Real Estate Glossary: Rentals, HOAs, Lakes & Flood Terms

Short-term and vacation rentals

Hotel occupancy tax (HOT): A tax on paid overnight stays under 30 consecutive days. Texas charges 6%, and cities, some counties and special districts can add their own. Short-term rental owners have to collect it, though booking sites collect some of it for them. Taxes on short-term rentals →
Mid-term rental: A furnished rental of 30 days or more, often one to six months, for traveling nurses, people relocating or families between homes. Stays of 30 consecutive days or more aren’t subject to Texas hotel occupancy tax. Short-term rental rules →
Short-term rental (STR): Renting out a home or part of one for a short stay. Texas hotel tax applies to stays of less than 30 consecutive days. The City of New Braunfels guide describes it as one night up to 30 days and excludes hotels, motels, bed and breakfasts and resort condominiums. Short-term rental rules →
STR permit: Permission from a city to operate a short-term rental at a specific address. In New Braunfels it requires $500,000 in commercial liability insurance, a fire inspection and a city hotel tax account, and it renews every year. New Braunfels rules →
Vacation rental: Another name for a short-term rental, usually a whole home or condo rented to travelers by the night or week. For tax and zoning purposes it is treated the same as any other stay under 30 days. Short-term rental rules →
WORD (Water Oriented Recreation District): A special district in Comal County that charges a lodging fee on stays of 29 nights or fewer at properties inside its boundary. Airbnb lists the fee at 3% and collects it on bookings made through Airbnb. Taxes on short-term rentals →

HOAs, deed restrictions and zoning

CC&Rs: Covenants, conditions and restrictions. The recorded rules that come with a lot, covering things like building size, fences, animals and whether homes can be rented. They usually run with the land, so they bind every future owner. How HOAs limit rentals →
Deed restrictions: Restrictions recorded in the county property records that limit how land can be used. In Texas the term is often used interchangeably with CC&Rs. How HOAs limit rentals →
ETJ (extraterritorial jurisdiction): The unincorporated area just outside a Texas city’s limits where the city controls some things, like subdivision plats, but can’t apply its zoning.
HOA (homeowners association): The organization that enforces a neighborhood’s deed restrictions and runs shared amenities like pools, parks and boat ramps. Owners pay dues. Some neighborhoods call it a POA (property owners association).
Resale certificate: A document from the HOA, required under Texas Property Code chapter 207 when a home in an HOA is sold. It shows dues owed, fees, pending violations and lawsuits, and points to the current restrictions and rules. Checking a home before you buy →
Special use permit (SUP): A zoning approval that adds a specific use, like a short-term rental, to one property. In New Braunfels it takes about three months, goes through the Planning Commission and two City Council readings, and is a zoning change, separate from the STR permit itself. New Braunfels rules →
Unincorporated area: Land outside any city’s limits. Texas counties don’t have zoning, so the main limits on use there are deed restrictions, HOA rules and county health and septic rules. Much of Canyon Lake and Lake McQueeney is unincorporated.
Zoning district: The category a city assigns to land, such as residential or commercial, which decides what uses are allowed there. In New Braunfels, the zoning district decides whether a short-term rental is allowed at all. New Braunfels rules →

Lakes, rivers and flood

Bulkhead: A retaining wall along the shoreline that holds back the bank. Bulkheads wear out over time, so have a qualified inspector look at one before you buy.
CFS (cubic feet per second): How river flow is measured: the volume of water passing a gauge each second. Higher numbers mean faster, higher water. River flows →
Conservation pool: The top of a reservoir’s normal storage. Canyon Lake’s conservation pool is 909 feet above sea level, and a lake is called 100% full when it reaches that mark. Lake levels →
Elevation certificate: A form completed by a licensed surveyor or engineer showing how high a building sits compared with the expected flood level. Insurers can use it to price flood coverage.
Floodplain (Special Flood Hazard Area): Land FEMA maps as having at least a 1% chance of flooding in any year. Lenders require flood insurance on homes with a federally backed mortgage in this area. Waterfront properties →
Floodway: The channel of a river plus the land next to it that has to stay open to carry floodwater. Building there is tightly limited.
GBRA: The Guadalupe-Blanco River Authority, the state-created agency that operates the dams on the Guadalupe Valley lakes and issues permits for docks and other construction on Lake Dunlap. Lake information →
Normal pool: The level a dam is designed to hold a lake at. The Guadalupe Valley lakes are kept close to normal pool, so their water level barely changes compared with a reservoir like Canyon Lake. Lake levels →
WCID (water control and improvement district): A local taxing district. Lakefront owners on Dunlap, McQueeney and Placid voted to create WCIDs that help pay to build, finance and run each lake’s new dam. Lake levels and dam status →

Buying and selling

MLS (multiple listing service): The database agents use to share listings. Homes around New Braunfels can be listed in more than one MLS, which is one reason no single search site shows everything.
Option period: In the standard Texas contract, a set number of days after signing when the buyer can back out for any reason by paying a small option fee to the seller. Inspections usually happen during this window. Buyer’s guide to home inspections →
Septic system (OSSF): An on-site sewage facility, used where there’s no city sewer. It’s designed for a certain amount of use, so ask the county before adding bedrooms or renting to more guests than the system was built for.

Property taxes

Appraisal district: The county office that sets each property’s taxable value and handles exemptions and protests. Comal County homes go through the Comal Appraisal District, and Guadalupe County homes through the Guadalupe Appraisal District.
Homestead exemption: A reduction in the taxable value of your primary home. In Texas the school district exemption rose to $140,000 in 2025, with an extra $60,000 for homeowners 65 or older or disabled. Homestead exemption guide →

These definitions are general information, not legal, tax or insurance advice. For a specific property, check with the city, county, HOA, or a licensed attorney, CPA or insurance agent.