Dallas

Court of Appeals Sides with Short-Term Rental Operators in Dallas Ordinance Dispute

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Published on February 11, 2025
Court of Appeals Sides with Short-Term Rental Operators in Dallas Ordinance DisputeSource: Google Street View

The legal tussle over the fate of short-term rentals in Dallas took a significant turn recently when a court of appeals decided to favor the rental operators. Upholding a temporary injunction by a lower court, the ruling allows businesses like Airbnb and Vrbo to continue their operations in the city's residential neighborhoods, according to KVUE.

Last year, the Dallas City Council implemented an ordinance to ban approximately 90% of short-term rentals in areas zoned for single-family use, igniting a lawsuit from the Dallas Short-Term Rental Alliance. According to KVUE, the group argued that the regulations were unconstitutional, and last December, District Court Judge Monica Purdy sided with their likelihood of success in this claim. The city argued against this in appeal, yet the court remained unconvinced, judging that the city presented no concrete evidence of rental owners evading hotel occupancy taxes.

Residents like Jason Wanderscheid from West Dallas have voiced concerns over the disturbances caused by transient neighbors and disruptive parties. "You know, your windows rattle. I’ve also got a dog. She’s not too terribly happy with that as well. I mean, it’s impossible to sleep," he said, per FOX 4, after police disbanded a noisy Labor Day gathering. On the opposing end of the spectrum, Attorney David Coale, representing the short-term rental advocates, deems the city’s ordinance disproportionately harsh. "Ninety plus percent of short-term rentals were just going to end, and that is a big impact on a lot of people that just doesn’t match up with the evidence that they have in this record about the problems," he asserted.