Allen, Texas Short Term Rental Regulations

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Reviewed by Karolyn Hutson

Last updated August 23, 2023

Allen Short-Term Rental Regulations

Information is maintained by the community to provide helpful insights and links to local regulations, HostScouts does not provide legal or investment advice.

City Code of Ordinances

The City of Allen allows short-term rentals. Allen defines Short-Term Rental, or STR means, as a dwelling that is (a) used or designed to be used as a place where a person may reside, including a single-family dwelling, garage apartment, guest house, or a unit in a multi-unit building, including an apartment, condominium, cooperative or timeshare; and (b) rented wholly or partly for a fee and a period of less than thirty (30) consecutive days. The term "Short-Term Rental" does not include premises used for nonresidential purposes, including an educational, health care, retail, restaurant, banquet space or event center purpose or another similar use, or a bed-and-breakfast or hotel.  Maximum Occupancy of the Short-Term Rental is no more than two (2) persons for each bedroom plus two (2) additional persons. The total number of persons must not exceed twelve (12) persons.  See Ordinance No. 3908-5-22 for more details. 

Business License Requirements

Beginning mid to late 2022, the City of Allen will require owners of short-term rental properties to apply for annual rental permits.

Building and Housing Standards

Allen has rules and regulations that specify minimum building, design, maintenance standards, habitability, health, and safety requirements. Some rules and regulations that apply to residential and non-residential properties may apply to your listing.  Consult Building and Permitting for more information. 

Tourist and Local Taxes

It shall be unlawful for an owner of premises used for a Short-Term Rental to fail to pay hotel occupancy taxes required under State law. 

Other Rules

It is also essential to understand and abide by other contracts or rules that bind you, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable. Visit the  City of Allen for more information 
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  • Short Term City Rating
    6.9
  • Competition

    7.0
  • Real Estate Cost

    5.6
  • STR Regulations

    8.0
  • Seasonality

    9.5
  • Rental Rates

    4.3

Allen, Texas Quick Stats

Short-term rentals have gained a lot of traction in the last few years. The trends and statistics of this sector are constantly changing, and having access to accurate data is essential for making sound investment decisions.

Population
104,627
STR License Required
Yes
Tourist Season
County
Collin
Airports
Addison Airport (ADS)
Dallas Love Field (DAL)
Review our Allen Texas short-term rental analytics guide, including rates, property types and other metrics

Want to learn more about Allen?

Hostscouts has you covered. Our guides for this city cover topics that can help you research cities across the US quickly and easily.

Check out our Allen rental analytics guide if you're interested in data on the Allen rental market.

City Activities

Review the popular activities that hosts include in their property positing in Allen.

City Attractions

The most popular local and regional landmarks hosts usually include in their Airbnb or Vrbo property listings.

Allen Rental Rates & Fees

Explore nightly rates that hosts list their properties and the average fees for pets and additional guests.

Property Types & Sizes

What are the most popular property sizes for rent? Research whether a 1, 2, or 3 bedroom best fits Allen guests.

Interested in other Texas cities?

Check out the Texas short term rental regulations directory 

What makes Allen a great place to invest?

  • Vibrant Shopping and Dining Hub: Allen, Texas boasts a lively shopping and dining scene, with popular hotspots such as Watters Creek at Montgomery Farm and the Allen Premium Outlets. Visitors can enjoy a delightful mix of retail therapy, upscale dining, and local eateries, all within a picturesque setting.
  • World-Class Sports and Entertainment: Catch the excitement of live sports events at the Allen Event Center, home to the Allen Americans professional hockey team and the Dallas Sidekicks indoor soccer team. The multi-purpose arena also hosts concerts, family shows, and other thrilling events throughout the year.
  • Expansive Nature and Outdoor Activities: Immerse yourself in the beauty of Allen's numerous parks and nature preserves, such as the Connemara Meadow Nature Preserve or Celebration Park. Allen offers opportunities for hiking, biking, and birdwatching, as well as sports facilities, playgrounds, and splash pads for families.
  • Adventure Park: Experience adrenaline-pumping fun at the Hydrous Wake Park, a premier cable wakeboarding facility offering exciting water sports for all skill levels. The park also features an aqua park, complete with inflatable obstacles, perfect for a day of family fun in the sun.
  • Scenic Golfing: Tee off at the pristine Twin Creeks Golf Club, an 18-hole championship golf course designed by Arnold Palmer. Set amid rolling hills and lush landscapes, the course offers a challenging yet enjoyable round for golfers of all abilities, and the club's upscale amenities ensure a memorable experience.

