Short-Term Rentals in Carrollton, TX

Carrollton maintains 136 local ordinances across all categories, and 9 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Carrollton falls on the strict-to-permissive spectrum compared to other cities.

Repeat Violator Strikes

Carrollton pulls a short-term rental's lodging license after three citations in 12 months. The Department of Code Operations (DCO) counts convictions under Chapter 97 or any related city code toward denial or revocation, then bars a new license on that address for a full year.

Key details: Strike threshold: 3 citations within 12 months. Consequence: License denial or revocation. Re-application bar: 1 year after revocation. Appeal deadline: 30 days to Property Standards Board. Enforcing body: DCO and Property Standards Board.

Operating an STR or B&B without a valid lodging license, including after revocation, is a misdemeanor under Section 97.11, punishable per Section 10.99 for each day the violation continues. Each of the three qualifying citations is itself a separate offense under Section 97.09(A), and the civil penalty track under Section 97.09(J) caps at $1,000 per violation per day.

This is not one of those rules that cities tend to ignore. Carrollton actively enforces its repeat violator strikes requirements.

Host Presence Rule

Carrollton's lodging-license code draws a line between a short-term rental and a bed and breakfast based on whether the owner lives there. A short-term rental is defined as a dwelling that is not permanently occupied by the property owner, so a licensed STR host has no duty to be on site during a guest's stay.

Key details: STR definition: NOT permanently owner-occupied, § 97.02. B&B definition: Permanently owner-occupied, § 97.02. Physical host presence: Not required for STR license. Local contact required: Agent/phone number under § 97.25(F). Adopted: Ordinance 4291, Dec. 2, 2025.

There is no standalone host-presence offense for STRs since none is required. But a property marketed as a B&B while the owner does not permanently occupy it, per county appraisal district records, no longer meets the section 97.02 definition of a B&B and must instead hold an STR lodging license, exposing the owner to denial or revocation under sections 97.26 and 97.27 if it operates under the wrong classification.

If you are coming from a city with tighter rules, you will find Carrollton gives residents more flexibility on host presence rule.

Host Platform Liability

Carrollton's short-term rental ordinance puts a background-check duty on the booking platform, not just the host. Before every booking, the owner or operator must confirm that the online hosting platform used to advertise the rental has run a sex-offender registry check on the guest and provided documented proof of it.

Key details: Check window: Within 24 hours before booking. Who checks: Owner/operator or verified hosting platform. Record retention: 12 months, produced to DCO on request. Companion duty: Photo ID verification for all adult guests. Adopted: Ordinance 4291, Dec. 2, 2025.

Failing to perform or document a pre-booking sex-offender check, whether done directly or verified through the hosting platform, is a Chapter 97 offense enforceable under section 97.09, with civil penalties up to $1,000 per violation under the administrative adjudication process. Three or more convictions for chapter violations within 12 months is grounds for the DCO to deny or the Property Standards Board to revoke the STR's lodging license under sections 97.26 and 97.27.

Taxes & Fees

Carrollton charges a 7 percent hotel occupancy tax on short-term rental and bed-and-breakfast stays once the room rate hits $2.00 or more per day, on top of state and county hotel taxes. Owners must collect it, file quarterly reports with the City Tax Assessor and Collector, and give the DCO an accounting within 30 days of request.

Key details: Tax rate: 7% of room consideration. Threshold: $2.00+/day room cost. Filing: Quarterly reports to Tax Assessor and Collector. Accounting deadline: 30 days of DCO/Finance request, § 97.10. Late penalty: 5% (10% after 30 days) plus 6%/yr interest.

Failing to collect, report, or remit the 7 percent occupancy tax under Chapter 38 is a misdemeanor under section 38.34, carrying a 5 percent penalty that climbs to 10 percent after 30 days plus 6 percent annual interest. Separately, ignoring a DCO or Finance Department request for a 30-day accounting of STR occupants and taxes paid violates section 97.10 of the lodging chapter.

Short-Term Rental Permits

Every short-term rental and bed and breakfast in Carrollton needs an annual lodging license from the Designated City Official before it can legally operate. Applicants must submit a floor plan, parking plan, proof of $1 million liability insurance, host rules, and HOA contact information, and consent to a pre-license inspection of the entire property.

Key details: License required: Annual, § 97.25(A)-(B). Review timeline: 60 days from complete application. Pre-license inspection: Interior, exterior, storage areas required. Neighbor notice: Certified mail to all properties within 200 ft. New licenses closed: Only renewals issued after Dec. 2, 2025.

