Horseshoe Bay, TX Short-Term Rental Investor Guide

Overview: Are short‑term rentals allowed in Horseshoe Bay, TX?

Yes. Short‑term rentals (STRs) are allowed in Horseshoe Bay, but they are strictly regulated. To operate an STR in the city, you must obtain an annual Short‑Term Rental Permit and follow the city’s STR ordinance (Article 4.08), which mandates operator responsiveness, safety certifications, and ongoing compliance with city codes. The City adopted the STR program in late 2023 and requires all STRs to register.

Key points investors should know up front:

• An annual STR permit is required to rent a dwelling for less than 30 consecutive days. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Annual permit fee: $600 per address. The fee is non‑transferable. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Only the residential dwelling may be rented. STRs exclude nonresidential uses (e.g., event centers), bed‑and‑breakfasts (as defined by the city’s zoning), and hotels. Only one rental contract is allowed at any time in an STR. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• The operator or a designated Local Responsible Party must be able to respond to complaints within one hour. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Properties are not registered until both the application and fee are submitted; unregistered operation can result in fines of up to $200/day. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Unpermitted operation carries escalating daily fines ($200 first, $400 second, $650 third violation). Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298

How to start a short‑term rental business in Horseshoe Bay, TX

Follow these steps to legally operate an STR in the city. Each step includes the actionable link or contact to streamline setup.

1. Confirm eligibility and identify the local responsible party

• Confirm that you or your entity own the dwelling to be used as an STR (only owners or their representatives may apply). Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Identify a Local Responsible Party who can respond to guest or city complaints within one hour and is listed on the permit application. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals

2. Prepare required documentation and safety certifications

• Fire extinguisher: functioning Type A extinguisher installed and accessible per adopted codes. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Smoke detectors: working smoke detectors installed in accordance with adopted codes. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Guest information packet: provide city services instructions, contact information for the operator or Local Responsible Party, and any other information required by the ordinance/FAQ. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298

3. Apply for the STR permit and pay the annual fee

• Apply online through the city’s official STR portal and pay the $600 annual fee. The city will contact you after your application is received to collect payment. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Application portal: horseshoebayrental.portal.iworq.net/portalhome/horseshoebayrental
• Alternate application (as referenced on the FAQ): us.openforms.com/Form/01bcbd5b-0f4d-4b48-8b27-b9a205805e89
• Permits expire one year from issuance; renew up to 60 days before expiration with the $600 renewal fee. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298

4. Prepare the property for guest use

• Only rent the residential dwelling. RVs, campers, trailers, or additional structures cannot be rented as STRs. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Ensure only one rental contract is active at a time in the STR. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Prepare a guest binder/house manual covering city codes and how to be a good neighbor. The operator or Local Responsible Party must be reachable and able to respond in-person within one hour when needed. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals

5. Maintain compliance

• Keep the permit current; renew annually. Properties are not registered until application and payment are submitted and may be subject to daily fines if found operating unregistered. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Note: In-person inspections are not required by default. However, the city may inspect if it has reason to believe the STR is not compliant with Fire, Building, or Zoning requirements. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• If the STR is found to adversely affect the public health, safety, or welfare of the immediate neighborhood, the permit can be denied or revoked. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298

6. Collect and remit taxes

• Texas requires short‑term rental operators to collect state hotel occupancy tax. The provided materials do not include a state permit link; check the Texas Comptroller’s website for the Sales Tax/Hotel Occupancy Tax registration process and filing requirements. This is a state‑level obligation that applies to Horseshoe Bay operators.

Required documents, permits, licenses, and guidelines

Documents and certifications required to obtain and hold a valid STR permit:

• Ownership verification: applicant must be the owner of the dwelling or a designated representative of the owner. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Local Responsible Party contact: name and contact information for a party who can respond within one hour, provided in the application. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Fire extinguisher certification: functioning Type A fire extinguisher installed per adopted codes. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Smoke detector certification: working smoke detectors installed per adopted codes. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Guest information packet: city services instructions and operator contact details for guests. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• City of Horseshoe Bay STR Permit: annual permit required to rent for less than 30 consecutive days. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• STR Ordinance (Article 4.08): primary municipal regulations governing STR operations. Source: ecode360.com/41150680
• STR Ordinance Article 4.08.003: reference to operational requirements. Source: ecode360.com/41150680#41164882
• STR Ordinance Article 4.08.004: specific provisions (including Section C). Source: ecode360.com/41150680#41164883
• STR FAQ: detailed operational rules, fees, penalties, and related guidance. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Optional state tax registration (Texas): Sales Tax/Hotel Occupancy Tax permit may be required through the Texas Comptroller; not included in the city’s provided materials.

