Dallas Airbnb Bans & Short-Term Rental Regulations

Dallas recently tried to pass new rules that ban most Airbnb and short-term rentals (STRs) in single-family neighborhoods. While these changes are meant to reduce problems like noise and overcrowding, many property owners are worried about how it will affect their ability to rent out their homes.

Meanwhile, it has also created confusion for potential guests. Short-term rentals are still allowed in commercial and apartment zones. But, the legal situation is ongoing, and both renters and landlords need to stay updated as things could change quickly.

We have researched and summarized the current situation below. We will keep this article up to date as new information is released. Be sure to bookmark and revisit this article if you’re concerned about the state of Dallas STRs.

Are Airbnb, VRBO, and Other Short-Term Rentals Banned in Dallas?

No. The regulations for short-term rentals (STRs) in Dallas are currently in flux due to ongoing legal challenges. Here's a summary of the current situation:

Zoning Restrictions: As of June 2023, the Dallas City Council passed an ordinance that effectively bans most short-term rentals from operating in single-family residential neighborhoods. These rentals are now limited to commercial and multifamily residential zones. However, due to ongoing litigation, enforcement of these zoning restrictions is temporarily on hold (source Dallas City Hall).

Registration and Taxes: STR operators are required to register their properties with the city and collect a 9% hotel occupancy tax from guests. But again, because of the legal injunction, the city is not currently enforcing the registration requirement (source Dallas Observer).

Noise and Parking Regulations: Dallas has strict regulations aimed at maintaining community standards, such as a quiet period from 10 p.m. to 7 a.m. and requirements for providing off-street parking to minimize neighborhood disruptions.

Legal Uncertainty: The ongoing lawsuit, initiated by STR operators against the city, has delayed the full implementation of the new regulations. Oral arguments for this case are expected later in 2024, and depending on the outcome, the rules may be revisited (source CandysDirt.com).

In summary, and for the time being, STRs continue to operate under limited city oversight.

What Are Airbnb and VRBO Alternatives for Owners and Renters?

Furnished Finder is a platform designed for mid- and long-term stays. It serves as an excellent alternative to Airbnb and VRBO for property owners and renters looking for rentals 30 days or longer. Here’s why it stands out:

Benefits for Property Owners:

Longer Stays: Furnished Finder focuses on longer-term rentals, starting at 30 days, which reduces turnover for owners compared to short-term platforms like Airbnb. This provides more stable and consistent rental income.
Lower Fees: Unlike Airbnb, which charges hosts a service fee on each booking, Furnished Finder only charges a flat yearly fee of $179 to list a property. This is more cost-effective for property owners looking to avoid per-booking fees.
Direct Communication: Property owners communicate directly with renters through the platform, avoiding some of the limitations that Airbnb and VRBO impose on messaging before booking.
Targeted Audience: The platform is popular among business travelers and medical professionals, which means owners can attract reliable, longer-term tenants.

Benefits for Renters:

No booking fees: Unlike Airbnb and Vrbo, renters are not charged any fees outside of the rental price, making Furnished Finder a much more economic option for travelers.
Focus on furnished, ready-to-move-in properties: Renters can find fully furnished properties suited for temporary stays, ranging from one month to several months, and sometimes even up to a year.
Tailored for professionals: The platform is geared toward traveling professionals, making it easier to find properties that are equipped for longer stays with amenities like high-speed internet and workspaces.
Direct booking and flexible terms: Renters can book directly with property owners, which allows for more flexibility in terms and sometimes lower costs, as there are fewer platform fees.

Furnished Finder is particularly attractive to those seeking mid-term rentals, making it ideal for people needing temporary housing due to work, relocation, or extended travel. For property owners in Dallas, listing on Furnished Finder could attract professionals looking for stable, longer-term arrangements.

Where to Find the Latest Dallas Airbnb & STR Policies

To stay informed about Airbnb and short-term rental regulations in Dallas, landlords and renters should regularly check multiple sources. Here are a few reliable ways to stay updated:

1. City of Dallas Official Website

Dallas Code Compliance Department: This is the official source for any updates or changes in regulations, registration requirements, and zoning changes affecting short-term rentals

2. Legal and Real Estate News Platforms

Websites like Dallas Observer and CandysDirt provide detailed coverage on legal proceedings and decisions regarding Airbnb bans and regulations. These sources often report updates on court rulings, enforcement delays, or changes in zoning laws.

3. STR Advocacy Groups

Organizations like the Dallas Short-Term Rental Alliance are key advocates for Airbnb hosts and often provide the latest information on legal challenges and regulatory updates. They also share how local laws impact short-term rental operators .

4. Airbnb’s Policy Pages

Airbnb frequently updates its platform to reflect local regulations. Hosts should check Airbnb’s policy and tax pages to ensure compliance with local Dallas laws .

5. Local Media Outlets

Keep up with Dallas Morning News, CBS DFW, and other local media that report on short-term rental regulation changes. These outlets often provide timely updates about court rulings and changes in city ordinances.

6. Public Forums and Community Groups

Neighborhood associations and local online forums (like Next door or Facebook Groups) for Dallas neighborhoods often discuss the impact of STRs and can provide localized updates. Public meetings or town halls related to STRs can also offer insights into potential changes.

What is the Definition of a Short-Term Rental in Dallas?

In the City of Dallas, a short-term rental (STR) is defined as a property, either fully or partially rented, that includes one or more kitchens, bathrooms, and/or bedrooms, and is leased to occupants for fewer than 30 consecutive days.

This classification primarily impacts properties in certain zoning areas, as planned regulations would prohibit STR operations in neighborhoods zoned for single-family residences, while allowing them in multifamily, mixed-use, or commercial zones (sources Dallas City Hall, Easy Street Capital).

What Are Short-Term Rental Regulations in Dallas?

Dallas regulations for short-term rentals (STRs) like Airbnb and Vrbo were updated significantly in 2023. Below are the key policies and requirements for owners who wish to operate STRs in the city:

Zoning Restrictions: As of June 2023, Dallas introduced stricter zoning rules. STRs are prohibited in areas zoned for single-family residences. However, they are still allowed in multifamily, mixed-use, commercial, and urban corridor zones. Multifamily properties must have more than 20 units to qualify for STR use (source Easy Street Capital).
Registration and Fees: Owners of eligible STRs must register their property annually with the city, paying a $404 registration fee, which includes an inspection. If a re-inspection is required, an additional $234 fee is charged. The registration must be updated if the property changes ownership
Occupancy Limits: STRs are limited to a maximum of three people per bedroom, with an overall cap of 12 guests per property. This rule is aimed at preventing overcrowding in residential areas (source Dallas City Hall).
Noise and Party Restrictions: Dallas enforces noise restrictions between 10:00 PM and 7:00 AM. Additionally, STR properties must have a minimum stay of two nights to reduce the risk of large, disruptive parties .
Local Responsible Party: A local representative must be available 24/7 to handle emergencies related to the STR. This is especially important for owners who live out of state or are otherwise unavailable to manage the property.
Penalties for Non-Compliance: STR owners who violate these regulations, such as operating without a permit or exceeding occupancy limits, face significant fines. The city enforces these regulations through regular inspections and responses to neighborhood complaints (source Dallas City Hall).