Starting Nov. 1, Georgetown residents who own short-term rentals will be required to apply for a permit. Georgetown City Council approved the ordinance requiring STR permits at its Sept. 24 meeting.
Kim McAuliffe, Georgetown’s Downtown & Tourism director, said the only change from the ordinance's first reading on Sept. 10 was updating the effective start date to Nov. 1.
According to county documents, the STR permit requirement seeks to protect the health and safety of Georgetown residents and preserve neighborhood character.
Posted Sept. 12, 3:57 p.m.
Georgetown City Council members gave initial approval to a short-term rental ordinance at its Sept. 10 meeting.
What’s happening?
By adding an STR ordinance, Georgetown officials hope to streamline rental property information throughout the city, with Oct. 15 being the effective date for the ordinance, according to an email sent to Community Impact.
STRs are units used for residential purposes during a 30-day period or less, according to city documents. Rentals are commonly listed on websites like Airbnb and Vrbo.
A new permit program outlined in the ordinance will be administered by the Downtown & Tourism Department and the Convention & Visitors Bureau office, allowing staff to track a rental property’s taxes, customer complaints, owner details, pricing information and more.
A $100 permit registration fee required for application will be waived within the first 60 days of the program’s launch, and there will be a $50 annual renewal fee for the permit.
How it works
Permit applications will go through Granicus, a website that specializes in helping communities track STRs and enforce regulations, according to its website.
Granicus’ Host Compliance software can locate STRs, pull booking information, list the average price per night and more, Georgetown Tourism Coordinator Rachel White said.
The application requirements for a STR permit registration include:
- Contact information for owner, operator and a 24/7 local contact
- A statement acknowledging all applicable city ordinances
- Hotel occupancy tax payment
- A Good Neighbor brochure
- A $100 application fee (waived if within first 60 days of program’s launch)
- A STR operation notice to neighbors within 200 feet
- Active listing information
While the customer staying at an STR will pay the 7% HOT tax based on its nightly rate, the property owner will be expected to pay the tax monthly through the online portal to the Convention & Visitors Bureau.
While the city won’t send STR owners an invoice, the Granicus software will track stays and expected tax payments. The estimated annual HOT tax revenue based on current Georgetown STRs is $600,000, according to city documents.
Why it’s happening
The number of STR units in Georgetown have more than doubled since 2021, with 285 listed the week of Sept. 9.
Despite the growing number of rentals, an average of 32 properties are paying HOT taxes on a monthly basis, according to an email sent to Community Impact.
“We have more events that are bringing in more tourists, and so we expect that the growth of the short-term rental market will continue,” McAuliffe said at the meeting.
McAuliffe’s department will have the ability to revoke or reinstate permits for STR property owners failing to pay taxes, or to prevent permits from being issued to properties with habitual offenders, City Attorney Skye Masson said.
Unless granted an exception, one address per STR will be allowed in an effort to diminish owners renting out multiple bedrooms within a home, Masson said.
What else?
City Council members will take another vote on the ordinance before it goes into effect, and the Downtown & Tourism Department will return to council to provide a program update within the next year.
Software and staff costs associated with the STR program are estimated to be at $60,301 for the first year and $50,301 for following years.
Council members last discussed the registration program at a Jan. 23 meeting and discussed potential regulation levels at a Nov. 8, 2022, meeting.
