Galveston Short-Term Rental
Investment Opportunities

• Every STR must hold a non-transferable annual license from the city before operating — issued per unit, each with its own GVR registration number.
• Annual fee: $250 per rental unit, covering the calendar year (January–December).
• Registration and renewals run through the city's Rentalscape/Deckard portal (str.deckard.com); the renewal window opens December 1.
• A $500 late fee applies (on top of the registration fee) for registrations submitted after December 31, unless the property changed ownership.
• Licenses do not transfer on sale — a new owner must obtain a new license.
• RVs, campers, and similar structures cannot be registered as STRs.
• Registration requires the property address or GCAD number, bedroom count, sleeping capacity, and a 24-hour contact living within one hour of the property.
• Property management companies may register and pay on behalf of the properties they manage.

Source: City of Galveston Ord. 25-060 / galvestontx.gov STR registration

• STRs (dwellings rented for fewer than 30 days) are allowed throughout the city — Galveston regulates through registration and conduct standards, not zoning bans.
• There is no cap on the number of STRs citywide or per neighborhood, and no limit on how many one owner may operate.
• No owner-occupancy or primary-residence requirement — owners may designate an operator or a written-permitted lessee to run the rental.
• No cap on nights or bookings per year.
• With 4,400+ registered rentals, STRs are an established, accepted part of the island's tourism economy.
• HOA and deed restrictions in specific subdivisions or condo buildings may still limit STR use — verify before purchasing.

Source: City of Galveston STR FAQ / Ord. 25-060

• A 24/7 local contact who lives within one hour of the property and can respond to complaints within one hour.
• A required information sheet must be posted inside the unit listing: maximum occupancy, parking rules, quiet hours and noise restrictions, local contact information, emergency numbers, and flood-evacuation guidance.
• The city-issued GVR registration number must appear in every advertisement — each day a unit is advertised without it counts as a separate offense.
• Owners are responsible for ensuring guests comply with city and state rules on parking, trash, noise, firearms discharge, fireworks, and animal disturbances.
• The city maintains an STR hotline (409-247-8160) for reporting violations.

Source: City of Galveston Ord. 25-060 (Nov 13, 2025)

• City of Galveston Hotel Occupancy Tax: 9% of rental revenue.
• Texas State Hotel Occupancy Tax: 6% of rental revenue.
• Total tax burden: approximately 15% of gross rental income.
• City HOT reports and payments are filed through the same Rentalscape/Deckard portal used for registration.
• Monthly reports are due by the 20th of the following month; properties generating under $500/month (or $1,500/quarter) in tax may report quarterly (due Apr 20, Jul 20, Oct 20, Jan 20).
• Reports are required even for zero-revenue periods.
• Platforms that collect state HOT must also collect and remit the city HOT for owners under the updated ordinance.

Source: City of Galveston Ord. 25-060 / galvestontx.gov Hotel Occupancy Tax

• The Galveston City Marshal's Office enforces STR regulations and actively investigates and files charges against unregistered operators.
• Failure to register or pay the fee results in immediate suspension of the listing and fines.
• STR platforms must remove listings the city flags as expired, invalid, or revoked.
• During any revocation period, units must be removed from all rental platforms.
• The November 2025 update followed a 19-meeting ad hoc committee review — the city refined its rules rather than restricting the market.

Source: City of Galveston press release (Nov 25, 2025) / Ord. 25-060

• Port Bolivar, Crystal Beach, and the rest of the Bolivar Peninsula are unincorporated Galveston County — city registration, fees, and the 9% city HOT do not apply there.
• Texas counties cannot zone or license STRs, so unincorporated-area operators face no local permit — only the 6% state HOT.
• The same applies to other unincorporated pockets (e.g., Bacliff, San Leon).
• Nearby incorporated cities have their own rules — e.g., League City requires a permit before listing, and Kemah charges a $450/year permit — so confirm the exact jurisdiction of any address before underwriting.

Source: Galveston County (unincorporated) — no county STR permit authority under Texas law

• Galveston Island properties typically require windstorm coverage (often via TWIA) and flood insurance in addition to standard hazard policies — budget these into underwriting.
• The required in-unit info sheet must include flood-evacuation guidance, reflecting the island's hurricane exposure.
• Standard homeowner's insurance typically excludes commercial rental activity — dedicated STR insurance is strongly recommended.