Short Term Rental Operations in Fredericksburg TX
The City of Fredericksburg has established requirements for operating an STR within the city limits. The most important of these is acquiring a permit. Below you will find everything needed to assist you as you move through the STR application process ... and more!
What you need to know about owning and operating an STR
Properly registering, insuring and permitting your STR is pivotal in securing your success.
FIRST THINGS FIRST
â– Decide on a name for your property
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â– Register with the Secretary of State
If you are filing for an LLC or other legal entity.
Sole Proprietors do not need to file anything with the Secretary of State.
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â– Register with the State Comptroller
This is where you register for State Hotel Occupancy Tax (HOT).
More information below regarding registration for Gillespie County HOT.
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â– Insure your Property
Commercial Insurance is highly advised.
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PLEASE NOTE: The initial requirements listed above may be slightly different if you are working with a management company. These are merely suggestions. It is ultimately up to you to know what is best for your business. If you are unsure of how to proceed, we advise speaking with an attorney and/or a CPA.
DO I NEED A PERMIT?
All properties located inside the city limits MUST HAVE A PERMIT to operate as a Short Term Rental. However, Short-Term Rentals located in the Fredericksburg extra-territorial jurisdiction (ETJ) are not required to obtain a permit to operate.
Permits are renewed annually. If you fail to renew your permit the City can suspend your ability to operate.
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PERMIT APPLICATION PROCESS
The City of Fredericksburg Development Services Department has announced the launch of the My Government Online (MGO) solution for the needs of short-term rental owners and operators.
This online service went LIVE on January 1, 2024, and has replaced the previous STR software. The MGO solution will offer online services for permitting including new applications, renewals, and owner transfers.
To access the MGO solution, STR owners and operators should visit MGO and create a new account. Once a new account is created, existing STR permit data should be linked to the address of the account.
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Before you click on the link below, please gather the following items:
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Your properties parcel ID – Gillespie County CAD
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Your properties Zone – FBG Zoning Table
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Your STR Type – STR Type
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Floor Plan and a Parking Plan – hand drawn examples are accepted.
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INSPECTIONS
Inspections are required prior to issuance of a NEW Short-Term Rental permit, when a permit is transferred to another owner, upon complaints regarding violations or when additions or modifications are performed to the structure and upon renewal.
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The city will contact you to schedule your inspection once they receive your application for a new or renewed permit. Your initial inspection is free. The failed inspection fee is $75.00. This must be paid prior to re-scheduling.
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Inspections are conducted on Wednesdays during morning periods 9:00 am to 11:00 am and afternoon periods 2:00 to 4:00 pm.
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You must be sure the STR location is unlocked and available during your requested inspection period on the day you request.
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You do not need to be present for the inspection to be conducted so long as access is made available. You will be fined if the inspector arrives but cannot gain access to the property.
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The STR permit will be issued when the applicable fee has been received, and the inspection process has been completed.
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INSPECTIONCHECKLIST
Take some time to review each of the check boxes on the inspection checklist (link below). Each is very important in completing your inspection smoothly. Any one point missed could result in a failed inspection.
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NOTE: Once you view or download the Inspection List. Make sure to pay attention to the details that pertain to the ordinance year your property is permitted under.
HOTEL OCCUPANCY TAX
City of Fredericksburg Hotel Occupancy Tax (HOT) is calculated as 7% of your nightly rental plus additional fees such as cleaning and management, to name a few. Speak with your CPA to ensure you are paying the correct amount.
Click here to download your
Fredericksburg HOT Remittance Form
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Texas State HOT is 6% of the nightly rental rate (plus fees). Again, speak with your CPA to ensure you are paying to correct amount.