Short-term rental operators in Dallas are grappling with the consequences of a recent decision to ban the vast majority of short-term rentals throughout the city.
“I’m still seeking answers because nothing is clear at this point,” said Sharron Sadacca, a local real estate agent and short-term rental (STR) owner, according to The Dallas Morning News.
The Dallas City Council voted last month to amend the City code to prohibit STRs in residential neighborhoods, as previously reported by The Dallas Express. Enforcement of the decision begins in December, after which only about 2% of existing STRs in the city can continue operating.
“You can’t put … 1,700 entrepreneurs out of business in one fell swoop who are obeying the law, and not have anything to say about it,” said Lisa Sievers, who owns two STR properties in East Dallas and sits on the board of the Dallas Short-Term Rental Alliance (STRA), reported DMN.
“For the city to just kind of say, ‘Uh, sorry, y’all go fish now,’ it just strikes me as something that’s unfair and perhaps not very well thought out,” she continued.
In a statement to The Dallas Express, Sievers said her trade group was “disappointed” by the City Council’s recent decision.
“We had worked with the City on three different City-led Task Forces over the last three years to come up with solutions … which seemed to be workable, effective, and funded by STR Owner/Operators,” she claimed. “Unfortunately, the City Council chose to move forward with a ban, putting roughly 1700 law-abiding, [hotel occupancy tax]-paying entrepreneurs out of business.”
Sievers told The Dallas Express that STRA is encouraging STR operators to comply with the City’s decision but indicated that the City of Dallas may soon face a legal battle with STR operators.
“Regarding a potential lawsuit against the City, stay tuned,” she said. “Major announcements will be coming soon.”
Sievers told DMN her organization has law firm Husch Blackwell retained on an “advisory” status.
Many STR owners throughout the city said they would rent their properties for “long-term” periods of at least 30 days rather than leasing or selling the property, according to DMN.
Airbnb, one of the most popular STR companies in the nation, released a statement criticizing Dallas’ decision.
“Airbnb supports sensible short-term rental regulations, but Dallas instead opted for an ordinance that ignores years of input from various community stakeholders and does not take into account private property rights,” the company said, per DMN.
When the City Council was preparing to decide the issue, dozens of community members and advocates came to City Hall, speaking firmly against having STRs in their communities, as previously reported by The Dallas Express. Many residents shared with council members stories of party house disasters, shoot-outs, and drug use at STRs in their neighborhoods.