Plano Delays Decision on Short-Term Rentals, Considers Following Arlington Ordinance

The Plano City Council last week delayed action on short-term rentals but heard from residents and the city’s neighborhood services director about plans to model an ordinance after the one adopted in Arlington. 

Short-term rentals dominated the news in Dallas during the summer months, but the debate cooled as the city entered its budget process. 

The Dallas City Plan Commission revisited the matter Thursday and set a special daylong public hearing for Dec. 8.

Some STR operators say they operate Airbnb and Vrbo homes responsibly, and the rentals provide an extra source of income. They impose their own rules such as a curfew and guest limit, and they register and pay fees to the city. 

STR opponents say the units are a nuisance. They’ve argued that STRs are operating as hotels and therefore ought to be in areas that are zoned as such, rather than in residential neighborhoods.

Plano Tables Action on Short-Term Rentals

During the Nov. 14 Plano City Council meeting, at around the 1:20 mark, elected officials announced they were going to table the item on STRs based on legal counsel, but they went forward with a public hearing. 

Thirteen speakers addressed the city council, all in support of zoning changes that would regulate or prohibit STRs in residential areas. Many also advocated for a third-party data collection service so the city would know where its STRs are and could enforce regulations and collect fees. 

Plano already has about 900 STRs, some of which are engaged in illegal activity, residents said. 

Director of Neighborhood Services Lori Schwarz said staff was directed in October to model an STR program similar to the one used in Arlington, develop a registration program, and initiate a zoning review of STRs. 

Under Plano’s proposed plan, STRs would be required to register with the city beginning in January. Application requirements include providing local contacts, floor plans with safety equipment, insurance, self-inspection, and sworn statements by the owners and operators. 

The city also would conduct inspections and file citations in Municipal Court with those that are non-compliant. Schwarz recommended that the city enter a contract with an STR monitoring service. 

“We’ve done a lot of investigation about what’s possible with the government regulation of these types of housing,” she said. “Most of them require some sort of monitoring contract.” 

Mayor John Muns said the council received additional information regarding STRs during an executive session, delaying council action on the matter. Schwarz said based on the new timeline, a recommendation for an implementation plan could be pushed back to spring 2023. 

Arlington‘s Ordinance Regulates Short-Term Rentals

Plano resident Catherine Parker pointed out four tenets of the Arlington model: 

• Hire a third-party data collection firm to determine all the short-term rentals operating in the city.
• Conduct town hall meetings and gather citizen input about short-term rentals in single-family neighborhoods.
• Update the City of Plano’s zoning ordinance to clarify where short-term rentals can and cannot be.
• Create a registration program to monitor STRs where they are permitted, and prohibit them in districts where they should not be allowed.

Attorney David Schwarte of the TX Neighborhood Coalition said the Plano City Council’s proposal, as it’s written now, could be interpreted as though it’s authorizing STRs in single-family residential neighborhoods. 

“If that was the intent or the effect of this proposal, then this is a proposed regulation that would amend de facto the zoning ordinance,” Schwarte said. “Such an action, even though it’s not labeled as a zoning change, would violate the provisions of the Texas Local Government Code. I think an objective reading of your current code shows that single-family residential neighborhoods are not places where short-term rentals are allowed. Short-term rentals are currently forbidden in all residential districts in Plano.”

Changes to the zoning code must first be heard by the Planning and Zoning Commission, Schwarte added. 

“I was involved from start to finish in the Arlington ordinance,” he said. “There’s a lot of work to be done if you really want to follow in our footsteps.” 

Resident Steven Kiriakos encouraged the council to gather neighbor feedback before proceeding. 

“Please work with us, not against us,” he said. “We would love to work with you outside this forum if possible. We would love to follow the Arlington model and expedite the zoning, which would be a great use of taxpayer dollars. Subscribing to the host compliance data collection would be great.”