Frisco

City permit

Every short-term rental needs a current permit before it operates or is advertised, and you apply through the city's online permit portal.[3] The fee is $300 for a new application and $300 for each annual renewal.[4] The permit lasts one year and can't be transferred to another owner, operator or location, and a renewal filed after expiry is treated as a new application.[3]

Who can apply

Only someone who owns the dwelling, or that person's representative, can apply.[2] The code counts as an owner anyone with a legal or equitable interest in the property or who otherwise has control of it.[3] If you lease the property and manage it for an owner for pay, a Texas real estate license may be needed, since the state's broker definition covers leasing real estate for another person for valuable consideration.[7]

Per-unit rule

Each unit with its own cooking, sleeping and bathing facilities in a shared building needs its own permit, whoever owns it.[3] The city says there's no limit on how many properties one owner can have, but each one needs a separate permit.[2]

Application papers

You submit a floor plan showing sleeping areas, the maximum number of guests, evacuation routes and where the fire extinguishers and smoke detectors are.[3] You also submit the guest safety information and a sworn statement that you meet the rules, and the city's page has a checklist and a floor plan example.[1, 3]

Lease and HOA rules

The permit doesn't override any restriction on short-term rentals in a law, lease, covenant or deed restriction, and the application asks you to acknowledge that.[3] A property that received a city housing incentive can't get a permit while the owner is eligible for the incentive, unless the city expressly authorizes it.[3]

Listing rules

Put the permit number in every advertisement, including online listings.[3] You can't advertise a rental before you hold a permit, rent to a guest under 21 or for less than 24 hours, or put up outside signs saying the property is a short-term rental.[3]

24-hour contact

Name an owner, operator or agent who answers complaints at any hour and can respond within one hour or less.[3] If police cite a guest, that person must try to reach the occupants within one hour of the city's contact, and you must update the city when the contact changes.[3]

Safety

Provide working smoke detectors and at least one working type A fire extinguisher, and get annual independent inspections of the extinguishers.[3] The city may inspect when it issues or renews a permit or when a violation is reported,[3] but its FAQ says in-person inspections aren't required and you certify the equipment under penalty of perjury.[2]

Guest information

Give guests a brochure and post the owner or agent's name and 24-hour phone number, parking and trash information, quiet hours, emergency numbers and a floor plan showing evacuation routes.[3]

Parking, alarms and use

Parking must follow the zoning ordinance and can't use public right-of-way, access easements or yards.[3] You can rent only residential dwellings, not tents, hammocks or campers, and you can't use the rental for a sober-living home, alcohol or drug sales or a sexually oriented business.[3] An active alarm system must be registered with the police department and listed on the permit.[3]

State hotel tax

Texas treats a short-term rental as a hotel, and the state hotel tax rate is 6%.[5, 8] A guest who has the right to use the space for at least 30 consecutive days, with no interruption of payment, owes no state tax.[8]

City hotel tax

Frisco levies a tax of 7% of the consideration the guest pays for the rental.[6] The city's page says short-term rentals must collect and remit it monthly through the Financial Services Department,[1] and reports are due by the 20th day of the month after each reporting month.[6]

Booking platforms

If a platform agrees to collect and remit state hotel tax for you, it does; if not, you must collect and remit it to the Comptroller.[9] Check whether your platform also covers the city's 7%, since the city tells operators to collect and remit it.[1]

Late tax

A late or missing hotel tax payment carries a 10% penalty, another 10% after the first 30 days, and 10% a year interest starting 60 days after the due date.[6]

No permit

Owning or operating a short-term rental without a valid permit is an offense, and so is advertising one.[3] The city's FAQ says it can mean fines of up to $500 to $2,000 per day,[2] and the city's page adds a possible ban on registering the property in the future.[1]

Fine limits

Under the code's general penalty, a fine for breaking rules on fire, safety, zoning, public health or sanitation can't exceed $2,000, and $500 for other rules.[10] Each day an offense continues is a separate offense.[10]

Revocation and appeals

The director can revoke a permit for serious or repeated violations, for violations of other law on public health, safety or welfare, or for interfering with law enforcement.[3] You get written notice and 10 calendar days to ask for a hearing, and you can appeal to the city manager within 10 calendar days.[3]

Renewal denial

The city can deny a renewal if you pleaded no contest to or were convicted of a rental-related violation, such as parking, noise, littering or unpaid hotel tax.[3] A rental that creates a nuisance or operates illegally can be reported online or at 1-800-695-4348.[1]

Tax offenses

Failing to collect, report or pay the city hotel tax is a misdemeanor with a fine of $50 to $500.[6]