Short-term rentals near Lake Travis can be a great way to offset ownership costs or build an income stream. In Lago Vista, the basics matter. Definitions, taxes, and operating rules all shape what you can do and how you do it. Because local policies can evolve, getting compliant early protects your revenue and reduces risk.
Start your STR on solid footing
Starting with clarity saves time and money. Texas treats most rentals of 30 days or less like hotel stays for tax purposes, which means multiple layers of lodging tax may apply to you. The City of Lago Vista also administers hotel occupancy tax at the local level. While the city publishes ordinances and finance pages about hotel tax administration, a single, public-facing STR permit portal is not clearly posted as of the latest review. That is why you should verify the current steps directly with City Finance and Development Services before you list see Lago Vista Code of Ordinances and Finance Department.
What counts as a short-term rental
Short-term rental rules hinge on how your property is used. Here is how to think about it.
Nightly stays and definition thresholds
In Texas, rentals for 30 days or less are generally treated as hotel stays for hotel occupancy tax purposes. The state hotel occupancy tax rate is 6 percent and is collected by the Texas Comptroller Texas Tax Code Chapter 156 and Comptroller HOT guidance. If you cross the 30-day mark with a guest, that stay is usually not subject to hotel occupancy tax. Keep clean records so you can show which nights are taxable and which are exempt.
Whole-home vs. hosted stays
Many cities distinguish between renting an entire home and renting rooms while you remain on site. Those differences can affect eligibility, inspections, or parking. Lago Vista’s public pages outline how the city handles hotel tax and code enforcement but do not publish a dedicated STR license page. Before you market a hosted or whole-home listing, confirm the current local requirements with Development Services and review the city’s ordinances Development Services and Code of Ordinances.
Licenses and permits you may need
Local approvals vary by city and can change. Plan your timeline with a margin.
Application steps and documents
Typical steps in Texas cities include registering your STR, confirming you have the right to rent, and providing a responsible contact. Lago Vista’s website shows that the Finance Department oversees hotel tax collection and that council has acted on hotel tax fund processes, which signals active local administration. Since a stand-alone STR permit portal is not clearly posted, call or email the City to confirm whether Lago Vista currently requires STR registration, a permit number, or other approvals before advertising Finance Department and HOT funds process document.
Have these on hand when you reach out:
- Proof of ownership or authorization from the owner
- Site details like address, parking layout, and bedroom count
- 24/7 local contact information
- Proof of compliance with HOA or deed restrictions, if applicable
Renewals, inspections, and fees
STR approvals in many cities renew annually and may require safety checks or affidavits. Ask the City whether Lago Vista requires inspections, renewals, or fees, and what the current schedule looks like. Use the ordinances page as your legal reference and confirm nuances with Development Services Code of Ordinances and Development Services.
Taxes you must collect and file
Short-term rentals can trigger several layers of lodging tax. Map them out before your first booking.
State, county, and city lodging taxes
- State of Texas: Most STR stays owe a 6 percent state hotel occupancy tax collected by the Texas Comptroller Texas Tax Code 156 and Comptroller HOT FAQ.
- Local: Cities and some counties add their own hotel occupancy tax on top of the state rate. These local rates and uses are governed by state law and set by each jurisdiction Comptroller local HOT overview.
- Lago Vista: The city administers hotel occupancy tax and posts ordinance and finance pages that reference hotel tax collection. Because a clear, public STR tax filing portal and a published local rate were not readily visible on the city site, contact the Finance Department to confirm the current local rate, whether you must register locally, and how often to file Finance Department and Code of Ordinances.
Platform collection vs. host filing
Some booking platforms collect and remit certain taxes, but coverage varies. The Comptroller notes platforms may collect the state hotel occupancy tax if they have an agreement to do so. If your platform does not collect, you must register and remit the state 6 percent yourself. Platforms that collect state HOT must file a specific form with the Comptroller. Always verify which taxes your platform handles and which you must file directly Comptroller HOT FAQ.
Recordkeeping and deductible expenses
Keep a simple ledger of gross rent, cleaning fees, refunds, nights rented, and exemptions for stays longer than 30 days. Track platform fees and operating costs for your federal taxes. Depending on your activity and services, rental income is generally reported on Schedule E, but some hosts may file on Schedule C. Work with a CPA for your facts and use the IRS instructions as your baseline reference IRS Schedule E instructions.
Operating rules to follow
Good operations protect your income and your relationships with neighbors. Even where rules are broad, best practices reduce complaints and enforcement.
Occupancy, parking, and quiet hours
Most Texas cities cap overnight guests based on bedroom count, limit on-street parking, and set quiet hours. Lago Vista’s Code Enforcement team handles nuisance complaints. Clarify limits in your listing and house rules, and post them inside the home. If your property sits on a narrow street or near a cul-de-sac, spell out parking clearly to guests. For local enforcement context, see the city’s Code Enforcement page Lago Vista Code Enforcement.
Safety equipment and postings
Equip the home with working smoke alarms, a fire extinguisher, and safe egress. Post emergency contacts, the 24/7 local contact, parking rules, trash days, and quiet hours where guests can see them. If the City requires a registration or contact posting, follow the city’s instructions. Confirm any inspection or posting requirements with Development Services Development Services.
