Overview: Are Short-Term Rentals Allowed in Bastrop, TX?

YES — Short-term rentals ARE explicitly allowed in Bastrop, Texas, but they must be registered with the City.

The City of Bastrop has formally embraced short-term rentals while implementing a regulatory framework to ensure safety, compliance, and neighborhood harmony. On February 25, 2025, the Bastrop City Council passed Ordinance No. 2025-07, establishing the city's first-ever mandatory registration process for short-term rentals. This ordinance became fully effective on April 26, 2025, signifying Bastrop's commitment to regulating rather than prohibiting this growing industry.

How to Start a Short-Term Rental Business in Bastrop, Texas

Step 1: Property Assessment and Location Verification

• Determine your property's jurisdiction: STRs within Bastrop city limits require city registration; those in the extraterritorial jurisdiction (ETJ) are subject to city regulations but different tax rates
• Verify zoning compliance: Ensure your property is zoned appropriately for lodging use
• Assess safety and infrastructure: Confirm your property meets basic safety standards including fire alarms, evacuation routes, and proper addressing

Step 2: Complete City Registration Process

• Access the registration portal: Visit public.mygov.us/bastrop_tx
• Submit separate applications: Each individual short-term rental unit requires its own registration, even if multiple units exist on the same property
• Pay the registration fee: $25 per application (significantly lower than many Texas cities)
• Registration validity: Annual registration that expires one year from issuance or upon property ownership transfer

Step 3: Establish Tax Compliance Framework

• Understand HOT obligations: Set up systems to collect Hotel Occupancy Tax from guests
• Register with tax collection system: Use Localgov platform (tax.localgov.org/login) for HOT reporting
• Determine applicable tax rate: 13.75% for properties inside city limits/ETJ; 13% for properties outside city limits and ETJ

Step 4: Operational Setup

• Designate 24/7 local contact: Provide reliable local contact information for guest inquiries and emergency situations
• Implement safety protocols: Install and maintain fire alarms, establish evacuation procedures, post emergency information
• Platform registration: Register your STRs on platforms like Airbnb, VRBO, etc.

Step 5: Compliance and Maintenance

• Monitor regulatory changes: Stay informed about evolving city regulations
• Maintain annual registration: Renew registration before expiration
• Address violations promptly: Understand potential fines up to $500 for noncompliance

Required Documents, Permits, Licenses, and Guidelines

City of Bastrop Registration Requirements

Essential Documents for Registration:

• Property address and owner information
• Local contact information (must be available 24/7)
• Proof of current hotel occupancy tax payments
• Safety documentation including fire alarm verification and evacuation plans
• Information about rental platforms where the property is listed (Airbnb, VRBO, etc.)
• Property identification and addressing information

Key Guidelines:

• Annual renewal required: Registration must be renewed yearly
• Multiple unit handling: Each short-term rental unit requires separate registration
• New owner timeline: New STR owners must register within 60 days of opening
• Ownership change: Registration transfers with property ownership

Hotel Occupancy Tax (HOT) Compliance

State and Local Tax Obligations:

• Texas State HOT: 6% on all short-term lodging charges
• Bastrop County HOT: 0.75% for properties within city limits/ETJ; 7% for properties outside
• City of Bastrop HOT: 7% for properties within city limits/ETJ
• Total Tax Rates:
  • Inside city limits or ETJ: 13.75% total
  • Outside city limits and ETJ: 13% total

Reporting Requirements:

• Filing frequency: Monthly filing required to Bastrop County
• Quarterly filing: Available if taxpayer owes less than $500 monthly or $1,500 quarterly (requires County approval)
• Zero stays reporting: Required even with no overnight stays until written notice of business cessation
• Online filing: Through Localgov platform (tax.localgov.org/login)

Safety and Operational Standards

Minimum Safety Requirements:

• Functional fire alarm systems
• Posted evacuation procedures and emergency contact information
• Proper property addressing for emergency services
• Compliance with local building and zoning codes

Specific Regulations for Short-Term Rentals

City of Bastrop Municipal Regulations

Ordinance 2025-07 Key Provisions:

• Registration mandate: All STRs within city limits must register
• Safety standards: Requirements for fire safety and emergency preparedness
• Tax compliance verification: Registration includes proof of current tax payments
• Operational oversight: City retains authority to ensure ongoing compliance

