On December 6th, 2023, a Dallas County judge, Monica Purdy, temporarily halted the city of Dallas’ new regulations on short-term rentals (STRs), which were about to be enforced. These regulations aimed to limit STRs like VRBO and Airbnb in single-family neighborhoods, requiring operators to register, obtain inspections, and pay fees.
The Dallas Short-Term Rental Alliance and other plaintiffs argued that the ordinance would effectively ban 90% of rentals, overly restricting the few that remain.
The city had justified the regulations by citing the negative impact of a surge in STRs on residential areas, claiming they turned homes into “mini hotels” for transient occupants. Some residents supported the regulations due to nuisances caused by rentals. However, Judge Purdy found that the regulations would cause “irreparable harm” to STR operators, who have heavily invested in the industry, asserting that STR activity is a protected right in Texas.
The city is considering its next steps but will continue to enforce existing ordinances related to property standards and nuisances. A trial is set for June 3, 2024, to further examine the case.
Summary of the previous ordinances (no longer valid)
- STRs are defined as rentable units leased for fewer than 30 consecutive days.
- STRs are allowed in specific districts, including multifamily and non-residential zones, with a right in MO, GO, central area, mixed use, multiple commercial, and urban corridor districts.
- One off-street parking space per bedroom used for STR lodging is required.
- STRs must comply with Chapter 428, “Short-Term Rentals,” of the Dallas City Code, and the number of STRs in a single rentable unit may not exceed one.
- STRs are prohibited from being used for certain commercial purposes unless appropriately zoned and certified.
- Violations of the ordinance are punishable by fines up to $2,000.
- The ordinance includes a severability clause and takes effect immediately after its passage and publication, with enforcement actions to be taken no earlier than six months following its passage.
This ordinance reflects Dallas’s effort to manage the growth of STRs and mitigate their effects on neighborhoods and housing availability while providing a framework for their operation in more suitable districts.
