Thinking about listing your Canyon Lake home as a short‑term rental but hearing mixed messages about “WORD permits”? You are not alone. Around Canyon Lake and New Braunfels, STR rules depend on where your property sits and how you operate. In this guide, you will learn what to verify, which agencies to contact, and how to set up clean tax and safety practices that help protect your cash flow, resale value, and insurance. Let’s dive in.
Start with your location
Before you fill out a form or collect your first booking, confirm your property’s jurisdiction. Some Canyon Lake addresses are inside the City of New Braunfels, while many others are in unincorporated Comal County. The rules you follow depend on this split, and properties that touch federal shoreline areas can trigger separate federal oversight. Once you know exactly where your home falls, everything else is easier.
About the term “WORD”
You may hear “WORD permit” used locally, but an official definition tied to Canyon Lake, New Braunfels, or Comal County is not available in public materials. If an HOA, neighborhood, or vendor uses that term, ask for the full program name and official documents. For compliance, rely on city, county, state, and federal agencies that publish requirements and accept registrations. Use those sources to anchor your plan.
Taxes you must register for
Short‑term rentals are usually subject to multiple lodging taxes in Texas. You should register before taking bookings and keep timely filings to avoid penalties.
State sales and hotel occupancy taxes
STR income typically triggers Texas sales tax and the state portion of hotel occupancy tax. You register with the Texas Comptroller and file electronically. Filing frequency is set by the Comptroller and often depends on your tax liability. Most lodging operators file monthly, so plan your systems accordingly.
Local hotel occupancy tax (HOT)
If your property is inside New Braunfels city limits, you may need to register with the city and remit local HOT on a monthly or quarterly schedule. If your address is outside city limits in unincorporated Comal County, confirm whether any local HOT applies to your specific location. Platforms sometimes collect and remit certain taxes, but that does not replace your responsibility to register, reconcile, and document returns for audits.
City and county permits to check
Local STR programs vary by jurisdiction. Confirm whether your address requires one or more of the following.
STR registration or license
Some cities require STR registration, a business license, or a separate STR permit that can include a safety checklist and local contact information. Check the City of New Braunfels for any STR or lodging registration if you are inside city limits. If you are in unincorporated Comal County, verify county requirements through Development Services and Code Enforcement. Even when no STR‑specific license is required, you still need to follow any local noise, parking, and occupancy rules.
Building permits and conversions
If you plan renovations, accessory dwelling units, garage conversions, or structural changes for STR use, apply for building permits through the appropriate jurisdiction. Confirm occupancy classification and life‑safety features, such as proper egress and fire separation, especially for ADUs or converted spaces. Schedule inspections as required so your insurer and lender can see that work was completed correctly.
Safety, septic, and water
Health and infrastructure basics can make or break a rental operation. Address these early, and document everything.
Septic systems and wells
Many Canyon Lake homes rely on septic systems. On‑site sewage facilities must comply with state and county rules, which may include permits, inspections, or conditions when you change use or ownership. Private wells must meet applicable drinking water standards if they serve guests. Obtain records and keep them on file, since failing systems can delay occupancy or financing.
Fire and life safety
Even when a formal fire inspection is not required, you should meet common safety expectations for transient lodging. Maintain smoke detectors, carbon monoxide alarms where appropriate, fire extinguishers, and clear exit plans. Post emergency contacts and basic house rules in a visible spot. These steps support safe stays and can be important for insurance claims.
Lake access and federal oversight
Canyon Lake’s reservoir and shoreline fall under the U.S. Army Corps of Engineers. If your rental uses or touches federal land or water, different rules can apply.
Docks, ramps, and shoreline use
Structures that extend below the high‑water mark or activities that use federal shoreline can require permits. If you advertise dock access, boat ramps, or similar features, verify whether they are within USACE jurisdiction and whether the use is authorized. This prevents surprises that could interrupt your listing.
Commercial use authorization
Running a business that benefits from federal lands may require a commercial use authorization. If you are unsure, contact the USACE San Antonio District that manages Canyon Lake. Clear confirmation protects you from enforcement actions and helps satisfy lender due diligence.
HOAs and neighborhood covenants
Many Canyon Lake neighborhoods have HOA rules that affect STRs. Some require approval or registration, while others limit or prohibit short‑term stays. Review covenants before you list, and get written confirmation of any approvals. HOA compliance is critical, since violations can lead to fines or legal action.
