Following approximately four years of community discussions revolving around short-term rental properties, the Dallas City Council enacted zoning regulations, effectively eliminating such rentals from single-family districts.
However, as a middle ground, these rentals, often known as STRs, will continue to be permissible in commercial zones and multi-family residential areas.
A decisive vote of 12 to 3 resulted in the defeat of a proposal that aimed to grandfather existing STRs in single-family zones that are already subject to hotel taxes. This proposal was defeated by a narrower margin, with a 7 to 8 vote.
Regulations for the remaining STRs were also passed and will be implemented in December, allowing operators time to make necessary adjustments and city code enforcement to prepare for the changes.
The decision drew a fervent and divided crowd to Dallas City Hall on Wednesday, with attendees hoping for a favorable outcome for their respective sides. Sixty individuals, registered to voice their viewpoints during the public hearing, packed the public speakers list.
Typically commencing at 1pm, the public hearing for STR-related issues was delayed until after 6:30pm due to an extended Wednesday agenda. City council discussions eventually led to the final vote around 11:30pm.
This marked the last voting session for two council members due to reach their term limits.
In a surprising move during the final week of debates, Dallas city staff released a formal recommendation that deviated from the Dallas Plan Commission’s suggestion last year.
Olive Talley, a significant figure in the short-term rental opposition, stated the aim was to “save homes and housing and neighborhoods.” On the other hand, Lisa Sievers, a short-term rental host, highlighted their property’s absence of 311 or 911 calls and the strict policy against parties.
While city officials reported that most known STRs attract no complaints, a few have gained unwanted attention due to instances of disorderly behavior and gunfire, causing concerns among neighbors.
Critics argue that STRs remove much-needed residences from the long-term rental market. The Dallas Planning Commission’s endorsed plan proposed to categorize short-term rentals as “lodging,” effectively outlawing them in single-family zoned neighborhoods.
This proposal was accepted by the city council, with an amendment allowing STRs in multi-family zones. Consequently, more than a thousand recognized STRs could now be compelled to cease operations.
Talley remarked: “We are saying we don’t want lodging businesses, hotels, to be operating in areas that are zoned for residential purposes,”
Just before the vote, city staff officially recommended against this zoning tactic, suggesting instead to permit STRs across the city, subject to certain regulations. These could potentially ban them in specific areas and impose stricter rules.
An annual fee of $248 per short-term rental is to be introduced, intended to support additional code enforcement, which previously was unavailable for STR-related issues.
Lisa Sievers stressed that the cost would be covered by the STR operators to fund extra enforcement officers to handle issues that typically arise during nights and weekends. The delay in the start of the public hearing on Wednesday led to STR speakers awaiting their turn well into the evening.
The registration fees, though still collected from the remaining STRs and the newly enacted regulations, will generate less enforcement revenue due to the reduced number of STRs. A regulation requiring one off-street parking spot for each bedroom in a short-term rental property was also included.
Additional regulatory details, including the allowed number of STRs in multi-family zones, will be ironed out in the future.
