The City of Keller is considering regulating short-term rentals to better manage issues with loud parties, parking, noise and garbage, and tax collection.
Short-term rentals, or STRs, are commonly listed on websites, such as Airbnb and Vrbo. The settlement would apply to “a couch, bedroom, secondary suite, apartment or house for ‘short-term’ rental,” according to a staff presentation at the July 5 city council meeting.
“The challenge for STR is that it’s a business located in a residential zoned neighborhood,” Community Development Manager Julie Smith said during the presentation.
Among the proposed regulations, owners of short-term rentals in Keller:
- register annually with the city;
- pay the required municipal tourist tax;
- provide owner contact information 24/7;
- rent no more than 30 days to the same occupant and rent no more than 180 days per year;
- limit guests to two people per room;
- ensure that all rooms have two entry/exit access points;
- provide parking for all guests on site on an approved surface;
- not organize events requiring a municipal permit; and
- comply with noise and waste ordinances.
Under the staff proposal, owners who receive three code violations in one year would have their registration revoked for six months.
Staff also recommended that the city allow short-term rentals in all residential areas as well as the downtown and Old Town neighborhoods of Keller, and the planned Center Stage development. The city would allow only one short-term rental per lot or per building, such as a townhouse or duplex, depending on the presentation.
The Board took no action at the meeting, but expressed concerns about several of the recommendations. Most council members took issue with, for example, the rental limit of 30 days to one person and no more than 180 days during the year.
It was unclear whether the city could revoke a landlord’s right to operate a short-term rental, according to City Attorney Stanton Lowry.
In addition, the council was not in favor of the application of the municipal hotel occupancy tax. Council member Chris Whatley proposed instead to have an annual fee for short-term rental owners.
The council’s greatest interest in creating bylaws would be to deal with landlords whose tenants violate ward and city ordinances, the discussions said.
“I think we have to strike a balance between protecting people’s constitutional rights as owners of a given property,” Mayor Armin Mizani said. “And when I say finding balances, I’m generally not opposed to the idea of having some sort of registry where we know these are houses that are being offered for rent.”
During the meeting, council also heard concerns about the proposed order from short-term rental operators and residents of Keller. Council plans to hold another working session to see a draft of the short-term rental ordinance on August 2.
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