Overview

Short-term rentals ARE ALLOWED in Grand Prairie, Texas. The City Council passed an updated short-term residential rental ordinance (Chapter 29, Article IX) on May 17, 2022. Grand Prairie operates a regulated framework that permits short-term rentals subject to specific permitting requirements, safety standards, and taxation obligations. Investors can legally operate short-term rentals in residential properties, provided they obtain proper authorization and comply with all city requirements.

How to Start a Short-Term Rental Business in Grand Prairie

Step 1: Review Requirements and Prepare Documentation

Before applying, ensure you have all required materials prepared:

Floor Plan/Map Requirements:

• Total square footage of the home
• Location of bedrooms and all living spaces
• Fire extinguisher location
• First aid kit placement
• Emergency evacuation routes
• All floor plan locations clearly marked
• Use this floor plan example as guidance

Parking Plan Requirements:

• Identifies parking space locations
• Must demonstrate parking only on property
• No street parking permitted for guests/occupants/visitors
• Parking cannot block sidewalks
• Reference parking plan examples and example two

Insurance Requirements:

• Proof of host protection or liability insurance
• Minimum coverage: $1 million per occurrence
• Airbnb/VRBO coverage acceptable if ONLY those platforms are used
• Separate $1 million policy required if using other booking platforms

Owner Authorization:

• Written statement from property owner
• Authorizes operator/property manager permission
• Use the provided owner affidavit template

Safety Equipment:

• Smoke detectors with alarms
• Carbon monoxide detectors with alarms
• At least one working Type A fire extinguisher
• Annual fire code inspection compliance

Step 2: Complete Online Application

Apply through the City of Grand Prairie's Short-Term Rental Permit portal.

Required Information for Application:

• Physical property address
• Parcel ID (available via City Interactive Maps)
• Driver's license (upload picture)
• Owner information (name, address, email, phone)
• If company: responsible party details
• Operator information if different from owner
• 24-hour local contact person details
• Previous calendar year revenue from rental property
• Non-refundable permit fee: $480

Step 3: Inspection and Permit Issuance

Inspection Process:

• City staff will schedule on-site inspection
• Verifies compliance with health and safety requirements
• Property must match submitted floor plan
• Safety equipment verification

Post-Approval Requirements:

• Permit Display: Copy must be posted conspicuously inside front entrance
• Advertisement Compliance: Permit number must be listed on all advertisements
• Neighbor Notification: Within 10 days of permit issuance, distribute notice to properties within 200 feet containing:
  • Permit number
  • Owner/operator identity
  • Local/emergency contact information
  • City website reference
  • Use provided neighbor notice template

Step 4: Ongoing Compliance and Tax Obligations

Hotel Occupancy Tax Requirements:

• Rate: 7% of taxable receipts
• Due Date: By the 30th day of each month following rental income
• Direct Payment: Must pay directly to City of Grand Prairie
• No Collection Agreement: City has no agreement with booking sites to collect this tax
• View detailed HOT payment guidance

Information Updates:

• Report any changes to application information within 10 days
• Maintain continuous updates as changes occur

Required Documents, Permits, Licenses, and Guidelines

Primary Permit

Short-Term Rental Permit

• Cost: $480 (non-refundable)
• Validity: One year from issuance date
• Renewal: Required annually, 30 days before expiration
• Application: Online through city portal
• Supporting Documentation: All materials listed in Step 1 above

Safety and Compliance Standards

• Fire safety equipment compliance
• Building code adherence
• Health and safety inspections
• Parking regulation compliance
• Noise restriction adherence

Tax Registration and Payments

• Hotel occupancy tax registration
• Monthly tax filing and payment
• Revenue tracking and reporting

Required Documentation Templates

• Property inspection checklist
• Floor plan examples
• Parking plan examples and example two
• Owner affidavit template
• Neighbor notice template

Specific Regulations for Short-Term Rentals

City of Grand Prairie Regulations

Definition and Scope:

• Short-term rental: residential premise use for lodging 1-30 consecutive days
• Includes any portion of residential property
• Covers advertising on social media, booking sites, and similar websites
• Applies to all non-property owners

Occupancy Limits:

• Calculation: 1 person per 200 square feet
• Maximum: 12 persons for properties 2,400+ square feet
• Smaller Properties: 1 person per 200 square feet (no separate maximum)

Parking Restrictions:

• Guest parking only on property
• No street parking permitted
• Cannot block sidewalks
• Must comply with parking plan submitted with application

Taxation Requirements:

• City hotel occupancy tax: 7% of taxable receipts
• Monthly payment due by 30th day following rental month
• Direct payment to City of Grand Prairie required
• No collection agreements with booking platforms

Notification and Disclosure Requirements:

• 200-foot neighbor notification within 10 days of permit issuance
• Permit posting inside front entrance
• Permit number on all advertisements
• Information brochure with contact details and occupancy limits

Operating Requirements:

• Maintain liability insurance ($1 million minimum)
• Annual permit renewal mandatory
• Change reporting within 10 days
• Compliance with fire and safety codes

Dallas County and Texas State Regulations

Note: The provided content does not include specific county or state-level short-term rental regulations. Investors should consult with local legal counsel or contact Dallas County and Texas state authorities for additional compliance requirements at those levels.

Contact Information

Primary Authority

Code Compliance Division

• Address: 300 W. Main St., Grand Prairie, TX 75050
• Phone: 972-237-8098
• Alternate Phone: 972-237-8296
• Email: strpermits@gptx.org

City Hall General Contact

• Address: 300 W Main Street, Grand Prairie, TX 75050
• Main Phone: 972-237-8000

Online Resources

• File Code Complaint Online
• Contact Your Code Officer
• Apply for Short-Term Rental Permit

Source Pages

• Short-Term Rental Permits - City of Grand Prairie
• Short-Term Rentals Overview - City of Grand Prairie
• Short-Term Rental Ordinance (Chapter 29, Article IX)
• Hotel Occupancy Tax FAQ for Short-Term Rentals
• Short-Term Rental Parking Requirements
• Short-Term Rental Map
• Short-Term Rental Brochure
• Code of Ordinances - Municode

This guide is based solely on the provided content. Investors should verify current regulations and requirements directly with the City of Grand Prairie before making investment decisions.