Enforcement Mechanisms:

• Fines up to $500: Violations determined by municipal judge
• Registration suspension: Noncompliance can result in registration suspension
• Business closure: Severe or repeated violations may result in business closure orders

Neighborhood Protection Measures:

• Noise restrictions: Subject to standard municipal noise ordinances
• Parking regulations: STRs must comply with local parking requirements
• Trash and maintenance: Properties must maintain appearance and cleanliness standards

Bastrop County Regulations

County-Level Requirements:

• Tax collection authority: County collects HOT through Localgov platform
• No separate county STR permits: County does not issue specific STR permits
• General business compliance: Properties must meet septic, driveway, and 911 addressing requirements where applicable

State of Texas Regulations

Texas Tax Code Compliance:

• Chapter 156 (State): Governs state-level HOT collection
• Chapter 352 (County): Establishes county HOT authority
• Chapter 351 (Municipal): Grants cities HOT collection rights

Statewide STR Framework:

• Definition: Any sleeping accommodation rented for less than 30 days consecutively
• Audit rights: State and local governments retain audit authority
• Legal enforcement: Noncompliance can result in legal action and business closure

Contact Information for Local Authorities

City of Bastrop - Primary STR Authority

Development Services Department

• Phone: 512-332-8840
• Email: info@cityofbastrop.org
• Address: 1311 Chestnut Street, Bastrop, Texas 78602
• Website: www.cityofbastrop.org
• Services: STR registration assistance, permitting questions, regulatory guidance

General City Contact:

• Phone: 512-332-8800
• Email: info@cityofbastrop.org

Bastrop County - Tax Administration

Hotel Occupancy Tax Collection:

• Platform: tax.localgov.org/login
• Customer Service: (877) 842-3037
• Email: service@localgov.org
• Help Center: service.localgov.org/knowledge

Tourism & Economic Development:

• Contact: Amberley Palmer
• Phone: (512) 581-4236
• Email: amberley.palmer@co.bastrop.tx.us
• Website: www.co.bastrop.tx.us/page/ds.tourism_economic

Municipal Partners for Regional Compliance

City of Elgin:

• Finance Director: 512-229-3218
• Hotel Tax Payment: elgintx.com/648/Hotel-Tax

City of Smithville:

• Online Agent: Neumo (Avenu)
• Information: ci.smithville.tx.us/258/Hotel-Occupancy-Tax-HOT-Short-Term-Rental

Source Links

Official City of Bastrop Resources

• STR Registration Portal: public.mygov.us/bastrop_tx
• MyGov Permitting Platform Information: cityofbastrop.org/MyGov
• Bastrop Short-Term Rental Page: www.cityofbastrop.org/page/shorttermrental
• City Hotel Occupancy Tax Information: www.cityofbastrop.org/page/fin.tax_info
• Bastrop Code of Ordinances: library.municode.com/tx/bastrop/codes/code_of_ordinances

Regulatory Documents

• Ordinance 2025-07: STRv5.pdf
• Registration Process Adoption: www.cityofbastrop.org/page/open/17252/0/ORDINANCE%20NO.%202025-07%20Short-Term%20Rental%20Registration%20Process%20Adoption.pdf

County and Regional Resources

• Bastrop County HOT Brochure (August 2025): www.co.bastrop.tx.us/upload/page/0146/STR%20HOT%20BROCHURE%20-%20AUG2025.pdf
• County Tourism & Economic Development: www.co.bastrop.tx.us/page/ds.tourism_economic

State Resources

• Texas Comptroller HOT Information: comptroller.texas.gov/taxes/hotel/
• Texas Tax Code: Chapter 156 (State), Chapter 352 (County), Chapter 351 (Municipal)

News and Context

• Community Impact Coverage: communityimpact.com/austin/bastrop-cedar-creek/government/2025/04/30/short-term-rental-surge-prompts-rules-in-bastrop/

Important Note for Investors: This guide reflects regulations current as of August 2025. Given the recent implementation of STR regulations in Bastrop, ongoing monitoring of municipal and county updates is recommended. The relatively low registration fee ($25) and collaborative regulatory approach make Bastrop an attractive market for short-term rental investment compared to larger Texas cities with higher fees and more restrictive frameworks.