Fort Worth and the local communities draw tourists and business travelers year-round, making it a growing market for short-term and vacation rentals. But as demand for short-term rentals (STRs) rises, so does the scrutiny from local authorities.

It’s easy to make a legal mistake, and these are the most common pitfalls you’ll want to avoid.

Operating Without Proper Registration or Permit

One of the biggest mistakes STR owners make is assuming that they can list their property on Airbnb or Vrbo without notifying the city. Fort Worth requires short-term rental operators to register with the city and obtain a permit. Failure to do so can result in fines or even the closure of your listing, leaving you without the rental income you were hoping for.

Check the latest requirements from the City of Fort Worth’s Development Services Department and make sure your rental is properly registered. The rules can change, so stay updated. If you’re feeling confused, get in touch with a property management team like ours.

Ignoring Zoning Laws

Not all areas in and around Fort Worth are zoned for STR use. In fact, STRs are only allowed by right in certain zoning districts. In residential zones, you may need a special exception, or STRs may be prohibited entirely. We have access to the online zoning maps to help you confirm your property’s zoning designation. Don’t assume you’re in the clear just because other rentals are nearby.

Overlooking Hotel Occupancy Taxes

Like hotels, STR owners in Texas must collect and remit hotel occupancy taxes. This includes both the state tax (6%) and, if you’re in Fort Worth for example, the city’s local tax (9%). If you fail to collect and report these taxes properly, you could be liable for back taxes, penalties, and interest.

A property manager or a platform like Airbnb may collect and remit taxes on your behalf, but not always. Double-check your platform’s policy and, if necessary, register with the Texas Comptroller’s Office and the City of Fort Worth to ensure compliance.

Violating Noise and Nuisance Ordinances

Guests having a good time is great, unless they’re too loud and neighbors call the police. Local cities have ordinances related to noise, parking, and public disturbances. Frequent complaints can not only damage your reputation but also lead to fines or loss of your permit.

Set clear house rules for guests, install noise monitoring devices, and build positive relationships with neighbors. Proactive communication can prevent issues.

Neglecting Insurance Requirements

Many STR owners assume their homeowner’s insurance will cover rental activities, but it won’t. If a guest is injured or damages property, you could be exposed to serious financial risk without the right coverage. Speak with your insurance provider about STR-specific policies or riders. Additionally, some platforms offer limited host protection, but it’s not a substitute for comprehensive coverage.

Failing to Keep Accurate Records

Tax season can be a headache if you haven’t been keeping organized records. From income to expenses and tax remittances, the IRS, and the city where you own your property, expect accurate documentation.

Operating a short-term rental can be a lucrative venture, but make sure you’re protecting yourself and compliant. Need some help? Contact us at Trend Property & Management. We’re here to help with all your Fort Worth property management needs, and provide services throughout the surrounding Tarrant, Parker, Johnson, Hood, and Denton counties.