Short-Term Rentals in Texas HOAs: What Boards Need to Know

Few topics stir as much debate in HOA board meetings as short-term rentals (STRs). Whether it’s a neighbor running an Airbnb, investors buying up properties for weekend stays, or the wear and tear of constant turnover, the question keeps surfacing: What authority does an HOA actually have to regulate short-term rentals in Texas?

In this episode of The Uncommon Area, host Matthew Holbrook sat down with attorney Leah Burton to unpack the Texas landscape for STRs. Their conversation offers a practical roadmap for board members trying to balance property rights, community expectations, and the legal realities of enforcement.

Why “Policy” Isn’t Enough: It Must Be in the Declaration

The first—and perhaps most important—takeaway is this: an HOA cannot create a short-term rental restriction out of thin air.

Texas law requires that limits on leasing be rooted in the declaration (CCRs), not just in a rule or board-adopted policy. That means if your community wants to prohibit or limit STRs, you need an amendment to the declaration, approved by the membership.

Boards that rely solely on policies or guidelines often find themselves in hot water. Without clear authority in the CCRs, any enforcement effort risks being overturned, leaving the association exposed. As Leah put it: “Policy isn’t enough—if it’s not in the declaration, you can’t just create a minimum rental period out of thin air.”

What Counts as a Short-Term Rental in Texas?

Definitions matter. In Texas, a short-term rental is generally considered 30 days or less.

That sounds straightforward, but savvy investors often try to skirt restrictions. A common tactic? Writing leases for 31 days to avoid the “30-day” label, then letting tenants leave after a weekend stay.

For that reason, many HOAs that amend their CCRs don’t just mirror the statutory definition—they go further. The trend is to set minimum lease terms of 12 months. This closes loopholes, preserves community stability, and makes the intent of the restriction crystal clear.

And don’t forget: your amendment should cover all rentable spaces, not just the main dwelling. Think guest houses, casitas, or even pool houses. If it can be leased, it should be included in the definition.

The Amenity Question: Owners vs. Tenants

STRs aren’t just about who’s sleeping in a unit. They often bring in unfamiliar faces using pools, gyms, and other common-area amenities.

One way HOAs can regain control is by linking amenity access to the lease. When an owner leases out their home—whether short-term or long-term—the tenant, not the owner, gets the amenity rights.

This approach discourages owners from double-dipping and helps the community monitor use. Pairing this with lease registration requirements (and even refundable deposits to cover potential damage) gives the association an added layer of accountability.

Operational Impacts: Staffing and Management Agreements

Managing STRs isn’t just a legal challenge—it’s an operational one.

High renter turnover means more gate calls, parking issues, amenity oversight, and general wear on facilities. Communities with heavy STR activity often find that staffing needs increase, whether it’s additional security, concierge, or administrative support to process registrations and track leases.

Leah stressed that boards should consider the cost-benefit analysis of enforcement. If an amendment is passed, the HOA may need to update its management agreement to reflect the added workload. Without planning, enforcement can quickly overwhelm staff capacity.

Fines That Actually Work

Enforcement isn’t just about rules—it’s about consequences.

A $25 fine won’t deter an owner making thousands of dollars a month renting on Airbnb. That’s why Leah recommends accelerated fine schedules for leasing violations. The fines should escalate quickly enough to outweigh any financial benefit of breaking the rule.

That said, Texas law imposes important guardrails. Associations must:

Provide written notice of the violation.
Allow the owner a 30-day window to request a board hearing.
Only post the fine after the hearing opportunity has passed.

Because of this timeline, boards can’t impose “daily fines” right out of the gate. Instead, creating a separate leasing-violation category in your fine policy allows boards to escalate penalties in a way that both complies with Texas law and still delivers a deterrent effect.

The Collections Reality: Secured vs. Unsecured Fines

Not all fines are created equal.

In Texas, some fines—like those tied to leasing violations—may not be lien-secured. That means the association can’t necessarily foreclose to collect them.

Still, these fines aren’t toothless. Boards can:

Add them to resale certificates, ensuring they get paid at closing.
Pursue collections like any other unsecured debt.

The key is transparency. Homeowners are far more likely to comply when they understand the financial consequences will follow them.

Timing Matters: Don’t Wait Until It’s Too Late

Perhaps one of the most striking warnings from Leah was about timing.

Communities sometimes wait until investor activity has already surged before trying to pass an amendment. By then, owners with STR interests often have enough voting power to block restrictions.

The message for boards is clear: act early, before STRs reshape your community’s ownership base. Waiting until you’re at the “point of no return” makes change nearly impossible.

Looking Ahead

Interestingly, Texas lawmakers did not pass any new legislation on STRs in the most recent session. That leaves HOAs with both the responsibility and the opportunity to craft their own solutions—provided they do it correctly through the declaration.

For communities wrestling with the STR question, this is both a challenge and a chance: a challenge because it requires thoughtful legal drafting, homeowner engagement, and operational planning; a chance because associations still have broad authority to shape the culture and stability of their neighborhoods.

Final Takeaway

Short-term rentals aren’t going away, but HOAs in Texas aren’t powerless. With clear authority in the declaration, well-drafted minimum lease terms, proactive amenity and registration policies, and fine schedules that truly deter, boards can preserve community stability and property values.