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Lewisville

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Lewisville, TX

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STR Regulations for Lewisville, Texas

Overview: Are Short-Term Rentals Allowed in Lewisville?

Yes—short-term rentals (STRs) are allowed in Lewisville, but they are tightly regulated. The city’s STR ordinance took effect July 8, 2024. STRs must obtain an annual Short-Term Rental Unit permit prior to advertising or renting. The city limits the total number of active STR permits to 150, and as of October 15, 2025, 116 permits were active.

Starting October 20, 2025, STRs must meet distance and density requirements: STRs in single-family or duplex properties must be separated by 1,000 feet from other STRs in single-family or duplex settings; STRs in multifamily buildings are limited to the greater of 2 units or 3% of the building’s units. Existing STRs that were operating prior to adoption will be treated as legal non-conforming and may continue until the use ceases for six months or longer, at which point full compliance is required.

Key takeaway for investors: You can legally operate an STR in Lewisville if you obtain the permit, pass inspection, comply with distance and density rules, and fulfill ongoing tax and operational obligations.

How to Start an STR Business in Lewisville

The city’s permitting portal is the primary entry point. Owners submit the STR application online; city staff review it and contact applicants within 7–10 business days to schedule inspection.

Pre-application checklist (save time by gathering these first):

  • Owner’s driver’s license or state ID number.
  • City water account number for the STR property.
  • STR property parcel number (see instructions and interactive map).
  • Square footage of all bedrooms intended for rent.
  • Completed informational brochure to be posted in the STR and provided to guests (owner and manager contact info, local ordinances for parking/trash/noise, emergency numbers).
  • Property tax statement from the county where the STR is located (showing no arrears as of the application date).

Application workflow:

  1. Complete and submit the online STR permit application and pay the $400 fee (credit card only).
  2. City reviews for completeness and code compliance.
  3. City contacts you to schedule an on-site inspection.
  4. Pass inspection; address any corrections and request re-inspection if needed.
  5. Upon approval, receive your STR permit; permits are valid for one year.
  6. Begin operations only after permit issuance.

Operational readiness:

  • Provide the informational brochure to guests and post it inside the STR (owner name, property manager name, 24-hour contact, city ordinances for parking/trash/noise, emergency numbers).
  • Ensure adequate trash service: at least two 96-gallon trash carts and a recycling cart per unit.
  • Establish responsiveness: owner/manager must be reachable within 15 minutes at all times when occupants are on site; manager must be able to present on-site within one hour of city staff contact.

Ongoing obligations:

  • Renew the permit annually before expiration.
  • File and pay Hotel Occupancy Tax (HOT) monthly by the 20th—even if there are zero stays.
  • Maintain compliance with advertising requirements (permit number and prohibited event usage statement).
  • Monitor permit cap availability; applications close when the combined total of active permits and applications reaches 150.

Required Documents, Permits, Licenses, and Guidelines

Permits:

  • Short-Term Rental Unit Permit (annual), required before advertising or renting. Application and payment are online. Permits are non-transferable and cannot be moved to a new owner or location without a new application.

Fees:

  • $400 non-refundable application fee (credit card only).
  • Permit is valid for one year; renew before expiration.

Inspection:

  • Internal inspection is mandatory prior to issuance. City staff will schedule after application review. Owners receive an inspection report, can make corrections, and request re-inspection.

Taxes:

  • Hotel Occupancy Tax (HOT) is due monthly on the 20th. Lewisville’s rate is 7% (local tax). Owners must file online each month—even for zero stays.

Required documents and disclosures:

  • Informational brochure placed in the unit and provided to guests, including:
    • Owner’s name.
    • Property manager’s name.
    • 24-hour contact telephone number.
    • City ordinances governing parking, trash, and noise.
    • Police and fire emergency and non-emergency numbers.
  • Proof of property tax status (county tax statement showing no arrears).
  • City water account number for the STR property.
  • STR permit number in all advertisements (see advertisement rules below).
  • Statement in all advertisements that the STR cannot be used as a party venue and may not host events for compensation.

Advertising rules:

  • All listings must include:
    • City-issued STR permit number.
    • Statement that the STR cannot be used as a party venue and may not host events for compensation.
    • Maximum occupancy cannot exceed limits established by city code.

