Overview: Short-Term Rentals in Kemah, TX

Short-term rentals ARE ALLOWED in Kemah, Texas, but they are heavily regulated. The City of Kemah has established a comprehensive permitting and regulatory framework for STR operations, including mandatory registration, annual permits, safety inspections, and Hotel Occupancy Tax collection. All STR properties must obtain a valid permit from the City of Kemah before advertising or renting, with permits expiring on December 31st of each year regardless of issuance date.

How to Start a Short-Term Rental Business in Kemah, TX

Step 1: Property Analysis and Compliance Verification

• Zoning Verification: Confirm your property is located in a zoning district where STRs are permitted
• HOA/Deed Restriction Review: Thoroughly review all Homeowners Association rules and deed restrictions, as these may supersede city ordinances and could prohibit STR operations
• Property Standards Assessment: Ensure your property can meet health and safety requirements, occupancy limits (2 persons per bedroom + 2), and parking requirements

Step 2: Obtain Required Permits and Registration

1. Apply for STR Permit: Submit complete application with $450 fee (or $300 with approved sound monitoring system)
2. State HOT Registration: Register with Texas Comptroller's office for Hotel Occupancy Tax collection
3. Schedule Inspection: Allow city inspection within 30 days of application submission
4. Address Compliance Issues: Remediate any health and safety deficiencies identified during inspection
5. Receive Final Permit: Upon passing inspection, receive valid permit for remainder of calendar year

Step 3: Operational Setup

• Designate Local Contact: Establish 24/7 local contact person for guest issues
• Safety Equipment Installation: Install required smoke/CO detectors, fire extinguisher (2A:10BC), emergency posting
• Sound Monitoring System: Consider installing approved sound monitoring system (Minut, Alertify, NoiseAware, Party Squasher, WYND Sentry) for $150 permit discount
• Interior Posting Requirements: Post required guest information including occupancy limits, parking details, emergency contacts, and garbage disposal instructions

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements

City of Kemah STR Permit ($450/$300 with sound monitoring)

• Complete STR Permit Application
• Proof of ownership (deed, title documentation)
• Hotel Occupancy Tax Account Number or written confirmation
• Floor plan and site plan showing parking availability
• List of all advertising platforms
• Safety compliance certifications
• Local contact person 24-hour contact information
• Business entity documentation (if applicable)

Required Safety Equipment and Standards:

• Working smoke and carbon monoxide detectors in/outside sleeping areas
• Properly maintained and charged "2A:10BC" fire extinguisher
• Emergency contact posting with floor plan and escape routes
• Required tenant notifications posting
• Emergency escape openings in all sleeping areas
• No overnight sleeping in outdoor areas
• Improved surface parking for maximum vehicles

State Requirements

Texas Hotel Occupancy Tax Registration

• Register with Texas Comptroller's office
• Monthly or quarterly filing depending on tax volume
• Collect 6% state HOT from guests
• Maintain accurate records and receipts

Local Hotel Occupancy Tax

City of Kemah HOT (7%)

• Quarterly filing requirement
• File even if $0 receipts (select option on form)
• Payment methods: check, money order, credit card
• Contact finance department for remittance

Specific Regulations for Short-Term Rentals

Kemah City Regulations

Maximum Occupancy Limits:

• Two persons per bedroom plus two additional persons
• No overnight sleeping permitted in outdoor areas
• Must post overnight and daytime occupancy limits

Parking Requirements:

• Maximum on-site parking based on improved surfaces
• Must show parking availability on site plan
• No parking on streets, sidewalks, alleys, or public rights-of-way

Operational Requirements:

• 24/7 availability of local contact person during occupied periods
• Mandatory response to city requests for assistance
• Compliance with all applicable laws and city ordinances
• Monthly or quarterly Hotel Occupancy Tax remittance

Advertising and Rental Period:

• Properties rented for 30+ consecutive days are not considered STRs
• All advertising platforms must be listed in permit application
• Unlawful to advertise without valid permit

Penalties and Enforcement

Administrative Penalties:

• Fines up to $400 per day for repeated violations
• $350 police "call-out fee" if police summoned
• Class C misdemeanor violations

Permit Suspension/Revocation:

• Automatic suspension/revocation after 2+ violations in 12 months
• Immediate expiration upon property ownership change
• Appeal process available through City Administrator and City Council

Prohibited Activities:

• No open fires unattended (including fire pits)
• No violation of health and safety standards
• No failure to respond to guest issues or city requests

State-Level Texas Regulations

Hotel Occupancy Tax Requirements:

• 6% state HOT on all short-term accommodations
• Registration with Texas Comptroller required
• Monthly or quarterly filing based on volume
• Significant penalties for non-compliance

County Regulations

Galveston County: Additional local hotel taxes may apply. Investors should contact Galveston County Tax Assessor-Collector for current rates and filing requirements.

Contact Information for Local Authority

City of Kemah

• Address: 1401 State Highway 146, Kemah, TX 77565
• Phone: (281) 334-1611
• Fax: (281) 334-6583
• Extension for STR Questions: (281) 334-1611 ext. 3006

Key Contacts:

• STR Permit Applications: galfaro@kemahtx.gov
• Hotel Occupancy Tax Filing: finance@kemahtx.gov
• General City Information: Contact main line above
• Website: www.kemahtx.gov/386/Short-Term-Rentals-Owner

Texas Comptroller (State HOT)

• Website: comptroller.texas.gov/taxes/hotel
• Phone: Contact through website or local office

Source Links and Reference Documents

Primary City Resources

• City STR Owner Page: www.kemahtx.gov/386/Short-Term-Rentals-Owner
• STR Permit Application: www.kemahtx.gov/DocumentCenter/View/1207/City-of-Kemah-Short-Term-Rental-Application
• City STR Ordinance 1198: library.municode.com/tx/kemah/ordinances/code_of_ordinances?nodeId=1150053
• Hotel Occupancy Tax Ordinance: library.municode.com/tx/kemah/codes/code_of_ordinances?nodeId=CH90TA_ARTIIIHOOCTA_S90-50COTA
• HOT Reporting Form: www.kemahtx.gov/DocumentCenter/View/1765

Reference Ordinances

• Original STR Ordinance No. 1178: mcclibraryfunctions-stage.azurewebsites.us/api/ordinanceDownload/14153/1059574/pdf
• STR FAQs: www.kemahtx.gov/faq.aspx?TID=27

Additional Resources

• Texas Comptroller HOT Information: comptroller.texas.gov/taxes/hotel
• Sound Monitoring Information: turno.com/airbnb-noise-monitor/

Important Notes for Investors:

• All permits expire December 31st regardless of issuance date
• Applications for following year can be submitted starting November 1st
• Properties must pass inspection within 30 days of application
• Sound monitoring systems qualify for $150 permit discount
• Owners must respond to city requests within reasonable timeframes
• Violations can result in permit suspension, revocation, and daily fines
• Legal compliance should be verified with current city ordinances as regulations may change

This guide provides the fundamental framework for STR investment in Kemah, but investors should regularly verify current requirements with city authorities and stay updated on any regulatory changes that could impact operations.