A Dallas City Council member says the City is forgoing millions in potential revenue because of initiatives meant to slow the short-term rental market.
District 1 Council Member Chad West says he wants to assess the ordinance passed in Dallas last year that effectively prohibits short-term rentals (STRs) in the City.
In June 2023, The Dallas Express reported that the Dallas City Council voted 12-3 to ban STRs in single-family residential neighborhoods. The contentious vote drew dozens of registered speakers to the meeting held at the time, with most opposing the STRs, citing disastrous house parties, drug use, and even shootouts.
In July 2023, Lisa Sievers, who owned two STR properties in the City at the time and sits on the Dallas Short-Term Rental Alliance Board, told The Dallas Express she was “disappointed” by the City Council’s decision.
“Unfortunately, the City Council chose to move forward with a ban, putting roughly 1,700 law-abiding, [hotel occupancy tax]-paying entrepreneurs out of business,” said Sievers.
West echoed Sievers’ assessment at a recent Government Performance and Financial Management Committee meeting.
“I think we passed the most heavy-handed ordinance possible and it’s clear that the courts agree… We could continue waiting and while we’re waiting we’re missing out on tens of millions of potential HOT [Hotel Occupancy Taxes] tax money,” West said, per KERA News.
The ban’s implementation has been anything but smooth. The ordinance prohibiting STRs is currently unenforceable following a group of rental operators suing the City.
City officials say roughly 2,000 active STRs in Dallas generated $4 million in Hotel Occupancy Taxes between June 2023 and August 2024. Most of that money is used to fund the convention center, while a portion is allocated to arts and tourism funding. By 2026, the year the FIFA World Cup visits Dallas, City tourism officials say the HOT totals could surpass $40 million.
Around 1,500 “potential” STRs are also active in Dallas. These unofficial rentals are not registered with the City.
While West says the City is missing out on lucrative tax revenue, not all council members want to revisit STRs.
“We’ve debated this ad nauseum, we’ve had so much community engagement… I can’t believe you’re wanting to do this again and I feel like you’re hijacking this committee to do it,” District 12 Council Member Cara Mendelsohn said to West.
While Mendelsohn says she recognizes the potential revenue, she also believes the City has more to lose than to gain by permitting them.
“It’s not lost on me to talk about the revenue that is possible to be generated by short-term rentals… The reality is if we open up our City to short-term rentals people will chose not to live here long term because they don’t want to have that kind of intrusion in their neighborhoods,” said Mendelsohn.
