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Frisco Short Term Rental Regulation: A Guide For Airbnb Hosts

Frisco, Texas

What are Short Term Rental (Airbnb, VRBO) Regulations in Frisco, Texas?

If you're looking to start a short-term rental (STR) business in Frisco, Texas, you'll need to obtain a short-term rental license and comply with the town's regulations. Each STR property in Frisco is required to have a short-term rental license, and the town has implemented a cap on the maximum allowable number of licenses.

The city council passed an ordinance in 2021, requiring property owners to apply for a permit and pay a $300 annual fee. Property owners must submit various documents, including a parking plan, life safety affidavit, and proof of ownership, as part of the application process for an STR license. Short-term rental license holders in Frisco are required to remit all applicable taxes, including hotel occupancy taxes, to the town.

In Texas, there are no statewide limits on the total number of STRs operating in a city or how many an owner can own. Each STR requires a separate permit. Frisco strictly enforces STR rules, and the city has a 24-hour short-term rental complaint hotline to report violations. The city's approach to Airbnb and other short-term rentals is considered to be regulated and not overly restrictive, as it allows homeowners associations to make their own decisions on STRs.

To legally operate an STR in Frisco, owners must obtain a permit and pay annual licensing fees. To start an STR business in Frisco, you must ensure the property meets the city's zoning and safety requirements, apply for a short-term rental permit, submit the required documents, and collect and remit hotel occupancy taxes monthly. For questions about short-term rental regulations and zoning in Frisco, individuals can contact the Short-Term Rental Support Team.

According to Bigger Pockets, the city's regulations are seen as beneficial for first responders and the community, as they provide clarity and help identify the location of STRs. Frisco is considered less Airbnb-friendly than other Texas cities due to tight regulations. However, hosts still operate in Frisco despite the rules.

Starting a Short Term Rental Business in Frisco

Starting a Short Term Rental Business in Frisco, Texas, involves several steps and requirements. Here's a straightforward guide to help you navigate the process:

Understand the regulations: Familiarize yourself with Frisco's short-term rental (STR) regulations, which include licensing requirements, zoning restrictions, and safety standards17.

Review all STR regulations: Ensure you comply with all applicable laws and ordinances, including those related to parking, life safety, and hotel occupancy taxes19.

Gather required ownership documents: To apply for an STR permit, you'll need proof of ownership, valid contact information, and other documents as specified by the city2.

Complete the $300 permit application: Submit an online application for an STR permit, along with the required documents and fees3.

Display the permit number in listings: Once your permit is approved, include the permit number in your advertisements and booking sites2.

Remit taxes: As a short-term rental license holder, you're required to collect and remit hotel occupancy taxes monthly3.

Maintain compliance: Ensure you adhere to all regulations and avoid fines or penalties, including future licensing bans2.

Short Term Rental Licensing Requirement in Frisco

In Frisco, Texas, property owners are required to obtain a short-term rental (STR) license for their properties if they plan to rent out spaces for less than 30 days8. The city has implemented a cap on the maximum allowable number of STR licenses7.

To ensure compliance with the requirements, property owners must:

  • Apply for a short-term rental permit through the city's online registration process5.
  • Pay the annual fee of $300 for each property8.
  • Submit the required documents, such as a parking plan and life safety affidavit, with the application2.

The STR license is not transferable to another owner, operator, or location1. The city of Frisco has a 24-hour Short-Term Rental complaint hotline for residents to report issues like noise, trash, or occupancy-limit violations6. The town's approach to regulating STRs is considered to be beneficial for first responders and the community, as it provides clarity on the location of STRs3.

Required Documents for Frisco Short Term Rentals

To operate a short-term rental (STR) in Frisco, Texas, property owners must submit several documents as part of the application process. These documents are essential for demonstrating compliance with the city's regulations and ensuring the smooth operation of STRs in the community.

The required documents include:

Proof of Ownership: Owners must provide valid proof of ownership for the property they are operating as a short-term rental6.

Valid Contact Information: Complete and submit the STR application form, which includes the property owner's contact information6.

Parking Plan: A parking plan must be submitted with the application, indicating the location of each parking space on the property. The plan should comply with zoning ordinances and not permit parking within public right-of-way or access easements.

Life Safety Affidavit: The life safety affidavit, signed by the STR owner.

Hotel Occupancy Tax Remittance: Licensed STRs must collect and remit hotel occupancy taxes monthly. The total tax rate is 15% - 6% state hotel tax, 1.75% Frisco hotel tax, and 7.25% sales tax6.

By submitting these documents, property owners can demonstrate their compliance with Frisco's short-term rental regulations and ensure the smooth operation of their STRs in the community.

