HomeMy WebLinkAboutIR 10719 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10719
To the Mayor and Members of the City Council December 7, 2021
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x SUBJECT: SHORT-TERM RENTALS
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This report provides information regarding current regulations and enforcement of short-term rental (STR)
in Fort Worth and information on the regulation of STRs by other cities in Texas. Short-term rentals are
dwelling units where compensation is received for overnight lodging for 1 to 30 days.
ZONING
Prior to 2018, short-term rentals were not defined, expressly allowed or listed in the Zoning Ordinance and
were treated as analogous to a hotel or motel use. In February 2018, the City Council adopted Ordinance
No. 23110-02-2018 which provided a definition for short-term rental and amended the land use tables to
indicate in which zoning districts short term rentals are allowed by right. Currently, STRs are allowed in all
mixed-use and most form-based districts, commercial (E-G), and industrial districts (I-K) with a Certificate
of Occupancy. STRs are not allowed in residential districts (A-UR).
A property owner seeking to operate a short-term rental in a residential district is required to submit a
rezoning application for a planned development district to add the use of short-term rental. The City has not
received any rezoning applications for short-term rental.
ENFORCEMENT
The Code Compliance Department investigates citizen-initiated complaints regarding short-term rentals.
While some complaints are received for previous short-term rental violators, most complaints are generated
due to nuisance activity occurring during the renter's stay, such as parties, noise and trash. When complaints
are received in residential districts, the property owners are issued educational information advising them
of the ordinance and possible enforcement actions if short-term rental activity is observed. Since most
activity occurs online (bookings and payments) and within a private residence, these violations are difficult
to prove. Suspected properties are monitored for activity, including online bookings, vehicle traffic and
conversations with renters. When violations are observed, citations are issued to the property owners. The
City cannot issue citations based on STR advertisements or online bookings alone.
Previously tracked as a general zoning violation, a separate category was created in June 2019 to track
short-term rental violations. Below are the number of cases worked since the creation of this category.
• FY2019 —23 cases (59 inspections)
• FY2020 — 52 cases (258 inspections)
• FY2021 — 71 cases (278 inspections)
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10719
To the Mayor and Members of the City Council December 7, 2021
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SUBJECT: SHORT-TERM RENTALS
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OTHER CITIES
City Zoning License/Permit Insurance Inspection Hotel and
Occupancy Tax
Fort Worth Not allowed in residential N/A N/A N/A Collected if paid
districts; allowed in
mixed-use,commercial,
and industrial
Austin* 3 tiers of STRs allowed in Renewable annual Required Required Required to be
residential districts license paid
with restrictions
Arlington* Allowed in designated Renewable annual Required Required prior to Required to be
zone and in certain license issuance of license paid
single-family districts
based on density
Dallas No zoning regulations Exempted from N/A Exempted from Required to be
rental home rental home paid
registration program inspection program
Grapevine* Not allowed in any zoning N/A N/A N/A Collected if paid
district
San Antonio Allowed in residential and 3-year renewable; Required Required upon Required to be
commercial districts; nontransferable complaint or paid
Tiers based on ownership violation
and density allowances
by special exception
* Litigation—Austin,Arlington and Grapevine cases more fully explained below.
COURT CASES:
The cities of Austin, Arlington and Grapevine have been involved in litigation involving their STIR regulations.
Austin and Arlington allow STIR in limited areas and subject to certain operating requirements, while
Grapevine has a complete prohibition on STRs.
Zaatari v. City of Austin: (ordinance partially invalidated)
In November 2020, the Third Court of Appeals in Austin invalidated the City of Austin's ban on short-term rentals
of non-owner-occupied properties after 2022 because it was unconstitutionally retroactive and found
unconstitutional regulations prohibiting outdoor assemblies between certain hours and a limitation on the number
of persons. Austin appealed the decision but was denied cert by the Supreme Court of Texas.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10719
To the Mayor and Members of the City Council December 7, 2021
Page 3 of 3
SUBJECT: SHORT-TERM RENTALS
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Draper v. City of Arlington: (ordinance upheld)
In August 2021, the Second Court of Appeals in Fort Worth denied homeowners' request for a temporary
injunction to prevent Arlington from enforcing two new ordinances. The first ordinance amended Arlington's
Unified Development Code to allow STRs only in certain areas of the city and the other ordinance regulated the
operation of STRs. Arlington has created an STR Zone, extending one mile from their entertainment area
including the stadiums, where STRs were allowed by right. Arlington also allowed STRs in residential medium-
density zoning districts, residential multifamily zoning districts, and nonresidential and mixed-use zoning districts.
In September 2021 the Drapers filed a petition for review of the decision with the Supreme Court of Texas.
City of Grapevine v. Muns: (pending)
In July 2021, the Second Court of Appeals held that the property owners challenging Grapevine's ordinance
prohibiting STRs in the City had a vested right to lease their properties and as such supported claims to challenge
the constitutionality of the prohibition on STRs and to seek injunctive relief to prevent Grapevine from enforcing
the prohibition on STRs. Grapevine has filed a motion to request for a rehearing before the full panel of the Court
of Appeals.
The Supreme Court of Texas is yet to render an opinion on a municipality's STR regulations or more specifically
on the issue of whether a municipality can completely prohibit the use of single-family dwellings as an STR. Until
an opinion is rendered or guidance is provided by the Texas Legislature, the adoption of municipal regulations
on STRs remains unclear with each municipality weighing the positives and negatives associated with STRs.
For zoning questions on STRs, please contact D.J. Harrell, Development Services Director, at 817-392-
8032 or Melinda Ramos, Senior Assistant City Attorney, at 817-392-7631. For enforcement questions on
STRs, please contact Brandon Bennett, Code Compliance Director, at 817-392-6322.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS