Midland Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Midland, Texas?

In February 2022, Midland implemented regulations requiring short term rental hosts to register with the city and obtain a permit to operate [5]. Hosts must also collect and pay a 7% tax on all gross rental proceeds every quarter. This tax revenue funds city projects and services [5].

To register and pay taxes, hosts must set up an account through Granicus' Host Compliance portal, which the city uses to identify short term rentals [5]. There are currently no additional licensing or inspection requirements for short term rentals beyond registration and taxes [3].

However, hosts are still responsible for having insurance, complying with safety regulations, and following rules around noise and nuisance issues [3][5]. The city can amend regulations for short term rentals in the future as the market continues to evolve.

Starting a Short Term Rental Business in Midland

In Midland, Texas, starting a short-term rental business involves registering with the city and obtaining a permit to operate. Property owners must also comply with safety regulations, such as maintaining appropriate insurance, and collect and remit a 7% tax on gross rental proceeds quarterly23. The city defines a short-term rental as a residential property rented out for less than 30 days2. To initiate the process, hosts need to follow these steps:

1. Register the rental property with the city.

2. Set up an account on Granicus Host Compliance to pay taxes.

3. Ensure compliance with safety regulations, including having the necessary insurance.

4. List the property on platforms like Airbnb and commence renting it out2.

Short Term Rental Licensing Requirement in Midland

The city of Midland, short-term rental operators are required to register with the city and obtain a permit to operate their properties4. This registration process ensures that hosts comply with local regulations and contribute to the community's well-being. Here are the key points about short-term rental licensing in Midland:

• Registration is mandatory for all short-term rental operators4.
• Hosts must pay a 7% tax on all gross rental proceeds every quarter4.
• The city defines a short-term rental as a residential property rented out for less than 30 days4.
• There are no additional license or inspection requirements for short-term rentals in Midland, but hosts must have insurance and comply with safety regulations4.
• The city of Midland contracts with Granicus' Host Compliance to help identify short-term rentals and ensure owners follow guidelines for payment3.

By obtaining a permit and adhering to the regulations, short-term rental operators in Midland contribute to the city's economy and help fund various city projects and services3.

Required Documents for Midland Short Term Rentals

When setting up a short-term rental in Midland, Texas, there are no additional license or inspection requirements. However, hosts are responsible for ensuring they have the necessary documentation and meet all regulatory standards. The following documents and considerations are essential for Midland short-term rentals:

• Insurance: Hosts must maintain appropriate insurance for their short-term rental property to ensure coverage for any unforeseen incidents.
• Permit and Registration: Hosts are required to register with the city and obtain a permit to operate their short-term rental property123.
• Tax Compliance: Ensure compliance with the 7% tax on all gross rental proceeds, which must be paid quarterly2.

Midland Short Term Rental Taxes

Short-term rental hosts in Midland, Texas are required to pay a tax of 7% of gross rental proceeds every quarter13. The city code defines a short-term rental business as a business where 80% of the rental activity is for less than 30 days1. Hosts must use Granicus' Host Compliance portal to set up an account and submit tax payments1. The tax revenue funds city projects and services1. There are no additional license or inspection requirements for short-term rentals in Midland, but hosts are still responsible for having insurance and complying with safety regulations3.

It is important to note that there are currently no statewide regulations for short-term rentals in Texas, and rules vary widely between cities3. Some cities like Austin require hosts to register and pay hotel occupancy taxes3. Midland does not seem to strictly enforce short-term rental rules at this time, but enforcement may increase in the future as the market grows3.

Overall, short-term rental regulations in Midland require hosts to register with the city, obtain a permit to operate, and pay a tax of 7% of gross rental proceeds every quarter13. Hosts must also comply with safety regulations, maintain appropriate insurance, and collect and remit occupancy taxes to the state3.

Texas Wide Short Term Rental Rules

There are no statewide regulations for short-term rentals in Texas, rules vary widely between cities. Some cities, such as Austin, require hosts to register and pay hotel occupancy taxes. In Midland, the city is more focused on requiring registration and tax collection at this time, and it does not seem to strictly enforce short-term rental rules. However, enforcement may increase in the future as the market grows.

Does Midland Strictly Enforce STR Rules?

Midland, Texas implemented short-term rental regulations in February 2022, requiring hosts to register with the city and obtain a permit to operate. Hosts must comply with safety regulations, maintain appropriate insurance, and collect and remit occupancy taxes to the state. Hosts are limited to renting their primary residence and must follow specific rules related to noise. While it is unclear whether Midland strictly enforces these rules or whether it is Airbnb-friendly, the city is more focused on requiring registration and tax collection at this time. However, enforcement may increase in the future as the market grows.

How Airbnb Friendly is Midland?

Midland seems moderately Airbnb-friendly. The city has implemented basic requirements like registration and taxes, but does not impose strict regulations and inspections on hosts [3][4]. This provides flexibility for hosts while still regulating the market.

How to Start a Short Term Rental Business in Midland

To start a short-term rental business in Midland, follow these steps:

1. Register your rental property with the city: As a host, you must register your property with the city and obtain a permit to operate a short-term rental2.

2. Set up an account on Granicus Host Compliance: Hosts are required to pay a 7% tax on gross rental proceeds every quarter. You can set up an account and submit tax payments through the Granicus Host Compliance portal23.

3. Comply with safety regulations: Ensure your property meets safety standards, such as having insurance2.

4. List your property on short-term rental platforms: Once your property is registered and you have set up an account for tax payments, you can list your property on sites like Airbnb and begin renting it out2.

Who to Contact About Short Term Rental Regulations and Zoning

Contact the Midland Finance Department with any questions about registering a short-term rental or paying taxes:Phone: 432-685-7208
Email: str@midlandtexas.gov [1]

What Do Midland Hosts Think About Local Regulations?

Most Midland hosts on Reddit and BiggerPockets seem fine with the current rules around registration and taxes [4][5]. Some do wish regulations were not increasing over time, but understand the reasons behind it [5]. Many are optimistic about the continued growth of short-term rentals in Midland [4].