Overview: Are Short-Term Rentals Allowed in El Paso, TX?

Yes, short-term rentals are explicitly allowed in El Paso, Texas. Currently, the City of El Paso does not have a specific ordinance regulating short-term rentals, which means operators can legally rent their properties for periods less than 30 consecutive days without obtaining special permits or licenses. However, all short-term rental operators and their guests must comply with existing nuisance ordinances that apply to all properties within the city.

The city is actively working on developing comprehensive short-term rental regulations, with community feedback sessions and stakeholder meetings ongoing as of 2023. Until new regulations are implemented, STRs operate under a self-regulating framework with existing city-wide ordinances governing noise, parking, and waste management.

How to Start a Short-Term Rental Business in El Paso

Starting a short-term rental business in El Paso is currently straightforward due to the absence of specific STR ordinances:

Initial Steps:

1. Property Assessment: Ensure your property complies with basic safety standards and zoning requirements
2. Insurance Coverage: Obtain appropriate liability insurance for short-term rental operations
3. Platform Registration: Create listings on platforms like Airbnb and Vrbo
4. Tax Registration: Register with the Texas Comptroller for Hotel Occupancy Tax collection
5. Neighbor Relations: Introduce yourself to neighbors and provide contact information
6. Safety Equipment: Install required safety equipment (smoke detectors, fire extinguishers, emergency exits)

Best Practices for Launch:

• Implement noise monitoring systems
• Install external security cameras for monitoring
• Create comprehensive house rules and guest communications
• Establish professional cleaning and maintenance protocols
• Develop emergency contact procedures

Required Documents, Permits, Licenses, and Guidelines

Current Requirements (No Special STR Permits Needed):

• No special licenses or permits are currently required for short-term rental operations in El Paso
• Standard property compliance with city building and safety codes
• Basic insurance coverage (liability insurance recommended)
• Tax registration with Texas Comptroller for HOT collection

Anticipated Future Requirements:

Based on the city's ongoing ordinance development, future requirements may include:

• STR License: Renewable every three years with associated fees
• Site Plan Submission: Including floor plans and life safety requirements
• Property Classification: Type 1 (owner-occupied) vs. Type 2 (non-owner-occupied)
• Density Compliance: Potential distance requirements between STR properties
• Guest Notification Materials: Required posting of emergency information and house rules

Documentation to Maintain:

• Property insurance documents
• Tax collection and remittance records
• Guest registration information
• Incident reports and neighbor communication logs
• Safety equipment inspection records

Specific Regulations for Short-Term Rentals

City of El Paso Regulations:

Current Status: No specific STR ordinance exists, but all operators must comply with:

Noise Ordinance:

• Quiet Hours: 10:00 p.m. to 7:00 a.m. daily
• Penalties: Class C misdemeanor plus fines up to $500
• Enforcement: El Paso Police Department

Residential Parking Ordinance:

• Parking limitations vary by district throughout the city
• Citations issued for violations
• Must inform guests of parking requirements and limitations

Residential Waste Ordinance:

• Waste and recycling must be stored in assigned bins
• Proper curbside collection procedures must be followed
• Citations issued for violations

State of Texas Regulations:

Hotel Occupancy Tax (HOT):

• State Rate: 6% on all short-term rental bookings
• Collection: Airbnb and Vrbo collect and remit automatically for platform bookings
• Direct Bookings: Operators must remit tax by the 20th of the following month
• Definition: Applies to rentals of 30 consecutive days or less

County Regulations:

El Paso County: For properties outside city limits, El Paso County has minimal STR regulations with no specific permit requirements for principal structures. Accessory structures used as STRs require zoning approval.

Contact Information for Local Authorities

City of El Paso - Planning and Inspections Department:

• Website: https://www.elpasotexas.gov/planning-and-inspections
• Address: Planning and Inspections Department, City of El Paso
• Phone: Contact main city line for department transfer
• Email: Available through city website contact forms

Code Enforcement:

• Reports: Submit through city's online portal for noise, parking, or waste violations
• Non-Emergency Police: For noise complaints during quiet hours

Texas Comptroller (for HOT Tax):

• Website: https://comptroller.texas.gov/taxes/hotel/
• Phone: Available on comptroller website
• Resources: Specific FAQ sections for Airbnb and Vrbo tax collection

El Paso County (for properties outside city limits):

• Planning Department: 719-520-6944
• Email: dsd-pod@elpasoco.com
• Website: https://planningdevelopment.elpasoco.com/

Local STR Organization:

El Paso Short Term Rental Alliance (STRA):

• Website: https://www.elpasostra.org/
• Purpose: Advocacy, education, and best practices for STR operators
• Services: Regulatory updates, community liaison, host resources

Source Links and Additional Resources

Primary Sources:

• City of El Paso STR Information: https://www.elpasotexas.gov/assets/Documents/CoEP/Planning-and-Inspections/Business-Licensing/short-term-rentals-presentation.pdf
• El Paso STRA Requirements: https://www.elpasostra.org/str-requirements/
• El Paso County STR Guidelines: https://planningdevelopment.elpasoco.com/short-term-rentals/
• Texas HOT Tax Information: https://comptroller.texas.gov/taxes/hotel/

Regulatory Resources:

• El Paso Municipal Code: https://library.municode.com/tx/el_paso/codes/code_of_ordinances
• Noise Ordinance Details: https://library.municode.com/tx/el_paso/codes/code_of_ordinances?nodeId=TIT9HESA_CH9.40NO_9.40.030SOLEVI
• Parking Regulations: https://library.municode.com/tx/el_paso/codes/code_of_ordinances?nodeId=TIT12VETR_CH12.44STSTPAGE_12.44.280REPAREPADI

Industry Resources:

• Rent Responsibly El Paso Guide: https://www.rentresponsibly.org/tx/el-paso/
• Texas STR Laws Overview: https://www.gowithsurge.com/blog/texas-airbnb-laws

This regulatory landscape in El Paso presents a unique opportunity for STR investors, as the current permissive environment allows for relatively easy market entry. However, operators should stay informed about the city's ongoing ordinance development process and be prepared to adapt to new regulations as they are implemented. The key to success in this market lies in proactive compliance with existing ordinances, maintaining excellent neighbor relations, and participating in the local STR community through organizations like the El Paso STRA.