1. Overview – Are Short‑Term Rentals Allowed in Athens, TX?

Yes. Short‑term rentals are permitted in the City of Athens, but they are strictly regulated. A valid Short‑Term Rental Permit issued by the City is required before any property may be offered for stays of fewer than 30 consecutive days. The regulations were adopted through Ordinance 2024‑O‑159 (effective 26 August 2024) and are administered by the Development Services Department.

Key point for investors: Athens welcomes STRs as long as you comply with the city’s permitting, safety, occupancy, parking, and tax‑remittance requirements.

2. How to Start an STR Business in Athens – Step‑by‑Step

| Step | Action | Why It Matters | |------|--------|----------------| | 1. Verify Zoning & Property Eligibility | Confirm the property is a residential structure (single‑family, garage apartment, guest house, manufactured home, accessory dwelling unit, or unit in a multi‑unit building). | Ordinance § 13‑158 limits STRs to primary residential structures and accessory residential structures. | | 2. Secure Liability Insurance | Obtain a host‑protection or other liability policy with minimum $1,000,000 per‑occurrence coverage. | Required before a permit can be issued (Ordinance § 13‑162(b)). | | 3. Apply for a Short‑Term Rental Permit | Submit a complete application to the Development Services Department (see § 13‑160). | The application fee is set in Chapter 23 of the City Code (currently $200). | | 4. Register for Hotel Occupancy Tax (HOT) | After permit acceptance, the Finance Department will create a HOT account. | You must collect and remit state and local HOT monthly. | | 5. Schedule a Building/Inspection | The Building & Inspections Division will inspect the premises for health‑and‑safety compliance. | Issuance of the permit is contingent on a satisfactory inspection (Ordinance § 13‑162(a)). | | 6. Designate a Local Responsible Party (LRP) | Identify an individual who can be reached 24 / 7 and be present at the property within one hour of a call. | Mandatory per § 13‑162(c). | | 7. Prepare Occupancy, Parking & Safety Documentation | • Floor plan with bedroom count, egress routes <br>• Site plan showing off‑street parking spaces <br>• “Host Rules” (notice to occupants) | Required as part of the permit application (Ordinance § 13‑160(b)). | | 8. Post the Permit | Display the issued STR permit prominently inside the front entrance. | Required by § 13‑162(d). | | 9. Launch Operations | Begin advertising only after the permit is active. | Advertising without a permit is unlawful (Ordinance § 13‑160(a)). | | 10. Ongoing Compliance | • Collect and remit HOT monthly <br>• Enforce occupancy, parking, noise, and trash rules <br>• Keep insurance certificate current and notify the city of cancellations within 30 days | Failure to comply triggers fines, permit revocation, and possible criminal charges (Ordinance § 13‑168). |

3. Required Documents, Permits, Licenses & Guidelines

3.1 Short‑Term Rental Permit Application

The following items must be submitted with the permit request (Ordinance § 13‑160(b)):

| Document | Description | |----------|-------------| | Owner’s Information | Full legal name, address, contact details, and authenticated signature. | | Operator/Agent & Local Responsible Party | Name, address, phone number, and availability status. | | Hotel Occupancy Tax Registration Number | Issued by the City Finance Department. | | Site Plan | Drawing showing the location of all on‑site parking spaces (off‑street only). | | Dimensioned Floor Plan | Layout of bedrooms, living areas, and emergency evacuation routes. | | Proof of Insurance | Certificate evidencing $1 M liability coverage (per § 13‑162(b)). | | HOA Details (if applicable) | Name and contact info of the property owner’s association. | | Host Rules / Occupant Notice | Draft of the notice to be posted inside the STR covering occupancy, parking, trash, amplified sound, etc. | | Application Fee | $200 (per Chapter 23 of the City Code). | | Any Additional Data Requested by the Administrator | May include special circumstances or safety concerns. |

3.2 Hotel Occupancy Tax (HOT) Requirements

• State HOT: Texas imposes a 6 % tax on the gross receipts of short‑term rentals (Tex. Tax Code § 151.001).
• Local (City) HOT: Athens levies an additional 7 % (City Code Chapter 23).
• Registration: The Finance Department will set up a HOT account after the permit is approved.
• Remittance: Taxes must be paid monthly; an accounting of all occupants must be provided upon request within 30 days.

3.3 Insurance

• Minimum Coverage: $1,000,000 per occurrence (host‑protection or equivalent liability).
• Certificate on File: Must be kept with the City and updated within 30 days of cancellation.

3.4 Posting & Occupancy Guidelines

• Permit Posting: Inside the front entrance, visible to occupants.
• Occupancy Limit: 2 persons per bedroom + 2 additional persons total.
• Minimum Stay: 24 hours (no rentals < 24 h).
• Parking: Only off‑street spaces indicated on the site plan; no street parking, RVs, commercial vehicles, or recreational vehicles on the premises or adjacent streets.