HOA and deed restrictions
HOAs in Lago Vista can restrict or prohibit short-term rentals. City permission does not override private rules. Get the CCRs and any rental addenda in writing and keep them with your STR records.
Updates and enforcement trends to watch
Rules evolve as markets change. Stay ahead with regular checks.
Recent changes and pending proposals
Lago Vista’s website shows council activity related to hotel tax funds and provides ordinance access, but it does not present a single STR permit portal as of the latest review. Monitor the ordinances page and reach out to Development Services to confirm whether a new STR ordinance, permit, or spacing rule has been adopted since your last check Code of Ordinances and Development Services.
Complaints, penalties, and appeals
The city’s Code Enforcement division handles complaints tied to noise, parking, trash, and other nuisances. Document your house rules, messages to guests, and resolution steps. Ask the Finance Department about hotel tax late penalties and filing calendars so you avoid interest or fines Code Enforcement and Finance Department.
Estimating revenue and seasonality
Set expectations with a simple model you can update monthly.
Nightly rates, occupancy, and fees
- Price bands: Establish low, shoulder, and peak rate ranges.
- Occupancy: Start with a conservative estimate and adjust with real results.
- Fees: Account for cleaning, platform fees, supplies, and lodging taxes you collect and remit.
Build a monthly pro forma with 3 cases: conservative, base, and stretch. Revisit every quarter.
Seasonality, events, and minimum stays
Lake activity, holidays, and school breaks drive demand. Raise rates or set 2 to 3 night minimums during peak weekends, then relax minimums in shoulder seasons to capture bookings. Keep your minimums aligned with any local rules.
Due diligence when buying or selling an STR
If you are evaluating a property in Lago Vista, verify eligibility before you fall in love with the pictures.
Verifying eligibility and restrictions
- City: Ask Development Services about current STR rules, registration, and any zoning constraints. Review the City’s ordinances page for the latest text Development Services and Code of Ordinances.
- Taxes: Confirm state 6 percent HOT and whether a local hotel tax applies to you, plus filing frequency with City Finance Texas Tax Code 156 and Finance Department.
- HOA: Read the recorded CCRs and any rental policies.
Transferability and existing bookings
If permits or registrations apply, ask whether they transfer to a new owner or if the buyer must reapply. Plan how you will honor or restructure upcoming reservations at closing. Align tax accounts and bank details well before the handoff.
Financials and marketing materials
Organize 12 to 24 months of revenue, occupancy, rates, hotel tax filings, expense summaries, and key reviews. Clean, well-documented operations support a stronger price and a smoother escrow.
Prevent disputes with clear systems
Simple systems keep neighbors happy and you compliant.
House rules, messaging, and checklists
- Send rules twice: once at booking and again 48 hours before arrival.
- Use a turnover checklist so safety devices are tested and supplies restocked every stay.
- Offer clear parking diagrams and quiet hours in your guidebook.
Incident logs and documentation
Keep a log of guest communications, noise alerts, and any complaint resolutions. Store hotel tax filings, receipts, and exemption documentation together. If you ever need to respond to an inquiry, you will be ready.
Plan your next steps with local help
Here is a quick plan to move forward with confidence:
- Confirm whether Lago Vista requires STR registration or permits, and ask about any inspections, renewals, and fees Development Services.
- Verify hotel occupancy tax setup: state 6 percent with the Texas Comptroller and the current Lago Vista local process and filing frequency with City Finance Comptroller HOT FAQ and Finance Department.
- Build your recordkeeping: reservations, receipts, and federal tax reporting based on IRS guidance IRS Schedule E instructions.
If you want tailored advice on which Lago Vista homes make the best STR candidates, how to underwrite revenue, or how to prepare an existing STR for sale, let’s talk. Schedule a one-on-one with Kristen Balke for local guidance that blends neighborhood expertise with practical compliance steps.
FAQs
What is the hotel tax rate for short-term rentals in Texas?
- The state hotel occupancy tax is 6 percent on most stays of 30 days or less. It is collected by the Texas Comptroller Texas Tax Code 156 and Comptroller HOT FAQ.
Does Lago Vista have a local hotel occupancy tax?
- Yes, the City administers local hotel tax. Contact the Finance Department to confirm the current local rate and how to register and file Finance Department and Code of Ordinances.
Do booking platforms collect taxes for me?
- Sometimes. Platforms may collect the state tax if they have an agreement, but you must verify coverage and handle any remaining local tax obligations yourself Comptroller HOT FAQ.
Does Lago Vista require an STR permit or registration?
- The city publishes ordinances and finance pages tied to hotel tax but does not show a clear, dedicated STR permit portal. Confirm current requirements with Development Services before listing Development Services.
Who handles complaints about noise or parking?
- Lago Vista’s Code Enforcement division investigates municipal code and nuisance complaints. Keep clear rules and respond quickly to any issues Code Enforcement.
How should I report STR income on my federal taxes?
- Most hosts report rental income and expenses on Schedule E, but some situations may require Schedule C. Work with a tax professional and review the IRS instructions IRS Schedule E instructions.
