Overview: Are short-term rentals allowed in Aubrey, TX?

Yes. Short-term rentals are allowed in Aubrey, TX. The City treats STRs the same as hotels, motels, and other lodging providers for tax purposes. If you rent sleeping accommodations to the public for a cost of $2 or more per day for fewer than 30 consecutive days, you must register your property with the City and collect and remit the City’s Hotel Occupancy Tax (HOT). Beyond this, the City’s website does not identify any separate STR permit, zoning, or occupancy caps. Investors should proceed with the tax compliance workflow and confirm any zoning, building, or safety requirements with City staff. [Source: 1]

How to start a short-term rental business in Aubrey, TX

• Register your STR property: Submit the Hotel Occupancy Tax Registration Form for each property you will rent. [Form link: 1]
• Set up tax collection: Collect the City’s Hotel Occupancy Tax (7%) from guests on the cost of occupancy. [Source: 1]
• Begin operations: Once registered and configured to collect HOT, you can begin renting to transient guests. [Source: 1]
• File and remit taxes quarterly: Submit the Hotel Occupancy Tax Quarterly Report and payment, even if no tax is due, using the City’s reporting cycle. [Source: 1]
• Maintain records: Keep guest records, receipts, and tax filings consistent with the quarterly cycle and the City’s requirements. [Source: 1]
• Confirm zoning/safety: If you are uncertain about the specific use at your address (e.g., residential zoning, single-family vs. multifamily), contact the City to confirm allowed uses and any applicable building, fire, or safety rules. [Contact details below]

Required documents, permits, licenses, and guidelines

• City-level (Aubrey)
  • Hotel Occupancy Tax Registration Form (required before operating). [Form link: 1]
  • Hotel Occupancy Tax Quarterly Report (required every quarter, even if no tax is due). [Report link: 1]
  • Payment methods: Checks payable to City of Aubrey; in-person or mail submission to Finance Department. [Source: 1]
• State-level (Texas)
  • Texas Hotel Occupancy Tax (state portion): 6% state tax is collected by the Texas Comptroller; most local HOIs add up to 7% for a combined 13%. Submit monthly through the Comptroller’s online system and maintain monthly records. [General statewide rule; see “Texas State Requirements” section below]
• Local authority for STRs
  • The Finance Department administers the HOT program and registration/reporting for STRs (treated as “hotel” under Aubrey ordinance). [Source: 1]

Aubrey’s official STR guidance focuses on HOT collection and reporting. The City’s site does not list a separate STR permit, license, or cap.

Specific regulations for short-term rentals: City of Aubrey

• Hotel Occupancy Tax (HOT) rate: 7% of the cost of occupancy in any room. [Source: 1]
• Tax applies to: Any building in which the public may obtain sleeping accommodation for $2 or more each day for a consecutive duration of less than 30 days. This explicitly includes “any other short-term rentals,” along with hotel, motel, tourist home, bed-and-breakfast, etc. [Source: 1]
• Registration requirement: Register each STR property with the Finance Department before collecting HOT and renting. [Source: 1]
• Quarterly reporting: File Hotel Occupancy Tax Quarterly Reports on the City’s cycle, even if no tax is due. [Source: 1]
• Submission: In-person or mail to City of Aubrey, Attn: Finance Department, 107 S. Main St., Aubrey, TX 76277. [Source: 1]
• Contact information for compliance: 940-440-9343. [Source: 1]
• Code reference: City HOT is established under Ordinance Article 11.04 (eCode360 link). [Source: 1]

Aubrey does not publish an STR-specific permit system or occupancy cap on its website. Investors should verify zoning compliance with the City (e.g., whether STR is a permitted use in a given residential district).

Texas state-level requirements for short-term rentals

• State HOT: Operators must collect and remit Texas HOT at 6% of the room rate. Most local jurisdictions add up to 7% for a total of 13%. [General statewide rule]
• Local HOI: Many Texas cities impose an additional local hotel occupancy tax. You must remit both state and any applicable local HOI. [General statewide rule]
• Filing: File state HOT monthly with the Texas Comptroller online. Maintain monthly records and file even if no tax is due. [General statewide rule]
• Registration: If the Comptroller requires registration for your business type, complete it before starting. [General statewide rule]

Note: State-level obligations exist in addition to Aubrey’s local HOT. The City of Aubrey does not publish an exemption or relief from Texas state HOT for STRs.

Contact information (local authority for STR/HOT)

• City of Aubrey — Finance Department
• Address: 107 S. Main St., Aubrey, TX 76277
• Phone: 940-440-9343
• Website: www.aubreytx.gov/435/Hotel-Occupancy-Tax
• Hotel Occupancy Tax registration and quarterly reporting forms are available on the City’s site. [Links below]

Links to source pages

• City of Aubrey — Hotel Occupancy Tax: www.aubreytx.gov/435/Hotel-Occupancy-Tax [Source: 1]
• Aubrey HOT Registration Form (fillable PDF): www.aubreytx.gov/DocumentCenter/View/1708/Hotel-Occupancy-Tax-Registration-Form---FILLABLE [Source: 1]
• Aubrey HOT Quarterly Report form: www.aubreytx.gov/DocumentCenter/View/1707/Hotel-Occupancy-Tax-Quarterly-Report [Source: 1]
• City of Denton STR page (for comparison only): www.cityofdenton.com/406/Short-Term-Rentals [Source: 2]
• City of Denton STR Permit Portal (for comparison only): portal.deckard.com/tx-denton-city_of_denton-str-portal/ [Source: 2]
• Aubrey Home Rule Charter (not STR-specific; used for context on city powers): aubreytx.gov/DocumentCenter/View/535/Proposed-Aubrey-Home-Rule-Charter-- [Source: 3]
• Code of Ordinances portal (general ordinance access): z2.franklinlegal.net/franklin/Z2Browser2.html?showset=aubreyset [Source: 1]

Compliance timeline and workflow checklist

• Before operations
  • Register property with City of Aubrey using the HOT Registration Form. [Source: 1]
  • Set your pricing and rental agreements to include the 7% City HOT (and the 6% state HOT, remitted monthly to the Comptroller). [Source: 1; general statewide rule]
• Ongoing operations
  • Collect HOT from guests; maintain booking records and invoices that show the cost of occupancy and tax collected. [Source: 1; general statewide rule]
  • File Aubrey HOT Quarterly Report and remittance, even if no tax is due. [Source: 1]
  • File and remit Texas state HOT monthly to the Comptroller. [General statewide rule]
• Key dates (Aubrey quarterly cycle)
  • Q1 (Oct–Dec): due January 31
  • Q2 (Jan–Mar): due April 30
  • Q3 (Apr–Jun): due July 31
  • Q4 (Jul–Sep): due October 31 [Source: 1]

Practical considerations for investors

• Market positioning: STRs are allowed and taxed as lodging; plan for tax pass-through in nightly rates to preserve margins.
• Compliance cost: Expect the cost of a quarterly compliance cycle at the City level and a monthly state-level cadence.
• Due diligence: Confirm zoning and neighborhood compatibility with the City; if you operate within any homeowners’ association, review HOA covenants as they may limit STR activity even if municipal rules do not.
• Recordkeeping: Maintain guest logs, invoices, and tax remittance evidence; audit readiness is essential for both state and local filings.

If you encounter any uncertainty about property use or local code compliance, contact the City of Aubrey Finance Department at 940-440-9343. [Source: 1]