The purpose of this article is to establish regulations for the use of privately owned dwellings as short-term rentals, to minimize negative ancillary impact on surrounding properties, and to ensure the collection and payment of hotel occupancy tax.
(Ordinance O-2024-021 adopted 12/10/2024)
Calendar year.
January 1 to December 31 of the same year.
City.
The City of Magnolia, Texas.
Code or city code.
The City of Magnolia Code of Ordinances.
Guest.
The overnight occupants renting a short-term rental unit for a specified period and the daytime visitors of the overnight occupants.
Hotel occupancy tax.
The hotel occupancy tax required to be assessed and collected for the operation of any short-term rental and paid pursuant to V.T.C.A., Texas Tax Code Ch. 351.
Local contact person.
The owner, operator or person designated by the owner of the operator for the purpose of responding to concerns or requests for assistance related to the owner's short-term rental.
Operator.
The owner or the owner's authorized representative who is responsible for compliance with this article while advertising and/or operating a short-term rental.
Owner.
The person or entity that holds legal or equitable title to the short-term rental property.
Short-term rental or STR.
A privately owned dwelling, including, but not limited to, a single-family dwelling, multiple-family attached dwelling, apartment house, condominium, duplex, mobile home, or any portion of any such dwellings, rented by the public for consideration, and used for dwelling, lodging or sleeping purposes for any period less than 30 consecutive days. Provided, however, the following are exempt from the regulations under this article: hotel, motel, dormitory, public or private club, recreational vehicle park, hospital and medical clinic, nursing home or convalescent home, foster home, halfway house, transitional housing, facility, any housing operated or used exclusively for religious, charitable or educational purposes, and any housing owned by a governmental agency and used to house its employees or for governmental purposes.
Short-term rental permit.
A permit issued by the city authorizing the use of a privately owned dwelling as a short-term rental.
Short-term rental unit.
One or more habitable rooms forming a single habitable division within a short-term rental, or an entire undivided short-term rental, which is advertised to the occupied, is occupied or is intended to be occupied by a single party of guests under a single reservation and/or single rental payment.
(Ordinance O-2024-021 adopted 12/10/2024)
(a) 
It shall be unlawful for any person or entity to rent, [or] offer to rent, any short-term rental without a valid short-term rental permit issued under this article.
(b) 
A separate permit application must be submitted for each individual short-term rental.
(c) 
A permit application shall be made upon forms furnished by the city for such purpose and shall be accompanied by the nonrefundable application fee identified in the city fee schedule.
(Ordinance O-2024-021 adopted 12/10/2024)
(a) 
An owner shall submit an application for a short-term rental permit using a format and method promulgated by the city administrator or his/her designee. The application form shall require, at a minimum, the following information from applicants:
(1) 
The name, address, email and telephone number of the owner of the short-term rental;
(2) 
The name, address, email and telephone number of the operator of the short-term rental;
(3) 
The name, address, email and 24-hour telephone number of the local contact person;
(4) 
The name and address of the short-term rental;
(5) 
Maximum occupancy: As a general rule, the maximum occupancy shall be two persons per bedroom, plus two additional persons. Provided however, the city administrator or his designee has the discretion to increase the occupancy based on the unique characteristics of any short-term rental unit;
(6) 
Maximum number of on-site parking spaces on improved surfaces;
(7) 
Certification that the short-term rental unit meets minimum health and safety standards;
(8) 
Submission of a sketch floor plan of the short-term rental with dimension layout;
(9) 
Site plan/survey of the property showing the maximum number of vehicles that may be legally parked on the real property on improved surfaces without encroaching onto streets, sidewalks or alleys, other public rights-of-way or public property;
(10) 
Owner must submit complete list of all rentals advertised on all hosting sites;
(11) 
Trade name of owner;
(12) 
Names and addresses of all registered agents should owner be a business entity; and
(13) 
Acknowledgement of receipt of a copy of this article and agreement to comply with all provisions of this article as a condition to receiving and maintaining a short-term rental permit;
(14) 
A copy of any deed restrictions applicable to the short-term rental or short-term rental unit.
