A Dallas-area appeals court says the city can’t enforce two ordinances banning the operation short-term rentals in some parts of Dallas, affirming a trials court’s decision last year.
In a judgement issued Friday, the court found the plaintiffs — a group of STR operators in Dallas — would face “irreparable injury" if the city went ahead with enforcing the ordinances, which would ban rentals like Airbnb and VRBO in single-family residential neighborhoods.
Writing an accompanying opinion for the Fifth Court of Appeals, Judge Yvonne Rodriguez pointed to the plain language of the ordinances, which state they "take effect immediately” — in possible violation of the plaintiffs’ property rights while the case moved forward.
“This evidence supports the trial court’s finding that without injunctive relief, appellees would suffer probable, imminent, and irreparable injury to their vested property rights,” Rodriguez wrote in the opinion.
The city also argued more than half of STR owners weren’t paying a required hotel occupancy tax to operate, but the court said the city had no evidence to support those claims.
KERA News reached out to lawyers for the city and a group advocating for STR owners -- the Dallas Short Term Rental Alliance -- and will update this story with any comment.
The legal battle began in 2023 after the city council voted to approve the two ordinances limiting STR operations in the city.
The ban was put on hold by a Dallas County judge after the alliance and a group of rental operators sued the city, claiming the new regulations violated the state constitution.
The city in the past said the STR policies are meant to limit where those properties can operate.
Lawyers for Dallas STR Alliance argued in November the limitations would lead rental owners to bankruptcy because more than 90% of STRs are in single-home residential areas, and argued they were entitled to their rights as homeowners.
The city argued the operators aren’t homeowners because STRs are more akin to hotels.
Critics of STRs say they 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 for their safety.
The fight over STR regulations is taking place all over the country, and Dallas is just one of multiple cities in Texas challenging how STRs should operate.
Fort Worth is in the middle of its own STR battle after passing similar regulations in 2023 that operators say infringe on their rights.
The Plano City Council banned STRs in most residential areas in 2024. It also passed a ruling that would require short-term rentals to register with the city and pay a registration fee.
City council members in Austin proposed an ordinance that would require short-term rental websites to mandate owners provide a license number before renting their homes. The city is also proposing STRs pay a hotel occupancy tax.
Houston is also considering STR regulations that would require registration of all short-term rentals, mandate posting emergency information inside units and implement violation fees.
Got a tip? Email Penelope Rivera at privera@kera.org.
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