Williamson County, Texas Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Williamson County, Texas?

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in recent years. However, many cities and counties have implemented regulations to govern these types of rentals. In Williamson County, Texas, there are currently no county-wide ordinances specifically addressing short-term rentals. Instead, the regulations are determined by each individual city within the county.

Starting a Short-Term Rental Business in Williamson County

If you're considering starting a short-term rental business in Williamson County, it's essential to research the specific regulations in the city where your property is located. Some cities, like Georgetown, are currently in the process of developing regulations for short-term rentals.

In November 2022, the Georgetown City Council directed staff to implement tracking software to identify the locations of all short-term rental properties and to work on educational outreach efforts for owners and renters. The city plans to develop regulations and work with property owners on reporting and paying the required hotel occupancy tax.

Other cities in Williamson County may have their own unique regulations. For example, the City of Austin, which is partially located in Williamson County, has specific ordinances for short-term rentals. Austin categorizes short-term rentals into three types, each with its own annual application and rules. All short-term rentals in Austin must be licensed under the city code.

When starting a short-term rental business in Williamson County, it's also important to be aware of any applicable deed restrictions or homeowners association (HOA) rules. Some HOAs may prohibit or limit short-term rentals in their communities.

Additionally, if you plan to operate a short-term rental as part of a multi-unit residential rental development, you must comply with the Williamson County Subdivision Regulations. These regulations outline requirements for platting, infrastructure, and other aspects of development.

Short-Term Rental Licensing Requirements in Williamson County

Currently, Williamson County does not have a county-wide licensing requirement for short-term rentals. The regulations and licensing requirements are determined by each individual city within the county.

For example, the City of Georgetown is in the process of developing an ordinance that will require short-term rental property owners to obtain a permit to operate. The draft ordinance is expected to include the following requirements:

• Property owners will need to apply for a permit through the City of Georgetown.
• A fee will be required to obtain the permit, although the exact amount has not been determined yet.
• Property owners will be required to provide proof of insurance and pay the applicable hotel occupancy tax.
• The permit will likely be valid for a set period, such as one year, and will need to be renewed.

Once the ordinance is finalized, property owners will need to submit their permit applications to the City of Georgetown. The processing time for applications is not yet known, as the ordinance is still in development.

It's important to note that operating a short-term rental without a permit, once the ordinance is in place, may result in fines or penalties. The specific consequences for non-compliance will be outlined in the final ordinance.

In other cities within Williamson County, the requirements for short-term rentals may vary. For example, the City of Austin, which is partially located in Williamson County, has its own set of regulations and licensing requirements for short-term rentals. In Austin, all short-term rentals must be licensed under the city code, and there are three types of licenses, each with its own application process and fees.

As a short-term rental property owner in Williamson County, it's crucial to research the specific requirements in your city and ensure compliance with all applicable regulations. Failure to obtain the necessary permits or licenses could result in fines or legal consequences.

Required Documents for Williamson County Short-Term Rentals

As previously mentioned, Williamson County does not currently have county-wide regulations or licensing requirements for short-term rentals. The required documents and application processes are determined by each individual city within the county. Here are some examples of the required documents in cities that have established or are in the process of establishing short-term rental regulations:

City of Georgetown

The City of Georgetown is currently developing an ordinance that will require short-term rental property owners to obtain a permit to operate. While the specific requirements are not yet finalized, the draft ordinance is expected to include the following required documents:

Permit Application: Property owners will need to submit a completed permit application to the City of Georgetown. The application will likely include information such as the property address, owner contact information, and local contact person details.

Proof of Insurance: Property owners will be required to provide proof of property insurance as part of the permit application process. This ensures that the short-term rental is adequately covered in case of accidents or damages.

Hotel Occupancy Tax Registration: Short-term rental owners will need to register with the city to pay the applicable hotel occupancy tax. This tax is collected by the property owner and remitted to the city on a regular basis.

City of Austin

The City of Austin, which is partially located in Williamson County, has a well-established short-term rental licensing process. The required documents for obtaining a short-term rental license in Austin include:

Austin Finance Online Application: Applicants must complete the appropriate online application based on the type of short-term rental (Type 1, Type 2, or Type 3).

