Zoning Board to Revisit Short-Term Rentals July 7, ‘Keep it Simple’ Solution Receives Yays and Nays

Members of Dallas’ Zoning Ordinance Advisory Committee voted last week to further study — and potentially regulate — short-term rentals or adopt zoning that would make it illegal for them to operate in residential neighborhoods. 

The panel will take up the matter again at its next meeting on July 7 and ultimately deliver a recommendation to the Dallas City Council for a final decision. 

Dozens of Dallas residents appeared before the ZOAC last week to share their thoughts on the city’s development code regulations on short-term rentals. Currently, anyone who operates a hotel, motel, short-term rental, or bed and breakfast must register and pay hotel occupancy taxes.

Complaints about party houses, criminal activity, and absentee property owners in residential areas dominated the comments of those who want stronger development code regulations on STRs.

“This isn’t a case of trying to balance two competing legitimate interests. STRs are owned primarily by investors who simply want to make money,” said Holiday Park resident Matthew Bach. “They have no long-term stake in our neighborhoods or city, yet healthy, strong, stable neighborhoods are the lifeblood of Dallas. If our neighborhoods decline, so, too, will the city of Dallas. This is truly a landmark decision that will reverberate for years to come throughout Dallas and have a lasting impact on the quality of Dallas’s neighborhoods.”

On the flipside, there are hundreds of “superhosts” in the Dallas area who impose their own stringent regulations, are registered and up-to-date on hotel occupancy taxes, and have never had a complaint from a guest or neighbor. Some said they won’t be able to support their families or will have to move if they can no longer operate their existing Airbnb properties.

Lisa Sievers and her husband own and operate two STRs in East Dallas and have worked with the city on three separate task forces on the matter.

“We are superhosts with over 800 five-star reviews. We are current on our HOT taxes. We meet our guests personally and oversee our properties with respect for our neighbors and neighborhoods,” Sievers said. “We do not allow parties. There are hundreds, if not thousands of us, operating respectful, neighborhood-friendly short-term rentals.” 

She pointed out that a 2021 city staff report states more than 90 percent of STRs have zero 311 or 911 calls associated with their address. Additionally, the report states, “nuisance STRs are outliers, and STRs have limited measurable impact on neighboring communities and no evidence of a citywide impact. Less than half a percent of the city’s total residences are STRs.”

“That says to me this is not a crisis of epic proportions, nor are STRs creating a housing shortage,” Sievers said. “This says to me that this is a nuisance issue that can be handled with some fair and sensible solutions, many of which have been presented in the proposed ordinance and registration which is before the city council right now. Why do we want to zone STRs out of existence when over 90 percent of them are good operators? Let’s move forward with an ordinance with teeth to root out the few bad operators and allow the rest of us to continue to operate. There is no absolutely no need to zone us out of existence when no enforcement mechanism has been in place to correct the very few nuisance STRs.” 

Litigation has been threatened on both sides of the matter, with STR proponents citing case law in their favor, and opponents pointing to Honolulu’s decision to ban short-term vacation rentals.

“They said, ‘Short-term rentals are disruptive to the character and the fabric of our neighborhoods,’” said District 4 resident Tom Forsyth, citing the Honolulu decision. “‘They are inconsistent with the land uses that are intended for our residential zoned areas. And they increase the price of housing for our residents by removing housing stock from the for-sale in the long-term rental markets. The city council finds that any economic benefit of opening up our residential areas for tourism is far outweighed by the negative impacts to our neighborhoods and local residents.’”

Available Options

There are about 6,000 STRs in Dallas, and only about 300 are registered, officials said during the June 23 ZOAC hearing. 

Three options were presented to the zoning board during last week’s meeting: 

• Option A: Owner-occupied STRs are allowed in all districts. Non-owner-occupied STRs are permitted in limited multi-family and non-residential areas only. STRs cannot be used as event venues.
• Option B: STRs are allowed in all districts. Event venues to be separate use in limited non-residential areas. 
• Option C: Defines STRs as a lodging use and limits them to areas only where lodging uses are allowed. Certificate of occupancy required. This would eliminate STRs in residential and multi-family areas. 

