Boarding houses with multiple unrelated renters aren’t allowed under single-family zoning in Plano, but a resident of Briar Meadow near Coit and Legacy says they’re operating in full force in multiple locations throughout the city.
Plano imposed a temporary one-year ban on new short-term rentals within the city limits, so we know the neighbors are vigilant in reporting crime, code violations, and nuisance issues in their single-family neighborhoods. The Plano City Council was one of the first in North Texas to impose a ban on new STRs that began in May.
The problem with boarding homes is they’re considered long-term rentals and they go easily undetected until someone complains. Even then the violations are difficult to enforce, city officials have said.
A group home for veterans on Polk Street in Dallas went undetected for years until the City Plan Commission voted 9-3 in September to rezone the property to multifamily and impose deed restrictions that would limit the height of the building. The rezoning is still pending before the Dallas City Council, set for a vote Jan. 24.
Julia Pitlik told daltxrealestate.com that she and her husband built their home in the upscale Briar Meadow neighborhood in Plano almost 30 years ago with the expectation that they wouldn’t be dealing with a revolving door of young adults throwing parties, parking on the street, and leaving trash in the yard.
“Every time I turn around, they’ve got a new person moving in and another one moving out,” Pitlik said. “Recently there was a new vehicle there, and I thought he was there to do some repairs, but he’s living there. The vehicle has not moved in three days.”
A school bus or fire truck can’t safely travel down the street because of all the vehicles lining Clearwater Court, Pitlik added.
Plano Zoning Ordinance
Per the 376-page Plano Zoning Ordinance, which is currently under review for a rewrite, a boarding house is defined as a residence or dwelling, excluding hotels and household care facilities, wherein three or more rooms are rented by written or oral agreement. Such homes are not allowed in single-family neighborhoods, per the ordinance, but in areas zoned for general office, light commercial, or downtown.
The $660,000 “boarding house” at 3820 Clearwater Court is owned by Flywheel SFR Fund | Borrower LLC.
Flywheel is a subsidiary of Deer Park Road, an equity fund based in Steamboat Springs, Colo. They partner with Bungalow Living, a property management company for the rental industry. The Clearwater Court home is one of nine North Texas properties managed by Bungalow.
The Real Deal reported in September 2022 that Bungalow was a “co-living startup” that has been lambasted for ineffective and neglectful property management tactics.
Residents claimed property managers abruptly terminated leases, neglected communication, and created fake roommate profiles.
“Some have even complained of strangers in their bedrooms, which can’t have locks,” the Real Deal report states.
Officials with Bungalow Living, Flywheel, and Deer Park Road did not respond to a request for comment.
Codes Can’t Be Enforced
The neighbors across the street from Pitlik sold their home to the property management company in August of last year. The six-bedroom, four-bath home is rented to as many as six unrelated tenants at a time, and some of them have overnight guests, Pitlik said.
“When people move out, they take the furniture they don’t want and just leave it in the front yard,” she said. “We filed a complaint and it took the city almost two months to come out and remove it and levy a fine against the property owner.”
The sprinklers don’t work so the lawn hasn’t been watered in over a year, Pitlik added.
The homeowner has reached out to Plano City Council members, city employees, and State Rep. Matt Shaheen, R-Plano.
Property Standards Supervisor Sheryl Wilson did not respond to requests for an interview. In an email obtained by daltxrealestate.com, Wilson told Pitnik that she would have an inspector monitor the property for bulk trash and maintenance issues.
“Enforcement of our regulations on residences is difficult due to privacy and constitutional protections,” Wilson wrote in the email. “We evaluate situations on a case-by-case basis to determine whether enforcement is merited or possible under the circumstances. In most cases such as this property, we will not be able to pursue enforcement at this time. However, there are a number of residential uses in the zoning ordinance that will get overhauled in the current zoning rewrite that is currently underway.”
Pitlik scoffed at the suggestion that the rights of the property management company and tenants must be protected.
“I’ve lived here for 30 years,” she said. “What about my rights? What about the rights of a Texas citizen and taxpayer?”
The Clearwater Court resident added that she thinks the city anticipates a lawsuit and is concerned it doesn’t have the money or resources to go up against the property management company.
“Why do we have a code for no boarding homes when they’re not going to enforce the code?” she said. “Once you stop enforcing it, you have no leg to stand on in a court of law.”