Proof of Property Insurance: Applicants must provide proof of property insurance, which can be found on the declaration, information, or summary pages of the insurance policy.

Certificate of Occupancy or Certified Inspection: For Type 2 rentals, applicants must provide a Certificate of Occupancy or a certified inspection from a registered third-party inspector.

Proof of Primary Residency: For Type 1 rentals, applicants must provide two of the following documents to prove primary residency: a valid Texas Driver's License, a valid Texas Voter Registration Card, or a current Texas Property Tax Homestead Exemption.

As more cities in Williamson County develop short-term rental regulations, the required documents may vary. Property owners should consult their specific city's ordinances, websites, or contact the relevant city departments for the most up-to-date information on required documents and application processes.

It's important to note that failure to provide the necessary documents or obtain the required permits may result in fines or legal consequences. Short-term rental owners in Williamson County should ensure compliance with all applicable regulations to avoid any penalties.

Williamson County, Texas Short-Term Rental Taxes

Short-term rental owners in Williamson County, Texas, are subject to various taxes at the state and local levels. It's essential for property owners to understand these taxes and comply with the applicable regulations to avoid penalties and ensure the smooth operation of their rental business.

State Hotel Occupancy Tax

The State of Texas imposes a 6% hotel occupancy tax on short-term rentals for stays of 29 consecutive calendar days or less. This tax is collected by the Texas Comptroller's Office and must be filed and paid monthly or quarterly, depending on the schedule determined during registration with the Comptroller's Office.

As of May 1, 2017, Airbnb began collecting and remitting the 6% state hotel occupancy tax on behalf of hosts for all bookings made through the Airbnb platform. For bookings made through other platforms or directly with the property owner, the host is responsible for collecting and remitting this tax to the Comptroller's Office.

Local Lodging Taxes

In addition to the state hotel occupancy tax, some cities and counties in Williamson County may charge local lodging taxes. These taxes are managed by the local taxing authorities and have their own rates and due dates for filing and payment.

For example, the City of Georgetown imposes a 7% local hotel occupancy tax on short-term rentals. Property owners are responsible for collecting and remitting this tax to the City of Georgetown through the hotel occupancy tax reporting process.

It's important for short-term rental owners to research the specific local taxes that apply to their property's location and ensure compliance with all applicable regulations.

Tax Deductions and Write-Offs

Short-term rental owners may be eligible for various tax deductions and write-offs that can help reduce their taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Repairs and maintenance costs
5. Depreciation of the rental property
6. Utilities and internet expenses
7. Cleaning and housekeeping costs
8. Advertising and marketing expenses
9. Fees paid to rental platforms (e.g., Airbnb, VRBO)
10. Home office expenses (if applicable)

To qualify for these deductions, the property must be available for rent for more than 14 days per year, and personal use by the owner must be limited. Accurate record-keeping and documentation are essential for claiming these deductions and maximizing the profitability of the rental investment.

Short-term rental owners in Williamson County, Texas, should familiarize themselves with the applicable state and local taxes and take advantage of available deductions to optimize their rental business. Consulting with a tax professional can help ensure compliance and maximize the financial benefits of operating a short-term rental property.

Texas Wide Short-Term Rental Rules

While Williamson County does not currently have county-wide short-term rental regulations, it's important for hosts to be aware of state-level requirements that may affect their operations. Texas has minimal state-level regulations for short-term rentals, allowing city and county governments to determine their own laws and regulations.

The only state-wide requirement for short-term rental hosts in Texas is to register with the Texas Comptroller's Office. This registration is necessary to collect and remit the state hotel occupancy tax of 6% on all stays of 30 days or less. After registering, hosts receive a hotel tax permit and instructions on how to file their taxes with the state.

As of May 1, 2017, Airbnb began collecting and remitting the 6% state hotel occupancy tax on behalf of hosts for all bookings made through their platform. However, for bookings made through other platforms or directly with the property owner, the host is responsible for collecting and remitting this tax to the Comptroller's Office.

It's important to note that certain guests, such as government and foreign diplomats, as well as some non-profit entities, may be eligible for tax exemptions. Hosts should be aware of these potential exemptions when managing their tax obligations.

