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

Yes. Short-term rentals are explicitly allowed in Lancaster, Texas, provided operators comply with the City’s Short-Term Rental Ordinance (Ordinance No. 2018-11-45). The ordinance establishes registration, inspections, minimum property maintenance, and safety standards for STR facilities and is designed to protect the health, safety, and welfare of residents. Operators must register their STR properties with the City, pay an annual registration fee, pass inspections, and adhere to ongoing compliance requirements.

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

The City’s STR program is administered by the Building Inspection Division (part of Development Services). Starting your STR business involves the following steps:

1. Verify zoning and parcel details.

   • Confirm the subject property is within Lancaster city limits and zoned for residential or mixed-use that permits an STR. The City’s Planning & Zoning resources are available through the eCode360 link (see “Specific Regulations”).

2. Register your STR with the City of Lancaster.

   • Complete the Short-Term Rental Registration Application.
   • Submit the completed form and required documents to the Building Inspection Division.
   • Pay the annual registration fee ($125.00).

3. Schedule your initial inspection.

   • After the City accepts your registration and receives your fee, you will be scheduled for your initial inspection.
   • Utilities must be active to perform the inspection.
   • You may request an inspection date or call (972) 227-2994 to schedule directly.

4. Prepare for and comply with inspections.

   • Operate in accordance with the City’s safety and maintenance standards. The City issues inspection requirements for STRs; use the link provided by the City to confirm current items (see “Required Documents, Permits, Licenses, and Guidelines”).

5. Maintain active registration and renew annually.

   • The City conducts regular inspections every six (6) months.
   • Each June, pay the annual registration renewal fee and continue to pass ongoing inspections.

6. Report changes in ownership, management, or lender.

   • Any change to the owner, property/resident manager, or lender must be submitted to the Building Official within ten (10) days of the change.
   • Name change or change of ownership requires an inspection by a Building Inspector before utilities can be released.

7. Understand consequences for non-compliance.

   • Failure to register when operating an STR, or failure to respond to City correspondence within 10 days, may result in violations of the ordinance.

Required Documents, Permits, Licenses, and Guidelines

• Short-Term Rental Registration Application
  • Includes:
    • Annual Registration Fee ($125.00)
    • Property address and inspection access code/entry instructions
    • Owner/agent information and contact details
    • Confirmation that utilities are active
    • Number of rental bedrooms and total occupancy
  • Attach a copy of the current state driver’s license of the person registering (owner or company officer).
• Inspection Scheduling
  • Request an inspection date on the form or call (972) 227-2994.
• Inspection Requirements and Safety Standards
  • The City provides a specific list of STR inspection requirements. Use the “Rental Inspection Requirements List” link to review the current standards.
• Ongoing Renewal and Inspection Schedule
  • Annual registration fee in June and regular inspections every six months.
• Ownership/Management Changes
  • Required notification to the Building Official within ten (10) days of any change.
• Proof of active utilities at the time of inspection
• City Ordinance Reference
  • Ordinance No. 2018-11-45 (see eCode360 article link below for full regulatory context)

Note on Hotel Occupancy Tax (State/Local): While the City’s pages above do not list Lancaster’s specific hotel occupancy tax rate, STR operators in Texas typically must register with the Texas Comptroller for state hotel taxes and remit applicable local hotel occupancy taxes to the City or Dallas County as directed by local rules. Confirm the current rate and remittance process with the City or Dallas County.

Specific Regulations for Short-Term Rentals (City, County, State)

• City of Lancaster (Local STR Regulations)

  • Registration Required: All STRs must be registered with the City under Ordinance No. 2018-11-45.
  • Fee: Annual registration fee of $125.00 due each June.
  • Inspections: Initial inspection upon registration approval; regular inspections occur approximately every six months thereafter.
  • Utility Requirement: Utilities must be active to perform inspections.
  • Safety and Maintenance Standards: STRs must meet minimum safety and property maintenance standards. The City issues an inspection requirements list for STRs.
  • Change Notifications: Any change to owner, manager, or lender must be reported to the Building Official within ten (10) days. Name changes or ownership changes require inspection before utilities release.
  • Zoning: Short-term rentals are addressed within the City’s land development regulations (see eCode360 link below, Article 6.12).
  • Program Oversight: Administered by the Building Inspection Division within Development Services; use the City’s Online Permit and Inspection Portal for scheduling and renewals where applicable.

• Dallas County (County-Level)

  • County resources are available through the official county website for general services and tax information; the City’s Quick Links section references Dallas County.

• State of Texas

  • STRs in Texas are subject to hotel occupancy tax collection and remittance requirements. Operators typically register with the Texas Comptroller and collect/remit state and applicable local hotel occupancy taxes. Requirements and rates vary by jurisdiction; confirm Lancaster-specific tax obligations with the City or Dallas County.

Source References (City Code and Program Materials)

• City of Lancaster eCode360 – Article 6.12: Single-Family, Duplex and Short-Term Rental Property Regulations: ecode360.com/38717504
• Short-Term Rental Registration Page (Official City Page): www.lancaster-tx.com/1350/Short-Term-Rental-Registration
• Short-Term Rental Registration Form: www.lancaster-tx.com/DocumentCenter/View/12480/Short-Term-Rental-Registration-Form?bidId=
• Rental Inspection Requirements List: www.lancaster-tx.com/DocumentCenter/View/19140
• Online Permit and Inspection Portal (City): public.mygov.us/lancaster_tx
• Adopted Ordinances (City): www.lancaster-tx.com/670/Adopted-Ordinances
• Application, Registration and Compliance Forms (City): www.lancaster-tx.com/647/Application-Registration-and-Compliance-
• Dallas County Official Website (county resources reference): www.dallascounty.org/
• Development Services (Building Permits & Inspections): www.lancaster-tx.com/164/Building-Permits-Inspections

Contact Information (Local Authority in Charge of STRs)

• City of Lancaster – Building Inspection Division
  • Main City Phone: 972-218-1300
  • City Mailing Address:
    • City of Lancaster
    • 211 N Henry Street
    • Lancaster, TX 75146
  • Hours: Monday–Friday, 8:00 a.m. – 5:00 p.m.
  • STR Registration Page: www.lancaster-tx.com/1350/Short-Term-Rental-Registration
  • Inspection Scheduling Phone: (972) 227-2994
  • Online Permit and Inspection Portal: public.mygov.us/lancaster_tx
  • eCode360 (City Code): ecode360.com/38717504

Important Notes for Investors

• Do not assume an STR is permitted based solely on the neighborhood’s general zoning. Confirm that the specific parcel and use type meet the City’s STR standards and any applicable Article 6.12 conditions.
• Maintain clear documentation of all inspections, communications, and renewals; calendar the six-month inspection cadence and the annual June fee payment.
• If you cease operations, notify the permitting division promptly to avoid enforcement under the ordinance.
• Before purchasing an STR asset in Lancaster, review the City’s eCode provisions and confirm the current inspection checklist. Consider adding compliance contingencies into your purchase contracts.
• If your STR portfolio spans multiple Texas cities, remember that state law allows local regulation; rules vary significantly across jurisdictions (e.g., Austin and Dallas have additional limits). This guide is specific to Lancaster.

If you need the City’s inspection checklist content or the latest occupancy tax rate details, request those documents directly from the Building Inspection Division or through the links above.