Is there a ban of STR’s in the City of Dallas?
Dallas City Council passed a zoning amendment 6/14/23 to amend “Lodging Uses” in the Dallas Development Code to define a new use called “Short Term Rental Lodging” to be permitted in lodging-only zoned areas and mixed use areas. This effectively BANS STRs in residential areas. STRs are allowed in Multi Family areas, but with heavy density restrictions.
What is the new City STR Registration Ordinance?
Dallas City Council passed a registration ordinance 6/14/23 that covers the operations of STRs. It includes registration requirements, HOT registration, annual fee, responsible party, property inspection, occupancy limits, minimum 2 night stay, 2 strikes and other requirements.
When will the City of Dallas start enforcing the new ordinances?
The estimated enforcement date is December 14, 2023.
Do I need a permit to operate an STR in Dallas?
Yes, you will need to register for HOT and register with the City of Dallas to continue to operate. Enforcement begins 12/14/23.
I am not in an allowed zone, am I grandfathered in as I was operating before the ban?
The City of Dallas specifically voted against grandfathering. If our lawsuit is unable to get the ban overturned, we hope to get existing STR operators grandfathered in. We suspect that STRs that were paying their HOT have the strongest case for being grandfathered in so keep paying your HOT!
I am in an allowed zone, Do I need to register/How do I register?
The City of Dallas is still getting the registration process set up. They expect to have registration ready to go by December when enforcement starts.
I STR my house where I have a homestead exemption. I either regularly rent out a room or I rent out the entire house while I go on a vacation. Is this allowed?
The City of Dallas has not announced any exceptions to the ban yet. Until we get clarification with the lawsuit, the City is not saying if this is or isn't allowed
How do the inspections work?
As with Registration, the City of Dallas is still working on this and has not announced anything about how inspections work. Per the regulations, properties must be inspected first before their registration application can be approved. All properties must be inspected. The initial inspection fee is included in the registration fee. The City has not announced a self-certification process yet like what exists for the Single-Family Residence Rental Program.
Should I keep paying HOT?
Unlike the zoning ban, City of Dallas requiring STR hosts to collect and pay HOT is legal. The DSTRA is not arguing against HOT collection. The penalty for not paying HOT is a substantial fine. STR hosts that have been paying their HOT are in the strongest position to be allowed to continue operating so keep paying your HOT!
I got a letter from the City of Dallas, what should I do?
The City of Dallas recently sent out notifications alerting people they think might be affected by the zoning change. Cities are legally required to send out notifications when zoning changes may impact citizens. This is purely informational to let people know there has been a change in case they otherwise missed it. This is not a cease-and-desist letter or warning of legal proceedings.
Will I get fined for running my STR with this new ban?
Yes. The ban carries a $2,000 fine per violation for continuing operation. Legal advises that this fine is per night that you rent your STR.
Do STRs require special insurance?
Currently it is not required, but we recommend it. There are insurance companies that carry STR-specifc policies and some that offer it with a home policy at no additional charge.
What is DSTRA doing about the ban?
DSTRA has retained legal council and is moving forward with a lawsuit to defend our right to continue to operate STRs.
How do I join the DSTRA lawsuit?
Anyone can make a contribution to the DSTRA lawsuit here: Your contribution helps ensure we can fund the lawsuit and challenge the ban. If there is no lawsuit, then the ban stays in place and all STR owners lose. DSTRA will be a plaintiff in the lawsuit per our litigation team's current strategy. We are asking $500 per owned-STR and $200 per STR service, but all contributions are greatly appreciated. Remember, you can sign up to pay monthly!
Are Airbnb and VRBO involved in the legal defense against the City of Dallas?
Airbnb and Vrbo have and continue to contribute enormously to our efforts to fairly regulate STRs in Dallas. They have assigned lobbyists to our state and city and they have publicized our events. As of this wiriting, they have not contributed to our legal fund. No one is coming to save us, this is a fight we must take up ourselves.
City Council moved to ban STRs out of residential areas!DSTRA has selected our litigation team to move forward with legal action!
- $150,000 estimated cost to file an injunction and pursue the case at the district court level
- $100,000 estimated additional cost if the case goes to the appellate court
- $50,000 estimated additional cost if the case goes to the Texas Supreme Court
Experience the difference of “Elite.” OwnerRez is internationally recognized as a leader in the vacation rental industry for channel management, CRM, PM, accounting, messaging, and websites. Integrate with all major vacation rental channels to seamlessly sync availability, rates, rules, and listing content. Get your own modern fast website, process payments directly, manage inquiries, communication, and guest checkout with e-sign renter agreements.
Vacasa is the leading vacation rental management platform in North America, transforming the vacation rental experience by integrating purpose-built technology with expert local and national teams. Homeowners enjoy earning significant incremental income on one of their most valuable assets, delivered by the company’s unmatched technology that is designed to adjust rates in real time to maximize revenue. Guests can relax comfortably in Vacasa’s 40,000+ homes across more than 500 destinations in the United States, Belize, Canada, Costa Rica and Mexico, knowing that 24/7 support is just a phone call away. In addition to enabling guests to search, discover and book its properties on Vacasa.com and the Vacasa Guest App, Vacasa provides valuable, professionally managed inventory to top channel partners, including Airbnb, Booking.com and Vrbo. For more information, visit vacasa.com.
Choosing the right solution to caring for your vacation home can be a big decision. With Guestworks, we make that decision easy. Guestworks runs on the same technology platform as Vacasa, a platform that has hosted more than 3 million guests across tens of thousands of vacation homes. With our proven marketing engine designed specifically for promoting and booking vacation homes, each listing is distributed across our partner channels to ensure your vacation home is seen. By partnering with Guestworks, you’re committing to the success and ease of owning a vacation home. For more information, visit vacasa.com/guestworks