Short-Term Rentals in HOA Communities: What Texas Boards Need to Know About Airbnb and VRBO

Short-term rental platforms have changed the way homeowners think about their property. In communities across Central Texas, from New Braunfels to Austin to San Antonio, homeowners are listing their homes on Airbnb and VRBO while boards are trying to figure out what authority they actually have to respond. The answer depends almost entirely on one thing: what your governing documents say.

Texas courts have been clear on this issue. A general "residential use" clause is not enough. If your community wants to restrict or ban short-term rentals, the language in your CC&Rs needs to be specific, explicit, and properly recorded. If it is not, enforcement will not hold up.

This post covers what Texas law currently allows, what the courts have decided, how the amendment process works, and what homeowners should know about city ordinances that apply on top of any HOA rules.

TL;DR

• Texas has no statewide law specifically governing short-term rentals in HOA communities. Enforcement authority comes entirely from the governing documents and Texas Property Code.

• The Texas Supreme Court ruled in Tarr v. Timberwood Park Owners Ass'n that a general "residential use only" clause is NOT sufficient to ban short-term rentals. Explicit language is required.

• HOAs can restrict or ban STRs by amending their CC&Rs through a supermajority homeowner vote, typically 67 to 75 percent.

• Rental restrictions must be filed with the county clerk under Texas Property Code Section 202.006 to be enforceable.

• Homeowners must also comply with city-level STR ordinances, which vary significantly across the communities Aquity serves.

• Boards attempting to enforce STR restrictions without proper CC&R language are exposed to legal challenges. Professional management of the governing documents process significantly reduces that risk.

1. What Texas Law Actually Says About HOA Short-Term Rental Authority

Texas does not have a specific state statute that governs how HOAs can regulate short-term rentals. That means the question of whether a given community can restrict Airbnb or VRBO activity falls almost entirely on the language in its Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and on the broader authority granted by the Texas Property Code.

Three chapters of the Texas Property Code are most relevant:

Chapter 202 (Construction and Enforcement of Restrictive Covenants) governs how property use restrictions are created and enforced. It also includes Section 202.006, which requires rental-related restrictions to be filed with the county clerk's office. Restrictions that have not been properly recorded can be challenged as unenforceable, even if they passed a membership vote.

Chapter 204 (Powers of Property Owners' Associations Relating to Restrictive Covenants) defines the scope of a Texas HOA's authority to adopt and amend restrictions.

Chapter 209 (Texas Residential Property Owners Protection Act) governs the due process requirements HOAs must follow when enforcing rules, including the notice and hearing requirements that apply before a fine can be issued for an STR violation.

The critical takeaway is that HOA authority to restrict short-term rentals in Texas is real, but it is not automatic. It has to be earned through properly drafted and recorded governing documents.

2. The Landmark Court Case Every Texas Board Should Know

The legal landscape for Texas HOAs and short-term rentals was reshaped by a single case: Tarr v. Timberwood Park Owners Ass'n (Texas Supreme Court).

In that case, a homeowner was renting their property through short-term platforms. The HOA attempted to enforce a prohibition based on language in its CC&Rs requiring that property be used for "residential purposes only." The Texas Supreme Court ruled against the HOA. The Court held that as long as the short-term renters were using the property for ordinary living purposes, such as sleeping and eating, the "residential purposes" covenant was not being violated. The short-term nature of the stay alone did not transform the use into a non-residential one.

The Court's decision established a clear and high standard: if an HOA wants to prohibit short-term rentals, it needs explicit language in its governing documents saying so. A minimum lease duration clause, such as "no lease shall be for a period of fewer than 30 consecutive days," is the most common approach to meeting that standard.

This ruling effectively rendered enforcement efforts by many Texas communities void overnight, particularly those relying on older CC&Rs written before short-term rental platforms existed.

3. What Makes a Short-Term Rental Restriction Legally Enforceable in Texas

For a short-term rental restriction to survive a legal challenge in Texas, it needs to meet four conditions.

First, it must be in the CC&Rs, not just the rules and regulations. A board resolution or standalone policy document that is not embedded in the CC&Rs sits on shaky legal ground. Boards that have tried this approach have found themselves unable to enforce fines when challenged. The restriction needs to be in the Declaration itself.

Second, the language must be explicit. The post-Tarr standard requires that the restriction clearly define what a short-term rental is, typically by specifying a minimum lease duration, and unambiguously prohibit rentals below that threshold. Vague language that could be interpreted multiple ways will not hold up.

