Overview: Short-Term Rental Status in Tyler, TX

Short-term rentals (STRs) are ALLOWED in Tyler, Texas. The city currently maintains a relatively flexible approach to short-term rental operations compared to other Texas cities like Dallas, which has banned Airbnb rentals in single-family residential neighborhoods, or Houston, which is considering stricter regulations. Tyler presents excellent opportunities for investors wanting to earn rental income from the growing tourism industry centered around the city's attractions, including the Tyler Municipal Rose Garden and various cultural sites.

How to Start a Short-Term Rental Business in Tyler

To successfully launch your short-term rental business in Tyler, follow these essential steps:

1. Verify Property Zoning Eligibility

   • Contact the Tyler Development Services Department to confirm your property's zoning allows short-term rentals
   • Review the Unified Development Code for specific zoning requirements
   • Ensure compliance with any neighborhood or district-specific restrictions

2. Obtain Required Registrations and Permits

   • Complete Short-Term Rental (STR) Registration with the City of Tyler
   • Apply for Temporary Use Permit (TUP) if required based on your property's zoning and type
   • Verify specific requirements with Tyler Development Services Department

3. Set Up Tax Collection and Remittance Systems

   • Register with the Texas Comptroller's Office for state tax obligations
   • Establish systems to collect and remit both state and local occupancy taxes
   • Implement automated tax calculation and collection through your booking platform

4. Ensure Property Safety and Compliance

   • Install required smoke detectors and fire extinguishers
   • Verify adequate parking per zoning regulations
   • Meet all Property Maintenance Code requirements
   • Consider occupancy limits based on property size and local codes

5. Establish Operational Procedures

   • Develop guest communication protocols
   • Implement "Good Neighbor Policy" practices
   • Create procedures for noise management and guest behavior oversight
   • Consider professional property management services

Required Documents, Permits, Licenses, and Guidelines

Essential Registrations and Permits

City-Level Requirements:

• Short-Term Rental (STR) Registration: Required for all short-term rental operations in Tyler
• Temporary Use Permit (TUP): May be necessary depending on property zoning and type
• Contact the Tyler Development Services Department to confirm specific requirements for your property

State-Level Requirements:

• Texas Comptroller Registration: Required for tax collection and remittance
• Business License: If operating as a formal business entity

Property Management License Requirements:

• Property managers who collect rent on behalf of STR owners must hold a broker's license in Texas

Safety and Operational Guidelines

Property Safety Requirements:

• Smoke detectors in all required areas
• Fire extinguishers readily accessible
• Compliance with local fire safety codes
• Meeting all Property Maintenance Code standards

Operational Standards:

• Adequate parking spaces as required by zoning regulations
• Compliance with noise ordinances and neighborhood standards
• Implementation of "Good Neighbor Policy" practices
• Host responsibility for guest behavior and property maintenance

Specific Regulations for Short-Term Rentals

City of Tyler Regulations

Zoning Considerations:

• Short-term rentals may have zoning restrictions depending on property location
• Not all residential areas may permit STR operations
• Always verify zoning compliance before establishing rental operations
• Some areas may require special use permits or have additional restrictions

Operational Requirements:

• Host must maintain responsibility for guest conduct and behavior
• Noise restrictions apply per city ordinances
• Property must meet all safety and maintenance standards
• Regular inspections may be required

Smith County Regulations

Tyler is located in Smith County, Texas. Currently, there are no specific county-level short-term rental regulations that supersede city requirements. However, property owners should verify county zoning if their property is in unincorporated areas or has county jurisdiction elements.

Texas State Regulations

Taxation Requirements:

• State Hotel Occupancy Tax (HOT): 6.25% of all rental fees, cleaning fees, cancellation fees, pet fees, and laundry fees
• Hosts must collect and remit state taxes directly to the Texas Comptroller
• Late departure fees and childcare services are not subject to HOT

Registration and Compliance:

• Registration with Texas Comptroller's Office required
• Regular tax remittance obligations
• Compliance with Texas Property Code for rental properties

Local Hotel Occupancy Tax:

• Additional local tax obligations vary by municipality
• Tyler does not currently impose additional local hotel occupancy taxes beyond state requirements

Contact Information for Local Authority

City of Tyler Development Services Department

Address: 212 N. Bonner Ave., Tyler, TX 75702

Tyler Development Services (Building/Planning/Zoning):

• Phone: Not specifically listed in available sources
• General City Information: (903) 531-1200
• Website: City of Tyler Development Services

Additional Resources

PMI Tyler (Professional Property Management Services):

• Phone: (903) 515-8400
• Email: craig@pmityler.com, tanya@pmityler.com
• Address: 5610 Old Bullard Rd, Suite 206, Tyler, TX 75703

City of Tyler General Contact:

• Mailing Address: P.O. Box 2039, Tyler, TX 75710
• Main Website: www.cityoftyler.org

Tax Information:

• Hotel/Motel Occupancy Tax Portal: tylertx.hdlgov.com
• City Finance Department: 304 N Border, Tyler, TX 75702

Source Links

For the most current and detailed information, please refer to these official sources:

• STR Profit Map - Tyler Regulations
• PMI Tyler Legal Considerations Blog
• PMI Tyler STR Considerations Blog
• City of Tyler Tax Information

Important Disclaimers and Recommendations

Regulatory Changes: Short-term rental regulations can change frequently. While Tyler currently maintains a relatively permissive stance toward STRs, always verify current requirements with city officials before making investment decisions.

Professional Consultation: Consider consulting with local property management companies, real estate attorneys, or tax professionals familiar with Tyler's specific requirements and market conditions.

Insurance Considerations: Standard homeowner's insurance typically does not cover short-term rental activities. Obtain appropriate STR insurance coverage or add necessary riders to existing policies before beginning operations.

Market Analysis: While this guide covers regulatory requirements, conduct thorough market research to understand demand, competition, and revenue potential in your specific Tyler neighborhood or property type.

The information in this guide is based on available sources as of the compilation date. Always consult official city resources and local professionals for the most up-to-date regulations and requirements.