Overview

Short-term rentals are explicitly allowed in Smithville, Texas with proper permitting and compliance with all applicable regulations. The City of Smithville has established a comprehensive Short-Term Rental Ordinance (§ 4.7) that governs the operation of STRs within city limits. Investors must obtain a valid, active short-term rental permit before operating any STR property in Smithville.

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How to Start a Short-Term Rental Business in Smithville

Step-by-Step Process

1. Property Assessment

   • Verify your property is zoned for residential use
   • Ensure compliance with minimum health and safety requirements
   • Confirm adequate off-street parking spaces are available

2. Permit Application

   • Submit complete short-term rental permit application
   • Pay required permit fees ($150 per unit)
   • Provide all required documentation

3. Insurance Requirements

   • Obtain host protection or liability insurance with $1 million per occurrence coverage
   • Submit certificate of insurance to the city
   • Maintain continuous coverage

4. Hotel Occupancy Tax Registration

   • Register with the city for hotel occupancy tax payment
   • Submit proof of payment for current and any past-due taxes

5. Inspection

   • Schedule and complete city inspection of premises
   • Address any violations or deficiencies
   • Pass inspection before permit approval

6. Local Responsible Party Designation

   • Designate a local responsible party who can respond to complaints within 1 hour
   • Provide their contact information for 24/7 availability

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Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses

Short-Term Rental Permit

• Initial permit: $150 per unit
• Renewal permit: $150 per unit
• Permit expires on the last day of the month one year after issuance
• Permit is non-transferable

Hotel Occupancy Tax Registration

• Required by state law and Article 11.04 of City Code
• For tax purposes, STRs are classified as "hotels"
• Quarterly payment obligations apply

Required Documentation for Permit Application

Owner Information:

• Name, address, contact information
• Authenticated signature
• City registration number for hotel occupancy taxes

Property Details:

• Property address and unit number
• Plot plan identifying parking spaces
• Dimensioned floor plan showing bedrooms, living spaces, and emergency evacuation routes

Insurance and Safety:

• Certificate of insurance showing $1 million liability coverage
• Proof of compliance with health and safety standards

Property Management:

• Name and contact information of designated local responsible party
• Operator information (if different from owner)

Additional Requirements:

• Copy of proposed host rules
• Property owner's association information (if applicable)
• Proof of payment of all current and past-due hotel occupancy taxes

Application Process

• Applications must be submitted in complete form with all required documentation
• Permit fees must be paid in full
• Renewal applications can be filed 30 days prior to expiration
• Late renewal applications (less than 30 days before expiration) may receive one-time 10-day extension
• Incomplete applications will not be accepted

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Specific Regulations for Short-Term Rentals

Occupancy Restrictions

Maximum Occupancy:

• Maximum of 2 persons per bedroom, plus 2 additional persons
• Absolute maximum of 12 persons (including children) at any time
• Cannot exceed the maximum occupancy shown on the permit
• Cannot rent to more than one family and their guests at a time

Minimum Stay:

• Minimum rental period of 24 hours (no same-day checkouts/check-ins)

Parking Requirements

Vehicle Limitations:

• Number of motor vehicles cannot exceed available off-street parking spaces
• Parking on residential streets near the STR is prohibited
• No parking of RVs, recreational vehicles, boats, commercial vehicles, or prohibited vehicles on premises or adjacent streets
• No parking on unapproved surfaces

Physical Property Restrictions

Prohibited Modifications:

• Converting garages to living space for STR use
• Remodeling, renovating, or enlarging to add bedrooms
• Paving or covering pervious soil without city approval
• Any physical conversion of premises that increases bedroom count within 1 year of application is prima facie evidence of STR-related modification

Safety and Compliance Requirements

Emergency Preparedness:

• Emergency evacuation routes must be clearly identified
• Local responsible party must be available 24/7 and respond within 1 hour to city calls
• Safety equipment and compliance with International Residential Code egress requirements

Insurance Requirements:

• Minimum $1 million liability insurance per occurrence
• Certificate of insurance must be maintained on file
• 30-day notice required for insurance cancellation

Advertising and Operations

Advertising Requirements:

• All advertising must conform to permit information
• Must include maximum occupancy and local responsible party contact information
• Must maintain updated list of all listing services/platforms
• Cannot use unauthorized permit numbers or advertise with incorrect information

Occupant Communication:

• Must provide city-developed notice of instructions ("host rules") to all occupants
• Must inform occupants of applicable city regulations including noise, setbacks, stormwater, special events, amplified sound, and curfew times

Compliance Monitoring

Record Keeping:

• Must maintain books and records for hotel occupancy tax purposes
• Must provide access to records upon reasonable city request
• Occupancy history may be requested by the city

Permit Display:

• Copy of approved permit must be posted conspicuously inside front entrance
• Permit display requirements include owner, operator, responsible party, and city contact information

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Enforcement and Penalties

Permit Revocation Grounds

Permits may be revoked for:

• More than two citations for violations within preceding 12-month period
• Failure to comply with permit conditions for 10+ days after written notification
• Knowingly making false statements in application
• Becoming disqualified for permit issuance

Discontinuance Requirements

Existing STRs Without Prior Registration:

• Must discontinue within 90 days of city notice if unable to obtain permit

Existing STRs with Prior Registration:

• Must discontinue within 120 days of city notice if unable to obtain permit

Permit Non-Renewal:

• Must discontinue use by permit expiration date

Penalties

Criminal Penalties:

• Violations are misdemeanors
• Each day of violation constitutes a separate offense

Civil Penalties:

• Up to $1,000 per day if defendant was notified of ordinance and failed to comply
• Additional remedies available under state law and city ordinances

Appeal Process

Initial Appeal:

• 10 days to file appeal with city manager
• 20 days for decision
• Hearing conducted by city manager or hearing officer

City Council Appeal:

• 10 days after city manager decision
• Council may affirm, reverse, or modify
• One-year waiting period if permit revoked
• Final determination date is order signing date

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Contact Information

Primary Contact for STR Permits

City of Smithville c/o Avenu Insights & Analytics PO Box 830725 Birmingham, AL 35283-0725

Phone Support: Toll-Free: (800) 556-7374

Online Support: Website: avenuinsights.service-now.com/csp

Payment Information: Make checks payable to "City of Smithville" Online registration available starting January 15, 2025

Application Submission

Short-Term Rental Annual Permit Fee: $150.00 per unit Renewal Fee: $150.00 per unit

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State-Level Regulations (Texas)

Since Smithville operates under Texas state law, the following state-level requirements also apply:

Hotel Occupancy Tax (HOT):

• STRs are subject to Texas HOT at state and local levels
• Tax rate varies by location (City of Smithville's rate applies)
• Quarterly filing and payment requirements
• Registration with Texas Comptroller may be required for certain transactions

Local Government Code Chapter 54:

• Authorizes civil penalties for ordinance violations
• Allows municipalities to enforce local regulations through civil remedies

International Residential Code:

• Safety and egress requirements apply to all residential structures
• STRs must meet these standards for bedroom design and emergency exits

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Source Documents

• Smithville Short-Term Rental Ordinance §4.7 (Version 1)
• Smithville Short-Term Rental Ordinance §4.7 (Version 2)
• Smithville Short-Term Rental License Application

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Note: Investors should verify current fees and requirements with the City of Smithville, as regulations and costs may change. The online registration system is scheduled to launch January 15, 2025, which may affect application processes.