Dallas Opts to ‘Keep it Simple’ With Ban on Single-Family Neighborhood Short-Term Rentals

Four years of spirited debate came down to one vote just before midnight Wednesday, as the Dallas City Council banned short-term rentals in single-family neighborhoods.

The measure, proposed by District 14 Councilman Paul Ridley and known as the “Keep It Simple Solution,” was recommended last summer by the council-appointed City Plan Commission. The new zoning ordinance, approved in a 12-3 vote, is effective immediately with enforcement to begin in six months.

District 7 Councilman Adam Bazaldua proposed amending Ridley’s motion to allow STRs by right in multi-family districts. A lengthy discussion about apartment STRs ensued, and Bazaldua’s amendment passed 14-1. An amendment to allow grandfathering of existing STRs failed 8-7.

Council members also debated over how the neighborhood ban would be enforced. City staff members have supported regulating STRs through a registration ordinance rather than an outright ban.

The action approved Wednesday amended the Dallas Development Code to define a new use called “short-term rental lodging,” related regulations, and an ordinance granting the amendments. 

Sixty speakers signed up to address the council on STRs; most stuck around all day to share their opinions. The council meeting, which started shortly after 9 a.m., was still going 14 hours later. 

District 14 resident Olive Talley, who was applauded as council chambers cleared out late Wednesday night, said it was unfathomable that up to half a million residential property owners found themselves the underdogs in a fight against a fraction of STR owners to preserve housing and neighborhoods in Dallas.   

“They’re fighting for higher profit margins, while we’re losing money in the fight to keep our homes. And we’re paying for city services to enforce the problems they cause and enduring the misery they bring to our doorsteps.”

District 14 resident Olive Talley

A “collaborative staff recommendation” issued last week outlined how Dallas staff, representing Planning and Urban Design and Code Compliance, prefer simplified, enforceable regulations.

City Manager T.C. Broadnax said the matter was challenging and consistently guided by the best interests of Dallas residents. 

“Unfortunately, there is no solution that is going to please everyone,” Broadnax said. “Staff has performed professionally at every turn.”

Alternative Proposal to Regulate Short-Term Rentals

An alternative option more aligned with the staff recommendation was proposed by District 1 Councilman Chad West and supported by several speakers at Wednesday’s hearing. 

West repeatedly stressed that requiring an on-site caretaker would likely eliminate party houses, which appeared to be the goal of everyone at the horseshoe.

“Over 66 percent of District 1 residents supported allowing STRs in some fashion in all areas so long as they are heavily regulated, with the vast majority preferring a caretaker to be on site,” West said. “The Fifth Circuit has made it clear that cities cannot mandate that an ‘owner’ be on site but suggested that requiring a ‘caretaker’ to be present on site during the rental process would pass legal muster.”

The vast majority of speakers who have appeared at City Hall over the last four years have complained about the party houses, West added.

“In the stories we have heard, a universal complaint by residents is that no one lives in those party houses, and neighbors have never met the homeowner,” he said. “I believe that this addition to the proposed ordinance would shut down virtually all of them.”

West’s proposal included the following stipulations:

• Requirement that short-term rentals must have a caretaker on site.  
• Recommendation of a “two strikes and you’re out” policy.    
• Adjustment to a two-person per bedroom plus two guests. 
• Requirement for owner-operators to maintain insurance.  
• Prohibition from using the STR as an event venue.  
• Public updates from staff every six months.  

The motion failed to garner support from a majority. 

What’s Next For Short-Term Rentals

It was unclear Wednesday what will happen in the immediate future. Many STR operators have organized and hired an attorney. 

Code Compliance officials have said it will take at least six months to implement enforcement protocols and beef up staffing levels, and the matter is expected to come up during budget hearings this summer. Some council members also suggested going forward with the KISS option and later refining it.

“The solution is to outlaw [short-term rentals] and police that with the software services of companies like Granicus that can identify and establish that they are illegal land uses,” Ridley said. “All we have to do is send them a letter and tell them to cease and desist. There is no major enforcement problem, as demonstrated by Denver, which has employed that exact strategy.”

Stay tuned to CandysDirt.com for reactions on the Dallas City Council’s vote to approve the Keep It Simple Solution.