4. Specific Regulations (City, County & State)

4.1 City of Athens – Ordinance 2024‑O‑159 (Article IX – Short‑Term Rentals)

| Regulation | Detail | |------------|--------| | Applicability | All existing and future STR units in primary or accessory residential structures. | | Permit Requirement | Unlawful to operate without an active permit. | | Permit Non‑Transferability | Permits cannot be assigned or transferred. | | Expiration & Renewal | Permit expires on the last day of the month one year after issuance. Renewals may be filed 30 days prior to expiration. | | Insurance | Must maintain at least $1 M liability coverage; certificate on file. | | Local Responsible Party | Must be reachable 24 / 7; must appear on‑site within 1 hour of a call. | | Occupancy Limits | 2 persons per bedroom + 2 additional (maximum). | | Parking Restrictions | Only off‑street spaces; no street parking, RVs, commercial vehicles, or motor‑homes. | | Minimum Stay | 24 hours. | | Notice to Occupants | Host Rules covering occupancy, parking, trash, amplified sound must be posted inside the unit. | | HOT Collection & Remittance | Monthly remittance required; failure to comply may result in fines and revocation. | | Complaint Reporting | Regular‑hours complaints to Code Enforcement (903‑677‑6615); after‑hours to Police Non‑Emergency (903‑675‑5454). | | Penalties | Misdemeanor; fines up to $2,000 per day per violation; $500 per violation if mental state not required; up to $2,000 for fire safety, zoning, or public health violations. | | Permit Revocation | Revoked after ≥ 2 citations within 12 months, non‑compliance for 10 days after notice, false statements, or other disqualifying factors. Revocation triggers a 1‑year prohibition on issuing any new permit for the same premises. | | Discontinuance (Legacy STRs) | Existing STRs not in compliance with HOT or unable to obtain a permit must cease operations by March 1 2025 (if up‑to‑date on HOT) or October 1 2024 (if delinquent). | | Enforcement | City may seek injunctive relief; criminal prosecution is possible. |

4.2 Henderson County (Athens is the county seat)

• County‑Level Zoning: Henderson County does not have a separate STR ordinance; county zoning codes defer to the City’s regulations for properties inside the municipal limits.
• County HOT: The county does not impose an additional hotel tax; the City’s HOT covers the local portion.

4.3 State of Texas

| Issue | State Requirement | |-------|-------------------| | Hotel Occupancy Tax (HOT) | 6 % of gross receipts (Tex. Tax Code § 151.001). | | Sales Tax | Not applicable to lodging; HOT replaces sales tax for short‑term rentals. | | Business Registration | No statewide STR license required; registration for sales tax (if applicable) or local business license may be required by the municipality. | | Insurance | No state‑mandated minimum; the city’s $1 M requirement exceeds state expectations. | | Zoning & Safety | State law defers to local ordinances for short‑term rental operation. |

5. Contact Information – Local Authority for STRs

| Department / Agency | Phone | Email (if available) | Address / Website | |---------------------|-------|----------------------|-------------------| | Development Services Department (Permit inquiries, applications) | 903‑677‑6615 | – | 501 US Hwy 175 W, Athens, TX 75751 <br>Website: athenstx.gov | | Code Enforcement (Regular‑business‑hour complaints) | 903‑677‑6615 | – | Same as above | | Police Department – Non‑Emergency (After‑hours complaints) | 903‑675‑5454 | – | 900 W. Corsicana St., Athens, TX 75751 | | Finance Department (HOT account set‑up, remittance questions) | 903‑677‑6615 (general) | – | Same as above | | City of Athens – Official Website | – | – | **athenstx.gov** | | Permit Application Document (PDF) | – | – | **www.athenstx.gov/DocumentCenter/View/912** | | Full Ordinance (PDF) | – | – | **athenstx.gov/Archive.aspx?ADID=384** | | City Facebook Post (notice) | – | – | **m.facebook.com/CityofAthensTexas/photos/1047805197449145/** (login required) |

6. Links to Source Pages (for reference)

| Source | URL | |--------|-----| | Short‑Term Rental Info Guide (PDF) | **www.athenstx.gov/DocumentCenter/View/912** | | Ordinance 2024‑O‑159 – Short‑Term Rentals (PDF) | **athenstx.gov/Archive.aspx?ADID=384** | | City of Athens Official Website | **athenstx.gov** | | Facebook Announcement (public notice) | **m.facebook.com/CityofAthensTexas/photos/1047805197449145/** |

7. Quick‑Reference Checklist for New STR Operators

• [ ] Confirm zoning – residential structure inside City limits.
• [ ] Obtain $1 M liability insurance and keep certificate on file.
• [ ] Submit complete STR permit application (including all required documents).
• [ ] Pay $200 application fee (set in Chapter 23).
• [ ] Schedule & pass City building inspection.
• [ ] Set up HOT account with Finance (receive registration number).
• [ ] Designate Local Responsible Party (24 / 7 availability).
• [ ] Prepare and post “Host Rules” inside the unit.
• [ ] Display permit at front entrance.
• [ ] Collect & remit HOT monthly (state 6 % + city 7 %).
• [ ] Maintain occupancy, parking, noise, and trash compliance at all times.
• [ ] Respond to complaints (Code Enforcement or Police).
• [ ] Renew permit 30 days before expiration; keep insurance current.

Final Note for Investors

Athens offers a viable short‑term rental market with a clear regulatory framework. Success hinges on pre‑emptive compliance: securing the permit, maintaining robust insurance, managing the local responsible party, and staying current on HOT remittance. By following the steps and requirements outlined above, you can launch and operate a compliant, profitable STR in Athens, TX.