Julia Ryan, director of planning and urban design, presented the options to the city council during a June 15 meeting, noting that Option C, referred to as the “Keep It Simple Solution,” was proposed by District 14 Councilman Paul Ridley in a five-signature memo.

“I would propose that the preferred option communicated to ZOAC would be the additional ‘keep it simple’ option, which provides some latitude for ZOAC and [City Plan Commission] to provide recommendations to us in terms of the details and yet represents a significant number of council members’ wishes,” Ridley said. 

 A registration ordinance also is being proposed by the city’s Code Compliance department that would require STR owners to register, pay an annual fee, require emergency contacts, and be subject to inspections by city staff. 

District 1 Councilman Chad West expressed concern that the process might “fester” for a year at the CPC level, essentially activating another task force to study the matter. 

“Maybe that’s a good thing in some cases, but is it realistic to really get back up here by August?” he asked. “ZOAC and CPC are very hardworking, but their meeting schedule is not as frequent as ours. That’s my concern.” 

Ryan said it’s her goal to return to the council in late summer or early fall.  

District 10 Councilman Adam McGough said he wanted to ensure STRs are a certain distance away from schools. The code proposal allows for 1,500 feet between STRs and could also address proximity to schools, city officials said. 

Mayor Eric Johnson indicated that Option C is the “consensus option” among council members. 

If the option adopted stipulates that STRs cannot be in residential areas, the existing ones would be operating illegally. ZOAC members discussed briefly last week whether such properties could be phased out or remain operable under a grandfather clause.

Different STRs, Different Problems

Critics of short-term rentals point to a Dallas housing shortage and lack of affordable housing as reasons to eliminate Airbnb properties. Numerous residents who live near STRs have drawn attention to illegal activity and loud parties and events. 

Renters do not vet their guests or monitor their activity, Forsyth said. Another speaker said STRs are for-profit businesses, and neighborhoods should be for families and homeowners. 

District 1 resident Laura Palmer said there’s a problem with many different types of STRs in Kidd Springs.

“You know there’s a problem when, at your Christmas tamale get-together in your neighborhood, you’re not talking about what you’re doing for the holidays. You’re talking about the hostel that’s next door to you or you’re trying to determine whether a single-family home that is being rented on Airbnb is being used for sex trafficking,” Palmer said. “Dallas residents are having to deal with a regular stream of STR guests in their neighborhoods, guests who have no regard for our neighborhoods.” 

District 14 resident Norma Minnis said neighborhoods deteriorate when land use and zoning are not consistent. 

“How does the city staff think a neighborhood will survive having commercial businesses next door?” she said. “I’m asking you to help us keep our single-family neighborhoods and our residential neighborhoods residential.” 

Prospect Avenue resident Olive Talley pointed out that if zoning is adopted, STRs will still be able to operate outside of residential neighborhoods. 

Not All STRs Are Bad Neighbors

Numerous STR hosts also spoke during the ZOAC meeting, pleading for the opportunity to continue operating their rentals and suggesting that those causing nuisances, breaking the law, or violating existing city ordinances should be punished individually. 

Traveling workers who are staying in the city for two weeks or two months use Airbnb properties as an affordable, safe, and comfortable temporary option, advocates said. 

“There are a lot of good Airbnb hosts out there,” said Fernando Bautista. “We’re being punished by several who are not [good hosts]. I think it’s something good for the city to have alternative housing. Even when the crisis of COVID happened, we were the only ones out there operating. We are a superhost, and we employ a bunch of good, hard-working people. To be punished for something like this, I don’t think it would be fair.” 

Nicole McClelland and her husband have operated STRs for seven years. 

“We are responsible hosts who monitor our guests closely,” she said. “We don’t allow parties. We attend to any issues during their stay in a timely manner. We are registered and pay our hotel taxes monthly. I am a mother of three and this is our bread and butter for our family. I have taken my kids to our Airbnbs, feeling perfectly safe. They have watched me clean and operate our STRs from the very beginning. They have watched me welcome and interact with our guests … This is not a passive income for us. Zoning STRs would hurt our family business. As a taxpayer, I do not think this is the solution. Please, I beg you, do not shut us down by zoning STRs.”