How Carrollton Handles Short-Term Rentals: A Practical Guide
Carrollton maintains 101 local ordinances across all categories, and 6 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.
Permit Requirements
Effective Dec 2, 2025 (Ord. 4291 + 4297), Carrollton issues no new STR or bed-and-breakfast permits. Only certain existing properties may qualify for a Chapter 97 lodging license. $1M liability insurance and quarterly Hotel Occupancy Tax required.
Key details: Effective: December 2, 2025. Authority: Ord. 4291 + 4297. New Permits: Not issued. Insurance: $1M per occurrence.
Operating without a lodging license or required insurance constitutes a code violation enforceable by the city's Code Enforcement Division.
This is not one of those rules that cities tend to ignore. Carrollton actively enforces its permit requirements requirements.
Taxes & Fees
Texas State Hotel Occupancy Tax is 6%. Carrollton levies additional local HOT. Platforms auto-collect both. Total rates typically 11 to 15%.
Key details: State HOT: 6%. City HOT: Varies by city. Platforms: Auto-collect. Filing: Quarterly.
Non-remittance: 5 to 10% penalty + interest. TX Comptroller audit. Tax evasion: Class A misdemeanor.
Occupancy Limits
Carrollton limits the number of guests allowed in short-term rental properties. Occupancy caps are typically based on bedroom count or square footage to protect neighborhood quality of life.
Key details: Typical Limit: 2 per bedroom + 2. Listing: Must state max occupancy. Enforcement: Complaint-driven. Penalty: Permit revocation possible.
First offense: warning. Repeated overcrowding: fines of $250 to $1,000. Permit suspension or revocation for chronic violations.
Insurance Requirements
Carrollton may require hosts to carry liability insurance for short-term rental properties. Minimum coverage amounts vary by jurisdiction.
Key details: Coverage: $500K to $1M typical. Homeowner Policy: May not cover STR. Platform Insurance: May not satisfy local rules. Proof: May be required at renewal.
Operating without required insurance may result in permit denial or revocation. Hosts may face personal liability for uninsured claims.
Noise Rules
Carrollton STRs must comply with general noise ordinance. Many cities impose stricter quiet hours for rentals. Complaints can trigger permit review.
Key details: Quiet Hours: Per city noise ordinance. Parties: Prohibited at most STRs. Response: Host must respond promptly. Topic: Noise Rules.
Noise violation: $200 to $1,000. Multiple complaints: permit review/revocation. Host responsible for guest behavior.
Parking Rules
Carrollton may require designated parking for STR guests. Parking plan may be part of STR permit. No statewide parking time limit in Texas.
Key details: Off-Street: Check city requirements. Street Limit: Per city code (no state law). HOA: May have restrictions. Topic: Parking Rules.
Parking plan non-compliance may affect permit renewal. Street parking violations per city code.
The Bottom Line
Carrollton's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Carrollton is broadly strict or permissive.
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.