The Grand Prairie City Council passed an updated Short-term Residential Rentals ordinance on May 17, 2022. The updated ordinance requires short-term rental operators to obtain a city permit.
Updated Short-Term Residential Rentals Ordinance (Chapter 29, Article IX)(PDF, 637KB)
Do I need a permit?
All short-term rental operators are required to obtain a permit from the city annually and pay hotel occupancy taxes. This includes homes or other units, such as a garage apartment or backyard cottage, listed for rent on Airbnb, VRBO, HomeAway, and similar websites.
A short-term rental means the use of a residential unit for its intended purpose for a tenancy of 30 or fewer consecutive calendar days for a fee. If your rental is being rented for more than 30 days at a time but you are advertising your property as available to rent for short-term (i.e. on a "nightly basis"), then you still must obtain a Short-Term Rental Permit.
What happens next?
City staff will schedule an on-site inspection of your short-term rental premises to ensure compliance with minimum health and safety requirements for use and and occupancy.
The short-term rental permit will be valid after the application has been approved and the property passes inspection. Remember, you are responsible for sending out a notification to neighbors within 200 feet of the property(DOCX, 22KB) advising that a permit has been issued for your short-term rental property.
Hotel Occupancy Taxes Due
City of Grand Prairie Hotel Occupancy Tax: Short-term rental operators are responsible for paying hotel occupancy tax to the City of Grand Prairie each month. The City of Grand Prairie's hotel occupancy tax rate is 7% of taxable receipts. Taxes are due by the 30th day of the following month. For example, taxes on the income you received from your rental property during the month of March would be due by April 30. Read Hotel Occupancy Tax for Short-term Rentals FAQ for information on payment options, late fees, what to consider taxable receipts, etc.
State of Texas Hotel Occupancy Tax: The State of Texas hotel occupancy tax rate is 6% and must be submitted separately from your City of Grand Prairie hotel occupancy taxes. View the Texas Comptrollers Hotel Occupancy Tax web page for information on state taxes.
Your Short-Term Rental Permit expires on the last day of the month one year after the date it was issued. To renew your permit, complete the renewal application 30 days before the expiration date through the "Renew an existing short-term rental" option in the online permit portal. If information on your permit application changes, such as the ownership or operator of the short-term residential unit, you must provide the updated information through the renewal application within thirty (30) days.