With an STR ban tied up in court, what action can Dallas take against short-term rentals?

A fatal shooting at a West Dallas short-term rental (STR) over Memorial Day weekend has reinvigorated conversations surrounding the city’s role in regulating the stays.

Three people were killed, and another was injured after a party hosted at a rented home erupted in gunfire early in the morning on May 24. Neighbors of the property told WFAA that they attempted to report the gathering to Dallas police earlier in the night, but the department said it had no record of those calls. 

“There’s no shame anymore,” one neighbor, Ernesto Martinez, told WFAA. He urged city leaders to hold those involved in the shooting and those renting out the home in his neighborhood accountable. 

When it comes to cracking down on STRs, the city is in a bind. Three years ago this month, the horseshoe overwhelmingly passed a ban on short-term rentals in residential neighborhoods. The ordinance would have wiped out 90% of Dallas’ short-term stays, but it’s never gone into effect. It’s been hung up in court, with Dallas on the losing end of appeal after appeal. 

The ordinance is now before the Texas Supreme Court. During the May 26 Finance Committee meeting, Council member Kathy Stewart said she hoped the court would take the latest homicide investigation into account when considering how some STRs operate across Dallas. 

Council member Chad West, on the other hand, argued that the city need not wait for the courts to weigh in before taking another swing at regulation.

“At some point, when council has the appetite for it, we really should pick this ordinance back up. It’s a hot potato; no one really wants to touch it,” said West. “I think we would do justice for the city if we actually comb through and get it right, instead of leaving it in litigation.”  

The city does have some tools to handle nuisance STRs. In a statement to the Observer, a city spokesperson said that although the STR ban “is currently enjoined, other applicable Dallas City Code provisions, including the Habitual Nuisance Property ordinance, remain enforceable.” 

That means the city’s code compliance department can take action against violations such as illegal land use, litter and unmowed weeds. Three or more citations within 365 days qualify a property as a habitual nuisance. The designation can result in fees and litigation if unresolved. 

A three-strikes-you’re-out policy is difficult to accept, though, when gunfire erupts. When the anti-STR lobby launched in Dallas, it pointed to busted prostitution rings, increased traffic and late-night parties as evidence that the operators couldn’t be trusted to be good neighbors. 

In a statement to the Observer, Council member Laura Cadena, whose district includes the STR where the Memorial Day party took place, said some additional public safety tools have been leveraged in the wake of the shooting. 

“The District 6 office is working diligently with city manager’s office, Code Compliance and the Dallas Police Department to ensure that we take the necessary steps to enhance safety,” the statement said. “Increased patrols have already been implemented by DPD to help ensure the safety and well-being of our community.” 

Now, the city and STR operators throughout it face their next test, as the FIFA World Cup brings a flood of visitors in the mood to get rowdy. According to data from AirDNA, DFW short-term rental occupancy during the group stage of the World Cup is up nearly twice what it was during the same time last year. 

At least one organization is urging the city to get aggressive, but in a targeted way. The Dallas Short Term Rental Alliance, which sued Dallas over the 2023 STR ban, supports enforcement actions such as nuisance abatement and civil action against repeat offenders. The group cautions the city against seeing the Memorial Day shooting as evidence that all STRs are bad, though. 

According to Linda Young, a spokesperson for the alliance, the overwhelming majority of short-term rentals never generate a 911 call, and zoning is unlikely to deter a criminal. Violence such as shootings occurs at long-term rentals, hotels, and private residences regularly, Young notes. 

“We urge the city to resist conflating a tragic, isolated criminal act with a systemic nuisance property problem,” Young said. “Targeting the small number of repeat-offender properties across all property types is what will make Dallas neighborhoods safer. Broad restrictions that sweep in thousands of responsible STR operators will not.”