City Council voted to amend regulations on short-term rentals Jan. 8 before voting to ban new short-term rental properties for one year in February. The regulations went into effect July 8, requiring rental owners to apply and maintain permits for their properties.
The details
The city ordinance defines a short-term rental as “any dwelling unit or portion of a dwelling unit that is rented to guests for less than 30 consecutive days.” Hotels, motels, inns and bed-and-breakfast units are not considered short-term rentals, according to city documents.
Owners must obtain the permit each year prior to renting and advertising the unit, as well as pay monthly hotel occupancy taxes.
Permits may be issued or renewed if the applicant is not in debt, delinquent in taxes and their application is compliant with all requirements in Lewisville City Code Section 4-201, such as room size and maximum occupancy. Rental properties must also pass inspection, and applicants must pay a $400 fee before a permit is issued, according to city documents.
Rental properties require the designation of a manager who can respond to issues. The property owner also has to provide the proper number of bedrooms that meet the International Property Maintenance Code standards, according to city documents. Additionally, owners must provide guests an informational brochure containing the owner, manager and emergency contact numbers, in addition to the city's regulations on parking, trash collection and noise. Brochure templates and permit application can be found on the city's website here.
Once applicants have submitted the necessary requirements, they will receive a confirmation email with a copy of their application attached. City staff will then review the application and contact applicants in 7-10 business days with the next steps.
Violation of the ordinance can result in a fine not to exceed $500 for each offense, unless the violation relates to safety, zoning or public health, according to previous Community Impact reporting.
The context
The city began tracking short-term rentals in January 2020. There has been a 145% increase since then, which led to the council's decision to pass a one-year ban in February, according to documents.
The one-year ban allows the city more time to look at the impacts of short-term rentals and the permitting process, according to previous Community Impact reporting.
Also of note
The city uses a third-party vendor to track short-term rentals on 75 different posting sites like Airbnb, Chris McGinn, director of neighborhood and inspection services, told Community Impact.
As of Feb. 20, there were 137 known short-term rentals posted online, McGinn said. According to city data, 56% of short-term rental owners in Lewisville are city residents. Another 40% reside in Texas, while the other 4% are from out of state.
The number of short-term rentals fluctuates for various reasons—such as vacationers going to Lewisville Lake—but there were about 90 or more operating in the city throughout most of 2023, McGinn said.
