The city of Dallas is asking the Texas Supreme Court to review its case against short term rental operators after lower court rulings blocked the city from enforcing two ordinances restricting how the rentals operate.
In a petition filed Thursday, Dallas claims the trial and appellate courts made a mistake in allowing STRs to continue operating and should lift the ban on the ordinances amid the ongoing case. It argued that by continuing to block the measures, the city won’t be able to ensure STRs are operating safely when the FIFA World Cup brings in visitors next year.
“[T]ime is of the essence,” court documents read. “The world will soon converge upon Dallas for the 2026 FIFA World Cup. STRs will be in high demand. And with the ordinances erroneously enjoined, it will be more difficult for the city to proactively ensure the health, safety, and quality of life for residents and visitors alike.”
The Dallas Short-term Rental Alliance, one of the plaintiffs in the ongoing suit against the city, said it’s “preparing for this new challenge” from the city in an email to KERA News Tuesday.
“Our goal has always been to work with the city on the serious business of putting a reasonable ordinance in place that represents the interests of our membership as well as the neighborhoods in which we live and we look forward to the time when this process can begin,” STRA board member Lisa Sievers said.
Sievers added that the alliance group is also holding a series of classes for first time STR hosts to educate them on how to run the rentals.
The legal battle between STRA and the city of Dallas began in 2023 after the city council approved two ordinances limiting STR operations in the city, which would ban rentals like Airbnb and VRBO in single-family residential neighborhoods.
The ban was put on hold by a Dallas County judge that same year after the Alliance and a group of rental operators sued the city, claiming the new regulations violated the state constitution.
The city has since filed to appeal that decision several times this year, but the court of appeals sided with the STRA each time — once in February, a second time in July, and again in August.
A court in February said the STRA would face “irreparable injury" if the city went ahead with enforcing the ordinances. But Thursday’s court filing by Dallas argues any harm the Alliance group claims can be alleviated by damages or compensation.
In the past, the city said the STR policies are meant to limit where those properties can operate. It argued previously, and again in Thursday’s court filing, that STRs negatively impact neighborhoods by bringing in loud parties, litter and parking issues. Homeowners have also argued it’s brought in more crime and are concerned about safety.
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