Denton’s proposed short-term rental regulations raise concerns among landlords

JP Morgan calls short-term rentals an attractive investment with the potential for greater cash flow based on nightly rate and booking volume.

While the stereotype is that people want to party and spread crime in the area, short-term rental owners in Denton say their customers are actually respectable people — professionals, students and those who want to visit family in places like Robson Ranch or enjoy Denton landmarks. They also contribute to the local economy.

But as JP Morgan warns, while short-term rentals like those available on Airbnb and Vrbo are popular, not every city welcomes them.

It’s an all-too-familiar claim to short-term rental owners who attended Thursday evening’s meeting at Denton City Hall, especially considering the legislation city staff is proposing for approval by the Planning and Zoning Commission next week and then City Council in early June.

Thanks to public opinions (from approximately 220 people), the city is making every effort to limit the number of short-term rental agreements that may be located in residential areas, while increasing the attractiveness of their appearance in the classifications of non-residential areas.

For example, new proposed registration requirements for short-term rentals in residential areas will be on a first-come, first-served basis and will limit the number of people who can be next to each other within 30 meters of a property line. This new requirement means that if your next door neighbor pays the $100 fee and registers a short-term rental before you later this year, you will not be able to convert your property to a short-term rental.

Several people felt it was unfair to penalize existing short-term rentals next to each other, as well as property owners who find themselves in trouble and need the additional funds generated by short-term rentals.

“And when we think about it as a realtor in a community, if you own a property next door and your situation changes and you need to move or transfer immediately, and you’re in a situation where you’ve bought in the last two years you don’t have the equity, to be able to rent long-term,” explained one of the real estate agents, who did not provide her name to city employees.

“Now we are imposing on this homeowner the inability (to earn additional income). We are looking at higher acquisitions and a number of other things (if it goes through).”

“I understand your concerns,” said Angie Manglaris, a Denton senior planner who is the project manager for the short-term rental update. “We’ll probably have to refine that early in the process.”

The changes recommended by the city authorities will be presented on Wednesday at 17:00 of the Planning and Spatial Development Commission and on June 4 at 6:30 p.m. during the City Council meeting. The changes are based on the recommendations of the Development Code Audit Committee.

If you are unhappy with the proposed changes to short-term rental regulations, city officials recommend that you attend next week’s planning and zoning meeting or next month’s council meeting to voice your opinion.

You can also contact city officials through the Discuss Denton website or council members and planning and zoning officers via email.

About 20 people attended a Thursday evening town hall at Development Services to learn more about updated regulations that city officials say are aimed at bringing short-term rental owners into compliance with city code.

Manglaris said only 33 of Denton’s estimated 250 short-term rentals were registered with the city. City officials said they have a compliance officer and are working on a new program to sniff them out and ensure compliance with city regulations.

On Thursday evening, one of the reasons why short-term rental owners do not register with the city came to light: the hotel occupancy tax, which is 7% of the taxable income (gross revenues less exemptions) generated each month from these rentals .

Yes, short-term rental owners must pay tax, even if they simply list their bedroom as a short-term rental. Yes, you can rent out a bedroom in your home as a short-term rental, but to do so you’ll need to pay a $100 city registration fee, and if the local government approves the new rules next month, your home won’t be allowed to be within 100 feet of someone another renting their bedroom.

“I have owned property in this area for over 30 years and have been doing long-term commercial rentals and have been using Airbnb for several years,” said one short-term rental owner. “It was a great success. … Long term rental, I have a mile long court file related to evictions. … Why do you prefer short-term rentals?”

Other key changes to the code include:

What can short-term rental be?

It was explained that it was an apartment or bedroom.
It must be a permanent structure and not a camper or tent.

Where is short-term rental allowed?

All zoning districts that allow residential development.

A person is needed to handle complaints in real time.

Citywide limit on short-term rentals registered in residential districts: 1,000 per calendar year
Limit on the number of short-term rentals allowed in apartments: 10%
No maximum or separation requirement for short term rentals in non-residential areas.
For multi-family buildings in residential areas: a maximum of two short-term rental units per plot.

Minimum distance of 30 feet between short-term rental properties in residential districts.
Does not apply to facilities located on the same plot.

The number of existing parking lots on the property is required and does not include the public street in front of the property, although short-term tenants may park there.

Notify neighbors

The notice includes contact information for your local emergency contact, which should be passed on to nearby property owners.

Advertising and contracts

It must contain information that the rented premises cannot be used as an event venue.

New system for submitting and processing applications.