(b) 
An applicant for a short-term rental permit shall pay to the city a permit fee of $150.00, provided however, this amount may be changed from time to time by order or resolution of council without the necessity of amending this amount by ordinance.
(c) 
Upon receipt of a completed certified application for a short-term rental permit, the city and owner shall schedule the city's inspection of the short-term rental unit to be completed in 30 days. The purpose of the inspection is to verify the owner's certified statements of representations on maximum occupancy, on-site parking spaces, and representation that the short-term rental unit meets minimum health and safety standards. For purposes of this article, minimum health and safety standards means that the short-term rental unit must contain working smoke detectors in accordance with adopted codes and at least one working carbon monoxide detector and alarm, and one working fire extinguisher; in addition to [sic] the property shall otherwise comply with all applicable code of ordinances including, but not limited to, building and fire codes.
(d) 
Within 30 days after owner submits an application for a short-term rental permit, the city shall perform and owner shall grant permission to the city to perform an on-site inspection of the short-term rental unit to determine maximum occupancy, maximum parking on-site and that the property meets minimum health and safety standards for the short-term rental unit.
(e) 
Upon the city's confirmation of the maximum occupancy, maximum parking on-site and that the short-term rental unit meets minimum health and safety standards, the city shall issue a short-term rental permit to be valid for the remainder of the calendar year from date of issuance. The city may perform inspections and grant permits for the following year on or after November 1. Should an inspection reveal that the proposed short-term rental unit does not meet minimum health and safety regulations, then the building official shall notify the owner in writing of how the short-term rental unit fails to meet minimum health and safety standards.
(f) 
A short-term rental permit issued under this article shall be valid for 12 months from the date of issuance. A short-term rental permit shall expire immediately (1) upon any change in owner of the short-term rental unit or (2) at the end of the respective calendar year, whichever occurs first.
(g) 
Should the city grant a renewal of a short-term rental permit with no change in owner, the same permit number shall be issued on the renewal. Should any change in owner occur, then a new permit number must be issued to the new owner.
(h) 
The owner has a duty to notify the city within 20 calendar days, in writing, of any changes to information submitted as part of a short-term rental permit application under this article.
(i) 
An application for short-term rental permit may be denied if the short-term rental is disallowed by an applicable homeowners' association or deed restriction. A deed restriction that merely states that the property shall be used only for residential proposes shall not be a basis for disallowance of permit because state law provides that a short-term rental is considered residential use.
(j) 
An application for short-term rental permit may be denied if the owner has had a short-term rental permit suspended or revoked during the previous 365 calendar days.
(k) 
The city shall make available at city hall a permanent display or free handout, a list of all short-term rental permits including the address of the short-term rental unit along with the owner, operator and local contact person's name and phone number for each short-term rental unit.
(l) 
In the event that a guest of a short-term rental is convicted of violating the city's noise ordinance or the owner is convicted of violating this article, at the owner's property, the city may assess a civil penalty "call-out fee" in the amount of $500.00 against the owner; provided, however, this amount may be changed from time to time by order or resolution of council without the necessity of amending this amount by ordinance. The call-out means the police were summoned to the property for a violation or violations. "Convicted" shall include a deferred disposition for such a violation. Failure to timely pay the civil penalty call-out fee may be further grounds for permit suspension, revocation or renewal denial.
(m) 
A non-owner-occupied short-term rental property that does not exist prior to the effective date of this article shall not be located within 500 feet of another short-term rental property measured from the nearest property line to the nearest property line. This provision may be appealed to the city council.
(n) 
A short-term rental property in existence prior to the effective date of this article, whether owner-occupied or non-owner-occupied, is not subject to the 500-foot spacing requirement.
