Richardson’s new short-term rental regulations took effect at the end of August, establishing distance requirements between rental properties and raising the annual registration fee.
New short-term rentals must now be at least 500 feet away from existing STRs. The city also raised the annual registration fee from $100 to $300 for all properties.
The overview
Short-term rentals are residential properties that are rented either in whole or in part for a period of no more than 30 consecutive days, such as properties found on sites like Airbnb or Vrbo.
City Council passed the new regulations on Aug. 10, but they did not go into effect until the temporary prohibition on new short-term rental registrations expired on Aug. 25.
Richardson began a 90-day prohibition on new short-term rental registrations at the end of May after residents voiced concerns about trash, parking, noise and safety issues caused by STRs in their neighborhoods.
The temporary prohibition on new registrations allowed the city time to implement new software to collect data on registered and unregistered STRs in Richardson, including complaints, locations and potential clustering.
Based on the data from city officials, Council agreed on the 500-foot distance regulation in order to prevent clustering of STRs in single-family neighborhoods. The increased registration fee will cover costs associated with administration of the program and software.
A closer look
At a July council meeting, city officials said they identified 170 STRs in Richardson, of which 111 were registered and 59 unregistered. At that time, 29 Richardson neighborhoods had at least one STR and six neighborhoods had more than 10.
Owners of short-term rental properties are required to register the property with the city and pay an annual fee, but some operate without registering. The distance regulation will apply to currently unregistered STRs and all future rental properties, while existing, registered STRs will not be impacted.
Before registering with the city, short-term rental owners must verify that their property is not located within 500 feet of an existing STR. The distance regulation creates a buffer zone of roughly 80 houses around an existing STR, depending on the location of the rental property.
Some context
Council approved amendments in March to improve the city’s enforcement of STR regulations. The updates to the ordinance outlined offenses that city staff can enforce at STRs and expanded the grounds for the city to revoke registration permits.
Broad restrictions on short-term rentals are likely to be challenged in court, city attorney Joe Gorfida said at a past council meeting.
To avoid legal risk, Gorfida recommended that the distance regulation should not apply to currently registered and operating properties. Several existing STRs in Richardson will remain located within 500 feet of each other.
