Now that the City Plan Commission has voted to define short-term rentals as a lodging use, what exactly does that mean for the future of these properties?
At first glance, it means simply that the CPC, a recommending body appointed by the 14 Dallas City Council members, agreed to define short-term rentals, such as Airbnbs, in the same category as hotels, meaning they would have to go in areas that are designated for such use.
It also means they could not continue to operate in residential neighborhoods.
Upon further inspection, however, there are a few more issues at play. One is that the Dallas City Council hasn’t even placed the item on an agenda and isn’t likely to in the immediate future.
The majority of the sitting council members, along with Mayor Eric Johnson, are seeking re-election in May. STRs are a political hot potato that no one wants to touch until after the election, city officials have said.
Will The City Take Action Against STRs?
Once council action is taken, if it results in removing STRs from neighborhoods, it’s been suggested that those who operate an STR will “go underground,” and try to stay off the radar. That could work for those who live on-site or closely monitor the activity of their renters. It’s been said that one could live down the street from a properly-functioning short-term rental and not even know it.
Those who are operating party houses and dens of illegal activity can be sure if restrictions are approved by the Dallas City Council, they’ll be promptly reported and could be fined or taken to municipal court.
But, again, there’s no immediate consequence for current STR operators and no immediate relief for those who live near them.
Here’s what residents on both sides of the issue have to say.
Neighbor Feedback on Short-Term Rentals
Many residents reached out to Daltxrealestate.com and told us the rental properties shouldn’t have been operating in residential neighborhoods in the first place, according to city code.
District 14 resident Olive Talley said during the Dec. 8 CPC meeting that the matter has become about investor profits versus the sanctity of people’s homes and a sense of community and safety that comes from knowing one’s neighbors.
“STRs are commercial lodging businesses, period,” she said. “They unravel the fabric of neighborhoods. They worsen our housing shortage and the commercialization of homes across Dallas. As full-time residents and property owners, we stand together to ask that you uphold existing zoning by defining STRs as a lodging use that’s already illegal in residential zoning.”
A District 13 resident said she was assaulted and robbed by a party bus driver outside an STR in her neighborhood. Other residents said they’d been approached by drug dealers and saw evidence of prostitution and human trafficking at STRs in residential areas.
“You can save this city,” a District 3 resident told the CPC. “Please pull us back from the gates of hell.”
Are Short-Term Rental Owners Being Good Neighbors?
But they are operating in residential neighborhoods. At least 2,628 STRs are active in the City of Dallas, according to city data. Some say there are as many as 6,000.
Additional data showed more than 88 percent of Dallas STRs generated zero 911 or 311 calls this year. The data is not particularly useful, however, because by the time a code enforcement officer or police officer arrives to address a nuisance, it’s too late, thus deterring neighbors from calling at all.
“When I hear all these horror stories about party houses, to me, it is not a zoning issue, it is a regulation issue to shut them down,” said Plan Commissioner Brandy Treadway, one of four who voted against the lodging use definition. “How do you shut down a party house? You have really good resources. The better the regulatory regime you have, the more resources you have to cut down the bad actors.”
Grady McGahan, a member of the city’s Arts and Culture Advisory Commission, said he’s able to afford his home in District 5 because of the income generated through his STR.
“I know my neighbors,” he said. “I bring cookies when they move in. A solution to which we work together to solve issues is the only path. Multiple task forces have recommended regulation without zoning. Don’t throw the good out with the bad. A war on all STRs won’t work. The only solution is one that creates additional city police and resources, and makes partners of us all.”
What’s Next For Short-Term Rentals in Dallas?
Director of Housing and Neighborhood Revitalization David Noguera said short-term rentals provide much-needed affordable housing.
“You have many people who come to a city for a short-term basis, whether it be a traveling nurse or one of my colleagues who is shopping for housing or taking on a short-term job,” he said. “If you look at their options, they can either sign a one-year lease or they can take on a hotel, which is very expensive. Short-term rentals provide that interim balance at a much more affordable level.”
They’re not typically market-rate apartments; they’re homes that have been rehabilitated and are owned by investors or rooms that homeowners are renting to supplement their income, Noguera said, adding that he can’t point to any particular city that has figured out an appropriate balance.
“If you just ban them, you force the industry to go underground,” he said.
It’s difficult to determine the impact STRs have on the housing market, Noguera added.
“If you look at the overall numbers, it’s easy to say from a percentage perspective, those numbers are very small,” he said. “But then you have to hone in on where those short-term rentals are. It’s possible that they could be concentrated in certain neighborhoods and non-existent in other neighborhoods. One of the things I see as being very valuable with short-term rentals is being able to assess fees for allowing them to exist, so you can track them and understand the patterns that are forming. To a large extent, we’re operating in the dark.”
Numerous residents encouraged the CPC in the Dec. 8 meeting to take a vote so the matter could move forward to the Dallas City Council.
The CPC did move forward with a vote, and the city council has many options on what to do with that recommendation.
District 14 Councilman Paul Ridley has been vocal in his support of the “Keep It Simple Solution,” which is what the CPC approved on Dec. 8. Other council members have expressed interest in allowing STRs in neighborhoods with heightened regulations. If the vote takes place after the May election, District 10 Councilman Adam McGough and District 3 Councilman Casey Thomas will be out due to term limits. The filing deadline is Feb. 17, so it’s not clear yet who’s running, but several have announced their intent.
Because the city is facing a housing shortage, some elected officials have appeared reticent to take homes off the market that could be used for long-term residents. However, there are options such as special use permits, accessory dwelling units, and STR availability in planned developments.
Residents on both sides of the issue encouraged appointed and elected officials to engage residents and reach a compromise.
“It shouldn’t be about winning or scoring political points,” McGahan said. “It should be about solving the problems. I don’t know where we got away from that three years into this process.”
