Short-Term Rentals in Little Elm, TX (2026)
8 verified short-term rentals rules for Little Elm, Texas, sourced directly from the municipal code and official government pages.
Verified from official government sources
Permit Requirements
Little Elm requires mandatory annual registration before listing or operating any short-term rental property. Registration costs $200 per year with a $400 late fee. Advertising a property without registration is a violation. The ordinance was established May 5, 2020 under Ordinance 1673 and applies to any residential property rented for fewer than 30 days.
Little Elm Short-Term Rental Permit Requirements
Heavy RestrictionsNoise Rules
Little Elm imposes specific quiet hours for short-term rentals: 10 PM to 8 AM on work nights (Monday through Thursday) and 11 PM to 8 AM on weekends (Friday and Saturday). Rentals are expressly prohibited from being used as party venues. Hosts must include a written party prohibition in all advertisements and listings.
Little Elm Short-Term Rental Noise Rules
Heavy RestrictionsTaxes & Fees
Little Elm imposes a 7% local hotel occupancy tax on all short-term rentals, collected from guests and remitted to the town. The state of Texas adds a 6% hotel occupancy tax under TX Tax Code Chapter 156, bringing the combined rate to 13%. Monthly or quarterly filing is required depending on tax volume. Late payment triggers a 5% penalty plus 10% annual interest after 60 days.
Little Elm Short-Term Rental Taxes & Fees
Heavy RestrictionsTex. Tax Code Sec. 156.001, 156.051
Sec. 156.001. DEFINITIONS. (a) In this chapter, "hotel" means a building in which members of the public obtain sleeping accommodations for consideration. ... (b) For purposes of the imposition of a hotel occupancy tax under this chapter, Chapter 351 or 352, or other law, "hotel" includes a short-term rental. In this subsection, "short-term rental" means the rental of all or part of a resid...
Parking Rules
Little Elm limits short-term rental properties to a maximum of five additional guest vehicles on-site, not including any vehicles owned by the property owner. This vehicle cap applies at all times during a rental period. Street parking restrictions and other town parking ordinances also apply to STR guests.
Little Elm Short-Term Rental Parking Rules
Some RestrictionsOccupancy Limits
Little Elm caps short-term rental occupancy at two adult guests per bedroom plus no more than two additional adults, with an absolute maximum of ten persons including adults and children. This limit applies regardless of property size. Violations are cited daily as separate offenses with fines up to $500 per day.
Little Elm Short-Term Rental Occupancy Limits
Heavy RestrictionsTex. Property Code Sec. 92.010 (Occupancy Limits)
Sec. 92.010. OCCUPANCY LIMITS. (a) Except as provided by Subsection (b), the maximum number of adults that a landlord may allow to occupy a dwelling is three times the number of bedrooms in the dwelling.(b) A landlord may allow an occupancy rate of more than three adult tenants per bedroom:(1) to the extent that the landlord is required by a state or federal fair housing law to allow a hig...
Insurance Requirements
Little Elm's short-term rental ordinance (Ordinance 1673) does not specify minimum insurance requirements for STR operators. The town does not mandate liability insurance, property damage coverage, or specific policy minimums as a condition of registration. Hosts should verify coverage through their homeowners insurance and rental platform policies.
Little Elm Short-Term Rental Insurance Requirements
Few RestrictionsNight Caps
Little Elm does not impose an annual night cap or limit on the number of nights a property may be rented as a short-term rental. There is no maximum rental frequency restriction in Ordinance 1673. Properties may be rented year-round as long as registration is current and all other STR requirements are met.
Little Elm Short-Term Rental Night Caps
Few RestrictionsRegistration Rules
Little Elm requires all short-term rental operators to complete annual registration through the town portal before listing their property. Registration costs $200 per year and must be renewed annually. Late registration incurs a $400 fee. Hosts must maintain records of reservations, guest counts, vehicle counts, and tax filings. Progressive enforcement escalates from warnings to permanent bans.
Little Elm Short-Term Rental Registration Rules
Heavy RestrictionsLooking for Denton County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Little Elm city rules.
Short-Term Rentals in Denton County →