Short-term rentals in Dallas have been on the chopping block all year, and a recent vote could mean the same heading into 2023.
Short-term rental (STR) is generally defined as the rental of all or part of a residential property to a person who is not a permanent resident.
However, with the Dallas City Plan Commission’s (CPC) December 8 vote to define STRs as a form of “lodging” — the same category as hotels — what does this mean for the local rental community in Dallas?
To start, the CPC is an appointed body responsible for making recommendations to the City Council regarding planning and zoning matters, meaning the vote to amend the definition of STRs has to pass a Council vote before any policy decision is made.
That is not likely to happen soon, given the item’s absence from upcoming agendas. However, if approved by Council members, STR properties would be disallowed in most residential neighborhoods.
Currently, Dallas has no existing policy standards guiding the use of STRs besides considering such a rental property as a hotel for tax purposes.
Still, the news is viewed as a positive first step by some residents who have been outspoken about STR platforms like Airbnb and VRBO.
Dallas resident Olive Talley believes STR properties have a corrosive effect on neighborhoods and said as much during the December 8 CPC meeting.
“STRs are commercial lodging businesses, period,” Talley argued. “They unravel the fabric of neighborhoods.”
Citing an example, she explained her opinion that “they worsen our housing shortage and the commercialization of homes across Dallas. As full-time residents and property owners, we stand together to ask that you uphold existing zoning by defining STRs as a lodging use that’s already illegal in residential zoning.”
Not everyone is happy with the CPC’s vote and what it could mean for STR properties in Dallas, though.
“When I hear all these horror stories about party houses, to me, it is not a zoning issue. It is a regulation issue to shut them down,” said Plan Commissioner Brandy Treadway.
Treadway asked, “How do you shut down a party house? You have really good resources. The better the regulatory regime you have, the more resources you have to cut down the bad actors.”
Arts and Culture Advisory Commission member Grady McGahan voiced opposition to the vote, telling Dallas real estate news site CandysDirt.com that he is able to afford his home in District 5 because of the rental income generated through his STR.
“I know my neighbors,” McGahan said. “I bring cookies when they move in. A solution to which we work together to solve issues is the only path.”
Referring to past attempts at compromise, McGahan said, “Multiple task forces have recommended regulation without zoning. Don’t throw the good out with the bad. A war on all STRs won’t work. The only solution is one that creates additional city police and resources and makes partners of us all.”
In June, the Zoning Ordinance Advisory Committee (ZOAC) issued a plan review that set out to protect STR users while preserving the neighborhood character of residential districts. It suggested ways to minimize adverse impacts on the housing supply caused by converting residential units to transient use.
Whatever is decided about STRs, the housing supply shortage in the city will not be remedied soon, as city officials and City Manager Broadnax still struggle with the building permit backlog.