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

Yes, short-term rentals are explicitly allowed in Katy, TX, but they are strictly regulated. The City of Katy passed a comprehensive ordinance in March 2023 to govern STRs, requiring permits, inspections, insurance, and tax compliance. Investors must comply with all city regulations to operate legally. (Source 1)

How to Start a Short-Term Rental Business in Katy, TX

1. Obtain a Short-Term Rental Permit: Apply through the City of Katy’s Permits & Building Department.
2. Secure General Liability Insurance: Provide proof of qualifying coverage.
3. Register for Hotel Occupancy Tax (HOT): Complete state and city tax registration.
4. Prepare Documentation: Submit required plans, safety information, and fees.
5. Schedule Inspections: Arrange city inspections for compliance.
6. Maintain Ongoing Compliance: Renew permits, pay taxes, and address violations promptly. (Source 1)

Required Documents, Permits, Licenses, and Guidelines

| Requirement | Details | Source | |------------------|-------------|-----------| | Short-Term Rental Permit Application | Submit application with owner information and property details. | City of Katy Forms Center | | Permit Fees | $300 (new application), $200 (renewal), $50 (inspection). | Katy Times | | Insurance | Proof of qualifying general liability insurance. | Katy Times | | Hotel Occupancy Tax Registration | Register with the state and city using HOT forms. | City Forms (Hotel Occupancy Tax Registration) | | Tax Reporting | File monthly HOT reports using the city’s reporting form. | City Forms (Hotel Occupancy Tax Reporting) | | Site Plan | Include parking layout, ingress/egress routes, and fire extinguisher locations. | Katy Times | | Inspection | Mandatory initial and renewal inspections for code compliance. | Katy Times | | Occupancy Tax Payment | Pay 7% to the state and an additional 7% directly to the city. | Katy Times |

Specific Regulations for Short-Term Rentals in Katy, TX

1. Prohibited Uses:
   • No weddings, events, or gatherings (properties cannot function as event venues).
   • No tents, hammocks, RVs, campers, or vehicles used as STRs. (Source 1)
2. Safety Requirements:
   • Provide fire extinguisher locations and emergency egress information.
   • Submit floor plans and site plans for inspection. (Source 1)
3. Tax Compliance:
   • Collect and remit state HOT (up to 7%) and city HOT (additional 7%) directly to the city. (Source 1)
4. Enforcement:
   • Fines: $500 for certain violations.
   • Permit revocation for repeated non-compliance. (Source 2)
5. Noise and Parking:
   • Adhere to city noise ordinances and parking rules (specified in permits/inspections). (Source 2)

Contact Information for Local Authorities

• City of Katy Permits & Building Department:
  Phone: (281) 391-4800
  Email: info@cityofkaty.com
  Website: www.cityofkaty.com
  Address: 901 Avenue C, Katy, TX 77493
• Forms and Applications: City of Katy Forms Center
• Hotel Occupancy Tax: Use forms in the Finance section of the Forms Center. (Source 1)

Links to Source Pages

1. Katy Times: City Passes STR Ordinance (Mar 2023)
2. RedAwning: Katy STR Market Overview (2024-2025 Regulations)
3. City of Katy Official Website & Forms Center
4. Katy Association Management: HOA Rules Guide (TX Property Code Reference)

Note: While the city has specific STR regulations, Texas state law (Property Code §209.016) allows HOAs to impose additional restrictions on rentals. Investors must verify HOA rules before purchasing property. (Source 4)