What we reported: Grapevine and Southlake instituted a ban on short-term rentals, such as those that can be found on websites such as Airbnb and HomeAway. Grapevine property owners who opposed the ban filed a lawsuit Oct. 18.
The latest: Judge Mike Wallach granted the property owners’ request Nov. 7, preventing the city from enforcing its ban on short-term rentals for these plaintiffs. A trial to determine whether the city was within its rights is set for April 15, according to court documents.
What’s next: Graig Fancher, one of the attorneys representing the plaintiffs, said the case is in the discovery phase as both sides gather information for the trial. Fancher said the suit challenges the ban on three grounds, the first being an unconstitutional takings claim, in which the plaintiffs would seek several years to recover some of their investment into their short-term rental properties. The second is that the ban violates the plaintiff’s substantive due process rights, meaning the city did not have a good reason to ban short-term rentals. The third claim is that the statute is preempted under state law because the Texas Legislature taxes short-term rentals.