(o) 
Existing short-term rentals: An existing short-term rental is allowed to continue, subject to the following:
(1) 
An owner/operator must provide a sworn affidavit and demonstrate to the satisfaction of the city manager or their designee that the short-term rental was being used as a short-term rental on a continuous basis for the six months preceding the effective date of this article;
(2) 
An owner/operator, within 90 days of the adoption date of this article, must apply for an existing short-term rental permit on an application provided for by the city. An existing short-term rental shall be considered a new short-term rental if the operator fails to obtain a permit within the 90-day period of time; and
(3) 
An owner/operator pays the permit fee as required by this article.
(p) 
The city shall develop and keep current a website with a listing of all permitted short-term rentals in Magnolia.
(Ordinance O-2024-021 adopted 12/10/2024)
(a) 
Information to be posted.
The operator shall post the following information in a prominent location within the short-term rental unit, using a form promulgated by the city:
(1) 
Operator name and number;
(2) 
Local contact person name and number;
(3) 
The location and maximum number of any on-site parking spaces available for guests;
(4) 
The occupancy limits as indicated on the permit;
(5) 
Instructions to guests concerning disposal of garbage and handling of garbage containers;
(6) 
Notification that guests are responsible for compliance with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term rental, and that guests may be fined by the city for violations of this article; and
(7) 
Notification that no more than the maximum number of occupants on the short-term rental permit may be present on site where alcohol is being consumed or served between the hours of 10:00 p.m. and 6:00 a.m. without an off-duty police officer present on site.
(b) 
Compliance required.
The operator shall operate a short-term rental in compliance with the following:
(1) 
City hotel occupancy tax ordinance set forth in the code of ordinances. It is a condition of the continued validity of a short-term rental permit that the operator has paid and remains current on the payment of all hotel occupancy taxes owed to the city under the Texas Tax Code and the city code of ordinances.
(2) 
During any period when a short-term rental is occupied or intended to be occupied by guests, the local contact person shall make reasonable efforts to be available 24 hours per day for the purpose of responding to concerns or requests for assistance related to the condition, operation, or conduct of guests of the short-term rental. If contacted by the city for assistance regarding the condition, operation, or conduct of guests of the short-term rental, the local contact person shall resolve such concerns or request for assistance.
(3) 
No more than the maximum number of occupants on the short-term rental permit [may] be present on site where alcohol is being consumed or served between the hours of 10:00 p.m. and 6:00 a.m. without an off-duty police officer present on site.
(c) 
Other restrictions.
It shall be unlawful:
(1) 
To operate or allow to be operated a short-term rental without first registering the property in which the rental is to occur with the city in accordance with this article.
(2) 
To advertise or offer a short-term rental without first registering the property in which the rental is to occur with the city in accordance with this article; documented advertisement of the subject property as a short-term rental, online or offline, shall be considered evidence of a violation of this article.
(3) 
To operate a short-term rental that does not comply with all applicable city, state and federal laws and codes.
(4) 
To operate a short-term rental without paying the required hotel occupancy taxes.
(5) 
To permit the use of the short-term rental for the purpose of:
(A) 
Housing sex offenders;
(B) 
Operating a structured sober, recovery or other purpose living home or similar enterprise;
(C) 
Selling illegal drugs;
(D) 
Selling alcohol or another activity that requires a permit or license under the Alcoholic Beverage Code; or
(E) 
Operating a sexually oriented business.
(6) 
To fail to include a written prohibition that no more than the maximum number of occupants on the short-term rental permit may be present on site where alcohol is being consumed or served between the hours of 10:00 p.m. and 6:00 a.m. without an off-duty police officer present on site.
(d) 
Duration of rental period.
An owner and/or operator shall not rent or lease a short-term rental unit for a period of less than one night. If an owner and/or operator seeks to operate a short-term rental property as a long-term rental for a rental term of 30 or more consecutive days, the owner and/or operator shall notify staff in order to preserve the property's short-term rental permit.
