Richardson STR Investor Guide for Short‑Term Rentals

Thinking about turning a Richardson property into a short‑term rental? You are not alone. With steady business travel, university visits, and local events, this market can work if you buy right and stay compliant. In this guide, you will learn the rules, the tax pieces, how to underwrite with real numbers, and what it takes to operate smoothly in a neighborhood setting. Let’s dive in.

Richardson STR potential

Richardson attracts both business and leisure stays thanks to its tech employers, the UT Dallas campus, and city events. That mix supports weeknight corporate bookings and weekend spikes around performances and festivals.

Market data snapshot

Public snapshots from major data tools vary. AirDNA’s overview has shown about 48% occupancy with an ADR near $198, while another source reported occupancy near 60% with a lower ADR around $147. Expect variation by vendor and date range. Always cite the provider and pull current neighborhood‑level comps before you buy. See the latest from the AirDNA Richardson overview and an alternate view from Airbtics’ Richardson summary.

What drives demand

• Corporate travelers tied to the Telecom Corridor often book midweek and value business‑friendly amenities.
• Families and visitors tied to UT Dallas push demand around welcome weeks and graduation.
• Performances and festivals add short seasonal peaks on weekends.

Rules and registration

Richardson requires you to register your STR annually before advertising or renting. The fee is $75 and you must provide a 24‑hour emergency contact who can respond within one hour of the city. You also need on‑site postings that include the city’s “Be a Good Neighbor” information, parking and trash rules, an evacuation plan, and locations of safety equipment. Review the full process on the City of Richardson STR page.

Local media coverage at adoption noted fines up to $2,000 per offense for violations. For background and context, see Community Impact’s ordinance coverage.

Taxes and filings

Texas imposes a 6% state hotel occupancy tax (HOT). Richardson adds 7% city HOT. Your combined HOT is 13%. The City requires monthly reports and remittance to its Finance Department, due on the 20th for the prior month. Learn more on the City’s HOT page and the Texas HOT statute.

Some platforms collect and remit state HOT under agreements with the Comptroller, but local HOT may still be your responsibility. Confirm platform collection on a platform‑by‑platform basis. See the Texas Comptroller HOT FAQ.

State law update

A recent Texas law, SB 1567, affects how certain cities handle occupancy limits for properties in municipalities that contain university campuses. Effective September 1, 2025, the law limits some city occupancy rules based on relationships and sets a square‑footage‑based standard. Richardson includes UT Dallas, so this matters if you operate near campus. Cities still enforce health, safety, noise, and parking rules. Review the SB 1567 analysis for context and plan your bedroom counts and floor plans accordingly.

HOA and deed checks

City approval does not override private restrictions. Many HOAs in Texas limit or prohibit STRs, set minimum lease terms, or cap rental percentages. Always read the CC&Rs and recorded amendments before you go under contract. If the property sits in an HOA, get the rental rules in writing.

Underwriting framework

Underwrite with current, local comps and conservative buffers. Here is a simple checklist you can use:

• Revenue assumptions: ADR, occupancy by season, cleaning fee revenue, and other guest fees. Validate with at least two data providers and match comps to your bedroom count and amenity set.
• Cost line items: cleanings, supplies, utilities, landscaping, HOA dues, routine maintenance, platform fees, property management (often 20–30% for full service), local HOT, property taxes, insurance, and reserves.
• Basic math: RevPAR = ADR × occupancy. Monthly revenue = RevPAR × 30. Subtract operating costs to estimate net operating income, then layer in debt service to test returns.
• Scenario tests: build base, downside, and upside cases. Include a vacancy and capex reserve.

Financing and appraisal

Discuss your STR plan with lenders up front. Conventional guidelines can make it hard to use short‑term income for qualifying, and appraisers separate real property from furnishings. Review the rental income documentation rules in Fannie Mae’s guidance.

Insurance

Standard homeowners policies often exclude paid guest activity. The Texas Department of Insurance advises owners to confirm coverage or secure STR‑specific or commercial policies. Platform protections have limits and exclusions. Budget for proper coverage and get it in writing. See the TDI home‑sharing guidance.

Operate to avoid complaints

Richardson focuses enforcement on neighborhood impacts like noise, parking, and trash. A neighbor‑first approach helps you avoid citations and protect your registration.

• Post the city’s “Be a Good Neighbor” info in the home and in your digital guide.
• Name a reliable local contact who can be on site within one hour.
• Set clear parking and trash instructions and put the pickup schedule in your house rules.
• Consider two‑night minimums and guest vetting to deter party risks.
• Use non‑recording noise monitors for early alerts and act quickly on any complaint.

For requirements and processes, return to the City STR page.

Step‑by‑step due diligence

Use this sequence to de‑risk your purchase and launch:

1. Confirm location and taxes

• Verify the property is inside Richardson city limits and which county it is in, since Richardson spans Dallas and Collin counties. This affects tax bills and services.
• Review city HOT rules and reporting deadlines on the City’s HOT page.

2. Check private restrictions

• Read HOA CC&Rs and amendments for STR limits or bans. Get written confirmation of rental rules if applicable.

3. Build your numbers

• Pull 12‑month comps from at least two sources like the AirDNA Richardson overview and Airbtics.
• Model base, downside, and upside. Include management, reserves, and higher insurance premiums.

4. Line up lending and coverage

• Talk to lenders about STR treatment and appraisal assumptions, and review Fannie Mae guidance.
• Obtain insurance that explicitly covers STR activity, per TDI guidance.

5. Register and prepare the home

• Complete the city registration, pay the $75 fee, and set up required postings and the one‑hour local contact. Start here: City STR page.
• Confirm whether each platform collects state and local HOT. If not, set up monthly filings. Use the Comptroller HOT FAQ to verify platform obligations.

6. Document and monitor operations

• Keep logs of guest communications and any complaints. Quick responses reduce the risk of citations or registration issues. For early program scale and enforcement context, see Community Impact’s first‑year update.

Ready to explore an STR‑friendly property or pressure‑test your underwriting in Richardson? Reach out to Suzanne Millet‑Realtor for local comps, contract strategy, and a clear path from offer to guest‑ready.

FAQs

What are Richardson’s STR registration requirements?

• You must register annually before advertising, pay a $75 fee, list a 24‑hour local emergency contact within one hour of the city, and post required “Be a Good Neighbor” and safety information; see the City STR page.

What hotel occupancy taxes apply to Richardson STRs?

• Texas state HOT is 6% and the City adds 7%, for a combined 13%; monthly city reports are due by the 20th; see the City’s HOT page and the Texas HOT statute.

Do platforms collect and remit my HOT?

• Platforms may collect state HOT under agreements, but local HOT may still be your responsibility; confirm by platform and review the Comptroller HOT FAQ.

How many STRs has Richardson registered so far?

• In the program’s first year, city staff reported 71 registered single‑family STRs and active enforcement of nuisance issues; see Community Impact’s update.

How does Texas SB 1567 affect occupancy rules near UT Dallas?

• Effective Sept 1, 2025, SB 1567 limits certain city occupancy rules and sets a square‑footage standard in cities with campuses; cities still enforce health, safety, noise, and parking; see the bill analysis.

What insurance should I carry for a Richardson STR?

• Standard homeowners policies may exclude paid guests; get STR‑specific or commercial coverage and do not rely only on platform protections; see TDI’s home‑sharing guidance.