The Problem with Short-Term Rentals
Destruction of Neighborhoods
An entire home rented out via Airbnb or Vrbo is a hospitality business with no neighbor with whom to speak or share a neighborly friendship. It creates a hole in the fabric of the community that is exploited by both the visitors and the STR owner.
Short-Term Rentals can generate significantly more revenue than a long-term rental. This business model attracts wealthy investors and Wall Street firms who buy and rent homes based on financial modeling. They can afford to pay cash for homes at top dollar and move much more quickly than private individuals. The average price of homes then increases, locking out more people and raising the property tax valuations for neighbors. These investors have little regard for the culture of the community except insofar as they might commodify it to increase their revenue.
The loss of housing to hospitality use intensifies the lack of affordable housing for workers, families, and retired persons. Texas is experiencing a critical lack of shelter due to years of underbuilding homes and high levels of immigration. Limiting or prohibiting STRs is a clear way to make some homes available for permanent residents, which would restore the social fabric of the neighborhoods.
Nuisance
Noise: Vacationers come to have fun, and unfortunately to the detriment of next door families. Large groups of visitors throwing house parties and backyard events generates much more trash and noise than a family of permanent residents. Moreover, the visitors do not know the neighbors and therefore have little concern for disrupting their peace since they will be gone in a few days.
STR operators often furnish their properties with a pool, a firepit, an outdoor hot tub, and other amenities in order to attract more business. These encourage the guests to spend more time outdoors where noise travels into neighboring properties, often late into the night.
Security: Large groups of unsupervised strangers with unknown backgrounds provide security risks for nearby families, leaving parents unable to let their kids safely use front and back yards. Shootings, sex offenders, drug deals etc. have been well documented issues at STRs.
Parking: If the home is rented out for a party, then the street becomes crowded with many more cars than would be permitted for a single-family home. These cars may occupy the street for the entire weekend, making it inconvenient for residents and their guests.
A Violation of Homeowners’ Property Rights
Property rights are not absolute, i.e., your property rights don’t have priority over mine. When you buy in an area zoned residential, you accept that the city already has established rules that tell you what you can and can’t do with your property. For example, you cannot open up bars, restaurants, gas stations and hotels in residential neighborhoods.
People buy in residential areas to provide safe and secure places to raise their families - where they can walk the dog, send their kids to school, develop friendships with neighbors and become part of the community - all away from the noise, traffic and disruptions of commercial businesses.
STR owners have challenged STR ordinances in various cities across Texas. The appellate courts have found that, while a homeowner has the right to rent their home, STR use is not included in that right due its fundamentally different character of operation and negative impact on the community. (Grapevine: No. 02-19-00257-CV. Arlington: No. 02-19-00410-CV.)