owner of Prolific Partners Realty Group, who currently manages 14 short-term rental properties across Houston.
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Starting Jan. 1, 2026, the new ordinance will require all short-term rentals operating within Houston city limits to register for a fee of $275 and pay an annual renewal fee of $275 to remain in business.
White, like many other STR operators, will have to pay hundreds, and in some cases thousands of dollars, to register their homes under the new ordinance.
“Why should I have to pay you to operate something that we started? We’re going on year five in the business of short-term rentals, and to have to pay $275 for each unit... how is this helping the community? How does this help in the city? Is it a money grab, or are these funds going to be used for the proper regulation and people?" White questioned.
Councilmember Julian Ramirez, who is in support of the ordinance, said the registration cost is to pay for the Administration and Regulatory Affairs Department, which oversees the ordinance.
According to the city, the fee amount was determined based on a “cost of service study,” which estimated costs at $273, and the average nightly rate charged by most short-term rentals in Houston, which is $250.
But, the registration fee isn’t the only issue STR operators have regarding the ordinance.
One of the biggest issues STRs have faced is noise complaints from neighbors who complain they’re “party houses.”
The new ordinance aims to reduce noise levels by requiring all registered short-term rentals (STRs) to comply with the city’s noise regulations and display a 24-hour emergency contact number for guests. STR registrations may be revoked if they receive two or more citations for violating the noise ordinance on separate occasions within a 12-month period. Additionally, fines for each violation can range from $100 to $500.
"I feel like that’s where it’s kind of unfair. How can you put this type of regulation in place? When people throw parties at their house, do they get fines, or are they in trouble for throwing a party at their home? We just don’t understand what the actual restrictions are going to be and where they’re kind of headed with this because noise complaints can be anything," White said.
From his experience, White believes, although some complaints regarding STRs are valid, some are from complaining neighbors who don’t want STRs in their neighborhood.
"A lot of neighbors have their own agenda when it comes to short-term rentals,“ White said. ”To speak of that, in one of our neighborhoods where we have three units, we were getting complaints from the HOA almost every month, and we were getting $100 fines, and we were having to go to the HOA and get those fines removed because they weren’t our units. We went as far as getting spotlight ring cameras that we actually put in the alleyway of the complex because we were receiving complaints, and we would look at the cameras, and it’s not even our unit. But they’re complaining because they want to get us shut down.“
According to the city of Houston, STR owners/operators can appeal the city’s decision to deny or revoke their registration by requesting a hearing within 20 days after receiving a denial or revocation.
Real Estate attorney Patrick Sutton, who has represented hundreds of Texas homeowners to protect their property rights, says cities have long required leasing licenses.
“Cities have long regulated leasing... that’s not controversial. Sure, you can require a license. But cities are going a lot further now," Sutton said.
In some cities in Texas, like Dallas, STRs have been banned from operating in areas with single-family zoning. White fears the future of STRs if the regulations and bans continue to spread.
“I see a lot of people exiting the space. It is intensive work over a long period of time,” White said. “I see people transitioning into more midterm stays, which is 30 days or more. I think we’ll see more of that happening, kind of directing their spaces toward travel nurses, business execs, and things of that nature. I think it kind of hurts the short-term rental space because we have a lot of great things coming into the city.”
White believes a conversation between city leaders and STR operators should be conducted before ordinances and other regulations go into effect.
"We love what we do. We do this to provide people with an experience. We talk about it all the time. This is about experience. It’s not about people coming in and giving us money," White said.
KPRC 2 reached out to the city of Houston Department of Administration and Regulatory Affairs, and they forwarded us to their website for more information. On the site, in response to getting feedback from STR owners/operators, the city said the first draft of the ordinance was posted on Nov. 13, 2024, and solicited more than 270 comments as well as suggested revisions from Houston First Corporation, Airbnb, Lodgeur, Jason Ginsburg (Houstonians Against Airbnb), the Houston Apartment Association, Ursula Jessee and other local superhosts, the Hotel and Lodging Association of Greater Houston, and Houston City Council Members.
Sample Application from the City of Houston
The city says that if someone has questions regarding the STR registration process, call the Regulatory Permitting Division at 832-394-8803.
"It’s a start. We haven’t had a short-term rental ordinance before. Residents believe we needed one. We passed it in a way that we hope balances property rights versus the rights of those folks who have to live in neighborhoods where there are short-term rentals, Ramirez said. “It can change over time, depending upon the feedback we hear from residents and short-term rental owners and operators,” Ramirez said.