Short-Term Rental Permits

The Grand Prairie City Council passed an updated Short-term residential rental ordinance (Chapter 29, Article IX)(PDF, 660KB) on May 17, 2022. The updated ordinance requires short-term rental owners/operators to obtain a city permit and pay the hotel/motel occupancy tax directly to the City of Grand Prairie.

Do I need a permit?

All short-term rental owners/operators are required to obtain a permit from the city annually and pay city hotel occupancy taxes every month. This includes any residential premise that is advertised for rent on any social media, booking sites, and similar websites.

A short-term rental means the use of any residential premise, or any portion of, used for lodging accommodation for periods between 1 and 30 consecutive days. All non-owners of the property are to have a statement from the owner granting permission for the use of the property as a short-term rental.

Application Process

Step 1.Review requirements:

Information you need to complete the online application.

  • Floor Plan/Map, “Floor plan/Map identifying total square footage of the home, location of the bedrooms, all other living spaces, fire extinguisher, first aid kit, evacuation routes and all floor plan map locations. Example floor plan(PDF, 67KB) to use as guidance.
  • Parking Plan, Parking plan identifying location of parking spaces - keep in mind per the short-term rental ordinance, parking is only limited to parking on the property. Parking on the street or in a manner that blocks the sidewalk is prohibited by any short-term rental guests, occupants and/or visitors. See parking plan example one(PDF, 85KB) and example two(PDF, 116KB)
  • Proof of host protection or liability insurance, Proof of host protection or liability insurance, commensurate with the operation of a short-term rental that provides coverage of up to $1 million per occurrence (The City of Grand Prairie does recognize the insurance coverage Airbnb/VRBO offers to their guests, but only if those are the only bookings sites used. A separate policy that meets the minimum $1 million per occurrence is required if other booking sites are used.) upload file with your online application.
  • Owner’s Statement for STR Use, written statement from the owner of the property authorizing operator/property manager permission to operate premises as short-term rental. See template(PDF, 35KB)
  • Maintain required safety equipment. Smoke and carbon monoxide detectors with alarms are required in accordance with adopted codes, and the short-term rental must have at least one working Type A fire extinguisher. The fire extinguisher must meet the City’s current fire code for annual inspection.

Step 2.What Happens After Applying

Inspection Scheduled

After reviewing the short-term rental application, 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 occupancy. The property is to be made ready and comparable to the floor plan submitted with the application.

Permit Issued

The short-term rental permit will be valid after the application has been approved and the property passes inspection.  Any change of information provided in a short-term rental application form must be reported to the city within ten (10) days and be continuously updated as changes occur.

  • Permit. A copy of the short-term rental permit shall be posted at a conspicuous location inside the front entrance of the short-term rental and listed on all short-term rental advertisements. This is to also include the information brochure which contains the local/emergency contact name and phone number and max occupancy for the short-term rental.
  • Notify neighbors. Upon issuance of a Short-Term Rental Permit, within 10 days the owner or operator must distribute a notice to neighbors within 200 feet of the short-term rental property advising that a permit has been issued for the property. The notice shall contain the permit number, identity of the owner or operator, the name and phone number of the local/emergency contact person and the City of Grand Prairie website where short-term rental information is posted. City staff can provide a list of the addresses that are within 200ft of the property. See the neighbor notice template(PDF, 33KB)
  • Enforce occupancy limit. Occupancy limit for a short-term rental is one person per 200 square feet with a maximum of 12 persons if your property is 2400sqft or greater. All properties less than 2400sqft can only allow 1 person per every 200sqft.

Hotel Occupancy Taxes Due

Short-term rental operators and/or owners are responsible for paying hotel occupancy tax directly to the City of Grand Prairie by the 30th day of each month. The City of Grand Prairie does not have any agreement with any short-term rental booking sites to collect this tax for us. Please do not mistake this tax as the state hotel occupancy tax or any tax collected from the booking sites. 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.

Permit Renewal

All short-term rentals must obtain a permit annually. Short-term rental permits shall expire on the last day of the month one year after the date of issuance. No short-term rental permit may be renewed without a completed renewal application submitted, 30 days before the expiration date, by the owner or operator and payment of the application fee.

Step 3.Apply Online

You must apply for a Short-term Rental Permit online through the City of Grand Prairie's Short-term Rental Permit portal.

Information you need to complete the online application: 

  • Site plan identifying location of parking spaces to be used in conjunction with the short-term rental (upload file with your online application)
  • Dimensioned floor plan(PDF, 49KB) identifying bedrooms, other living spaces, and emergency evacuation routes (upload file with your online application)
  • Proof of host protection or liability insurance commensurate with the operation of a short-term rental that provides coverage of up to $1 million per occurrence (upload file with your online application)
  • Driver's license (upload picture of drivers license with your online application)
  • Physical address
  • Parcel ID, which can be looked up on the City of Grand Prairie Interactive Maps
  • Owner name, address, email address, and telephone number
    If company, then the name, address, and email address of responsible party
    OR
    Operator’s name, address, email address and telephone number
    AND
    Name, address, email, and 24-hour telephone number of local contact person
  • The amount of revenue you have received in the past calendar year from renting your property

You will receive an email confirmation after submitting your application. A permit is valid upon approval. The approval process includes an inspection of the property.

A non-refundable permit fee of $480 is due with the online application.

If you need assistance completing the online application or have questions about the approval process, please call the Code Compliance Division at 972-237-8296.

Note: The permitting and tax payment portal will be down until 01/06/25. We're sorry for any inconvenience this may cause.

Apply online

Fees

The Short-term Rental Permit fee is $480. This fee is nonrefundable and is due with the online application.

Short-term rental operators are also responsible for paying hotel occupancy taxes on taxable receipts