Many DFW suburbs require rental registration, a permit or an inspection, often at each tenant change. In Little Elm, Everman, Caddo Mills and Denison's optional program, the permit or registration does not pass to a buyer. Check the city rule before you re-lease or sell.
A rental in the Dallas–Fort Worth suburbs comes with a city layer. Many cities run registration, permit and inspection programs, and some of those rules end at a sale. A certificate of occupancy is the city's sign-off that a house can be lived in. Those rules belong in the keep-or-sell math. For licensing, landlord duties, fees and taxes, see our Texas guide to a property manager versus selling.
City rental rules, by county
Rules change; confirm with the city. For Dallas and Fort Worth registration, see our DFW guide to vacant rental risks.
| City | Rule | Source |
|---|---|---|
| Dallas County | ||
| Cedar Hill | Each rented house, duplex or townhome registers yearly and on a change in ownership ($50; $25 renewal; $75 late). A $25 rental certificate of occupancy is due at every tenant change. | City page |
| Coppell | Every rental registers by January 31 yearly, or once it becomes a rental ($50 for a single-family rental). A single-family rental also needs a $40 inspection before a tenant moves in or changes. | City page |
| DeSoto | Each rental unit registers ($10) and gets a yearly inspection the owner schedules. No yearly re-registration if the tenant and owner have not changed. | City page |
| Duncanville | No tenant moves in without a rental certificate of occupancy ($150; $125 at a tenant change). Inspections inside and out at first registration, every two years and at each tenant change. | City page |
| Farmers Branch | Separate single-family, multi-family and short-term rental licenses; the Code Enforcement page links to each application. | City page |
| Hutchins | Each single-family rental registers on the city's form (no fee). A change in ownership needs a new application. Violations: a misdemeanor, up to $500 a day. | Art. 3.14 |
| Lancaster | Rented houses and duplexes register yearly; the city inspects, for a fee, at each tenant change. | City page |
| Mesquite | A rental license follows a passed inspection. After a pass, the owner has 90 days to place a tenant and move water to the tenant's name, or the pass expires. | City page |
| Richardson | $85 per property each January. Update within 30 days of any change in occupancy or tenancy. Yearly yard and exterior inspection. | City page |
| Rowlett | Rented houses and duplexes register yearly ($50). Each tenant change needs a $75 inspection before move-in; an early move-in can cost the owner $200. | City page |
| Sachse | Registration only, with no inspection or fee, but update it within 30 days of any change in occupancy or tenancy or risk a citation. | City page |
| Sunnyvale | No one occupies a rental before it is registered. After a move-out, the owner needs a new certificate of occupancy, after an inspection, before the next tenant moves in. | Art. 4.16 |
| Collin and Denton counties | ||
| Celina | Every home that is not owner-occupied registers as a rental, renewed each January. An inspection the owner schedules is required between tenants. | City page |
| Carrollton | Rented houses and duplexes register every year and are inspected ($75 per property, due by July 31). An unregistered house can bring a $500-a-day fine. | City page |
| Corinth | After each move-out, the owner needs a certificate of occupancy before the next tenant moves in (unless the city misses its inspection deadline), and a new tenant's water is not connected until the certificate is issued. Annual registration too. | Secs. 150.200–.203 |
| Denton | The owner is ultimately responsible for every violation, even one a tenant caused, and must bring the property up to code once the tenant leaves. | Code FAQ |
| Hickory Creek | Short-term rentals need a Town permit and a local responsible party able to arrive within one hour. The permit cannot be transferred or assigned. | Chapter 15 |
| Lewisville | No fee or registration for now. An inspection can follow notice from the owner or a future tenant, a water service transfer or a complaint. | City page |
| Little Elm | Each rental needs its own calendar-year permit (register by February 15), and a permit is not assignable or transferable. A safety inspection follows within 30 days of a new tenant moving in, or on a new water account request. | Ch. 22, Art. V |
| Tarrant County | ||
| Euless | Short-term rentals (30 days or less) need registration and a permit, with rules on stays, occupancy, parking, inspections and hotel occupancy tax. | City page |
| Everman | Each unit registers before the first tenant and yearly ($20). It ends on a change in controlling ownership and cannot transfer. The owner needs a new certificate of occupancy and inspection within ten business days of buying the rental or a tenant change, and at least every three years. | Art. XX |
| Grapevine | Rentals of less than 30 days are forbidden, even renting out only the pool, backyard or a detached building. | Code FAQ |
| Hurst | No short-term rentals. Each rental unit registers by January 31 ($10, plus a $50 inspection), with an inspection for a new rental and at each tenant change. | City page |
| Saginaw | The owner or manager registers every rental and schedules its inspections, with separate permits for single-family and short-term rentals. | City page |
| Southlake | All residential rentals of less than 30 days are prohibited. | City page |
| Grayson and Hunt counties | ||
| Denison | Optional, free registration that does not transfer to a buyer; the previous owner notifies the city within ten days of closing. Mandatory ($100 per one- or two-family rental) for a landlord with interior violations within a year at two or more such rentals, or at a multifamily building of two or more units. | Ch. 13 |
| Sherman | Complexes of five or more units under common ownership need a rental license. It is not transferable; a new owner files a new application. | Art. 3.11 |
| Caddo Mills | After an ownership change, the owner notifies the city and the new owner re-registers, each within 30 days. The rental certificate of occupancy cannot transfer; each new tenant needs an inspection and certificate first. | Ordinance |
| Commerce | No water connection without a certificate of occupancy and safety inspection. A new owner of a rental has ten business days to apply. Fines up to $2,000 per offense per day. | Ch. 22 |
Permits that stop at the sale
In several cities a rental permit does not pass to a buyer. Little Elm, Everman and Caddo Mills say theirs cannot be transferred, and Denison's optional registration does not pass either. Hickory Creek says the same of its short-term rental permit, and Sherman of its license for complexes of five or more units. In Hutchins and Cedar Hill, a new owner registers again.