While Texas does not impose any state-level regulations or limitations on short-term rentals, it also does not prevent the introduction of regulations at the local level. This means that cities and counties within Texas, including those in Williamson County, are free to establish their own rules and requirements for short-term rental properties.

Therefore, short-term rental hosts in Williamson County should carefully review the specific regulations in the city or town where their property is located, in addition to complying with the state-level hotel occupancy tax requirements. By staying informed about both state and local regulations, hosts can ensure they are operating their short-term rentals legally and responsibly.

Does Williamson County Strictly Enforce STR Rules?

Williamson County does not currently have county-wide regulations for short-term rentals, which means enforcement is left to the individual cities within the county. The level of enforcement and Airbnb friendliness can vary significantly from city to city.

According to discussions on real estate investing forums like BiggerPockets and Reddit, Williamson County is generally considered more Airbnb friendly compared to other major cities in Texas, such as Austin or Fort Worth, which have stricter regulations and enforcement.

Many hosts report operating short-term rentals in Williamson County cities without significant issues, as long as they comply with any applicable city ordinances and pay the required taxes. However, it's important to note that some cities, like Georgetown, are in the process of developing more comprehensive short-term rental regulations, which may lead to increased enforcement in the future.

Cities like Round Rock and Cedar Park, which are popular destinations within Williamson County, have not implemented strict short-term rental regulations, making them attractive to Airbnb hosts. However, hosts should still be aware of any applicable zoning laws, noise ordinances, and parking requirements to avoid potential issues with neighbors or local authorities.

In summary, while Williamson County is generally considered more Airbnb friendly compared to other major cities in Texas, the level of enforcement can vary depending on the specific city. Hosts should research the regulations in their particular city and operate in compliance with any applicable rules to minimize the risk of penalties or legal issues. As short-term rental regulations continue to evolve in Williamson County, hosts should stay informed about any changes that may affect their businesses.

How to Start a Short-Term Rental Business in Williamson County

Starting a short-term rental business in Williamson County, Texas, can be a lucrative venture, but it's essential to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a comprehensive guide on how to get started:

1. Research local regulations: Before investing in a property or listing your existing home as a short-term rental, thoroughly research the specific regulations in your city within Williamson County. Cities like Georgetown are currently developing ordinances that will require permits and adherence to certain rules. Familiarize yourself with zoning laws, occupancy limits, and any other applicable regulations.
2. Choose a suitable property: Select a property that appeals to your target guests and complies with local short-term rental regulations. Consider factors such as location, amenities, and the number of bedrooms and bathrooms. If you plan to purchase a property, work with a real estate agent familiar with short-term rental regulations in your area.
3. Register with the Texas Comptroller's Office: As a short-term rental operator in Texas, you must register with the Texas Comptroller's Office to obtain a hotel tax permit. This permit allows you to collect and remit the required state hotel occupancy tax of 6% on all stays of 30 days or less.
4. Obtain necessary permits and licenses: Depending on your city's requirements, you may need to apply for a short-term rental permit or license. For example, once Georgetown's ordinance is finalized, property owners will need to submit a permit application, pay a fee, provide proof of insurance, and comply with other requirements. Check with your local city government for specific details.
5. Prepare your property: Furnish and equip your short-term rental to provide a comfortable and inviting experience for your guests. Invest in quality furniture, linens, and amenities that cater to your target audience. Ensure your property is clean, well-maintained, and complies with all safety regulations.
6. Create a detailed listing: Craft an appealing and informative listing on popular short-term rental platforms like Airbnb and VRBO. Include high-quality photos, a comprehensive description of your property and its amenities, and any unique selling points. Be transparent about your house rules and expectations.
7. Set competitive rates: Research similar listings in your area to determine a competitive nightly rate for your short-term rental. Consider factors such as seasonality, events, and demand when adjusting your prices. Utilize dynamic pricing tools to optimize your rates and maximize occupancy.
8. Implement a guest communication strategy: Establish a system for promptly responding to guest inquiries, providing check-in instructions, and offering local recommendations. Consider using vacation rental software to automate guest communication and provide a seamless experience.
9. Comply with tax requirements: In addition to the state hotel occupancy tax, be aware of any local taxes required by your city or county. For example, Georgetown imposes a 7% local hotel occupancy tax on short-term rentals. Regularly file and pay your taxes to avoid penalties.
10. Monitor your business and adapt: Regularly review your short-term rental's performance, guest feedback, and local regulations. Be prepared to adapt your strategy as needed to maintain compliance and optimize your business. Stay informed about any changes to local ordinances that may impact your operations.