Specific regulations for short‑term rentals in Horseshoe Bay (city, county, and state)

City of Horseshoe Bay regulations (Article 4.08 and FAQ)

• Permit requirement: All STRs require an annual STR Permit to rent a dwelling for less than 30 consecutive days. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Annual fee: $600 per address; non‑transferable; renew annually. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• Response requirement: Operator or designated Local Responsible Party must be able to respond to complaints within one hour. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• In‑person inspection: Not required by default; may occur if the city has reason to suspect noncompliance with Fire, Building, or Zoning requirements. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Safety certifications: functioning Type A fire extinguisher and working smoke detectors must be in place. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Host presence: Host does not need to be present or be the primary resident. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Property scope: Only the residential dwelling may be rented; RVs, campers, trailers, and additional structures are prohibited as STRs. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Scope exclusions: STRs do not include nonresidential uses (e.g., event centers, banquet facilities), bed‑and‑breakfasts (as defined in the city’s Zoning Ordinance), or hotels. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Occupancy: Only one rental contract may be active at a time in any STR. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Permit non‑transferability: STR permits are not transferable. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Revocation/denial: Permits can be denied or revoked if the STR adversely affects neighborhood health, safety, or welfare. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• No cap: No city limit on total STRs or on the number an owner can operate; each STR requires a separate permit. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Fines for non‑compliance:
  • Operating without a permit (general): Up to $200/day. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
  • Unpermitted operation (escalating schedule): $200/day first violation, $400/day second, $650/day third. Source: www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Complaints and enforcement: STR complaints are handled via Code Enforcement; see contact and process information below. Source: www.horseshoe-bay-tx.gov/875/Short-Term-Rentals

Llano County and Texas state context

• County‑specific STR regulations: The provided materials do not specify Llano County STR rules. Investors should verify county requirements directly with Llano County.
• State‑level requirements (Texas): STR operators typically must collect and remit hotel occupancy tax and comply with state tax rules. The provided content references this state obligation but does not provide a direct link; consult the Texas Comptroller for registration, collection, and filing procedures.

Contact information for the local authority in charge of STRs

City of Horseshoe Bay — Development Services / Code Enforcement

• Mailing address: 1 Community Drive, P.O. Box 7765, Horseshoe Bay, TX 78657
• Phone: 830‑598‑8741
• STR Permit application (online portal): horseshoebayrental.portal.iworq.net/portalhome/horseshoebayrental
• Alternate application link (as referenced on the FAQ): us.openforms.com/Form/01bcbd5b-0f4d-4b48-8b27-b9a205805e89
• Code Enforcement Division (complaints): horseshoe-bay-tx.gov/737/Code-Enforcement-Division

Links to source pages

• Short‑Term Rentals (program overview, fee, registration process): www.horseshoe-bay-tx.gov/875/Short-Term-Rentals
• STR FAQ (eligibility, permit transferability, occupancy limits, fines, inspections, Local Responsible Party, scope): www.horseshoe-bay-tx.gov/Faq.aspx?QID=298
• Short‑Term Rental Application Portal (official): horseshoebayrental.portal.iworq.net/portalhome/horseshoebayrental
• STR Application (alternate OpenForms link referenced on the FAQ): us.openforms.com/Form/01bcbd5b-0f4d-4b48-8b27-b9a205805e89
• Short‑Term Rental Ordinance Article 4.08 (full ordinance text): ecode360.com/41150680
• Short‑Term Rental Ordinance Article 4.08.003 (operational requirements): ecode360.com/41150680#41164882
• Short‑Term Rental Ordinance Article 4.08.004 (including Section C provisions): ecode360.com/41150680#41164883
• Code Enforcement Division (complaints/enforcement): horseshoe-bay-tx.gov/737/Code-Enforcement-Division

Notes for investors

• Advertising trigger: If you advertise an STR—even if the listing shows no available dates—a permit is required. Rentals advertised for 30+ consecutive days do