Monahans does not appear to have published city-specific short-term rental ordinances or requirements beyond general business and tax obligations. Therefore, short-term rentals are likely allowed in Monahans, TX, subject to applicable state regulations and standard local business compliance. Investors must adhere to Texas state law, including hotel occupancy tax collection and local zoning/use restrictions.

I. How to Start a Short-Term Rental Business in Monahans

1. Verify Zoning Use: Confirm the property zoned for your intended STR use (e.g., residential, commercial). Consult the City of Monahans Zoning Map and contact the City Planning & Zoning department or City Hall to verify allowable uses for STRs in your specific zone before proceeding.
2. Obtain Required Business Permits & Licenses:
   • Hotel Occupancy Tax (HOT) Permit: Texas requires entities offering lodging for rent for less than 30 days to collect and remit state and local hotel occupancy taxes. Register for a Texas HOT number through the Texas Comptroller.
   • Local Sales Tax Permit: If required for other taxable sales (though HOT is distinct from sales tax), obtain a Sales Tax Permit from the Texas Comptroller.
   • Local Business Registration: Check with the City of Monahans or Ward County for any required local business license or registration. Monahans appears to have a general Permits & Licensing page.
3. Ensure Compliance with State Hotel Occupancy Tax Requirements:
   • Collection: Begin collecting the applicable Texas State HOT (6%) and any local HOTs (e.g., Ward County HOT if applicable) from every guest staying less than 30 days at the time of payment.
   • Remittance: File HOT returns and remit collected taxes to the Texas Comptroller on their assigned schedule (typically monthly). Use your Texas HOT number.
   • Retention: Maintain meticulous records of all rental transactions, guest stays, and tax collections/remittances for audit purposes.
4. Property Standards & Guest Safety: While not explicitly cited in the provided sources, ensure your STR property meets basic safety and habitability standards expected under Texas law. Adhere to local fire codes and building codes as applicable.
5. Noise, Trash, and Nuisance Compliance: Operate the STR responsibly. Monahans has Code Enforcement capabilities. Comply with city ordinances regarding noise, waste disposal, and preventing nuisances to neighbors.

II. Required Documents, Permits, Licenses, and Guidelines

• State of Texas:
  • Hotel Occupancy Tax Certificate/Number: Obtained via registration with the Texas Comptroller. Essential for collecting and remitting HOT.
  • Texas Sales Tax Permit: If applicable for other taxable transactions (Texas Comptroller).
  • Texas Hotel Occupancy Tax Rules & Guidelines: Comptroller HOT Resources.
• City of Monahans/Ward County (If Applicable):
  • Local Business License/Registration: Inquire with City Hall or Ward County.
  • Permits: As directed by Monahans Permits & Licensing or relevant city/county department (e.g., Fire, Building).
  • Zoning Verification Letter: Obtain from the Planning & Zoning Board or City Administration confirming STR use is allowed at the property address.
• HOA/Condo Association Rules (If Applicable): Verify there are no specific restrictions against STRs in the property's covenants.

III. Specific Regulations for Short-Term Rentals

• Texas State Law:
  • Hotel Occupancy Tax (HOT): Texas Tax Code Chapter 156 governs HOT. All entities offering lodging for rent for fewer than 30 consecutive days must collect state (6%) and any applicable local HOT. Registration with the Texas Comptroller is required, and taxes must be remitted monthly (or other assigned schedule) using the Comptroller's online system. Failure to comply can result in significant penalties and interest. (Primary State-Level Regulation)
  • Preemption: Texas law generally preempts local municipalities from regulating certain aspects of STRs (like pricing or guest limits), but it explicitly allows cities to enforce local zoning laws and requires HOT collection compliance.
• City of Monahans: No specific STR ordinances were identified in the provided sources. Therefore, general city ordinances regarding noise, trash, nuisances, and zoning apply. Enforcement of these general codes could impact STR operations if guests create disturbances.
• Ward County: No specific STR regulations were identified in the provided sources. County-level HOT may apply. Verify with the Ward County officials or tax assessor-collector.
• Local Hotel Occupancy Taxes: While not detailed for Monahans/Ward County, Texas cities and counties can levy additional HOT (up to certain limits). Monahans likely has a local hotel tax. Check the City's Local Tax Rates page or inquire at City Hall or the Ward County Tax Office.

IV. Contact Information

• Texas Comptroller (Hotel Occupancy Tax):
  • Website: Hotel Occupancy Tax
  • Phone: (800) 252-5555
  • Email/Secure Message: Through your online account portal on the Comptroller website.
• City of Monahans (General Inquiry, Zoning, Permits, Local Taxes):
  • Website: Contact Us | City Code of Ordinances | Zoning Map | Permits & Licensing
  • Phone: (432) 943-4343
  • Email: Contact form available via the City's "Contact Us" page or see individual department pages.
• Ward County (Local Taxes/Officials):
  • Website: Ward County Officials
  • Phone: (432) 943-3662 (County Judge's Office - primary contact)
  • Email: Contact via the Ward County website or officials' pages.
• Texas Hotel & Lodging Association (THLA - Industry Advocacy & Resources):
  • Website: texaslodging.com (See specific pages referenced below)
  • Phone: (512) 474-2996 | (800) 856-4328
  • Email: thla@texaslodging.com

V. Source Links

1. Texas Hotel & Lodging Association (THLA) - STR Overview (2018): https://texaslodging.com/short-term-rental-str-update-2018/ - Provides context on the statewide STR regulatory landscape and the significance of hotel occupancy tax.
2. THLA - Legislative Session Summary (2025): https://texaslodging.com/mid-session-legislative-update-2025/ - Indicates ongoing legislative activity related to hotel occupancy tax and other industry issues at the state level.
3. City of Monahans Website: https://www.cityofmonahans.org/index.asp?SEC=F4CB6E72-A750-4653-9DB0-F52B6D914D4B&Type=B_BASIC - Provides links to essential city services (Permits, Zoning, Tax Rates, City Code, Contact), confirming Monahans lacks specific STR ordinances in the provided material.
4. Texas Comptroller - Hotel Occupancy Tax: https://comptroller.texas.gov/taxes/hotel/ - The definitive state resource for HOT registration, rules, compliance, and filing.

Disclaimer: This guide is based solely on the provided web content and Texas state law. The absence of explicit Monahans STR ordinances does not guarantee their non-existence. Investors must independently verify zoning compliance and any local requirements with the City of Monahans and Ward County before commencing operations. Consult with local legal counsel for definitive guidance on property-specific compliance.