Operating an STR or B&B without a current lodging license, or refusing the DCO's mandatory pre-license inspection, is a Chapter 97 offense and independent grounds for denial under section 97.26. A license can be revoked by the Property Standards Board for the same refusal, three or more chapter convictions within 12 months, or a registered sex offender occupant in a child safety zone, and once revoked, the property cannot be relicensed as an STR or B&B for one year.

This is not one of those rules that cities tend to ignore. Carrollton actively enforces its short-term rental permits requirements.

Insurance Requirements

Carrollton requires every short-term rental and bed and breakfast to carry host protection or liability insurance covering at least $1,000,000 per occurrence before the city will issue a lodging license, and a current certificate has to stay on file with the Designated City Official every year.

Key details: Minimum coverage: $1,000,000 per occurrence. Coverage type: Host protection or liability insurance. Proof required: At application and every renewal. Cancellation notice: Must notify DCO within 30 days. Adopted: Ordinance 4291, Dec. 2, 2025.

Operating without the required $1 million host protection or liability policy on file, or letting the coverage lapse without notifying the DCO within 30 days of cancellation as section 97.25(C)(4) requires, is grounds to deny a new lodging license under section 97.26 or revoke an existing one under section 97.27, with a one-year bar on relicensing the property as an STR or B&B after revocation.

This is not one of those rules that cities tend to ignore. Carrollton actively enforces its insurance requirements requirements.

Occupancy Limits

Carrollton caps short-term rental occupancy by square footage, not a flat headcount: as few as four adults in a home under 1,200 square feet, up to ten in one over 4,500. Unrelated adults are capped at four, and per-bedroom limits scale with room size too.

Key details: Unrelated-adult cap: 4 people max. Smallest tier: 4 adults, up to 1,200 sq ft. Largest tier: 10 adults, 4,501-5,000 sq ft. Bedroom cap: 1 to 6 occupants by room size. Basis for square footage: County appraisal district records.

Renting to more occupants than the square-footage table allows is a misdemeanor under Section 97.11, punishable per Section 10.99 for each day the violation continues, and each incident is a separate offense under Section 97.09(A). The DCO may also pursue the civil penalty track under Section 97.09(J), up to $1,000 per violation per day, and repeated occupancy violations count toward the three-citation threshold in Sections 97.26(A)(2) and 97.27(B)(2) that triggers license denial or revocation.

Short-Term Rental Parking Rules

Carrollton short-term rental guests can park only in available off-street spaces, never on a residential street or public-park lot, and RVs, boats, buses, or commercial vehicles can't sit on the premises at all under the STR-specific parking rule.

Key details: Parking cap: Limited to off-street spaces available. Street parking: Prohibited for STR/B&B guests. Public-park lots: Prohibited for STR/B&B guests. Banned vehicle types: RV, motor home, bus, boat, commercial. Surface requirement: No parking on unapproved surface.

Exceeding the off-street parking cap, parking on an unapproved surface, or letting guests park on a residential street or public-park lot is a misdemeanor under Section 97.11, punishable per Section 10.99 for each day the violation continues, with each day a separate offense under Section 97.09(A). Civil penalties up to $1,000 per violation per day are available under Section 97.09(J), and repeated parking citations count toward the three-citation threshold in Sections 97.26(A)(2) and 97.27(B)(2) that can trigger denial or revocation of the lodging license.

Noise Rules

Carrollton short-term rentals can't run amplified sound audible past the property line between 10 p.m. and 7 a.m., and guests can't congregate outside the property during those same hours. Every STR must also install a noise-monitoring device.

Key details: Quiet hours: 10:00 p.m. to 7:00 a.m.. Outdoor curfew: No congregating 10 p.m.-7 a.m.. Equipment mandate: Noise-monitoring device required. Special events: Banquets/weddings/parties banned. Governing chapter: Ch. 97, STR/B&B premises standards.

Violating the STR sound-equipment or curfew rules is a misdemeanor under Section 97.11, punishable per Section 10.99 for each day the violation continues, with each occurrence a separate offense under Section 97.09(A). Civil penalties up to $1,000 per violation per day are available under Section 97.09(J), and repeated noise citations count toward the three-citation window in Sections 97.26(A)(2) and 97.27(B)(2) that can trigger denial or revocation of the lodging license.

The Bottom Line

Carrollton is tougher than many cities when it comes to short-term rentals. Out of the 9 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Carrollton, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Carrollton can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.