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

Yes, short-term rentals are allowed in Odessa, Texas, but with significant restrictions and requirements. According to the City of Odessa Building Official Sammy Quiroz, STRs are explicitly prohibited in single-family residential zones (SF-1, SF-2, SF-3, SF-4 districts). However, they are permitted in multi-family zones, light commercial areas, and the downtown district (CB-1, CB-2, LC districts), provided the property obtains proper inspections and receives a certificate of occupancy.

How to Start a Short-Term Rental Business in Odessa

Step 1: Verify Zoning Compliance

Before proceeding, confirm your property is located in an approved zoning district:

• Prohibited Zones: Single-Family Residential Districts (SF-1, SF-2, SF-3, SF-4)
• Permitted Zones: Multi-Family Residential (MF-1, MF-2), Central Business Districts (CB-1, CB-2), Light Commercial (LC), and other commercial/industrial zones

Step 2: Obtain Required Inspections

All STR properties must undergo city inspections and receive a certificate of occupancy that specifies the building's use as a boarding house or Airbnb operation.

Step 3: Safety Compliance (for Properties Hosting 10+ People)

Properties accommodating more than 10 guests require additional inspections by both the city and fire marshal, including:

• Emergency exit lighting systems
• Smoke detectors installation and testing
• Fire alarm systems compliance

Step 4: Certificate of Occupancy Application

Submit application to the Building Official for a certificate of occupancy that clearly states the property's use as a boarding house or Airbnb.

Required Documents, Permits, and Licenses

Primary Permits and Approvals:

1. Building Permit - Required for any construction or renovation
2. Certificate of Occupancy - Must specify boarding house or Airbnb use
3. Fire Marshal Inspection - Required for properties over 10 guests
4. City Inspections - All STR properties must pass

Documentation Requirements:

• Property ownership documentation or lease agreement
• Site plan showing layout, parking, and safety features
• Proof of compliance with International Fire Code
• Proof of compliance with International Building Code
• Electrical system compliance certificates (National Electrical Code)
• Plumbing system compliance certificates (International Plumbing Code)
• Fuel gas system compliance certificates (International Fuel Gas Code)
• Mechanical system compliance certificates (International Mechanical Code)

Application Process:

• Submit applications to the Planning Director or authorized representative
• Include detailed site plans, building specifications, and safety protocols
• Provide documentation for all utility connections and waste management systems

Specific Regulations by Jurisdiction

City of Odessa Regulations:

Zoning Restrictions:

• Single-Family Zones: STRs explicitly prohibited
• Multi-Family, Commercial, and Downtown Zones: STRs permitted with proper approvals

Operational Requirements:

• Must maintain certificate of occupancy specifying STR use
• Properties over 10 guests require fire marshal inspection
• Compliance with all International Codes (Fire, Building, Electrical, Plumbing, Fuel Gas, Mechanical)

Safety Standards:

• Emergency exit lighting systems
• Smoke detectors in all required locations
• Fire alarm systems meeting city standards
• Compliance with fire safety codes

Ector County Regulations:

Properties must comply with all applicable state regulations and Ector County ordinances in addition to city requirements.

State of Texas Regulations:

• Must comply with Texas Health and Safety Code
• Property tax implications for STR operations
• State-level fire safety and building code requirements

Enforcement and Compliance Issues

Current Enforcement Status:

According to the 2019 NewsWest9 report, Odessa's STR regulations are not being actively enforced by the city. Building Official Sammy Quiroz noted that despite having regulations, the city has never received a call, complaint, or formal application to legally operate an STR-type property.

Common Workarounds:

Many property owners circumvent STR restrictions by:

• Building "mother-in-law houses" and claiming family relationships
• Applying for mother-in-law house permits (4-5 applications annually)
• Providing family documentation and driver's licenses to prove familial relationships

Compliance Monitoring:

The city typically learns of non-compliant STR operations through:

• Complaints from neighbors regarding increased traffic
• Reports of non-family members staying in residential areas
• Other neighborhood disturbances

Contact Information

Primary Contact:

Sammy Quiroz, Building Official
City of Odessa
Phone: Contact through City Hall
Email: Contact through Planning Department

City Departments:

Planning Department

• Handles zoning compliance and applications
• Reviews site plans and development proposals

Building Department

• Issues building permits and certificates of occupancy
• Conducts property inspections

Fire Marshal's Office

• Required for properties hosting 10+ guests
• Fire safety inspections and approvals

City Hall Main Number

• General inquiries and department connections
• Address: City of Odessa, Texas

Address:

City of Odessa
411 W. 8th Street
Odessa, TX 79761

Source References

1. NewsWest9 Investigation Report (December 6, 2019)

   • Local Airbnb regulations enforcement issues
   • Direct quotes from Odessa Building Official Sammy Quiroz
   • Current enforcement challenges and property owner workarounds
   • Source: www.newswest9.com/article/news/local/local-airbnb-regulations-arent-being-enforced-by-the-city-of-odessa/513-a103d6a1-f097-4f64-89bc-2247f9870c3c

2. City of Odessa Zoning Ordinance (Ordinance Number 80-04)

   • Comprehensive zoning district classifications
   • Permitted and prohibited uses by district
   • Certificate of occupancy requirements
   • Building and safety code references
   • Source: www.odessa-tx.gov/DocumentCenter/View/1433/New-Zoning-Ordinance---City-of-Odessa-Texas-PDF

Investment Considerations and Risks

Regulatory Risks:

• Current non-enforcement may not continue indefinitely
• Potential future crackdowns on non-compliant operations
• Changing city leadership could impact enforcement priorities

Market Opportunities:

• Limited STR supply due to current restrictions
• Multi-family and commercial zones offer viable locations
• Growing West Texas market with oil industry activity

Compliance Strategy:

• Ensure full compliance with current regulations
• Consider properties in permitted zones (multi-family, commercial, downtown)
• Maintain all required inspections and certificates
• Monitor city council meetings for regulatory changes

Financial Implications:

• Property tax assessments may differ for commercial vs. residential use
• Insurance requirements may vary by property classification
• Potential for higher compliance costs in permitted commercial zones

This guide provides a comprehensive overview of Odessa's STR regulatory environment based on currently available information. Investors should consult directly with city officials for the most current requirements and consider the regulatory risks associated with operating in a market where enforcement is currently limited but regulations exist.