Frisco Short Term Rental Taxes

In Frisco, Texas, the city levies a 2% sales tax and a 2.35% lodging tax on the gross short-term rental revenue. Additionally, there is a 5% short-term rental excise tax on stays with a check-out date in 2022 or later9. The total tax to be collected and remitted by short-term rental license holders is 15.725%, which includes state, county, and special district sales taxes9.

These taxes should be remitted directly to the Town of Frisco using the Govos/MuniRevs portal9. It is the responsibility of every short-term rental licensee to ensure compliance with the tax regulations, including checking tax settings on all rental platforms9.

Texas Wide Short Term Rental Rules

Texas has minimal state-level regulations for short-term rentals, allowing city governments to determine their own laws and regulations9. The state has largely left it up to local county and city authorities to impose laws that regulate short-term rentals. To familiarize yourself with the specific laws in your market, you should consult the local authority’s website9.

Generally speaking, within the State of Texas and its cities, a short-term rental is defined as the renting out of a residential dwelling unit or an accessory building for a period not longer than 30 consecutive days, also referred to as a vacation rental9. This definition is widely accepted by the cities within Texas.

However, Texas does not impose any state-level regulations and limitations. By comparison, the state does not prevent the introduction of short-term rental regulations at the local level9.In summary, Texas defers the regulation of short-term rentals to local authorities, allowing each city to establish its own rules and requirements for short-term rental properties.

Therefore, individuals interested in starting a short-term rental business in Texas should carefully review the specific regulations in the city or county where they plan to operate.

Does Frisco Strictly Enforce STR Rules?

Frisco, Texas, does strictly enforce short-term rental (STR) regulations. The city has implemented several measures to ensure compliance with its rules and has established a 24-hour complaint hotline for residents to report violations1. Some key points regarding Frisco's enforcement of STR rules include:

  • The city has a 24-hour Short-Term Rental complaint hotline for residents to report issues such as noise, trash, or occupancy-limit violations1.
  • Frisco strictly enforces STR regulations and operates a 24/7 complaint hotline to investigate reports of unregistered properties7.
  • Fines and penalties are in place for operating an STR without a permit or violating the city's regulations3.

In summary, Frisco takes a strict approach to enforcing its STR rules, ensuring that property owners comply with the regulations and maintain a safe and peaceful environment for residents.

How to Start a Short Term Rental Business in Frisco?

To legally operate a short-term rental (STR) business in Frisco, Texas, property owners must adhere to the city's regulations and licensing requirements.

Here are the steps to start an STR business in Frisco:

Understand the Regulations: Review all the STR regulations set by the city of Frisco to ensure compliance with the local laws and requirements.

Gather Required Documents: Collect the necessary ownership documents, including the property schedule number, owner(s) names, and proof of ownership.

Register the Property: Complete the online registration process and submit the required documents. This includes obtaining a short-term rental permit and paying the $300 annual fee for each property1.

Collect and Remit Taxes: Licensed STRs are required to collect and remit hotel occupancy taxes monthly. The total tax rate to be collected and remitted for each booking is 15.725%9.

Display the Permit Number: Once approved, the permit number will be sent via email. It should be included in all property advertisements and internet booking sites1.

Comply with Additional Regulations: Ensure compliance with additional regulations, such as providing a parking plan and a life safety affidavit signed by the property owner3.

Contact the Support Team: For any questions or assistance with the application, tax remittance, or compliance, individuals can reach out to the Short-Term Rental Support Team at 970-409-8409 or via email1.

Frisco strictly enforces its STR regulations, and the city operates a 24-hour complaint hotline to report any violations. It's important to adhere to these regulations to avoid fines, penalties, or potential licensing bans2.

By following these steps and maintaining compliance with the city's regulations, property owners can establish and operate a legal short-term rental business in Frisco, Texas.

Who to Contact in Frisco About Short Term Rental Regulations and Zoning?

Contact the STR Support Team at strsupport@friscotexas.gov or 972-292-5505 for questions on regulations, permitting, taxes, and compliance2.

What do Airbnb Hosts in Frisco on Reddit and Bigger Pockets Think About Local Regulations?

Reddit users describe Frisco as having stringent regulations and "anti-Airbnb" rules compared to Bigger Pockets members. They advise thoroughly reviewing all local codes before attempting to operate an Airbnb in the area. Frisco's regulations are considered less Airbnb-friendly than other Texas cities due to tight enforcement and the requirement for a permit and annual licensing fees. Hosts are encouraged to gather all required ownership documents, complete the permit application, and display the permit number in their listing to ensure compliance with the city's regulations9.

In summary, the feedback from Airbnb hosts in Frisco, as shared on Reddit and Bigger Pockets, suggests that the city's regulations are perceived as strict and less favorable for Airbnb operations compared to other Texas cities. Hosts are advised to carefully navigate the local codes and requirements to ensure compliance with the regulations.

Reveal your property’s rental profitability

Buy this property and list it on Airbnb.