In June, the Dallas City Council voted on new short-term rental laws. They decided to put restrictions on short-term rental properties. These restrictions will impact the locations of short-term rentals.
Neighborhoods with Single-family homes can no longer allow short-term rentals. However, they can operate in multi-family neighborhoods and commercial zones.
The council also added new restrictions, requiring short-term rental properties to register annually with the City. They'll also have to pay the same taxes and fees as hotels.
How will these new rules impact short-term rental management? Learn more about three things you should consider before starting a short-term rental in Dallas, TX.
1. Short-Term Rental Management Under New Rules
Figuring out how to run a vacation rental business is a never-ending process. It's all about finding the right balance between making money, protecting your assets, and providing a positive experience to renters.
Now, more than ever, short-term rental owners must consider the impact on local communities.
There's no doubt that a few things will change on the short-term rental checklist. One new rule imposes a three-person per bedroom maximum. Plus, no more than 12 people can occupy a short-term rental.
It is unclear in the foreseeable future how this new rule will impact investors in the short term or later. As someone considering entering the Dallas market, you must recalculate your potential income.
2. Noise Limits
One of the major concerns of Dallas residents was noise and traffic in single-family neighborhoods. As a result, Dallas officials also imposed noise limits between 10 p.m. and 7 a.m. It can take up to an hour to respond to emergency calls.
The zoning ordinance is in effect already. The Dallas code's officials said implementing the new rules could take at least six months. An alternative that benefits investors is responses may be limited to complaints from neighbors.
Since they won't look for violations, short-term rental management companies shouldn't get overwhelmed with citations.
3. Registering Your Short-term Rental
Dallas, TX, defines a short-term rental as a home or part of a home, like a room, garage apartment, or mother-in-law suite. If you rent it for 30 days or less, it's a short-term rental business.
In addition to registering your property with the City, owners of short-term rentals are also responsible for collecting hotel occupancy taxes. Your guests pay the taxes, which could mean increases in short-term rental costs.
Short-term rental management property managers would be tasked with reporting and paying all collected taxes to the City each month.
The latest reports show 1,800 short-term rentals have been registered out of more than 5,300.
Is Dallas, TX Still a Good Investment Location?
It's still money to be made in Dallas short-term rentals. The changes in Dallas's short-term rental laws did not surprise most short-term rental management companies. It's our job to stay abreast of changes in local ordinances.
If you're still looking to enter the Dallas market, Republic Vacation Management can take the hassle out of managing your properties.
Let us manage your Dallas Short-term rental property. Contact us today for more details on our property management services.