Now that the City Plan Commission has voted to define short-term rentals as accommodation use, what exactly does that mean for the future of these properties?
On the face of it, that just means the CPC, a recommending body appointed by the 14-member Dallas City Council, has agreed to classify short-term rentals, like Airbnbs, in the same category as hotels, which means that they should go to areas that are intended for such use.
It also means that they could not continue to operate in residential areas.
Upon closer inspection, however, there are a few other issues at play. The first is that the Dallas City Council hasn’t even put the item on the agenda and likely won’t in the immediate future. .
The majority of incumbent council members, along with Mayor Eric Johnson, are seeking re-election in May. STRs are a political hot potato that no one wants to touch before the election, city officials said.
Will the City take action against STRs?
Once council action is taken, if it results in removal of STRs neighborhoods, it has been suggested that those operating an STR will “hide” and try to stay off the radar. This could work for those who live on-site or closely monitor their tenants’ activity. It’s been said that one could be living down the street from a properly functioning short-term rental without even knowing it.
Those who operate party houses and haunts of illegal activity can be sure that if the restrictions are approved by the Dallas City Council, they will be promptly reported and could face a fine or arraignment in city court.
But, again, there is no immediate consequence for current STR operators and no immediate relief for those living nearby.
Here’s what residents on both sides of the issue have to say.
Comments from neighbors on short term rentals
Many residents contacted CandysDirt.com and told us that rental properties shouldn’t have operated in residential neighborhoods in the first place, per city code.
District 14 resident Olive Talley said during the December 8 CPC meeting that the issue has become one of investor profits versus the sanctity of people’s homes and the sense of community and security that comes from knowing one’s neighbors.
“STRs are commercial accommodation companies, period,” she said. “They unravel the fabric of neighborhoods. They are exacerbating our housing shortage and the marketing of homes across Dallas. As full-time residents and landlords, we unite in asking you to respect existing zoning by defining STRs as accommodation use that is already illegal in residential zoning.
A District 13 resident said she was assaulted and robbed by a party bus driver outside an STR in her neighborhood. Other residents said they were approached by drug dealers and saw evidence of prostitution and human trafficking in STRs in residential areas.
“You can save this town,” a District 3 resident told CPC. “Please pull us out of the gates of hell.”
Are short-term rental owners good neighbours?
But they are operating in residential areas. At least 2,628 STRs are active in the city of Dallas, according to city data. Some say there are up to 6,000.
Additional data showed that more than 88% of Dallas STRs generated no 911 or 311 calls this year. The data isn’t particularly useful, however, because by the time a code enforcement officer or police officer arrives to remedy a nuisance, it’s too late, deterring neighbors from calling at all.
“When I hear all these horror stories about party houses, to me it’s not a zoning issue, it’s a regulatory issue to shut them down,” said Plan Commissioner Brandy Treadway , one of four who voted against the definition of housing use. “How do you close a party house? You have really good resources. The better the regulatory regime you have, the more resources you have to reduce bad actors.
Grady McGahan, a member of the city’s Arts and Culture Advisory Board, said he was able to afford his home in District 5 with income generated from his STR.
“I know my neighbors,” he says. “I bring cookies when they move in. A solution that we work together to solve the problems is the only way. Several task forces have recommended regulation without zoning. Do not throw the good with the bad. A war against all STRs won’t work.The only solution is one that creates additional police and municipal resources, and makes all of us partners.
What’s next for short-term rentals in Dallas?
Director of Housing and Neighborhood Revitalization David Noguera said short-term rentals provide much-needed affordable housing.
“You have a lot of people coming to a town for a short term, whether it’s a traveling nurse or one of my colleagues looking for housing or taking a short-term job,” he said. “If you look at their options, they can either sign a one-year lease or take a hotel, which is very expensive. Short-term rentals provide that interim balance at a much more affordable level.
These are generally not market-priced apartments; these are houses that have been rehabilitated and are owned by investors or rooms that owners rent out to supplement their income, Noguera said, adding that he cannot point to any particular city that has struck an appropriate balance.
“If you ban them, you force the industry to go underground,” he said.
It is difficult to determine the impact of STRs on the housing market, added Noguera.
“If you look at the overall numbers, it’s easy to say, from a percentage perspective, those numbers are very low,” he said. “But then you have to focus on where those short-term rentals are. It is possible that they are concentrated in certain districts and non-existent in other districts. One of the things that I find very valuable with short term rentals is being able to assess the fees to allow them to exist, so you can track them and understand the patterns that form. To a large extent, we operate in the dark.
Many residents encouraged the CPC at the Dec. 8 meeting to vote so the issue could go to the Dallas City Council.
The CPC went ahead with a vote, and City Council has many options on what to do with this recommendation.
District Councilor 14 Paul Riley expressed support for the “Keep It Simple solution,” which is what the CPC endorsed on Dec. 8. Other council members have expressed interest in allowing STRs in neighborhoods with heightened regulations. If the vote takes place after the May election, District 10 Councilor Adam McGough and District 3 Councilor Casey Thomas will be absent due to term limits. The deadline for filing is February 17, so it’s not yet clear who’s showing up, but several have announced their intention.
Because the city faces a housing shortage, some elected officials have been reluctant to pull housing off the market that could be used for long-term residents. However, there are options such as special use permits, secondary suites and the availability of STRs in planned developments.
Residents on both sides of the issue encouraged appointed and elected officials to engage residents and reach a compromise.
“It shouldn’t be about winning or scoring political points,” McGahan said. “It should be about solving the problems. I don’t know where we got away from those three years in this process.
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