Galveston Council Approves Tougher Short-Term Rental Rules, Creates Three-Strike System

On Thursday, the Galveston City Council took decisive action by approving more burdensome regulations for short-term rentals. They implemented a three-strike system that may result in license revocation following multiple violations related to noise, parking, overcrowding, and other public-safety concerns.

The recent ordinance allows the Short-Term Rental Licensing Board to recommend revocation of a rental license if a property accumulates three violations within 12 months. The city's rental hotline or internal departments can receive concerns.

Property owners must ensure that tenants comply with all local and state regulations regarding parking, waste disposal, noise levels, fireworks, firearm use, and nuisance animals. The city announced that the regulations tackle ongoing issues related to tenants alleged to be involved in criminal activities, generating excessive noise, and overcrowding properties to a perilous extent.

The recent regulations arrived amid Galveston's swift expansion of short-term rental options via platforms like Airbnb and Vrbo. The increase has led to higher hotel-occupancy tax revenues and stimulated economic activity, but it has also raised concerns about the quality of life in residential areas.

The Council initiated the process in December 2024 by establishing an ad hoc committee to examine the effects of short-term rentals and to prepare suggested reforms. The ordinance approved on Thursday closely aligns with the committee’s proposal, though it notably lacks a requirement that rental owners present a parking plan.

After a thorough discussion, council members decided to eliminate the parking plan requirement, questioning the city's ability to enforce it effectively. Assistant City Attorney Xochitl Vandiver-Gaskin stated that determining whether vehicles were associated with rental guests or friends visiting nearby residents would pose a challenge.

“I’m not sure it’s a good idea for city marshals to be going door to door asking about car ownership,” Vandiver-Gaskin stated.

A segment of council members contended that the city should maintain the parking requirement to address the neighborhood's concerns.

“I believe it is our responsibility to the individuals who have been voicing their concerns,” Council Member Bob Brown stated. “Parking poses a significant challenge, and I believe that relying on a broader island-wide parking strategy is not the answer.”

According to the ordinance, any suggestion for license revocation will be transferred from the Short-Term Rental Licensing Board to the city manager for evaluation. The city manager will subsequently send the recommendation to the council for their final decision.

The recently implemented regulations come at a time when Galveston is navigating the delicate balance between boosting tourism income and addressing residents' demands for enhanced management of the island's expanding short-term rental sector.