Short‑Term Rentals In Southlake: What’s Allowed

Thinking about listing your Southlake home on Airbnb or VRBO? Before you post, know that the city has very clear rules that affect any stay under 30 days. You want to protect your investment and avoid expensive mistakes. In this guide, you’ll learn exactly what Southlake allows, how enforcement works, how nearby cities compare, and what to check with your HOA. Let’s dive in.

Southlake’s rule at a glance

Southlake defines a short‑term rental as any rental of a residence for less than 30 days and prohibits them within city limits. The city adopted Ordinance No. 1187 on February 9, 2018, which makes operating a short‑term rental unlawful in Southlake. You can read the city’s definition and prohibition in the official Southlake ordinance.

A helpful nuance in the ordinance clarifies that the definition is not intended to restrict a seller’s leaseback after a sale. That means a customary post‑closing leaseback is not targeted by the short‑term rental definition.

What’s prohibited and the penalties

Under Ordinance No. 1187, all short‑term rentals are prohibited inside Southlake. If you offer or operate stays under 30 days, the city can issue fines up to 2,000 dollars per violation per day. Each day a violation continues is treated as a separate offense. The full penalty language appears in the city ordinance.

How enforcement works in practice

Southlake enforces its code through Planning and Development Services and Code Enforcement. The city provides contacts and a reporting portal on its Code Enforcement page. In many cities, advertising a property for short stays can be used as evidence of an STR, and Southlake staff can act on complaints or observed listings.

What this means for buyers, sellers, and owners

If your property is inside Southlake city limits, you should not list or accept bookings for stays under 30 days. That includes marketing language that suggests weekend or weekly rentals. Advertising can trigger enforcement.

• Sellers: Do not position your Southlake home as a short‑term rental opportunity in marketing or negotiations. Confirm permitted uses before going live.
• Buyers: If projected STR income was part of your investment thesis, you will need to recalibrate. Verify the property’s city jurisdiction and plan for long‑term use that aligns with the code.
• Current owners: If you have questions about a unique scenario, reach out to the city’s Code Enforcement team for guidance.

Leasebacks after a sale

The ordinance notes that the definition of short‑term rental is not intended to interfere with a seller’s leaseback after closing. If you are arranging a standard post‑closing leaseback, review the exact terms and confirm details in the ordinance text.

Taxes context: Hotel Occupancy Tax

Southlake’s budget documents reflect a 7 percent city Hotel Occupancy Tax on room receipts. You can see this noted in the city’s FY24 budget materials for Southlake’s Hotel Occupancy Tax. In cities where STRs are permitted, hosts typically collect and remit state and local HOT. In Southlake, operating an STR is unlawful under the ordinance, so the HOT insight is mainly useful for comparisons with neighboring cities.

How nearby cities handle STRs

Regulations vary around North Texas, which is why it is important to check the rules for each city.

• Fort Worth: The city uses a registration and enforcement approach and limits STRs largely to non‑residential or mixed‑use areas. See Fort Worth’s short‑term rental program overview.
• Grapevine: The city adopted limits that restrict STRs to certain multifamily districts. Read coverage of Grapevine’s action in this local report.

The takeaway is simple: each city sets its own policy. Inside Southlake, the ordinance prohibiting STRs controls.

HOA and deed restrictions: what to review

Separate from city law, your homeowners association may have rules that affect leasing. In Texas, the wording of recorded covenants matters. In the 2018 Texas Supreme Court case Tarr v. Timberwood Park Owners Association, the court held that a general “residential use only” covenant did not automatically ban short‑term rentals, which shows why precise language is key. You can review the decision summary in Tarr v. Timberwood Park Owners Ass’n.

Many HOAs can adopt rules that limit or prohibit STRs if their governing documents allow it and are amended correctly. For a practical overview, see this discussion of HOA considerations for STRs. Always read your recorded CC&Rs and consult counsel when language is unclear.

Quick checklist for Southlake properties

• Verify the property is inside Southlake city limits and note its zoning. The city provides guidance on how to find a property’s zoning district in this overview.
• Do not advertise or accept bookings for stays under 30 days. Cite the Southlake ordinance if you need a reference.
• If you believe you have a unique case, contact Code Enforcement for clarification.
• Review your HOA’s recorded CC&Rs for any minimum lease terms or STR prohibitions. When in doubt, seek legal guidance.
• If you are comparing options in nearby cities, review each city’s STR rules and any registration and HOT requirements.

Southlake’s position is clear: short‑term rentals are not allowed. If your strategy involves furnished rentals, you may need to consider neighboring jurisdictions where specific zones and registration programs exist. When you want a grounded plan that aligns with both lifestyle and compliance, connect with Noe De Leon for a private consultation.

FAQs

Are short‑term rentals legal within Southlake city limits?

• No. Southlake’s Ordinance No. 1187 prohibits all short‑term rentals, defined as stays under 30 days, within city limits. See the city’s ordinance.

What are the fines for operating an STR in Southlake?

• The ordinance allows fines up to 2,000 dollars per violation per day, and each day is a separate offense. Details are in the ordinance text.

Who handles complaints about STRs in Southlake?

• Southlake’s Code Enforcement investigates and enforces code violations. Contact information and reporting options are on the city’s Code Enforcement page.

Does Southlake collect a Hotel Occupancy Tax, and does it affect STRs?

• The city budget reflects a 7 percent Hotel Occupancy Tax. STR operation is unlawful in Southlake, but HOT is often collected in cities that allow STRs. See Southlake’s budget reference.

Are STRs allowed in nearby Fort Worth or Grapevine?

• Fort Worth limits STRs mainly to non‑residential or mixed‑use areas and requires registration, while Grapevine restricts STRs to certain multifamily districts. See Fort Worth’s program and this Grapevine update.

Do HOA rules override Southlake’s ban on STRs?

• City law still applies. HOAs may also have independent leasing rules, and enforceability depends on exact CC&R language. For background, review Tarr v. Timberwood Park Owners Ass’n and this HOA overview.