After Almost 5 Hours of Short-Term Rental Debate, Council Votes to Keep It Simple, Sort Of
Dozens of attendees in the gallery of the Dallas City Council chambers spent their Wednesday waiting for a pair of measures that would drastically change the short-term rental industry in the city.
At the end of a nearly five-hour debate, Council approved zoning that automatically makes 1,154 Airbnbs, Vrbos, and other short-term rentals illegal in single-family residential neighborhoods. Council also passed an ordinance that will provide the city’s code compliance team with a set of rules to apply to the roughly 300 STRs operating in multifamily residential areas. There could be as many as 3,000 more operating in the city without proper registration, spread across single-family and multifamily zoning districts.
Supporters of the ban branded their platform the Keep It Simple Solution, or KISS. That solution was to zone them out of single-family communities. Councilman Paul Ridley, of East Dallas, was their champion. He reiterated that short-term rentals are bad for neighborhoods, something he’s said many times over the past years of discussion.
“It is time to take decisive action to preserve the quality of life in Dallas neighborhoods and not to delay any longer what our residents tonight and previously have been clamoring for,” he said.
Before the discussion, City Manager T.C. Broadnax defended the work of city staff, which issued a late recommendation to allow STR operations with additional regulations. That recommendation largely failed.
“Unfortunately, there is no solution that is going to please everyone and we know that,” Broadnax said. “This is a challenging issue, and we have done our best to work towards a sensible solution, not a perfect one.”
The 12-3 vote will allow short-term rentals in commercial areas and caps how many can operate in multifamily, which are defined as plots of land upon which more than one housing unit is located. The rentals are banned in buildings with fewer than 20 units and can only occupy 3 percent of the units in larger developments. For commercial zoning, no more than 20 percent of a building can be used as short-term rentals.
This has been a debate filled with tension. But around 10 p.m., it became clear that some version of the KISS option would be passed. At that point, the council members who lobbied hardest for the measure visibly relaxed. They accepted concessions that banned the operations in single-family residential while allowing caps in other zoning districts. (In addition to Ridley, the most vocal supporters of a ban included Preston Hollow’s Gay Donnell Willis, Far North Dallas’ Cara Mendelsohn, east and southern Oak Cliff’s Carolyn King Arnold, and West Dallas’ Omar Narvaez.)
Council members Chad West and Adam Bazaldua attempted to soften the blow of the KISS option by grandfathering in existing, registered STRs that were current on their hotel tax payments. They also pushed a provision that would allow STRs in single-family residential if a caretaker was on site.
Both members said that responsible operators were being punished by the actions of a few bad ones. They argued that it would be more financially responsible for the city to retain those owners and continue to collect fees and taxes.
West also said he felt that the zoning wouldn’t hold up in court or against a state legislature that is seemingly trending toward bills that hamper local control.