Sherman, TX Rental Property Rules: Rental Registration (2026)

Section 3.11.004 of the Sherman Code makes the rental property license a precondition to running an apartment complex in the City of Sherman, Texas. A license that has been revoked, has expired or has lapsed for any reason is not valid, and a suspended license is not valid during the suspension. The license is issued by the inspecting official, and the administrator must issue it so long as the application shows the complex complies with article 3.11 and other applicable city ordinances and all required fees are paid.

The license attaches to a place and a person. It is not transferable from one person to another or from one location to another, and it authorizes operation only at the location and for the owner to which it was granted. An application is made in writing on the administrator's form, a separate application is required for each complex, and a new application is required when ownership changes. The code treats a change in ownership as more than 50 percent of the equity interest passing to someone not listed on the last application on file. An application fee is due with every application.

Each license, including a renewal, expires at the end of the calendar year and states its effective and expiration dates on its face. A license that is not renewed before expiration can be renewed only by paying both the annual license fee and the late fee. The license must be available on the premises for inspection and, for multifamily complexes, displayed in public view in the business office. Section 3.11.005 sets the money side: the annual fee is charged per dwelling unit per year in the amount in Appendix C, fees are nonrefundable, and a rental property with three or more documented violations of federal, state or local law in a twelve month period is assessed an additional annual license fee the following year.

An owner who lives more than 50 miles from the city must also name a local contact person within the city limits or within 50 miles who has authority to act on maintenance matters. The article covers complexes of five or more dwelling units, not single-family rentals.