What to Know Before Renting Your Property in Fredericksburg - STR Regulations
Choosing to rent a home or multiple homes as short term rentals (STR or also commonly called by popular platforms like Airbnb or Vrbo) is an excellent stream of income. With so many people coming to the city of Fredericksburg for either tourism, business, or to visit friends and family in the area, having a second home to rent out is a profitable idea, especially when left in the care of an experienced property manager.
Now, while it can be a great business venture, understanding the Fredericksburg City laws surrounding short term rentals can feel like a big hurdle. Don’t worry though, we’ve simplified these laws so you can better understand your rights as a property owner and what you can and can’t do with your short term rental units.
For a more in-depth understanding of these regulations, we highly recommend you reach out to an expert property management company, like us at Cozi Vacation Rentals. We’re here to help you navigate the Fredericksburg STR laws so you can worry less and leave the hassle to them.
Get your FREE downloadable copy of Fredericksburg Short Term Rental Laws
The City of Fredericksburg defines Short-Term Rentals (STRs) as a single-family residence, townhouse, and other residentials use real estate properties used for transient or guest accommodations. These properties can be rented to a single family for no more than 30 consecutive days.
Do your research and Contact Cozi Vacation Rentals! Just like in any business venture, research in-depth the type of property you’d like to buy, the location of the vacation rental, your budget for purchasing, the rates you should charge renters, and your expected cost vs. income.
The quickest and most straightforward way to understand all of this and get the answers based on your specific needs is to reach out to a property manager. Cozi will also help you by running a free pro forma financial analysis on any property you’re looking to purchase.
Contact the HOA first before you purchase the property or make any set plans to turn it into a vacation rental. After receiving permission from the HOA, you’ll then need a permit from the city.
Understand that based on the zoning district of your property, different zoning rules apply. For example, in some zones, bed and breakfasts are prohibited, while in others they’re permitted. For a full view of the zoning ordinances based on zoning districts, review the zoning rules for Gillespie County.
First, you’ll need to submit your STR permit application along with an application fee. Next, your property will need to pass the STR inspection process. You will need to understand the STR Inspection Checklist to ensure you’re good to go. After you’re ready to pass your inspection, a representative from the city will come to conduct the inspection. After inspection, the city will email and call you to inform you that you have passed. The final step is receiving your permit.
The City of Fredericksburg Texas has recently updated their city ordinance on short term rentals. The process has recently changed, but the inspection process remains the same, and we recommend you reach out to us at Cozi Vacation Rentals so we can guide you through the new process. Additionally, Cozi Vacation Rentals files all of your inspection paperwork and pays your filing fee upfront, ensures your property is inspection ready to pass the first time, meets the inspector, and then hangs your permit up at your property upon receipt and renewal.
You do not need to be on-site for the inspection but you must leave the property unlocked on the day of your inspection so the city representative can enter your property without any issue.
Don’t worry, Cozi Vacation Rentals will meet the inspector at your house and will guarantee they securely lock up your property.
A simple way to determine this is to browse through online booking platforms to get an idea of what other rentals in your similar area and with your similar amenities are charging per night.
Alternatively, you could hire a professional property managers to price your property for you. As an example, Cozi Vacation Rentals uses proprietary rate algorithms and dynamic pricing features that guarantee you the highest and best rates.
All guests are subject to the Hotel Occupancy Tax 7% Fredericksburg City Tax and 6% Texas State Tax. This is then collected by Cozi Vacation Rentals and remitted on your behalf as the property owner.
If using Cozi Vacation Rentals as your property manager, Cozi will collect and remit the Hotel Occupancy Tax on your behalf. As of March 31, 2022, The City of Fredericksburg concluded services with Avenu Insights and Analytics, and has contracted with Granicus, LLC as of April 1, 2022.
If using Cozi Vacation Rentals as your property manager, Cozi will collect and remit the Hotel Occupancy Tax on your behalf. As of March 31, 2022, The City of Fredericksburg concluded services with Avenu Insights and Analytics, and has contracted with Granicus, LLC as of April 1, 2022.
Yes, if you’re in violation of any regulation from Section 5.401 in the city ordinance, your permit could be revoked.
Upon issuance of the Short Term Rental Permit, you’ll receive a unique identification number and sticker from the City’s Business Emergency Contact (BECA) program. The BECA sticker shall be placed in a visible location, near the front entrance of the structure
Along with the unique permit number, you must also display:
As the property owner, you must share the following city rules with your guests:
As the property owner, you are. Whether you’re present at the property or not, it is your responsibility to ensure that your guests are in compliance with city regulations.
We suggest you make signs where necessary informing guests of quiet hours or other STR ordinances in your zone.
For any additional questions related to vacation rental management or property permits, give us a call at 830-500-5097.
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