After Ban, Dallas Short-Term Rental Operators Say ‘This Is Not The End’
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It wasn’t long after the vote was taken to ban short-term rentals in Dallas’ single-family neighborhoods that STR operators took to social media to throw down the gauntlet.
“Let the lawsuits begin,” one Airbnb host wrote.
A chief argument from District 1 Councilman Chad West, who proposed an alternative to the
“Keep It Simple Solution,” was that an outright ban wouldn’t pass legal muster.
Mayor Pro Tem Carolyn King Arnold said she’s not afraid of a lawsuit.
“I fear no courts,” she said. “If the judges will tell you the truth, they don’t want to live by a party house either. I don’t fear courts. Let’s dress up and go.”
West’s proposal required on-site caretakers, which would have wiped out a majority — about 70 percent — of Dallas’ taxpaying hosts, one operator told CandysDirt.com.
During the marathon June 14 Dallas City Council meeting, Councilman Adam Bazaldua attempted to rally support for a Dallas staff recommendation, which basically amounted to enforceable regulations through a registration ordinance.
What ultimately prevailed was the City Plan Commission-recommended KISS, banning STRs in single-family neighborhoods with no grandfathering for current operators. Multifamily STRs are allowed by right, but some will have to shut down because of a density requirement. Enforcement is slated to begin in December.
Lisa Sievers, who has operated STRs in District 2 since 2019, said she’s disappointed but not surprised.
“I don’t think it’s a proud day for the City of Dallas,” she said. “Overnight, Dallas has become the poster child of local governmental overreach. This is the red flag that the state is looking for to put out more bills like the Death Star [which strips power from local governments].”
A Win For Neighborhoods?
At the last count from earlier this year, there were about 1,765 registered, taxpaying STRs and another 1,300 “suspected” STR properties in the city limits.
District 12 Councilmember Cara Mendelsohn said she’s seen nothing unite the residents of Dallas so much as joining to oppose short-term rentals.
“You’ve all come down here together with a clear, united voice, together as neighbors to oppose short-term rentals in your neighborhoods,” she said in a June 14 council meeting. “You’re not just impressive; you’re right.”
The KISS option can be enforced like any other zoning ordinance, said District 14 resident Melanie Vanlandingham.
“KISS protects neighborhoods and 500,000 homeowners who live here and support our Dallas economy year-round,” she said. “KISS effectively addresses rising STR crimes and violence and makes thousands of homes immediately available for long-term residents.”
Hundreds of people have attended council meetings over a period of almost four years, conducted in-depth research, testified before the state legislature, written emails, and rallied support for their side.
The heartwrenching comments about people whose children find stray bullets in their yards are lost on no one — but the “bad actors” operating party houses and drug dens aren’t showing up to council meetings.
District 10 resident Phillip Terry said the characterization that a few bad apples have ruined the bunch isn’t accurate.
“Airbnb declared an end to the party houses several years ago, so why did they persist here and nationwide?” he said. “It’s simple. The platforms can’t enforce or control their own operators, nor do they even try to do so. It’s embarrassing, but still highly profitable. Platforms want the city to establish regulations and enforce control.”
Airbnb did not immediately respond to a request for comment from CandysDirt.com.
Some council members acknowledged last week that the KISS option isn’t all that simple and may present enforcement, staffing, and budgetary challenges, but said it was the best option to “stop the bleed” of the 20 percent of STR operators who have repeated crime and nuisance calls at their properties.
District 13 Councilmember Gay Donnell Willis said enforcement on STRs operating illegally in residential neighborhoods can begin at the mailbox.
“The city already uses this method to notify and warn suspected operators and bring them into compliance,” she said. “Residents across the city will be happy to assist in identifying legal land use in their neighborhoods. They just want the covenant of peace that they had when they bought their home back.”
The change won’t happen overnight, but it will narrow the guardrails on a road to restoring peace of mind, Willis added.
“Dallas has a housing shortage,” she said. “This is not only evidenced on paper but it manifests itself at underpasses, in drainage channels, and on parkland, where we’re spending more than ever on security and cleanup in public places intended for recreation, not squalid living. We need more long-term rental and home ownership options in Dallas.”
Traveling business people can still rent a home in a residential neighborhood for more than 30 days because that is not considered a “short-term” rental, Willis explained.
What’s Next For STR Operators
Sievers said she was initially hopeful that Councilman Bazaldua’s attempt to bolster the staff recommendation of regulations rather than zoning would be backed by the full council.
“We were hoping we could avoid a ban,” she told CandysDirt.com. “Councilman Bazaldua was trying to champion common sense, which was in short supply. He laid out the staff recommendation, which is the only way it’s going to be paid for and enforceable, and people just decided that they wanted to ignore the solid data that the city presented and the city staff’s recommendations. It’s really sad because if anybody knows how the city really works, it’s the city staff.”
About 80 percent of the current Dallas STR operators have never had a 911 or 311 call to their properties, according to city data.
Sievers said she doesn’t fault any elected official for doing what they thought was best and representing the wishes of their constituents. In fact, over the course of a half-hour conversation two days after the council vote, Sievers didn’t bring up the word “lawsuit.”
“I think you’re going to see some activity over the next six months,” she said. “If I was the ‘anti’ group, I’m not sure I’d be getting on my party hat quite yet. I’m saying that right now we are exploring several legal channels. We’ve had legal counsel on retainer for quite some time. We haven’t exhausted all of our options yet.”
Although disappointed that those paying Hotel Occupancy Taxes and not causing problems weren’t grandfathered under the new zoning ordinance, Sievers said they will continue to operate and pay taxes until enforcement begins in mid-December.
Because Texas is a strong property rights state, it’s expected that plenty of STR-related bills will be filed in the 2025 legislative session, Sievers said.
The Dallas Short Term Rental Alliance has issued newsletters to its membership and will exhaust every option at the city and state level, she added.
“This is not the end,” she said. “I’m disappointed, but at least we have an answer now. We have something to work with. Before, everyone could be upset and angry about it, but there was nothing we could do about it. That includes enforcement. This whole discussion started with party houses, and that’s basically what the problem still is.”