Third, the amendment must be properly adopted. Amending a Texas HOA's CC&Rs requires a supermajority vote of the homeowners. The exact threshold is set by the community's own governing documents, but it is typically between 67 and 75 percent. The board must provide adequate advance notice of the proposed amendment, conduct the vote in accordance with the procedures in the governing documents, and document the results. A poorly run amendment process can itself become grounds for a legal challenge.

Fourth, the amended restriction must be recorded with the county clerk. Texas Property Code Section 202.006 requires that rental-related restrictions be filed. Without that filing, the restriction does not have the legal force it needs to be enforced. This step is frequently missed by communities that handle the amendment process without professional guidance.

4. The Grandfathering Question: Can Restrictions Apply to Owners Who Are Already Renting?

This is one of the most contested questions in Texas HOA law right now, and the answer is not settled.

The concern is straightforward: if a homeowner purchased their property and began renting it on Airbnb before the HOA adopted a short-term rental restriction, can the HOA now require them to stop? Or do they have a vested right to continue based on the rules in place when they bought?

Texas appellate courts have issued conflicting guidance. In May 2025, the Corpus Christi Court of Appeals ruled in Swan Point Landing v. Martin that an HOA could retroactively amend its CC&Rs to ban leasing, even for owners who had been renting prior to the amendment, as long as the amendment process was properly conducted. Courts in Houston and Austin have reached similar conclusions.

However, these decisions are being contested, and the legal landscape continues to evolve. Communities considering a retroactive restriction should treat this as an area of legal risk and consult with an HOA attorney before moving forward. Retroactive restrictions are more likely to hold up when the amendment process was procedurally clean and the language is precise.

One important note: even where a retroactive restriction is legally valid, some communities choose to include a grandfathering provision for existing operators as a practical matter, to ease the transition and reduce conflict. Whether to include such a provision is a policy decision for the board and the membership to make based on the community's specific circumstances.

5. What Boards Without CC&R Language Can Do Right Now

If your community's governing documents currently have no explicit short-term rental language, or rely on general "residential use" language that Tarr has made unenforceable, the path forward requires a deliberate process.

Step 1: Review the existing governing documents with professional guidance.

Before drafting any new language, a thorough review of the current CC&Rs, bylaws, and any adopted rules is necessary to understand what authority already exists and what the amendment process requires in your specific community. Aquity's governing documents service is designed to support exactly this kind of review.

Step 2: Engage homeowners early.

A CC&R amendment affects every property owner's rights and requires their participation to pass. Boards that attempt to push amendments through without building community support first often fall short of the supermajority threshold. Town hall discussions, written Q&A communications, and transparent explanation of the problems the amendment is meant to solve all improve the likelihood of success.

Step 3: Work with an HOA attorney to draft the amendment language.

The post-Tarr standard requires precision. Generic language pulled from another community's documents may not be appropriate for yours and may not survive a challenge. An attorney who specializes in Texas HOA law should draft or review the language before it goes to a vote.

Step 4: Conduct the vote in compliance with the governing documents.

The notice requirements, meeting procedures, and vote thresholds in your own documents control how the amendment must be conducted. Procedural errors at this stage can invalidate the amendment even if it received the required votes.

Step 5: Record the amendment with the county clerk.

Do not skip this step. The amendment is not fully enforceable under Texas Property Code Section 202.006 until it is properly filed.

6. What Homeowners Need to Know: HOA Rules and City Ordinances Are Both Your Responsibility

For homeowners in HOA communities who are considering or currently operating a short-term rental, the legal landscape has two distinct layers that both require attention.

Layer 1: Your HOA's governing documents. Your first obligation is to check whether your CC&Rs contain any short-term rental restrictions. If they do, operating in violation of those restrictions can result in fines, demand letters, and ultimately legal action by the HOA. If the documents are silent, that does not necessarily mean rentals are permitted without limit. It means the board has not yet exercised its authority on the question, and could in the future.

Layer 2: Your city's STR ordinance. Each city in Aquity's service area has its own requirements for short-term rental operators, and they vary considerably.

In New Braunfels, short-term rentals are prohibited in all residential zoning districts under the city's Ordinance Sec. 144-5.17. For any STR operating in a permitted non-residential district, registration through the city's online portal is required, annual fire marshal inspections are mandatory, and Hotel Occupancy Tax at 7 percent of gross receipts must be paid monthly. Failure to register is a code violation.

In Austin, updated regulations that took effect October 1, 2025, require a two-year operating license for every STR, a 1,000-foot spacing rule between rental properties on separate lots, and Hotel Occupancy Tax collection at a combined rate of 11 percent. As of July 2026, platforms including Airbnb and VRBO will be required to delist any Austin STR that cannot provide a valid license number.

