Airbnb hosts hope they can eliminate Fort Worth reservations about short-term rentals

Lauren Brady wasn’t always an Airbnb host. Prior to 2016, she used her home to house a disabled family member. But as her expenses continued to mount, Brady found herself unable to support them financially. So she dove into the world of short-term rentals and quickly discovered that the extra income was life-changing.

“It was an answered prayer because it allowed us to keep her there and protect her and even make improvements to the house to make her more comfortable and accommodate her physical needs,” he said. she declared.

But there is a catch; under the City of Fort Worth ordinance, short-term rentals in residential areas are illegal. After facing years of public criticism and city citations, the hosts are organizing to make their voices heard. Brady created the Fort Worth Short Term Rental Alliance several weeks ago, a 501(c)(6) organization that she says will work to bridge the gap between hosts and the city government.

“There is a robust hosting community out there that wants to do things the right way and wants to be a responsible neighbor,” Brady said. “They just want to be able to earn an income with their home and their greatest asset.”

A plan presented by the city ​​manager’s office offers to hire a third-party data mining company to determine how many short-term rentals are operating in Fort Worth neighborhoods. The report would also include the locations of these rentals, booking frequency and operating characteristics.

The data collected would help decide whether the city should change his prescription to allow short-term rentals in residential areas and begin collecting taxes from hosts.

“I think it’s 100% the right thing to do,” Brady said. “Actually, I think it should be done tomorrow. Any responsible host who lives in fear of losing their livelihood will be happy to register and pay their taxes tomorrow.

City loses tax revenue from short-term rentals

Traditional hotels are required to pay a 9% occupancy tax in Fort Worth and use an online application to submit payment and receipts.

In 2018, the city passed an ordinance defining short-term rentals as stays of less than 30 days. The ordinance allowed rentals in mixed-use and industrial areas, which were allowed to register and pay through the app on a voluntary basis, and prohibited short-term rentals in residential neighborhoods.

The ordinance did not stop hosts from renting out their homes in the neighborhoods and playing Russian roulette with the code enforcement. As a result, there is no method for the city to register and collect taxes from them and no way to know how much money the city is missing.

“We really just need to figure out what we’re dealing with,” city treasurer John Samford said.

The app the city uses to collect hotel occupancy revenue was created in the early 2000s. In order to add rentals to the app, staff must manually enter their information and mark it as a rental at short term.

In fiscal 2021, Fort Worth collected $23,750,000 in hotel occupancy tax. Only $28,000 of that came from 20 registered short-term rentals. The rest came from 200 hotels.

Fort Worth attracts visitors throughout the year; attractions such as the Stock Show and Rodeo, races at Texas Motor Speedway, and annual arts festivals keep people in and out of town regularly.

One solution being considered is to require all owners of short-term rentals to register their properties and pay tourist tax on a separate application. Although Airbnb collects a state tax on hotel occupancy, it does not have an agreement with Fort Worth to collect the resort tax.

Brady suggested the city work with sites like Airbnb and VRBO to start a recording program, rather than pay money to a data mining company. In Texas, Airbnb already has contractual agreements with several cities and departments.

“The city’s proposal to hire a data mining company that could take six months to get this data and cost who knows how much money sounds like bureaucracy that doesn’t need to be there,” she said.

Other Texas cities are experimenting with data mining and short-term rental orders

Several cities in Texas have already started using data mining technology. Austin staff collected data internally and used those results to register and regulate properties. The system allows the city to track and restrict rental in properties with a history of complaints.

In Dallas, city staff initially collected data on their own, but had little success. After hiring a company, hundreds of short-term rentals were identified. The city currently allows short-term residential rentals, but like Fort Worth, does not require registration. The lack of a meaningful accountability system has left Dallas residents frustrated.

“There are a lot of different options,” Deputy City Manager Dana Burghdoff said. “Fort Worth is not the same as Galveston, for example, with a lot of seasonal visits, so it won’t be the same response.”

Arlington chose to create a specific entertainment district where short-term residential rentals are permitted and prohibited them in other areas. Arlington’s model probably wouldn’t work for Fort Worth, Burghdoff said.

“Short-term rentals are much more dispersed in Fort Worth,” she said. “We’ll probably need a mix of language (in a new order).”

Residents frustrated with slow code enforcement process

Since short-term rentals are not registered with the city, code enforcement officers rely on complaints from residents to initiate investigations. In fiscal year 2021, there were 65 complaints in total.

Once a complaint is filed, it can take law enforcement officers between three and five days to gather enough evidence to prove that a property is being rented out improperly – time that could be spent on other more pressing issues.

“It’s really hard to prove when short-term rental activity is happening,” Burghdoff said. “It takes a lot of resources to stake these private properties.”

Officers should time their visits when someone is home, check the license plates of cars parked outside the building, and conduct interviews with neighbors who may have information about the problem. Even if the code enforcement department has evidence that the property is advertised on a site like Airbnb or Vrbo, the advertisement alone is not enough to cite someone for a violation of the order.

“That’s one of the reasons we want to do the data mining, to help us understand how many short-term rentals there are. Not just the ones we get complaints about, but the ones we can validate that they not only advertised a short-term rental, but actually had a reservation,” she said.

Once property data is collected, Burghdoff said, it will be easier for the code enforcement department to identify and notify property owners when a complaint is filed.

Short-term rental hosts harness the power of numbers

Although still in its infancy, the Fort Worth Short Term Rental Alliance has attracted host members from all walks of life. Some are real estate investors; others are retired couples looking to supplement their income. By organizing the group, Brady hopes his interests will be better represented in city government.

“Our group really runs the gamut of anyone who wants to be involved in short-term rental business,” she said. “But the one thing we all have in common is that we want to do it the right way and we want to be great.”

One of the main arguments against legalizing short-term residential rentals is the fear of increased neighborhood noise and partying. The city could hold hosts accountable if the practice is made legal and a registration system is put in place, Brady said.

“We know that there are things the government is not prepared for or does not have the capacity to handle if this order is changed and short-term rentals are allowed in the future,” he said. she declared. “So we would help with things like educating hosts on how to fully control your guests and how to contribute to economic development within your own community.”

Susan Wilson, a retired middle school teacher, said she has made several good friends since she was a host. She loves being able to show her city to newcomers and provide a safe space for women traveling alone.

“I feel like I’m a good person for them because I can pay attention to them,” she said. “Women traveling alone need a lawyer. If there’s a situation or if they need something, I’m just a phone call away, and they’ve met me before, so they know me. Airbnb hosts put a personal face on Fort Worth.

The money Wilson earns from hosting helps supplement her retirement income and keeps her busy and social now that her children have moved out of the family home.

Brady said several couples stayed with her while adopting a baby in Fort Worth. Expectant parents must stay within the city limits for about two weeks before leaving with the child.

“These parents don’t want to have a newborn in a hotel,” she said. “They want a house. So I’ve taken in seven or eight parents who are literally here adopting children.

The full city council likely won’t see a resolution on legalizing short-term residential rentals for several months. In the meantime, the hosts have launched a online petition requesting a pause in the ongoing enforcement actions. As of Monday, the petition had collected 222 signatures.