In 2025, the Houston City Council passed a new short-term rental (STR) ordinance aimed at regulating vacation-style rentals listed on Airbnb and VRBO. At its core, the ordinance requires every short-term rental owner in Houston to register with the city and have a 24-7 contact number, among other requirements, all of which took effect January 1, 2026.
Houston’s ordinance is a response to complaints from neighbors and community groups about nuisances tied to transient rental activity. By requiring registration and a 24-hour contact, the city seeks to ensure owners are accountable for compliance and responsive to neighbors’ concerns.
While Houston’s approach is more moderate than some cities’ outright bans, it represents a concrete shift toward more structured oversight of STRs. Across the U.S. and internationally, cities are imposing new or tighter rules on short-term rentals in response to housing shortages, zoning concerns, and neighborhood impacts.
Similar movements are underway in other regions where cities are capping nights, increasing registration hurdles, requiring owner presence for bookings, or tightening zoning controls.
These regulatory trends are prompting investors and property owners to consider alternative strategies, including long-term rentals.
There are several practical reasons landlords are choosing long-term leases over short-term rentals:
1. Lower Regulatory Burden
With Houston’s ordinance and similar rules elsewhere, STR operators now face registration fees, training requirements, and enforcement risk. For some owners, long-term leasing avoids much of this complexity.
2. Predictable Income & Lower Turnover
While STRs can command high nightly rates, they often have higher turnover and more management overhead than long-term rentals. A 12-month lease means consistent monthly income and fewer move-in/move-out costs.
3. Reduced Management Complexity
Long-term rentals don’t require frequent guest turnover, cleaning coordination, or nightly rate optimization. Professional property managers, like Flat Fee Landlord, can streamline long-term rental operations, making passive income truly more passive.
4. Broader Tenant Pool
In markets with strong rental demand, long-term rentals can provide easy occupancy and positive cash flow without the marketing and compliance burden that STR platforms require.
What This Means for Houston Landlords and Investors
Houston’s STR ordinance represents a significant milestone in local rental policy. For owners already operating short-term rentals, it’s essential to:
Evaluate whether continuing STR operations makes sense given the regulatory and operational costs.
Consider longer-term rental strategies if stable income and reduced compliance work are priorities.
Flat Fee Landlord can help landlords interpret local ordinances, transition properties between rental strategies, and manage long-term tenants efficiently and compliantly. Many owners find that adapting their investment approach, considering expert support and advice, protects their income and improves operational peace of mind.
Houston’s new short-term rental rules and similar regulations nationwide are signals of a shifting landscape in rental property investing. As cities balance neighborhood concerns and housing availability with tourism and investment interests, owners who diversify their rental strategies toward long-term or mid-term leases may find more stable, predictable returns with fewer regulatory surprises.
If you’d like a custom rental strategy assessment based on your property type and rental market, our team of experts at Flat Fee Landlord can generate one for you. Just fill out the form to the right of the screen to get a rental report today.
