LicensedRental

Montgomery County, Texas

The Woodlands, TX vacation rental requirements

The Woodlands isn’t a city, but the township approves short-term rentals under its covenants: an application, a maintenance and use agreement, insurance, a local contact, a $500 deposit, and yearly renewal. Stays owe 15% hotel tax (9% township), which you file with the township; Airbnb doesn’t collect it.

Checked against official sources November 8, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

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Market
About 205 Airbnb listings
120 rentals approved by the township in 2025.Source
Township approval
Required, renewed yearly
Through Covenant Administration.Source
Deposit
$500 compliance deposit
Insurance and contact
Proof of insurance and a local contact
Hotel taxes
15% total (6% state + 9% township)
Airbnb doesn’t collect the township tax.Source

The township can’t pass ordinances or fines; it enforces through the covenants and the use agreement, and it has revoked approvals. A township subcommittee has been studying tighter rules since January 2025. Part of The Woodlands (Creekside Park) is in Harris County.

Your licensing checklist

In order: the state, the county, then the town.

State of Texas

  1. Know who pays the hotel tax

    Airbnb collects and pays the 6% state hotel tax on its bookings. If guests pay you directly or through a site that doesn’t collect, register with the Comptroller and file the state tax yourself.Source

    Texas hotel occupancy tax →

  2. Register for local hotel tax

    Your city (and in some places your county) charges its own hotel tax, filed with that city or county, not the state. Airbnb pays it only in the places on its list; everywhere else you register and file it yourself, even for Airbnb bookings.Source

  3. Check your city’s rules

    Many Texas cities require a short-term rental permit or registration, and some require an inspection, a local contact, or posted rules. Outside city limits there’s usually no permit, but deed restrictions and HOA rules often limit rentals. Pick your area for the local rules.Source

Montgomery County, Texas

  1. Then pick your city

    Texas counties can’t zone, so rental permits and the city hotel tax are set by each city. Pick your city, or the unincorporated page if there is one for your area.Source

  2. Outside city limits

    Most Lake Conroe shoreline is outside city limits, with no permit and only the 6% state hotel tax (which Airbnb collects). Your subdivision’s deed restrictions and POA rules are the main limits; check them before you list.Source

The Woodlands Township, Texas

  1. Check your village covenants

    Rentals must follow the deed restrictions and covenants for your village and neighborhood, which differ across The Woodlands. You must provide adequate parking and you’re responsible for guests’ behavior.Source

  2. Apply to Covenant Administration

    Submit the short-term rental application, sign the maintenance and use agreement, show proof of insurance, name a local contact, and pay the $500 compliance deposit. Renew every year.Source

    Woodlands short-term rentals →

  3. Hotel taxes on each stay

    Stays of 29 nights or less owe the 6% state hotel tax, which Airbnb collects on its bookings. If guests pay you directly, file it with the Texas Comptroller. The township’s 9% hotel tax applies to every short-term rental and is filed with The Woodlands Township Finance Department, even for Airbnb bookings. If you collect less than $2,500 a month you may file quarterly (from January 1, 2026).Source

Fees

$500 compliance deposit

Compliance deposit$500

Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.