Officials launched a website July 8 alongside the ordinance for short-term rental owners to apply for a mandatory annual permit to continue operating in the city. Owners must obtain the permit each year prior to renting and advertising the unit, as well as pay monthly hotel occupancy taxes.
City Council members 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 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.
The details
According to city documents, 62 permits have been issued and 16 were in progress as of Oct. 21. Since the ordinance went into effect, around 30 properties—roughly 25%—stopped operating as a short-term rental.
City officials have also sent out notices of violations to properties not in compliance with the new ordinance including 80 first notices, 37 second notices, and 27 warnings and citations. Violation notices have been sent to:
- Properties operating without a permit
- Properties operating in violation of interim prohibition
- Permit applicants who are non-responsive
Officials began collecting hotel occupancy taxes from short-term rental owners in August and payments from 15 newly registered rentals were collected in September. Five other properties have paid taxes on a monthly basis and the city is still collecting payments for newly permitted properties in October and November, according to city documents. Collections from short-term rentals averages $421 monthly.
The context
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.
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 applications can be found on the city's website here.
Going forward
The short-term rental ban expires in March 2025 and officials will return to council in February with additional updates. Officials plan to continue enforcing the ban and short-term rental permitting, according to city documents.
The first round of permit renewals will begin next August. Staff are also working toward several improvements in the process including:
- Streamlining citation issuance
- Enforcement of no renting while the permit application is in progress
- Code enforcement and police department officials coordinate on citation issuance and share data
- Working with listing companies to remove short-term rentals refusing to comply
- Reviewing city ordinance for adjustments
- Launching new portal in 2025 for permits and tax payments
