Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Addison makes it unlawful to run a short-term rental anywhere that isn't the registrant's primary residence, so subletting a property you rent doesn't fit.[1] Registration is $115 a year and the rules apply in residential zoning districts.[1] Texas H.B. 2464 (2025) doesn't change that, because it says it doesn't stop a city from enforcing a short-term rental ordinance.[2]
Our verdict, based on the sources at the end of this guide.
Addison allows a short-term rental only at the registrant's own primary residence, so renting a place to sublet isn't an option.[1] The rules cover stays under 30 days in residential zoning districts.[1] Registration costs $115 a year, and you also owe the Town's 7% hotel tax.[1, 4] Texas H.B. 2464, signed June 12, 2025, limits cities on home-based businesses but says it doesn't stop a city from enforcing a short-term rental ordinance.[2, 6]
It's unlawful to operate a short-term rental in any location that isn't the registrant's primary residence.[1] You prove a primary residence with at least two of: vehicle registration, driver's license, Texas ID, voter registration or property tax documents, and a person can have only one.[1]
Register with the Town before you advertise, offer or rent the property.[1] The application asks for owner contact details, proof of primary residence, a local emergency contact, the maximum number of occupants, a floor plan sketch and a site plan showing legal parking.[1] The Town's registration page says to file through its Citizen Self Service Portal.[3]
Registration is $115 and lasts one year from the date it's issued.[1] The late fee is twice the fee, which the Town's page lists as $230.[1, 3]
Article VIII is written for single-family living units and applies only to short-term rentals in residential zoning districts.[1] We found no Addison code text on short-term rentals in other districts, so ask the Town before relying on one.[1]
The Town's 2024 residential rental registration ordinance leaves short-term rentals out, saying they stay under Article VIII.[7]
Allow no more than two adult guests per bedroom plus two more adults, and never more than ten people, adults and children together.[1] Vehicles are capped at one per bedroom or what the garage and driveway hold without reaching the street, sidewalk or alley, whichever is less.[1] Your ads and rental contracts must state both limits.[1]
Don't offer the rental as a party venue, and say so in writing in every listing.[1] No outside signs or displays can show the property is a short-term rental.[1]
Provide working smoke detectors, at least one carbon monoxide detector and alarm, and one fire extinguisher.[1] Give guests a brochure with your 24-hour contact, local parking, noise and trash information, and emergency numbers.[1]
Name a local emergency contact other than you who lives within 20 miles and can be reached 24 hours a day.[1] That person needs access to the property and your authority to handle complaints and emergencies.[1]
The Town can inspect with reasonable notice to check compliance and the International Property Maintenance Code.[1] If it finds a violation, it sets a re-inspection date and the problem must be fixed before the property is occupied.[1]
Short-term rentals count as hotels for Addison's hotel occupancy tax, which is 7% of what the guest pays.[4] The operator collects it and must file and pay by the 20th of the month after the stay.[4]
The state hotel occupancy tax rate is 6% of the cost of a room.[5] The Comptroller says people leasing their houses must collect it the way a hotel does.[5] Added to the Town's 7%, that makes 13% in total (our sum).[4, 5]
If a platform has an agreement with the Comptroller to collect and remit the state tax, you don't remit it yourself, but you stay responsible for local taxes.[8] If you use another platform or your own site, you collect and remit the state tax.[8]
The Town's tax can't be charged to a permanent resident, meaning someone with the right to use the room for at least 30 consecutive days with no break in payment.[4] The state says a guest should notify the hotel in writing first, or pay tax for the first month.[8]
A violation is punishable by a fine up to $500 for each offense, and each day it continues is a separate offense.[1] Documented advertising of the property as a short-term rental, online or offline, counts as evidence of a violation.[1]
The Town can deny a renewal if there is reasonable cause to believe you pled no contest to or were convicted of a related violation, or if there are grounds for suspension or revocation.[1] Such violations can include parking, noise, littering, destruction of property or disorderly conduct.[1]
Within ten days of an approval, the Town notifies all property owners within 200 feet and includes the 24-hour complaint line.[1] Neighbors can call 972-450-2800 in business hours or 972-450-7156 after hours for non-emergencies.[3]
Paying the Town's hotel tax late adds a 10% penalty, another 10% after 30 days, and interest of 10% a year starting 30 days after the due date.[4]
H.B. 2464 was signed June 12, 2025 and took effect immediately.[6] It bars cities from banning no-impact home-based businesses or requiring a permit for them, but it says it doesn't prohibit a city from adopting or enforcing an ordinance regulating a short-term rental unit.[2]
Skip Addison if your plan is to sublet. The code only lets you run a short-term rental at your own primary residence.
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