Short-term rentals, or STRs, are typically listed on websites, such as Airbnb and Vrbo. The regulations would apply to “a couch, room, accessory dwelling unit, apartment or home for ‘short-term’ rent,” according to a staff presentation at the July 5 City Council meeting.
“The challenge for STRs is that they are a business located in a residential zoning district,” Community Development Director Julie Smith said during the presentation.
Among the proposed regulations, short-term rental owners in Keller would:
- register annually with the city;
- pay the required municipal hotel occupancy tax;
- provide 24/7 contact information for the owner;
- rent no longer than 30 days to the same occupant and rent no more than 180 days per year;
- limit guests to two people per bedroom;
- ensure all bedrooms have two ingress/egress access points;
- ensure parking for all guests on-site on an approved surface;
- not host events that require a city permit; and
- abide by noise and trash ordinances.
According to the staff proposal, owners who receive three code violations in a year would have their registration revoked for six months.
Staff also recommended that the city permit short-term rentals in all residential areas as well as in the Town Center and Old Town Keller districts, and the Center Stage planned development. The city would allow only one short-term rental per lot or per building, such as a townhome or duplex, according to the presentation.
Council took no action at the meeting but did express concerns with several of the recommendations. Most council members took issue, for example, with the limit on renting for 30 days to one person and no more than 180 days during the year.
It was unclear whether the city could revoke a homeowner’s right to operate a short-term rental, according to City Attorney Stanton Lowry.
In addition, council did not favor enforcing the municipal hotel occupancy tax. Council Member Chris Whatley proposed instead having a yearly fee for short-term rental owners.
Council’s biggest interest in creating regulations would be to deal with owners who have tenants breaking neighborhood and town ordinances, according to discussions.
“I think we need to strike a balance between protecting people’s constitutional given rights as owners of a given property,” Mayor Armin Mizani said. “And when I say striking balances, I’m not opposed generally to the idea of having some sort of registry where we know these are homes that are offered for rentals.”
During the meeting, council also heard concerns regarding the proposed ordinance from both short-term rental operators and Keller residents. Council plans to hold another work session to view a draft of the short-term rental ordinance on Aug. 2.
