The North Richland Hills City Council voted unanimously last week to apply new regulations to short-term rentals, or STRs, in the city.
The move lines up with a regional trend to restrict the use of residential homes as rental properties, like through Airbnb and VRBO.
While members of the public came out to both support and oppose the move, city officials said most of the feedback they received in the lead-up to the vote was in favor of regulating these businesses.
Mayor Jack McCarty told KERA that current property owners who operate STRs in compliance with the new regulations and get permits will be grandfathered into the policy.
“We were trying to be fair in what we were doing because we've got a transit-oriented district, and some multi-family and some commercial,” he said. “We said we could still have them in those areas because those make sense. But we’re really trying to curb it in the other areas.”
He said the policy change won’t affect the incomes of residents who currently operate STRs.
“Our focus was on really what people wanted in their neighborhoods,” McCarty said. “They want a community. They want people that are invested in the community, that live there."
What new regulations apply to short-term rentals?
According to information from the city, property owners who already operate short-term rentals can continue those operations “if they obtain an annual permit and inspection and comply with rules related to occupancy limits, noise, parking, safety, and payment of hotel taxes, etc.”
But new STRs won’t be allowed in single-family neighborhoods. Instead, prospective owners should look at multi-family, commercial and the city’s Transit Oriented Development zoning districts.
Officials laid out specifics for regulations on occupancy, parking and inspection, among other details, at their Oct. 13 city council meeting.
Planning Director Cori Reaume said that those who currently operate STRs will “either pay any back hotel occupancy tax payments or enter into an approved payment arrangement.”
The new regulations come with enforcement mechanisms that include allowing the city to revoke permits for STRs with multiple violations.
Precedent for STR restrictions in North Texas
Cities across the Metroplex have reached a mixed verdict on how, and if, short-term rentals should be restricted.
New regulations have been imposed across the region in recent years, growing alongside the number of STRs operated in the area. Some North Texas cities, like Hurst, ban them outright.
Cities with limited or no restrictions include Keller, Watauga, Colleyville, Bedford and Euless, although Bedford has spacing limitations and Euless has density limitations. Keller officials discussed regulations in 2022 but ultimately did not amend city code.
In Fort Worth, STRs are not allowed in residential districts, but are allowed elsewhere. Arlington allows STRs with some restrictions, like keeping the properties within one mile of an entertainment zone. Grapevine does not allow STRs in single-family homes but does allow them in multi-family complexes with at least 50 units, with some additional zoning restrictions.
In 2024, Lewisville approved a one-year ban on new STRs.
Dallas is in an ongoing legal battle determining the fate of its STR policies. Earlier this year, an appeals court ruled that a 2023 ban on STRs in single-family neighborhoods is unenforceable.
What folks are saying
More than a dozen residents spoke at last week’s North Richland Hills City Council meeting, in addition to those who submitted input without speaking. Opinions were relatively split, although Council Member Matt Blake pointed out that most of what he had heard from residents leading up to the vote was in favor of regulation.
“The reason we are making these changes is because we have been asked overwhelmingly by our residents to restrict short-term rentals in their neighborhoods,” Blake said.
Residents speaking out in favor of the regulations cited a common concern about STRs creating “party houses” in residential neighborhoods.
One commenter, Emily Anne Page, expressed concern about not knowing who might be in her neighborhood with short-term renters nearby. She said the community makes the area special.
“We will be eroding that special thing by allowing strangers to be living and renting next door, that we don't even know, coming in and out,” she said.
Another resident, Wesley Oksanen, said that although she’s used short-term rental properties before, she doesn’t want to live next to one.
“Times are tough, I understand that – but the reality is, no one really appreciates having their streets lined with cars, and the regulation is difficult, and no one wants to be the neighbor of a person renting out their home,” Oksanen said.
But those opposed to restrictions cited a need for additional income, property rights and pride in their rental properties as reasons for keeping city policy status quo.
Karlee Wilcox said her rental property helped supplement her income while she was undergoing cancer treatments.
“Through Airbnb, I turned my extra space into something that gave us breathing room, financially and emotionally,” Wilcox said. “It allowed me to work around treatments, set my own hours, create something from nothing.”
Michael Molthan is a North Richland Hills resident who said that while he does not operate a short-term rental, he felt strongly enough about the issue to express his concerns.
“As Texans, we value limited government and we value the freedom to use our property responsibly without unnecessary restrictions,” Molthan said. “That's just not about STRs. It's about protecting the principle of property rights for everyone in this city.”
Gopi Kantamneni runs an STR with his daughter, Aishwarya. Gopi Kantamneni said he wanted to see the “a balanced ordinance that targets bad actors without stigmatizing responsible hosts and guests,” while his daughter spoke against potential back taxes.
“We put in a lot of effort building a home,” Aishwarya Kantamneni said. “We don't want the bad guests. We don't want the parties because we put every blood, sweat and tear into the house to make it what it is. That's not what a host wants, or, that's not what a responsible host wants.”
Despite tension between the viewpoints presented, the conversation remained civil.
When do the regulations go into effect?
The short-term rental regulations don’t go into effect immediately, so property owners have some time to prepare for the changes. The policy contains a 30-day delay from approval, meaning regulations go into effect Nov. 13. Compliance requirements start in January.
According to a city press release, STR property owners will be notified by city staff when the registration portal is active.
McCarty said the city is not “taking something away” from property owners already operating STRs, just that they need to follow new compliance requirements.
“We wanted to make sure everybody was still taken care of,” he said.
The regulations will be in place as the Metroplex anticipates a large influx of visitors for the 2026 FIFA World Cup.
Got a tip? Email Andy Lusk at alusk@kera.org.
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