By following these steps and staying informed about local regulations, you can successfully start and operate a short-term rental business in Williamson County, Texas. Remember to prioritize guest satisfaction, maintain a high-quality property, and comply with all applicable laws to ensure the long-term success of your venture.

Who to Contact in Williamson County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning in Williamson County, there are several resources available to help you.

For general questions about zoning restrictions on your property, you can submit a Zoning Inquiry online through the Williamson County Planning & Zoning Department's website. The Planning & Zoning Department is responsible for implementing the county's Zoning Ordinance and can provide guidance on land use and development issues.

Contact Information:

1. Williamson County Planning & Zoning Department
2. Phone: (615) 790-5725
3. Email: planning@williamsoncounty-tn.gov
4. Address: 1320 West Main Street, Suite 400, Franklin, TN 37064

For questions specifically related to short-term property rentals and hotel/motel taxes, contact the Williamson County Business Tax Department at (615) 790-5732.

In addition to county resources, it's important to research any city-specific regulations that may apply to your short-term rental. For example, if your property is located in Georgetown, you can find information on the city's short-term rental policies on their website at https://government.georgetown.org/city-secretary/short-term-rental-information/. The City of Georgetown is currently developing an ordinance that will require short-term rental owners to obtain a permit and comply with certain regulations.

Hosts in Williamson County may also find it helpful to connect with other local hosts through online communities and forums. The Airbnb Community Center has a section dedicated to Local Host Clubs, where you can find Facebook groups for hosts in your area. These groups provide a platform for hosts to exchange advice, share experiences, and stay informed about local regulations and best practices.

By utilizing these resources and staying engaged with the local host community, short-term rental owners in Williamson County can ensure they are operating in compliance with all applicable regulations and set themselves up for success in their rental businesses.

What Do Airbnb Hosts in Williamson County on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Williamson County have shared their experiences and thoughts on local short-term rental regulations on various online forums, such as Reddit and BiggerPockets. Here are some relevant discussions:

Reddit - r/Nashville: In a thread titled "I don't understand how?" a user mentioned that Williamson County has strict regulations on short-term rentals after 2020, stating, "You need to be in a commercial or multi-use zone to have non-owner occupied short term rental. If you live in the house, you can't rent out the whole house."

BiggerPockets Forum: In a post titled "My experience running a short term rental in Nashville, TN," a real estate agent shared their challenges with obtaining and maintaining a short-term rental permit in Nashville. They mentioned that Davidson County and Williamson County are extremely strict when it comes to short-term rental regulations. The agent advised against buying a single-family home for Airbnb purposes, citing the added taxes, compliance difficulties, and neighborhood opposition as major hurdles.

BiggerPockets Forum: Another post titled "Airbnb rentals start-up!" featured a new investor seeking advice on finding properties for Airbnb in and around Nashville, TN. While no specific responses about Williamson County regulations were provided, the post highlights the interest in short-term rentals in the area.

BiggerPockets Forum: In a discussion titled "The Difficulties of Airbnb," investors shared their experiences and challenges with hosting on Airbnb. While not specific to Williamson County, the thread provides insights into the general challenges hosts face, such as dealing with regulations, property management, and guest issues.

Reddit - r/Nashville: A post titled "How many new homes have to be built to make Nashville 'affordable?'" touched on the topic of short-term rentals. A user commented that Nashville's Airbnb regulations became stricter after 2020, requiring hosts to be in a commercial or multi-use zone for non-owner occupied rentals and prohibiting whole-house rentals for owner-occupied properties.

These discussions suggest that Airbnb hosts in Williamson County and the surrounding areas face challenges due to strict local regulations, particularly for non-owner occupied rentals. Hosts have expressed concerns about compliance difficulties, added taxes, and neighborhood opposition. While some investors remain interested in short-term rentals in the area, others advise caution and thorough research before investing in properties for Airbnb purposes.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.