Allen Nearby Cities

Local Real Estate

How expensive is the real estate in Allen?

The cost of real estate can vary widely depending on the location, size, and features of the property, as well as market conditions. The median home value in Allen has decreased -5% over the past year, and the average price per square foot is $223, which is lower than the national average.

Median Sale Price

$513,677

-5% YoY

Median per Square Foot

$223

-5% YoY

Average Monthly Rent

$2,050

-1% YoY

Property Descriptions

The most common terms hosts include in their listings for Allen, Texas

Word Cloud for Allen, Texas Short Term Rentals

Common terms for Allen short term rental listings.

When potential guests are scrolling through listings on Airbnb, they’re looking for certain essential information to help them decide if your property is the right fit for their needs. As a host, ensuring that your listing includes all the relevant information that guests will be looking for is vital.

Some of the must-have elements of a property description include:

  • Location: Guests will want to know where your property is located in relation to popular attractions, public transportation, and other points of interest.
  • Amenities: What amenities does your property offer? Be sure to list all features guests can access, such as a pool, hot tub, parking, etc.
  • Informative: The average listing in Allen has a description approximately 1,386 words long. Make sure yours is long enough to describe your property but doesn't require your potential guest to read a novel.

After reviewing more than 1,287 listings in Allen, we've consolidated the most common terms on the word cloud. The larger text represents a term that is used more often. The top ten mentioned terms are Pool, Place, Family, Spacious, Beautiful, Perfect, Backyard, Relax, Feel, and Outdoor.

What are the most popular tourist activities in Allen?

Whether renting a house, an apartment, or a room, you should include popular tourist activities in your posting. The most common choices mentioned on property listings in Allen involve Outlet Shopping, the City Centre, Museums, Adventure Activities, and the Health Spa. When you write your listing, have a section with recommended activities near the property to give your guests an idea of what is available.

Outlet Shopping

City Centre

Museums

Adventure Activities

Health Spa

Antiquing

Water Parks

Cycling

Swimming

Hiking

Winery Tours

Zoo

Local Attractions

What attractions do hosts highlight to guests?

There are quite a few popular attractions in Allen, including University of Texas at Dallas, The Shops at Legacy, Ford Center at The Star, Stonebriar Centre Mall, and The Shops at Legacy. Below we've included the most popular local and regional landmarks hosts usually include in their Airbnb or Vrbo property listings. Many hosts like to show off lesser-known regional landmarks visitors might not have heard of.

Regional Landmark

Plano Convention Center

Included on 52% of listings

Regional Landmark

Allen Premium Outlets

Included on 48% of listings

Regional Landmark

Plano Convention Center

Included on 48% of listings

Regional Landmark

Allen Event Center

Included on 43% of listings

Well Known Attraction

University of Texas at Dallas

Included on 43% of listings

Regional Landmark

The Shops at Legacy

Included on 42% of listings

Regional Landmark

Allen Premium Outlets

Included on 41% of listings

Regional Landmark

Stonebriar Centre Mall

Included on 40% of listings

Regional Landmark

Allen Event Center

Included on 39% of listings

Well Known Attraction

Ford Center at The Star

Included on 38% of listings

Regional Landmark

Baylor Scott & White The Heart Hospital

Included on 37% of listings

Well Known Attraction

The Shops at Legacy

Included on 36% of listings

What’s the weather like in Allen, Texas?

The weather is generally warmer than the national average, with an average high temperature of around 76°, while the average low is about 56°. The rainfall is a bit heavier, averaging about 34 inches per year, compared to the national average of about 27 inches. Snowfall is scarce, with an average year having no snowfall. The humidity levels in Allen are generally muggier than the national average, and the city has a mix of clouds and sunshine for most of the year.

Winter

December through February

38° Low 58° High

Precipitation
6.8"
Snowfall
0.0"
Muggy Days
0.5 days
Cloudiness
44%

Spring

March through May

56° Low 75° High

Precipitation
10.6"
Snowfall
0.0"
Muggy Days
18.6 days
Cloudiness
38%

Summer

June through August

73° Low 93° High

Precipitation
7.0"
Snowfall
0.0"
Muggy Days
72.8 days
Cloudiness
32%

Fall

September through November

57° Low 77° High

Precipitation
9.2"
Snowfall
0.0"
Muggy Days
21.3 days
Cloudiness
32%