What is the Dallas STR Ordinance?

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How it works

Under the ordinance, property owners must first verify that their property is located in a zoning district where STRs are permitted, such as multi-family or commercial zones. If eligible, the operator must register their STR with the city annually, which includes paying a registration fee and providing contact information for a local responsible party who can respond to issues within one hour.

Registered STRs are required to collect and remit city and state Hotel Occupancy Taxes. The rules also establish occupancy limits, prohibit unlawful gatherings, and require the posting of emergency contact information within the unit.

The city enforces these rules through a complaint-based system, with violations carrying financial penalties.

Why it matters

This ordinance fundamentally alters the landscape for short-term rental hosts and property investors in Dallas. For owners of properties in single-family residential zones, it prohibits their STR business, forcing them to pivot to long-term rentals or sell their properties.

For operators in permitted zones, it introduces new compliance burdens and operational costs associated with registration and adherence to new standards. The ordinance reflects a growing trend in major cities to regulate the STR industry to address concerns over neighborhood character, housing availability, and public nuisance.

Examples

• An owner of a bungalow in a Dallas neighborhood zoned 'R-7.5(A)' for single-family residences can no longer list their property on Vrbo or Airbnb for weekend stays and must transition to a minimum 30-day lease.
• A property manager operating several apartments in a building zoned for multi-family use in the Uptown district must now register each unit individually with the city, ensuring they each have a valid registration number to continue legal operations.
• An investor planning to purchase a property for short-term rental use in Dallas must now use the city's zoning maps to confirm a property is in a commercial or multi-family district before making an offer.
• A registered STR host receives a noise complaint from a neighbor at 10 PM. Per the ordinance, their designated local contact must respond to the property and address the issue within 60 minutes to avoid a violation fine.