Galveston Eyes Crackdown on Short-Term Rentals With Tougher Enforcement Rules

Galveston is set to enhance its regulation of the rapidly growing short-term rental market. City leaders are deliberating an ordinance that would empower officials to revoke licenses from property owners who accumulate multiple violations.

A proposed measure is scheduled for a City Council vote on Oct. 23. If approved, it will create a new Short-Term Rental Licensing Board empowered to recommend the suspension or revocation of licenses for properties that have multiple violations. A rental property facing three documented violations within a year may find itself at risk, as the board holds the authority to recommend a license revocation lasting up to six months. The proposal indicates that a second round of three violations may lead to permanent revocation.

Relatedly, residents have expressed their growing frustration over the lack of accountability from property owners regarding ongoing disturbances. Issues such as raucous late-night gatherings, littered alleyways, and overcrowded parking have fueled this discontent. 

City spokesperson Marissa Barnett highlighted the significant contribution of short-term rentals to the hotel occupancy tax revenue for the city. “The figure is quite substantial.” However, she recognized that the challenge of aligning economic advantages with quality of life has grown more complex.

Since the pandemic, Galveston has witnessed a remarkable rise in its short-term rental market, boasting nearly 4,200 properties currently in operation on the island. The rapid expansion has sparked a dual narrative of economic prosperity alongside rising tensions within the community. Concerns have been raised by residents regarding noise, litter, and illegal parking in the vicinity of popular tourist destinations, prompting city officials to respond to increasing calls for enhanced enforcement measures.

Property owners currently face daily penalties of up to $250 for noise infractions and $500 for trash disposal issues. City leaders are keen to tackle a significant issue: parking violations are currently assigned to the vehicle’s owner rather than the property owner, highlighting a notable loophole in the system.

A new licensing board is set to be established, featuring a lineup of key city officials, such as the deputy city manager and the finance director. The city manager’s office will serve as the point of appeal for its recommendations, providing property owners with a chance for review.

Recently, there has been a notable increase in public engagement regarding the issue. In a recent initiative, the city reached out to its residents through a survey, seeking their opinions on the potential revocation of licenses following multiple violations. Additionally, the survey inquired about who the community feels should bear responsibility for the misconduct of guests—whether it be the owners, managers, or law enforcement officials. The results of the survey remain under wraps for now.

The situation has taken on a heightened political significance on the island. In a significant decision earlier this year, the City Council moved to shift the oversight of short-term rentals, which encompasses licensing and the collection of hotel occupancy taxes, from the Galveston Park Board of Trustees directly to the city. The transition was officially implemented on October 1.

On Thursday evening, a community forum took place at the Historic Galveston Water and Electric Light Community Center, allowing residents to express their concerns ahead of the council's imminent vote on the proposed ordinance.