Lewisville adopts comprehensive short-term rental ordinance, directs staff on interim ban options
January 09, 2024 | Lewisville, Denton County, Texas
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Lewisville 7 Jan. 8, 2024 6 The City Council voted unanimously on Jan. 8 to adopt a comprehensive ordinance regulating short-term rental (STR) units, establishing a permitting process, inspections, operational rules and limited parking zones, while directing staff to draft options for a temporary prohibition on new STRs.
The ordinance, as presented by staff, adds definitions for property manager and short-term rental unit, creates an STR division in city code, establishes limited parking-zone authority and clarifies hotel-occupancy-tax remittance and audit procedures for STRs. Staff said the regulations will take effect July 8, 2024, and include permit fees, inspections and a process to revoke permits.
The measure followed extended public comment from residents and hosts. Juan Salazar, who identified himself as an STR operator, told the council STRs "help a lot of people like me to send my kids to the university" and said they support local businesses and tax receipts. Gary Ferguson, speaking for neighbors upset by nuisance properties, argued that platforms do not reliably vet guests and said residents need direct access to property managers and stricter noise protections.
Council members said the ordinance represents months of staff work and offered competing views on whether to also place a temporary prohibition on new STR listings. Several members supported a time-limited moratorium to avoid rapid growth while systems are implemented; others said the ordinance itself will address most problems and that an extended ban could unfairly advantage existing operators.
Mayor (presiding) said staff should return with two draft interim-prohibition options one six-month and one one-year and run the measure through the Planning & Zoning process before council action. The council also discussed routing the prohibition for legal and procedural review before any vote.
The ordinance approved by unanimous vote includes a $400 permit fee referenced in public comments, operational standards and a revocation process; staff said fees are intended to cover program administration rather than generate general revenue. The council recorded the vote as unanimous; a formal roll-call with names was not read into the record during the motion.
Next steps: staff will prepare ordinance implementation materials, return with drafted interim-prohibition language for P&Z review and continue outreach to residents and STR operators before the July 8 effective date.
The ordinance, as presented by staff, adds definitions for property manager and short-term rental unit, creates an STR division in city code, establishes limited parking-zone authority and clarifies hotel-occupancy-tax remittance and audit procedures for STRs. Staff said the regulations will take effect July 8, 2024, and include permit fees, inspections and a process to revoke permits.
The measure followed extended public comment from residents and hosts. Juan Salazar, who identified himself as an STR operator, told the council STRs "help a lot of people like me to send my kids to the university" and said they support local businesses and tax receipts. Gary Ferguson, speaking for neighbors upset by nuisance properties, argued that platforms do not reliably vet guests and said residents need direct access to property managers and stricter noise protections.
Council members said the ordinance represents months of staff work and offered competing views on whether to also place a temporary prohibition on new STR listings. Several members supported a time-limited moratorium to avoid rapid growth while systems are implemented; others said the ordinance itself will address most problems and that an extended ban could unfairly advantage existing operators.
Mayor (presiding) said staff should return with two draft interim-prohibition options one six-month and one one-year and run the measure through the Planning & Zoning process before council action. The council also discussed routing the prohibition for legal and procedural review before any vote.
The ordinance approved by unanimous vote includes a $400 permit fee referenced in public comments, operational standards and a revocation process; staff said fees are intended to cover program administration rather than generate general revenue. The council recorded the vote as unanimous; a formal roll-call with names was not read into the record during the motion.
Next steps: staff will prepare ordinance implementation materials, return with drafted interim-prohibition language for P&Z review and continue outreach to residents and STR operators before the July 8 effective date.
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