Richardson's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Richardson, Texas, there are 8 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Occupancy Limits

Richardson does not have a specific short-term rental occupancy limit ordinance. General building and fire code occupancy limits apply based on the size of the dwelling. The International Building Code and International Fire Code, as adopted by the city, govern maximum occupancy.

Key details: STR-Specific Limit: None enacted. Building Code: IBC 2021 Edition (Sec. 8-27). Fire Code: IFC 2021 Edition (Sec. 8-27). State Law: HB 2127 limits local STR regulation.

Overcrowding that violates building or fire code occupancy limits may result in citations from Building Inspection or the Fire Department.

Richardson is more permissive than most cities when it comes to occupancy limits. That said, there are still limits.

Night Caps

Richardson does not impose an annual night cap on short-term rentals. Hosts may operate year-round provided they collect and remit Hotel Occupancy Tax and comply with general nuisance, noise, and zoning requirements.

Key details: Authority: No annual night cap in Richardson city code. Rule: 7% city HOT plus 6% state HOT required. Limit: Unlimited rental nights permitted if compliant. Limit: HOAs may impose their own independent rental limits. Rule: Texas preemption trends favor host-friendly rules.

No night-cap violations exist. However, failure to remit HOT carries penalties of 5%-10% plus interest and potential criminal misdemeanor charges for willful non-payment. Nuisance-based violations (noise, parking, trash) can lead to accumulated fines even when rental frequency itself is legal.

If you are coming from a city with tighter rules, you will find Richardson gives residents more flexibility on night caps.

Insurance Requirements

Richardson does not mandate a minimum liability insurance amount for short-term rentals in city ordinance, but hosts are strongly advised to carry commercial or STR-specific coverage. Airbnb and Vrbo host protection programs apply in addition.

Key details: City Mandate: No Richardson-mandated STR insurance. Homeowner Policies: Typically exclude commercial rental use. Liability Minimum: $1M commercial general liability. Platform Coverage: Airbnb and Vrbo provide secondary. Property Code: Ch. 92 governs landlord/guest liability.

No direct insurance penalty in code, but uninsured hosts face unlimited personal liability for guest injuries or property damage. Failure to register for HOT is a separate violation carrying back taxes plus penalties and interest. Civil lawsuits under Texas premises-liability law can result in judgments far exceeding property value.

Registration Rules

Richardson does not currently require a specific short-term rental registration or permit. STR operators must comply with general business licensing, hotel occupancy tax collection, and zoning requirements. Texas HB 2127 limits local STR regulatory authority.

Key details: Registration Required: No specific STR registration. HOT Collection: Required. Zoning: Must comply with CZO (Appendix A). State Preemption: HB 2127 limits local regulation.

Failure to comply with hotel occupancy tax requirements may result in penalties. Zoning violations are enforceable through Code Enforcement.

The rules around registration rules in Richardson lean permissive, but that does not mean anything goes.

Taxes & Fees

Short-term rentals in Richardson are subject to the Texas state hotel occupancy tax of 6% and the City of Richardson hotel occupancy tax. Richardson levies a 7% local hotel occupancy tax under Ch. 12 of the Code of Ordinances.

Key details: Local HOT Rate: 7%. State HOT Rate: 6%. Combined Rate: 13%. Authority: TX Tax Code Ch. 351; Richardson Code Ch. 12.

Failure to collect or remit hotel occupancy taxes may result in penalties and interest. The city may assess back taxes and pursue civil remedies.

Parking Rules

Short-term rental guests must comply with Richardson's general parking ordinances under Ch. 13, Art. I. On-street parking is subject to the same rules as all residents, including restrictions on RV parking and front yard parking prohibitions.

Key details: Code Section: Ch. 13, Sec. 13-1. Front Yard Parking: Prohibited on grass. On-Street: Standard city rules apply. RV Parking: Permit required (max 2 weeks).

Parking violations result in citations and fines. Vehicles parked on unapproved surfaces or in violation of RV rules may be towed.

Noise Rules

Richardson 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. Enforcement: Police non-emergency line.

Noise violation: $200 to $1,000. Multiple complaints: permit review/revocation. Host responsible for guest behavior.

Permit Requirements

Richardson requires all short-term rentals (stays of 30 days or less) to register with the city under an ordinance approved by City Council in September 2022. The $100 annual registration fee applies, with a designated local responsible party required.

Key details: Registration Fee: $100/year. Registered STRs: 92 (as of March 2026). Response Time: Local party within 1 hour. Revocation Ban: 1 year on that property.

Violation of any provision of the STR ordinance may result in fines up to $2,000 per occurrence. Registration may be revoked for severe or repeated violations. If revoked, the owner/operator is ineligible for new registration on that property for one year. Proposed 2026 amendments would expand revocation grounds and add separate offense provisions.

This is one of the stricter rules in Richardson's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

The Bottom Line

Compared to many U.S. cities, Richardson gives residents more room on short-term rentals. 3 of the 8 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

All of the above reflects Richardson's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.