The purpose of this article is to establish procedures and minimum standards for the permitting and operation of short-term rentals to ensure that such uses are compatible with surrounding neighborhoods, promote safety, and comply with applicable City and State regulations. The City Council finds that the regulation of short-term rentals is necessary to balance property owners' rights with the preservation of residential character, public safety, and neighborhood integrity. These regulations are not intended to prohibit short-term rentals but to ensure they are operated in a manner consistent with residential use patterns and public welfare. This article does not create any right to operate a short-term rental in violation of any lease, license, deed restriction, covenant, easement or other legal encumbrance.
(Ordinance 2026-04 adopted 1/13/2026)
For purposes of this article:
Director.
As used herein shall mean the City Manager or his/her designee.
Dwelling unit.
A building or portion of a building which is arranged, occupied or intended to be occupied as living quarters for one family and including facilities for food preparation and sleeping.
Guest.
A person contracting with a short-term rental for use of a residential dwelling or premises as a short-term rental and the person's invitees at the short-term rental.
Hotel.
A building or group of buildings used as a temporary dwelling place for individuals in exchange for financial consideration where customary hotel services such as linen, housekeeping service and telephone are provided. Hotel room units are accessed through doorways into an internal hallway, courtyard or lobby. Financial consideration for hotel room units is generally calculated on a nightly basis.
Hotel occupancy tax.
Hotel occupancy tax as provided for in article 11.04 of the City Code of Ordinances and Texas Tax Code, chapter 351, as they exist or may be amended and any successor ordinances or laws.
Non-owner-occupied STR.
A short-term rental where the owner does not reside on the property during the rental period.
Owner-occupied STR.
A short-term rental where the property owner resides on-site during the rental period.
Responsible party.
An individual designated by the property owner who resides within Rockwall County and is available 24 hours a day to respond to complaints or emergencies related to the property.
Short-term rental (STR).
A dwelling that is: (1) used or designed to be used as the home of a person, family or household, including a single-family dwelling, garage apartment, guest house or a unit in a multi-unit building, including an apartment, condominium, cooperative or timeshare; and (2) rented wholly or partly for a fee and for a period of less than thirty (30) consecutive days. The term "short-term renter" does not include a premises that is used for a nonresidential purpose, including an educational, health care, retail, restaurant, banquet space or event center purpose or another similar use; a bed-and-breakfast as defined in the City's Zoning Ordinance; or a hotel.
Short-term rental permit.
A permit issued by the City that identifies the subject property as a lawful short-term rental.
(Ordinance 2026-04 adopted 1/13/2026)
(a) 
No person shall operate, advertise, or offer a property as a short-term rental without first obtaining a valid short-term rental permit from the City. All individual units having cooking, sleeping and bathing facilities within common buildings, regardless of ownership, shall require a separate, individual permit for each unit intended to be used as a short-term rental. A person commits an offense under this article if that person owns or operates a short-term rental in the City without a valid permit.
(b) 
A permit shall be required for each individual property address.
(c) 
Permits are non-transferable and shall be valid for one year from the date of issuance unless revoked or suspended. A permit holder shall apply for renewal prior to the expiration of the permit annually on a form provided by the City Manager, or his/her designee.
(d) 
A property owner or operator of a short-term rental shall keep detailed records showing each booking and the fees paid for each rental for at least three years and make this information available to the City of McLendon-Chisholm upon request.
(e) 
Renewal applications must be submitted at least 30 days prior to permit expiration.
(Ordinance 2026-04 adopted 1/13/2026)
Applications shall be considered complete when all documentation required under this article has been submitted and all permit fees have been paid. Incomplete applications will not be accepted. Applications for a short-term rental permit shall include, but not necessarily be limited to:
(1) 
Completed City permit application form obtained from the office of the City Secretary;
(2) 
Proof of property ownership;
(3) 
Responsible party contact information;
(4) 
Site plan showing required parking areas;
(5) 
Proof of liability insurance with a minimum coverage of $500,000 per occurrence. The certificate of insurance must include the name insured, any additional insureds, the location address, the effective date, the coverage limit, and type. The owner must notify the City of McLendon-Chisholm within 30 days if the insurance status changes and provide the City with the updated insurance information;
(6) 
Self-certification of compliance with applicable codes and regulations;
(7) 
Payment of $400.00 application fee or as established by City Council for non-owner-occupied STR; and
(8) 
Payment of $200.00 application fee or as established by City Council for owner-occupied STR.
(Ordinance 2026-04 adopted 1/13/2026)
(a) 
Occupancy.
Maximum occupancy shall not exceed two persons per bedroom plus two additional guests.
(b) 
Separation requirement.