If you keep the house, a lapsed permit is yours to fix. If you sell, a buyer who keeps renting starts over. In Denison, a seller whose rental is in the optional program notifies the city within ten days of closing. In Caddo Mills, the owner or agent notifies the city within 30 days of an ownership change.
Inspections between tenants
A move-out is often when the city steps in. Celina, Coppell, Duncanville, Lancaster, Rowlett, Hurst and Sunnyvale inspect at a tenant change, and Cedar Hill, Corinth and Caddo Mills tie the next move-in to a new certificate.
That makes a turnover a natural decision point. In many cities, re-leasing means an inspection and maybe repairs, often before the next tenant moves in. Selling before the next lease can spare you that round, though some cities, such as Everman and Commerce, require a buyer who keeps renting to get a new certificate.
Questions for your manager or the city
- Is the registration or permit current, and when is it due again?
- Are there open violations or inspection items? Denton holds the owner responsible even for a tenant's violation.
- Does the city need notice when the tenant changes or the house sells, and by when?
- Does the management agreement say who handles registration and inspections?
Selling a DFW rental
If a tenant still lives there, read our guide to selling a house with tenants in Texas. Cash Home Advisors buys rentals; we do not manage them. You sell as-is, no repairs, with no agent commissions, and we pay all closing costs. Ask for a free cash offer, or see the Dallas–Fort Worth hub.
Frequently asked questions
Does a city rental permit transfer when I sell a DFW rental?
In several DFW-area cities, no. Little Elm says a rental permit is not assignable or transferable. Everman's registration certificate ends when the house gets a new controlling owner, and Caddo Mills says its rental certificate of occupancy is not transferable. Denison's optional rental registration does not transfer to the buyer; if the house was registered, the previous owner must notify the city within ten days of closing.
Which DFW-area cities inspect a rental between tenants?
Among others, Celina, Coppell, Duncanville, Lancaster, Rowlett, Hurst and Sunnyvale require an inspection when the tenant changes. Corinth and Cedar Hill require a new certificate of occupancy at a tenant change. Little Elm inspects within 30 days after a new tenant moves in, or when a new water account is requested.
Can I rent my DFW house by the night while I decide whether to sell?
It depends on the city. Grapevine and Southlake prohibit residential rentals of less than 30 days, and Hurst says short-term rentals are not permitted. Euless and Hickory Creek require registration or a permit for short-term rentals, and Hickory Creek's permit cannot be transferred.
Who is responsible for code violations a tenant caused?
In Denton, the city's code FAQ says the property owner is ultimately responsible for every violation on the property, even one a tenant caused. The owner must bring the property up to code once the tenant has moved out. Other cities may differ, so ask the code office where the house sits.
Sources
- City of Cedar Hill: Single-Family Rental Registration
- City of Coppell: Rental Registration Program
- City of DeSoto: Rental Registration & Inspection Program
- City of Duncanville: Residential Rental Registration
- City of Farmers Branch: Code Enforcement
- Hutchins code, Article 3.14 (eCode360)
- City of Lancaster: Rental Registration Program
- City of Mesquite: Single-Family Rentals
- City of Richardson: Rental Registration
- City of Rowlett: Single-Family Rental Program
- City of Sachse: Rental Registration Program
- Sunnyvale code, Article 4.16 Single-Family Rental Properties (eCode360)
- City of Celina: Rental Registration & Inspection
- City of Carrollton: Code Enforcement, Housing (rental registration)
- Corinth Code of Ordinances, single-family rental rules (Municode)
- City of Denton: Code Enforcement FAQ
- Hickory Creek Code, Chapter 15 Short-Term Rentals (Municode)
- City of Lewisville: Single Family Rental Inspection Program
- Town of Little Elm Code, Chapter 22, Article V (Municode)
- City of Euless: Short-Term Rentals
- Everman Code, Ch. 4, Art. XX rental property registration (Municode)
- City of Grapevine: Code Enforcement FAQ
- City of Hurst: Rental Property Registration
- City of Saginaw: Rental Registration and Inspection Program
- City of Southlake: Code Enforcement
- Denison Code, Ch. 13, Art. VII, Parts C and D, rental registration (Municode)
- Sherman code, Article 3.11 residential rental property license (eCode360)
- City of Caddo Mills Ordinance 091024-5 (PDF)
- Commerce Code, Ch. 22, Art. XII (Municode)
General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.