Fort Worth approved changes to how short-term rental properties legally operate throughout the city last week.
Fort Worth City Council approved an ordinance restricting the use of short-term rentals (STR) during a meeting on February 14. The ordinance amends Chapter 7 of the City’s Building Code to require STR owners to pay an annual registration fee and a hotel occupancy tax. It also subjects them to a handful of other new requirements.
In the ordinance, the City of Fort Worth defines an STR as “a residential property available for rent for guest lodging for a period ranging from one to 29 days.”
The City’s new registration ordinance builds on one passed in 2018, which defined STRs and limited their use to districts zoned for mixed and commercial use while making it illegal in areas zoned strictly as residential.
“We’re making this decision today to protect our neighborhoods, but we’re not completely taking out your personal property rights,” Elizabeth Beck, who represents District 9, said during Tuesday’s meeting. “You still have the right to petition the City Council just as you would any other zoning change.”
Under the new ordinance, STR operators are required to pay a nontransferable registration fee of $150 for the initial year and $100 per year for renewals. In addition, they must now limit the maximum number of occupants staying on the property to 12, with no more than one group allowed to inhabit the property at any one time, according to a list of the ordinance requirements provided by the City.
“Neighborhoods are places where people live, interact, and know one another. They tend to have unique identities, and that is evident across this city,” said Council Member Carlos Flores of District 2. “Our zoning ordinance provides categories that define how development and redevelopment are going to occur.”
While Council Member Flores affirmed his belief in property rights, he cautioned that inaction would lead to future issues with the housing market.
“I am respectful of property owner’s rights to use their properties to the fullest extent permissible under the law, but I’m also very sensitive to the homeowners and traditional renters who enjoy their residences,” he said. “Converting long-term rentals to short-term rentals shrinks the housing market, and that is something we have a problem with nationally,”
Similar ordinances have passed in other cities or are actively being proposed, which has put the business model and affordability factor of STR-focused apps like Airbnb and VRBO in jeopardy.
In December, Dallas City Plan Commission supported a proposal to outright ban STRs in single-family residential neighborhoods, according to reporting by The Dallas Express. Plano has also proposed similar actions in their city, citing surging demand in only two years.
Airbnb super host Trina Parkin has been earning rental income from her property for the past three years and doesn’t believe Fort Worth City Council considered all aspects of the debate before reaching their decision on Tuesday, according to reporting by WFAA.
“The hotel tax, I think it should be slightly different for an Airbnb because we don’t provide the same things that hotels do,” Parkin told WFAA.
“I truly do believe that that travel has changed for Americans,” she added. “I think more people are traveling now because of Airbnb, and quite frankly, they’re spending money in Fort Worth.”
The City’s website lists the following changes made by the new ordinance:
- “Short-term rentals where allowed by zoning to register.
- An annual registration and fee: $150 for the initial year and $100 per year for renewals.
- Registrations would be nontransferable.
- Collection of hotel occupancy tax for the property.
- Minimum stay is one night.
- A local responsible party must be available 24/7 to respond to concerns at the property.
- The local responsible party may be the property owner or an operator working on behalf of the owner.
- No more than one group would be allowed to inhabit the property at a time.
- Rentals would be limited to two persons per bedroom, plus two additional persons, with a maximum of 12 people staying in the property at one time.
- Only on-premise parking would be allowed.
- No events or parties would be allowed.
- The host would be required to provide instructions to comply with noise, trash, parking, and curfew ordinances.
- Advertising and operation of short-term rentals without registration would be prohibited.
- Registration may be revoked based on violations.”
