Short-Term Rental Permit - Frequently Asked Questions

How does the City of Fredericksburg define Short-Term Rentals?

• SHORT-TERM RENTAL, ACCESSORY: A property containing a primary dwelling occupied as the property owner's principal residence (as evidenced by a current residence homestead exemption filed with the Gillespie County Appraisal District), that also contains a legal Accessory Dwelling Unit that is being used for Short Term Rental purposes.
• SHORT-TERM RENTAL, B&B: A property providing transient or guest lodging accommodations for compensation within the rooms of the property owner's principal residence (as evidenced by a current residence homestead exemption filed with the Gillespie County Appraisal District). Separate short-term rental permits shall not be required for each separate bedroom unit within a Short-Term Rental, B&B which may be rented.
• SHORT-TERM RENTAL, CONDOMINIUM: Short-term rentals located in a complex or housing group that is part of a declared and recorded condominium regime.
• SHORT-TERM RENTAL, FACILITY: A facility or complex containing multiple short-term rental dwelling units on a single property, for transient or guest lodging where sleeping accommodations are provided for compensation. A facility or complex, located in a commercial zoning district, containing multiple short-term rental dwelling units on a single property, shall be developed in accordance with the multifamily regulations of the base zoning district.
• SHORT-TERM RENTAL, UNOCCUPIED: Any structure used for transient or guest lodging accommodations, rented for compensation of a dwelling unit, that is not owner occupied, which includes but is not limited to a single-family residence, townhouses, duplexes, and other residential real estate improvements, in which the public may obtain sleeping accommodations for a period less than thirty (30) days.
• SHORT-TERM RENTAL, NONCONFORMING: Any structure used for transient or guest lodging accommodations, rented for compensation of a dwelling unit, in which the public may obtain sleeping accommodations for a period less than thirty (30) days that obtanined a permit prior to April 1, 2022.

Am I allowed to operate a Short-Term Rental?

Eligibility to operate a Short-Term Rental depends on the Zoning of the property in question.  On this page you may view a summary of the allowed uses by Zoning District and you may verify Zoning here. 

Do I need a Short-Term Rental Permit?

Per Section 5.401 of the Zoning Ordinance, any structure used for transient or guest lodging rented for compensation of a dwelling unit for a period of less than 30 days within the City Limits requires a Short-Term Rental Permit.  However, Short-Term Rentals located in the Fredericksburg extra-territorial jurisdiction (ETJ) are not required to obtain a permit to operate.

How do I apply for a Short-Term Rental Permit?

You can register online, at the moment, the link is the same for a renewal and new applications.

If you have already remitted your HOT for the quarter, please answer no when asked if you have revenue to report for the previous quarter.

How much does a permit cost?

Upon adoption of Ordinance No. 2022-13 (STR Ordinance Amendment) the permit fees are $150.00 plus $100.00 per bedroom.

Will I need an inspection?

Yes, inspections are required prior to issuance of a NEW Short-Term Rental permit, when a permit is transferred to another owner, upon complaints regarding violations or when additions or modifications are performed to the structure.

If you have submitted an application that is pending with Granicus, Staff will review your application and if an inspection is needed, as not all renewals require an inspection, Staff will contact you to schedule it.

What if I already have a STR Permit, do the new rules apply to me?

Properties that received a STR Permit prior to April 1, 2022 are considered “Legal Non-Conforming” uses and allowed to operate conditioned upon conformity with Section 5.401 and Section 6.110, Continuance of a Nonconforming Use.

I want to buy a property that has an existing STR Permit can I still use it as a STR? 

STR Permits are transferable, however, the new owner is responsible for transferring within 10 days. Section 5.401 Sub 10d

I want to buy a property that is Zoned R1 and it does not have a STR-Unoccupied Permit, can I get one? 

In order to operate a STR-Unoccupied in an R1 Zoned area, the applicant would need to obtain a Conditional Use Permit. In order to qualify for a Conditional Use Permit, 2 or more lot lines ( 1 for a corner lot) must be abutting a lawfully permitted STR Unoccupied & 75 % or more of the properties on the same side of the street, between intersecting streets, are lawfully permitted STR Unoccupied. Section 3.100

I want to buy a property that is Zoned R2 and it does not have a STR-Unoccupied Permit, can I get one?

Yes, unless the property is located in the Historic District, then a Conditional Use Permit is required. 

What is a Conditional Use Permit (CUP)?

A special use permit issued by City Council. This information may be found in Section 5.400 through Section 5.490.

This process typically takes 45 - 60 days (depending on when you make application) and will require public notification in the newspaper as well as notification of your neighbors that own property within 200 feet of the Subject Property.

Staff would review the CUP request per Sec. 5.460.

I have a Commercial property, can I have a STR permit?

C1 Neighborhood Commercial, C1.5 Commercial, C2 Commercial and CBD Central Business District allow for all STR uses by right with the exception of STR-Condo which requires a CUP.  Staff would review the CUP request per Sec. 5.460.