(e) 
Life safety.
(1) 
The short-term rental must be equipped with the following life safety measures:
(A) 
Working smoke alarms, meeting the requirements of section 92.254 and 92.255 of the Texas Property Code, with a minimum of one on each floor or level; one in each room used as a bedroom; and, if multiple bedrooms are served by the same corridor, one in the corridor in the immediate vicinity of the bedrooms; and
(B) 
A minimum of one working carbon monoxide detector on each floor or level if the premises are equipped with natural gas, propane, and/or an attached garage; and
(C) 
A minimum of one 2A:10B:C type fire extinguisher (a standard five-pound extinguisher) available on each floor, inspected annually in accordance with the International Fire Code and tagged by a third-party inspector.
(2) 
All gas appliances shall be properly ventilated outside the home.
(3) 
Each room used as a bedroom must have at least one means of egress opening directly to the outdoors.
(4) 
All pool and spa facilities must comply with the International Property Maintenance Code as adopted by the city code.
(5) 
Any room that does not comply with this subsection (e) shall not be used as a bedroom, and where equipped with a door, shall remain locked at all times when the dwelling is being used as a short-term rental. Any non-compliant bedroom shall not be included in the maximum occupancy calculation for the short-term rental, nor be advertised as a bedroom.
(Ordinance O-2024-021 adopted 12/10/2024)
Complaints related to the operation of a short-term rental, including, but not limited to, complaints concerning noise, garbage, parking, and disorderly conduct by guests, shall be reported to the city administrator.
(Ordinance O-2024-021 adopted 12/10/2024)
(a) 
The owner, operator, local contact person, and guests shall comply with all applicable laws, rules, and regulations pertaining to the operation, use, and occupancy of a short-term rental. No owner shall be responsible for violations of this article by persons other than the owner.
(b) 
Nothing in this article shall be construed to relieve any person or owner of any other applicable requirements of federal, state or local law, rules, or regulations. Nothing in this article shall be construed to provide any property owner with the right or privilege to violate any private conditions, covenants, and restrictions applicable to the owner's property that may prohibit the use of such owner's property as a short-term rental as defined in this article.
(Ordinance O-2024-021 adopted 12/10/2024)
(a) 
Any violation of this article shall be a class C misdemeanor and shall be punished by a fine not to exceed the maximum permitted by law. Each day that a violation is committed or permitted to exist shall constitute a separate offense. For any second offense occurring in two calendar years, the minimum fine shall be no less than $300.00. Any third or more offense(s) occurring within two calendar years, the minimum fine shall be no less than $400.00.
(b) 
Prosecution under this article shall not require the pleading or proving of any culpable mental state.
(c) 
Penalties provided for in this article are in addition to any other criminal or civil remedies that the city may pursue under federal, state, or local law.
(Ordinance O-2024-021 adopted 12/10/2024)
(a) 
Upon conviction of two or more violations of the city noise ordinance or a violation of the Texas Penal Code or of this article at the permit location (by owner or by tenant(s)) on separate days in a six-month period, the city administrator may suspend or revoke any short-term rental permit issued for the short-term rental. The city administrator shall notify owner of a suspension or revocation under this section in writing, delivered by certified mail, return receipt requested, and mailed to the address of the owner as set forth on the most recent short-term rental permit application submitted to the city or alternatively, in writing, to the owner's last known email address on file with the city.
(b) 
An owner may appeal a notice of suspension or revocation under this section by filing a written appeal with the city administrator within 10 business days following either the date said notice was deposited in the U.S. mail or the date and time that the email was sent. Following a timely filing of an appeal hereunder, the owner may present evidence to the city administrator related to the suspension or revocation under this section. Following the city administrator's final decision on appeal, the owner may appeal an adverse decision of the city administrator by filing a written appeal with the city secretary within five business days following the date of the city administrator's final decision. The city council's decision shall be final.
(Ordinance O-2024-021 adopted 12/10/2024)