At a Nacogdoches City Council work session, council members and staff discussed possible regulations for short-term rental properties after a visitor- and tourism-tracking service identified 74 short-term rental listings and staff estimated roughly $51,000 in potential annual hotel-occupancy tax revenue tied to those units.

The discussion centered on whether to create a permitting system, inspection requirements and enforcement tools to address neighborhood impacts, tax compliance and guest safety. "Between this time last year and today we've seen a 37% increase in short term rental properties and Commission Visitor Bureau identifies those through a, an online platform ... identified up to 74 short term rental properties," Mike New, Executive Director of Development and Infrastructure, told the council.

Why the council is considering rules: Short-term rentals (defined in the draft as residential properties rented for less than 30 consecutive days) are increasing locally and nationwide, city staff said. Staff and the Convention & Visitor Bureau (CVB) flagged concerns that some listings may not be remitting hotel-occupancy taxes and that uses advertised as short-term lodging can create noise, trash and other nuisances in single-family neighborhoods. "Some portion of that is remitted, properly. Some of the local is remitted, but we're sure that not all of it is remitted," New said.

What staff proposed (discussion draft): City Attorney Terry Baker walked the council through draft ordinance language that would add a short-term rental article to Chapter 18 (lodging establishments) of the city code. "It should be unlawful for any person or entity to advertise, rent, or offer to rent a residential property located within the city limits as a short term rental without first obtaining a valid short term rental permit from the city," Baker said, describing a permit that would be valid for one year and require proof of ownership, an application fee, a designated local contact and current payment of applicable taxes.

Inspections and safety: The draft would require an initial on-site life-safety inspection by building and fire officials; reinspections would be required only if inspectors find deficiencies. Don Shoemaker, the city building official, said inspection focus would be on immediate safety items: "The thought of the inspections would be purely life safety inspections," he said, listing accessible smoke and carbon-monoxide detectors, means of egress, operable doors and accessible breaker panels as typical checklist items. Inspectors estimated a routine check could take about 25–30 minutes.

Costs and enforcement limits: Council members raised questions about compliance costs for older houses and whether a permit program would produce a net revenue gain after enforcement costs. Staff estimated potential additional code-enforcement personnel would be fully burdened in the mid-to-high $50,000s annually, and cautioned that some permit- and inspection-related work could be prorated against hotel-occupancy-tax collections if the council wishes. Staff also cautioned that state-level preemption and recent court rulings in other Texas jurisdictions limit certain zoning-based restrictions on short-term rentals.

Local-contact, parking, occupancy and special events: Baker and staff emphasized a local contact requirement so complaints can be addressed quickly. Council discussion noted options such as a per-bedroom parking requirement for permitted short-term rentals (higher than the standard two-per-lot residential rule), overnight-occupancy caps and an explicit prohibition on special-event uses (weddings, large parties) or on using a dwelling for manufacturing or business operations. "We want to balance property rights with regulation and quality of life," a council member said during the discussion.

CVB perspective: Ashley Morgan, Director of the Convention & Visitor Bureau, urged treating short-term rentals as businesses that should meet safety and tax obligations. "It should be treated like a hotel or a bed and breakfast ... our opinion is that the regulations encourage that and they discourage people who, for lack of a better word, lazily manage Airbnbs," Morgan said.

Legal context and next steps: Staff noted some jurisdictions' zoning restrictions on short-term rentals have been challenged in court; the draft presented at the workshop focuses on permitting and operational requirements rather than zoning exclusion zones to limit legal exposure. No ordinance was adopted at the work session; the item was presented for council input and staff were asked to develop a proposed regulation and provide additional details, including an inspection checklist and cost estimates, for a future meeting.

The work session did not include a vote; the council kept the item in discussion status and directed staff to return with proposed ordinance language, estimated enforcement costs and a public-notification plan for potential implementation.