Sherman, TX Rental Inspections: Inspection Programs (2026)

The program in the City of Sherman, Texas runs on a license plus inspections, both set out in Article 3.11 of the Sherman Code of Ordinances. Section 3.11.004 says no person shall own, operate, manage or maintain a multifamily dwelling complex without a valid rental property license from the city. The article defines that complex as any building or group of buildings providing five or more dwelling units owned by the same person. Hotels, motels and congregate residences are excluded, as are premises that a state or federal governmental entity inspects for habitability when at least 50 percent of the units fall under that law. Each license expires at the end of the calendar year, cannot be transferred between persons or locations, needs a separate application for each complex, and needs a new application when more than fifty percent (50%) of the equity interest changes hands. The license must be displayed in public view in the business office.

Inspections under § 3.11.006 measure compliance with the International Property Maintenance Code and other city codes. The administrator has the right of entry at any reasonable hour, can inspect unoccupied units on reasonable notice to the owner, landlord, resident or property manager, and can inspect an occupied unit when reliable information points to serious threats to life, safety, health or property. Inspection areas include building exteriors, exterior and interior common areas, vacant units and comparative samples of occupied units upon the tenant's consent or other recourse as provided by law. Newly constructed rental properties are exempt from inspection for the initial three years of operation, unless they show three or more documented violations of federal, state or local laws within a twelve (12) month period. They still need the annual license.

Fees under § 3.11.005 are set in Appendix C: an annual license fee, a late fee, and a reinspection fee for each additional reinspection after the first inspection. Properties with three or more documented violations within twelve (12) months pay an additional annual license fee the following year, and all fees are nonrefundable.