Dallas City Council considers banning short-term rentals in residential neighborhoods

DALLAS - After a lot of complaints from homeowners, Dallas is moving closer to a decision about where short-term rentals should be allowed. 

It appears that council members are leaning toward prohibiting them in neighborhoods and only allowing them in the same areas as hotels.

Dallas City Council members spent about four hours discussing how to handle short-term rentals in the city with the biggest questions surrounding how the city will respond if things get out of hand at a rental. 

For years, Dallas homeowners have complained about short-term rentals that bring a revolving door of guests, noise and trash. 

City of Dallas still struggling to develop regulations for short-term rentals

"As an attorney, former public defender and judge, we need to remember when personal rights conflict with majority rights. We need to yield to the majority," said Carl Hays with the Oak Park Estates Homeowners Association.

Wednesday, several council members questioned the enforcement control if an ordinance was passed.

Dallas city staff admitted it would need more code enforcement workers. City staff said the number of short-term rentals has been growing rapidly. 

In the last three years, they’ve seen 73 STRs registered jump to more than 1,200.

Staff admitted there could be more rentals than they are aware of, with one analyst estimating there are 5,000 operating in the city.

The proposed ordinance would require STRs to have a representative who can meet code enforcement at the property within the one-hour notice. 

"We are expecting this ‘one-hour person’ to go to a raging party with alcohol and whatever, and they somehow stop all of this?" asked Councilmember Cara Mendelsohn. "Although, our own code people when they go as a single element, we don't ask them to go into that?"

Still no agreement made from Dallas City Council on how to regulate short-term rentals

Councilmember Adam Bazaldua argued the city could fund more resources through the fees short-term rentals would have to pay. He also argued short-term rentals that are registered and paying taxes now would legally need to be allowed to continue to operate even if the city ends up prohibiting STRs in neighborhoods. 

"All of the 1,200 in our municipal system will be grandfathered per case law," he said.

Some council members told staff they believed owner-occupied short-term rentals are not as problematic as those with owners who are off-site. They asked for the proposed ordinance to allow owner-occupied short-term rentals.

City staff also said there is a new trend where people are renting out their swimming pools, and that is also on their radar. 

Staff will bring back a refined proposal in two weeks. 

Dallas short-term rentals recommendations coming despite concerns of some council members