Overview: Are STRs Allowed in Magnolia, TX?

Yes. Short-term rentals are explicitly allowed in Magnolia, Texas, but only with a city-issued permit and full compliance with a formal ordinance adopted by Magnolia City Council (approved Dec 10, 2024; effective per the ordinance). The ordinance imposes a permitting regime, safety inspections, occupancy limits, public listing of permitted properties, and authority to collect hotel occupancy tax from STR operators.

• Status: STRs are permitted and regulated (not banned).
• Existing operators must obtain a permit within 90 days of the ordinance taking effect.
• Each STR unit requires its own permit; operating without a permit is unlawful and subject to fines and Class C misdemeanor penalties.
• The city will maintain a website listing all permitted STR properties.

How to Start an STR Business in Magnolia, TX

1. Confirm zoning/lease constraints: Ensure the property is in a location where STRs are permissible and that any HOA or rental restrictions do not prohibit STR use.
2. Prepare the property to meet safety standards (see required safety items below).
3. Apply for the Magnolia Short-Term Rental Permit within 90 days for existing properties (or before opening for any newly established STR):
   • Complete the city application and pay the $150 fee per unit.
   • Each individual STR requires a separate permit.
4. Submit for inspection:
   • City staff will conduct an on-site inspection within 30 days after your application to determine:
     • Maximum occupancy.
     • On-site parking capacity that meets health and safety standards.
5. Tax registration:
   • Register with the Texas Comptroller for Hotel Occupancy Tax (HOT) collection and reporting as required by state law. The city’s ordinance authorizes collection of hotel occupancy tax from STRs; see tax rate and remittance details below.
6. Operations and compliance:
   • Post and enforce quiet hours and other rules to reduce disturbances.
   • Maintain ongoing compliance with safety, occupancy, and parking standards.
7. Public listing:
   • Expect the property to appear on the city’s public website listing all permitted STRs once the listing is published.

Required Documents, Permits, Licenses, and Guidelines

City-level requirements (Magnolia)

• Short-Term Rental Permit (per unit)
  • Permit fee: $150 per unit
  • Permit term: Valid for 12 months from issuance
  • Deadline: Existing operators must apply within 90 days of the ordinance’s effective date
  • Separate permits required for each individual STR
  • Application procedures/forms: Contact the City of Magnolia or refer to the city’s official website for the current permitting process and forms
• On-site inspection (within 30 days of application)
  • Scope: Maximum occupancy and on-site parking that meets health and safety standards
• Public listing: The city will maintain a website listing all permitted STRs
• Operational restrictions
  • Occupancy determined by inspection
  • Parking capacity determined by inspection
  • No operating without a permit; violations subject to penalties
  • City-authorized HOT collection from STRs

State-level requirements (Texas)

• Hotel Occupancy Tax (HOT) registration and compliance
  • Register with the Texas Comptroller for HOT collection once your business begins
  • HOT is imposed on the cost of rooms priced at $15 or more per day (less than 15 days)
  • Collect, report, and remit HOT as required by law
• Fire and life safety
  • Required safety items for Magnolia STRs (must be verified at inspection):
    • Working smoke alarms
    • Working carbon monoxide detectors on each floor if the property has natural gas, propane, or an attached garage
    • Windows in each bedroom
    • Gas appliances vented outside

Note: No separate Montgomery County registration requirements were identified in the provided sources. If your property lies outside city limits, consult Montgomery County directly.

Specific Regulations: City, County, and State

City (Magnolia, TX)

• Permitting
  • Separate permits required per STR; existing operators must apply within 90 days
  • Permit validity: 12 months from issue date
  • Fee: $150 per unit
• Inspections
  • On-site inspection within 30 days of application
  • City determines maximum occupancy and on-site parking capacity per property
• Safety/health standards
  • Working smoke alarms
  • CO detectors on each floor if natural gas, propane, or attached garage present
  • Windows in each bedroom
  • Gas appliances vented outside
• Taxes
  • City authorized to collect hotel occupancy tax from STRs
• Public listing
  • City will maintain a public website listing all permitted STRs
• Enforcement
  • Operating without a permit is unlawful; violations may result in fines and Class C misdemeanor penalties
  • Typical risks for investors: occupancy and parking limits, noise and disturbance complaints, and HOT compliance

County (Montgomery County, TX)

• No separate county-level STR registration or permitting requirements were identified in the provided content.
• County tax collection may occur via state Comptroller processes for HOT and other lodging-related taxes; consult county resources as needed for specific tax rates and addresses.

State (Texas)

• STRs are generally permitted under state law subject to local regulation.
• HOT obligations apply to lodging priced at $15+ per day for stays under 15 days; register, collect, and remit via the Texas Comptroller.
• Occupancy and safety standards are enforced locally; ensure alignment with Magnolia’s safety requirements listed above.
• Municipal enforcement mechanisms (fines, misdemeanors) are consistent with Texas local government powers.

Local Authority Contacts

City of Magnolia

• Phone: 281-259-4235 (City Hall main line)
• Official city website and ordinance/agenda packet resources (see Source Links section below)
• Permit applications, inspections, and questions about compliance: contact City of Magnolia; ask for Building/Code Enforcement or City Secretary for permitting inquiries

Texas Comptroller (Hotel Occupancy Tax)

• HOT registration, rates, and filing guidance: Texas Comptroller website and office
• Phone: 800-252-5555 (Comptroller tax help line)

Source Links

• City Council agenda packet with STR ordinance (Dec 10, 2024): www.cityofmagnolia.com/sites/g/files/vyhlif7206/f/agendas/cc_agenda_packet_12.10.24.pdf
• Community Impact article detailing the ordinance: communityimpact.com/houston/tomball-magnolia/government/2024/12/11/magnolia-city-council-greenlights-ordinance-on-short-term-rentals/
• Daily Regulatory Notes (Dec 12, 2024) summarizing key ordinance points: writing.strisker.com/daily-regulatory-notes-12-12-2024/
• Agenda packet (Oct 8, 2024) referenced by local reporting: www.cityofmagnolia.com/sites/g/files/vyhlif7206/f/agendas/cc_agenda_packet_10.8.24.pdf

Investor note: If your property sits outside Magnolia city limits, verify county-level requirements and taxes directly with Montgomery County. Confirm the city’s public STR listing and application portal once they are posted.