Overview: Are Short-Term Rentals Allowed in DeSoto?

Yes, short-term rentals are explicitly allowed in DeSoto, Texas. The City of DeSoto has adopted Ordinance No. 2180-19, which specifically permits and regulates short-term rental operations within the city. STRs are defined as properties that rent out all or a portion of a one-family or two-family dwelling for overnight lodging for between one (1) and twenty-nine (29) days, with the requirement that the property must be owner-occupied and not provide food or beverage for consumption.

How to Start a Short-Term Rental Business in DeSoto

1. Initial Planning and Compliance Assessment

Before purchasing or listing a property as an STR, ensure you meet the following fundamental requirements:

• Owner-occupation requirement: You must occupy the property as your primary residence
• Property type: Limited to one-family or two-family dwellings
• Rental duration: 1-29 days maximum per stay
• No commercial services: Cannot provide food or beverage services

2. Registration and Permit Process

DeSoto requires all STR operators to register their property and obtain a permit through the following process:

• Register online through the city's registration portal
• Pay the annual registration fee of $125 per property
• Submit required documentation (detailed below)
• Receive permit approval and permit number via email
• Include permit number in all advertisements and internet booking sites

3. Ongoing Compliance Requirements

• Monthly tax remittance: Collect and remit Hotel-Motel-STR occupancy taxes through the Financial Services Department
• Maintain compliance: Adhere to all operational regulations (noise, parking, occupancy limits)
• Respond to complaints: Provide contact information and address issues promptly
• Annual renewal: Maintain current registration status

Required Documents, Permits, Licenses, and Guidelines

Required Documentation for Registration:

1. Sketch floor plan indicating the dimensions of each room
2. Site plan/survey of the property showing the maximum number of vehicles that can be legally parked without encroaching onto streets, sidewalks, alleys, or other public rights-of-way

Permits and Licenses:

• Annual STR Registration Permit: $125 per property (mandatory)
• Hotel-Motel Tax Registration: For collecting and remitting occupancy taxes
• Business Registration: Standard business registration requirements may apply

Additional Guidelines:

• Owner-occupied requirement: Must be primary residence
• Maximum stay: 29 days
• No commercial services: Cannot serve food/beverages
• Compliance with local codes: All health, safety, fire, and zoning codes

Specific Regulations for Short-Term Rentals

City of DeSoto Regulations:

Operational Requirements:

• Owner-occupation: Property must be owner-occupied at all times
• Permit display: Permit number must be included in advertisements
• Contact requirements: Must provide owner/operator contact for complaints
• Floor plan and parking plan: Required documentation for registration

Occupancy and Use Limits:

• Maximum occupancy: Generally two people per sleeping room with additional allowances for children
• No party venues: Prohibited use of residences as party or event venues
• Noise restrictions: Must comply with local noise ordinances
• Parking limitations: Must not exceed legally designated parking capacity

Enforcement and Penalties:

• Registration violations: Fines up to $500 per day for operating without registration
• Compliance monitoring: City uses third-party vendors to locate STR listings
• Complaint enforcement: Active monitoring and enforcement of violations

Tax Obligations:

• Hotel-Motel-STR occupancy taxes: Monthly collection and remittance required
• Financial reporting: Approximately $12,000 in STR-related tax receipts reported by city

Dallas County Regulations:

No specific county-level STR regulations were identified in the provided content. STR operations in DeSoto are primarily governed by municipal ordinance.

Texas State Regulations:

While no specific state-level STR regulations were detailed in the provided content, Texas state law generally allows municipalities to regulate short-term rentals, and recent court decisions in other Texas cities have created legal uncertainty that local governments are actively monitoring.

Current Legal Environment and Recent Developments

As of March 2025, the DeSoto City Council has been actively discussing STR regulations amid legal uncertainty in Texas. The council has noted:

• 31 permitted STR properties currently on the city's registry
• $12,000 in tax receipts from STR operations
• Evolving legal landscape: Courts in Dallas, Austin, and Fort Worth have reached differing results
• Active review: Council considering potential changes including special-use permits, HOA notification requirements, and fee adjustments

Contact Information for Local Authority

Primary STR Registration and Enforcement:

• Registration Portal: Harmari STR Registration
• Registration Customer Service: 1-877-352-3277, ext. 5
• Service Hours: 9 a.m. - 5 p.m. CT, Monday - Friday
• Code Enforcement Phone: 469.658.3075

Complaint and Reporting:

• 24/7 Complaint/Tip Line: 1-800-685-1699
• Online Complaint Form: Harmari STR Incident Reporting

Municipal Contact Information:

• General City Number: 972-274-CITY (2489)
• Action Center Email: actioncenter@desototexas.gov
• Physical Address: 211 East Pleasant Run Road, DeSoto, TX 75115

Hotel/Motel Tax Questions:

• Financial Services Department: Contact through general city channels
• Tax Remittance Process: Monthly submissions required through city procedures

Links to Source Pages

1. City of DeSoto STR Regulations
2. DeSoto STR Information Page
3. STR Registration Portal
4. STR Complaint Form
5. DeSoto Rental Registration Program
6. Hotel/Motel Tax Information
7. Code of Ordinances

Important Considerations for STR Investors

Legal and Compliance Risks:

• Evolving regulations: The council is actively reviewing ordinance language
• Legal uncertainty: Recent court decisions in Texas cities may impact local regulations
• Enforcement active: City employs third-party monitoring for compliance

Financial Considerations:

• Registration cost: $125 annually per property
• Tax obligations: Monthly hotel-motel tax remittance required
• Compliance costs: Potential fines up to $500 per day for violations

Market Considerations:

• Limited inventory: Only 31 permitted properties as of early 2025
• Revenue potential: City reporting $12,000 in annual tax receipts
• Owner-occupied requirement: Limits investor-only property operations

This guide provides a comprehensive overview of DeSoto's STR regulations as of early 2025. Given the evolving legal landscape and active council review, investors should stay informed of any ordinance changes and maintain active communication with city officials.