No short-term rental property shall be located within 1,000 linear feet of another permitted short-term rental. The separation distance shall be measured from the nearest property line of the subject property to the nearest property line of any existing, permitted short-term rental. The City shall verify compliance with this spacing requirement prior to issuing or renewing any short-term rental permit.
(c) 
Parking.
All parking shall be provided on paved or improved surfaces such as driveways or garages. On-street parking shall comply with City ordinances. Yards shall not be used to provide the necessary parking.
(d) 
Noise.
(1) 
Occupants must comply with Chapter 8, Offenses and Nuisances, of the City Code. Excessive noise or disturbances are prohibited. Outdoor amplified sound, gatherings, or activities are prohibited between 10:00 p.m. and 7:00 a.m. daily.
(2) 
Owners and operators are strongly encouraged to install and utilize a noise monitoring device within the short-term rental to assist in proactively managing noise levels and ensuring compliance with this article and applicable City ordinances.
(e) 
Guest conduct.
The property owner and guests shall not engage in disorderly conduct, public intoxication, illegal drug use, or any other activity that constitutes a nuisance or disturbance under chapter 8 of the City Code.
(f) 
Trash.
All refuse must be stored in approved containers and set out only on designated collection days.
(g) 
Signage.
No signage advertising the property as a short-term rental shall be permitted on-site.
(h) 
Permit display.
A copy of the current short-term rental permit shall be displayed inside the unit in a visible location near the main entrance.
(i) 
Safety.
Smoke detectors, carbon monoxide detectors, and at least one 5-pound fire extinguisher shall be installed and maintained on each floor of the dwelling.
(j) 
Ingress/Egress.
All bedrooms/sleeping areas shall have at least one operable emergency point of ingress/egress for rescue and escape (i.e., windows and/or doors) in accordance with the City's adopted codes, regulations, and ordinances.
(k) 
Tenant notification.
(1) 
The property owner and/or responsible party shall post in a visible and obvious location of the short-term rental the following information:
(A) 
The owner, operator or designated agent's name and 24 hour contact telephone number;
(B) 
Pertinent neighborhood information including, but not limited to, parking restrictions, trash collection schedules and location of required off-street parking, other available parking and prohibition of parking on landscaped areas;
(C) 
Quiet hours and noise restrictions as specified under chapter 8 of the Code of Ordinances;
(D) 
Information to assist guests in the case of an emergency posing threats to personal safety or damage to property, including emergency and non-emergency telephone numbers for sheriff, fire and emergency medical services and instructions for obtaining severe weather, natural or manmade disaster alerts and updates; and
(E) 
Depiction of floor plan identifying evacuation routes, including the dwelling's exits, primary evacuation routes and secondary evacuation routes near the front door of the dwelling.
(2) 
Each short-term rental owner shall provide in the short-term rental working smoke detectors in accordance with adopted codes, and at least one working type A fire extinguisher. The premises shall otherwise comply with applicable Code of Ordinance requirements, including but not limited to all building and fire codes.
(Ordinance 2026-04 adopted 1/13/2026)
(a) 
An inspection shall be required prior to issuance or renewal of a short-term rental permit.
(b) 
The City may conduct inspections upon receipt of a complaint or evidence of a violation.
(c) 
Refusal to permit an inspection may result in denial, suspension, or revocation of the permit.
(Ordinance 2026-04 adopted 1/13/2026)
(a) 
Operating without a valid permit constitutes a violation of this article.
(b) 
The property owner or operator of the short-term rental shall designate a responsible party for each short-term rental. The responsible party is a local representative who resides in Rockwall County, is authorized to act on behalf of the owner or operator, and is available at all times while the short-term rental is in use. The responsible party shall be capable of responding to complaints, violations, or emergency issues related to the short-term rental within one hour of notification by the City or its designee. Failure to designate or maintain current responsible party information associated with a short-term rental permit shall constitute a violation of this article.
(c) 
Any violation of this article may result in a fine in accordance with article 3.09.012 of this article.
(d) 
If, upon completion of an inspection, the premises are found to be in violation of one or more provisions of the applicable City codes and ordinances, the City shall provide written notice of such violations and shall set up a subsequent inspection and date for the violation to be corrected prior to its occupancy.
(e) 
Violations must be substantiated by credible evidence, such as verified complaints, inspection findings, or law-enforcement reports. Anonymous or unverified complaints shall not serve as the sole basis for enforcement action.
(f) 
Three or more documented violations within any 12-month period may result in permit revocation.
(g) 
A short-term rental permit holder may be subject to permanent revocation if their short-term rental permit is revoked two times due to violations of this article or other violations of the City's safety, health, and general welfare.
(h) 
Each day a violation of this article continues shall be considered a separate offense, and upon conviction shall be subject to a fine in accordance with article 3.09.012 of this article.