Specific Regulations for Short-Term Rentals: City, County, and State

City of Lewisville (primary regulatory framework):

  • Definition: STR is any dwelling unit or portion of a dwelling unit rented to guests for fewer than 30 consecutive days; excludes hotels, motels, inns, and bed and breakfasts.
  • Permit cap: 150 active STR permits at any time; application closes when combined active permits + applications reach 150. Applications reopen as permits are denied, revoked, or expire.
  • Permit requirements: Obtain permit prior to advertising/renting; annual renewal; non-transferable.
  • Distance and density (effective Oct. 20, 2025): 1,000-foot separation for STRs in single-family or duplex settings; multifamily STRs limited to the greater of 2 units or 3% of the building’s units. Existing STRs are legal non-conforming until the use ceases for six months or longer.
  • Occupancy standards: Bedrooms must be minimum 70 square feet. For multi-occupancy bedrooms, at least 50 square feet per occupant. Occupancy limits per bedroom:
    • 70–99 sq. ft.: 1 occupant
    • 100–149 sq. ft.: 2 occupants
    • 150–199 sq. ft.: 3 occupants
    • 200–249 sq. ft.: 4 occupants
  • Inspections: Mandatory pre-permit internal inspection; re-inspection allowed after corrections.
  • Guest notification: Informational brochure required inside the unit.
  • Responsiveness: Owner/manager must be reachable within 15 minutes; manager present on-site within one hour of city staff contact.
  • Trash/recycling: At least two 96-gallon trash carts and a recycling cart required per unit.
  • Parking: City allows petitioning for limited parking zones that restrict street parking to passholders in specific areas.
  • Revocation grounds (examples): False/misleading application info; permit transfer attempts; more than two city code citations in a permit year; failure to comply with HOT audit requirements.

County level (Denton County):

  • Property tax statements are issued by Denton County for properties within the county. Owners must submit a current tax statement as part of the permit application, showing the property is not in arrears.

State of Texas:

  • Hotel Occupancy Tax (HOT) applies to short-term rentals. Statewide, the rate is 6%; Lewisville adds a local 1% tax, for a combined 7% rate. STRs must register and file HOT returns monthly.

Contact Information for Local Authority

  • Permitting and general STR questions:
  • Hotel Occupancy Tax (HOT):
    • Finance Department: 972.219.3420
    • Monthly HOT reporting: use the city’s online STR HOT form (due by the 20th of each month)
  • 24/7 STR Hotline (complaints):
    • Phone: 972.526.5738
    • Online complaint portal: Host Compliance Lewisville STR hotline
  • Police Non-Emergency line:
    • Phone: 972.219.3640
  • City main:
    • Phone: 972.219.3400
  • City website (STR program and links):
    • City of Lewisville STR page

Links to Source Pages

Practical Compliance Notes for Investors

  • Timing: Start the permitting process early. Gathering documents and scheduling inspections can take several weeks, and permit applications close once the cap is reached.
  • Accuracy matters: Inaccurate applications cannot be corrected after denial; a new application is required.
  • Renewals: Submit renewal applications at least 30 days before expiration to maintain continuity.
  • Advertising: Include the city permit number and the party/event prohibition statement in all listings.
  • Taxes: File HOT monthly on the 20th, even if no revenue; maintain records in case of audit.
  • Neighbor relations: The city provides a 24/7 STR hotline and an online complaint portal. Operational issues (noise, trash, parking) trigger enforcement. Maintain responsiveness and set clear guest rules.

This framework gives investors a clear path to launch and operate an STR in Lewisville while staying compliant with local rules and state tax obligations.

Lewisville

Market Saturation Score

036912
Low Saturation
1/ 12
months with declining YoY revenue
0–1 declining months: minimal saturation pressure — revenue trends are stable.
View Full Lewisville Market Analysis →

Photos of Lewisville

Overview of Lewisville

Lewisville ( LOO-iss-vil) is a city in the U.S. state of Texas, located in Denton County with portions extending into Dallas County. As one of the Mid-Cities within the Dallas–Fort Worth metroplex, the 2020 census reported a population of 111,822.Originally called Holford's Prairie, Lewisville dates back to the early 1840s. The arrival of the town's first railroad in 1881 engendered its initial growth, and the expansion of the area's transportation infrastructure spurred further development in the early part of the 20th century. Lewisville incorporated in 1925, and when construction of Lewisville Lake was completed in the 1950s, the city began to expand rapidly. Lewisville's proximity to Lewisville Lake has made it a recreational hub of the Dallas–Fort Worth metroplex. The area's transportation infrastructure has evolved around the I-35 Corridor along Interstate 35E. The diversity of its population and industry has created a stable economic climate. Lewisville Independent School District provides most of the area's public education programs.

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