The Galveston Park Board of Trustees has started a new system for short-term rentals (STRs). This system, called Rentalscape, will help manage over 4,400 rental properties in Galveston. But what does this mean for you? Let's answer some common questions.
What does this mean for me as a short-term rental homeowner?
As a short-term rental homeowner in Galveston, you are required to register your property with the Park Board. This registration must be renewed annually by December 31st, and comes with a $250 renewal fee. This fee helps pay for the people who run the Park Board, the city workers who make sure rules are followed, a call center for complaints, and the Rentalscape program.
You also need to collect and remit Hotel Occupancy Tax (HOT) from people who stay at your property to the Park Board. This is a law in our state. The new Rentalscape system will make sure all rentals are registered and paying this tax, which helps the local economy.
I plan to invest in property in Galveston. How does this affect me?
If you're thinking about buying property in Galveston to use as a short-term rental, you need to register each property with the Park Board. Each property will get its own special number, called a Galveston Vacation Rental (GVR) number. This number must be shown on all ads for the property. You also need to collect a Hotel Occupancy Tax (HOT) from renters and give it to the Park Board. You do this every month or every three months, depending on how much money you make.
These rules are here to make sure all rental businesses in Galveston are fair to each other.
What happens if I don't comply with these rules?
Per the FAQ page provided by Galveston, failure to comply with the STR registration or HOT payment requirements is a Class C misdemeanor offense and is punishable upon conviction by a fine not to exceed five hundred dollars ($500.00) per offense. Each day shall constitute a separate offense. Delinquent, non-registered, non-complying properties are subject to legal action.
How does this new system help the local economy?
The new system makes sure all rentals register and pay a hotel tax. This helps the local economy because it brings in more money. In 2022, short-term rentals brought in over 53% of the overall hotel and occupancy collections, helping Galveston generate over $1.2 billion.
How can I ensure that booking platforms are paying my taxes?
Per the city's FAQ page, at this time, only Airbnb, VRBO, and some property management companies will be collecting and remitting the local hotel and occupancy tax. To verify the proper amount is being paid on your behalf, we recommend contacting Airbnb and/or VRBO.
How can I register my property?
Registering your property is easy and can be done online. After you pay the registration fee, you'll get a Galveston Vacation Rental (GVR) number. You can register your property here.
How can I report a noncompliant property or submit a complaint about a rental?
Residents and visitors can call a 24/7 monitored hotline at 409-247-8160 to report complaints about STR properties.
For full details, you can visit the Short-Term Rentals page on the Board's website and their Short-Term Rental FAQ page here.
The best path is to speak to an expert.
We know these changes might seem a lot, but our team of real estate experts is here to help you. We can guide you through these changes and help you make the most of your property in Galveston. Contact us today if you have more questions or need help. We're here to help you succeed with your investment in Galveston.