(i) 
A property owner whose permit has been revoked shall not reapply for one year from the date of revocation.
(j) 
The property owner may appeal a revocation to the City Council within 10 days of written notice.
(Ordinance 2026-04 adopted 1/13/2026)
All short-term rental operators shall register and remit applicable hotel occupancy taxes in accordance with Texas Tax Code, chapter 351, and City ordinances. Failure to timely pay any applicable hotel occupancy tax is a violation of this article. If the arrearage is not paid within 90 days of the issuance of a delinquency notice, the short-term rental permit shall be revoked.
(Ordinance 2026-04 adopted 1/13/2026)
Any short-term rental operating before the effective date of this article must register and obtain a permit within 90 days of adoption. Permits and nonconforming rights expire upon property transfer or failure to renew. Nothing in this article shall be construed to retroactively prohibit lawful short-term rental operations that existed prior to the adoption of this article. Such uses may continue subject to registration and compliance with operational standards.
(Ordinance 2026-04 adopted 1/13/2026)
The Building Official or designee shall administer and enforce this article and may adopt administrative procedures and forms necessary to implement these provisions, consistent with this article.
(Ordinance 2026-04 adopted 1/13/2026)
(a) 
Revocation of permit.
After providing an opportunity for a hearing, the Director is entitled to revoke a permit required by this article for serious or repeated violations of any of the requirements of this article, for violations of other applicable law relating to public health, safety or welfare and/or for interference with law enforcement officers in the performance of their duties. Prior to revocation, the Director or designee shall notify the permit holder, in writing, of the reason for which the permit is subject to revocation and that the permit shall be revoked at the end of the tenth (10th) calendar day following service of such notice unless a written request for a hearing is submitted to the Director by the permit holder within such ten (10) calendar day period referred to in the notice. If a written request for a hearing is received by the Director within the required time period, (1) the revocation shall not take effect unless and until the Director determines to do so in his ruling at the conclusion of the hearing; and (2) the Director shall hold a hearing and either enact or reject the revocation. At least two business days before the hearing occurs, the Director shall provide the permit holder with notice of the time and place of the hearing. The permit holder shall be permitted to attend and be heard at the hearing. If no request for a hearing is filed within the ten (10) calendar day period referred to in the notice, the revocation of the permit becomes final.
(b) 
Appeals.
An administrative decision issued in connection with the requirements of this article, including denial of issuance or renewal or revocation or suspension of a permit required by this article, is final unless the permit holder submits a written request for an appeal to the City Council. The appeal shall be filed in writing within ten (10) calendar days of the date of notice of the administrative decision. At least two business days before the appeal hearing occurs, the City shall provide the permit holder with notice of the time and place of the hearing. The permit holder shall be permitted to attend and be heard at the hearing. The City Council shall hear and rule on the appeal within thirty (30) calendar days after notice of the appeal. The City Council shall have the power to reverse a decision of the Director where it finds that the basis for such decision was not meritorious and that such a reversal will not adversely affect the public health, safety or welfare. The decision of the City Council is final. The City Council's failure to take action on any such appeal shall constitute approval of the decision by the Director or designee.
(c) 
Administrative process.
A notice required by this article is properly served when it is delivered to the permit holder via hand-delivery, or when it is sent by registered or certified mail, return receipt requested, or when it is sent via Federal Express or any courier service that provides a return receipt showing the date of actual delivery to the last known address of the permit holder. The hearings provided for in this article shall be conducted by the applicable regulatory authority at a time and place designated by it. The applicable regulatory authority shall make final findings, and shall sustain, modify or rescind any notice or order considered in the hearing. A written report of the hearing decision shall be furnished to the permit holder by the applicable regulatory authority.
(Ordinance 2026-04 adopted 1/13/2026)
Any person, firm, corporation or business entity violating this article shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be fined in an amount not exceeding $2,000.00 if the violation relates to zoning, the public health, sanitation or dumping of refuse; otherwise, the fine shall be in an amount not exceeding $500.00. McLendon-Chisholm also may recover a civil penalty of not more than $1,000.00 for each violation of any provision of this article if McLendon-Chisholm proves that:
(1) 
The person, firm, corporation or business entity was actually notified of the provisions of this article; and
(2) 
After the person, firm, corporation or business entity received notice of the provisions of this article, the person, firm, corporation or business entity committed acts in violation of the provisions of this article or failed to take action necessary for compliance with the provisions of this article Each calendar day any violation of this article continues shall constitute a separate offense. McLendon-Chisholm retains all legal rights and remedies available to it pursuant to local, state and federal law.
(Ordinance 2026-04 adopted 1/13/2026)