In San Antonio, a permit is required before a short-term rental can legally operate. The city uses a two-tier system distinguishing owner-occupied rentals (Type 1) from non-owner-occupied properties (Type 2), with different fee structures and density rules for each. The combined Hotel Occupancy Tax rate in San Antonio reaches 16.75 percent of gross rental receipts, one of the highest in Texas.

In San Marcos and other jurisdictions across Central Texas, local ordinances continue to evolve. Homeowners should verify current registration, permit, and tax obligations with the relevant city before listing their property.

The important point is that satisfying the HOA's governing document requirements does not substitute for complying with the applicable city ordinance, and vice versa. Both apply.

7. A Practical Framework: How Boards Can Write an Effective STR Policy

Whether a board is starting from scratch or updating language that no longer meets the post-Tarr standard, an effective short-term rental policy typically addresses the following elements.

Definition. A clear definition of what constitutes a short-term rental in the community, typically by establishing a minimum lease duration. Thirty consecutive days is the most common threshold and aligns with how most cities in Central Texas define the term for ordinance purposes.

Scope. Whether the restriction applies to the entire home, a portion of the home, or both. Boards that intend to prevent room-by-room Airbnb rentals need to address that explicitly.

Registration or disclosure requirement. Some communities require owners to notify the HOA before renting, or to register any approved long-term rental. This creates a record that can support enforcement efforts.

Enforcement mechanism. How violations will be identified, what notice the owner will receive, and what the fine schedule is. The enforcement process must comply with Texas Property Code Chapter 209, including the requirement for a notice and hearing opportunity before a fine is imposed.

Occupancy and conduct standards. Even communities that permit rentals often establish standards around maximum occupancy, noise, parking, and trash management that apply to both owners and their guests.

Aquity's community management services include governing document administration and can help boards work through this process from initial review through the amendment and recording steps.

Frequently Asked Questions

Can a Texas HOA ban Airbnb and VRBO rentals? Yes, but only if the governing documents contain specific, explicit language prohibiting or restricting short-term rentals. After the Texas Supreme Court's decision in Tarr v. Timberwood Park, a general "residential use only" clause is no longer sufficient. The restriction must define short-term rentals clearly and prohibit them explicitly, and must be properly recorded with the county clerk.

What does Texas law say about HOA short-term rental restrictions? Texas Property Code Chapters 202, 204, and 209 govern HOA authority over property use restrictions. Chapter 202 requires that rental-related restrictions be filed with the county clerk under Section 202.006. Texas has no separate statewide STR law that specifically applies to HOA communities. Authority to restrict rentals comes entirely from the governing documents.

How does a Texas HOA amend its CC&Rs to restrict short-term rentals? A CC&R amendment in a Texas HOA typically requires a supermajority vote of homeowners, between 67 and 75 percent depending on the governing documents. Proper notice must be given, the vote must follow the procedures in the existing documents, the amendment must be drafted with precise legal language, and it must be recorded with the county clerk to be enforceable.

Can an HOA restrict short-term rentals retroactively? The Corpus Christi Court of Appeals ruled in Swan Point Landing v. Martin (May 2025) that a properly adopted CC&R amendment banning leasing can apply to owners who were renting before the amendment. Courts in Houston and Austin have reached similar conclusions. However, this remains an evolving and contested area of Texas law, and communities considering retroactive restrictions should consult an attorney.

Do city ordinances apply to short-term rentals in HOA communities? Yes. Homeowners must comply with both their HOA's governing documents and the applicable city ordinance. New Braunfels bans STRs in residential zones. Austin requires a two-year operating license effective October 2025. San Antonio requires a permit and collects Hotel Occupancy Tax at 16.75 percent. Complying with one layer does not satisfy the other.

Ready to Review or Update Your Community's Governing Documents?

Short-term rentals are one of the fastest-changing areas in HOA law, and the stakes for getting it wrong are real. Enforcement without proper CC&R language exposes the board to legal challenge. Delayed action leaves communities without recourse as the problem grows.

Aquity Management Group helps HOA boards in New Braunfels, San Antonio, Austin, San Marcos, Round Rock, Seguin, and surrounding Central Texas communities manage exactly this kind of governance challenge. If your board is ready to review your current documents or start the process of updating your rental policy, reach out to our team to get started.

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This post provides general educational information about Texas HOA law and is not legal advice. Boards considering CC&R amendments or enforcement actions related to short-term rentals should consult a licensed Texas attorney specializing in HOA and real estate law.