Filing schedules and documentation
Good systems reduce stress and help you prove compliance when a platform, insurer, or buyer asks for records.
Filing cadence and renewals
- State sales and hotel occupancy taxes are filed through the Texas Comptroller’s electronic system on a schedule the Comptroller assigns. Most lodging providers file monthly.
- Local HOT returns, when required, are usually monthly or quarterly. Check the schedule for your jurisdiction.
- STR registrations, business licenses, and certain permits can require annual renewal. Septic inspections may have multi‑year cycles or trigger at change of use or sale.
Records lenders and insurers expect
Maintain a clean paper trail for at least 3 to 7 years. Keep tax returns and confirmations, booking ledgers with dates and nightly rates, receipts, permits and inspection reports, proof of HOA approvals, insurance policies, and correspondence with agencies. Organized files support underwriting, faster claims, and smoother resale.
Common pitfalls and risks
Understanding the risk landscape helps you avoid costly missteps.
Tax noncompliance
Late or missing returns can generate penalties, interest, and liens. Even if a platform remits some taxes, you still need to register and keep full records. Consistent filing is also a bankability factor when you refinance or sell.
Unpermitted activity
Operating without required permits, building approvals, or federal authorizations can lead to fines and forced suspension of bookings. Platforms may remove listings when violations are reported. Correcting these issues later can be more expensive than doing it right from the start.
HOA and platform issues
HOA enforcement can include fines and injunctions. Platform policy violations may result in delisting. Posting clear house rules and respectful communication with neighbors can reduce complaints and preserve your reputation.
Your pre‑launch compliance checklist
Use this list as a starting point for a Canyon Lake STR. Tailor it to your property’s location and features.
- Confirm whether the address is inside New Braunfels city limits or in unincorporated Comal County, and whether any part of your use touches USACE shoreline.
- Register with the Texas Comptroller for state sales tax and state hotel occupancy tax before taking bookings.
- If inside New Braunfels, register for local hotel occupancy tax and confirm filing frequency and due dates.
- Verify whether your jurisdiction requires an STR registration, business license, or safety checklist. Apply if needed.
- Review HOA covenants. Obtain written approval or acknowledgment if required.
- Confirm septic and well compliance. Gather permits, inspection records, and maintenance documentation.
- If guests will use a dock, boat ramp, or shoreline area within USACE jurisdiction, contact USACE to confirm permits or commercial use authorization.
- Pull building permits for any renovations or conversions, and complete inspections.
- Install and test smoke detectors, CO alarms as appropriate, and fire extinguishers. Post emergency contacts and occupancy limits.
- Update your insurance to reflect STR use. Keep certificates and policy endorsements on file.
- Set up monthly bookkeeping and a filing calendar for state and local taxes. Save receipts, booking logs, and all returns.
How a local agent can help
If you are buying, selling, or repositioning a Canyon Lake property for STR, local guidance saves time and reduces risk. A knowledgeable agent helps you pinpoint jurisdiction, understand HOA dynamics, and plan improvements that support safety, lender expectations, and resale. You also gain introductions to city, county, and USACE contacts, plus insights on neighborhood demand and guest preferences. When you are ready to explore options or value your current home, reach out for a consult and a quick value check.
Ready to map your STR plan around Canyon Lake and protect your investment? Get your instant home valuation with Diana Colbath and start a conversation about your next step.
FAQs
What does “WORD permit” mean for Canyon Lake STRs?
- The term is used informally, and no official program tied to Canyon Lake, New Braunfels, or Comal County appears in public sources, so confirm any reference directly with the issuing entity.
Do Canyon Lake STRs owe hotel occupancy tax?
- Yes, STRs typically owe state hotel occupancy tax and may owe local HOT if inside city limits, so register and file through the Texas Comptroller and your local jurisdiction.
Is a city or county STR license required?
- Some cities require STR registration or licensing, so check with the City of New Braunfels if inside city limits and verify any county requirements if in unincorporated Comal County.
Are docks and shoreline features allowed for STR guests?
- Docks, ramps, or activities on USACE shoreline can require federal authorization, so confirm rules with the U.S. Army Corps of Engineers San Antonio District.
What septic rules apply to Comal County STRs?
- Properties with on‑site sewage must comply with state and county OSSF rules, which can include permits or inspections, particularly at change of use or sale.
How often do I file Texas STR taxes?
- Filing frequency is assigned by the Texas Comptroller, and many lodging operators file monthly, so check your account settings after registration.
