Plano North | May 2024

From the cover

Restricting rentals

BY CONNOR PITTMAN

The overview

Police calls for service at single-family residences from July 2022-June 2023

Tax revenue from short-term rentals Tax revenue from hotels and motels Total revenue generated by hotel and motel taxes

Percent of calls to single-family residences

Percent of calls to short-term rentals

The study of short-term rentals in the city began after direction from Plano City Council in November 2022 and included approval of a one- year interim ban of new short-term rentals in May 2023 while the study was ongoing. City officials were spurred to action by residents in the community, who have been calling for council to take action on short-term rentals for more than a year. Among the top complaints to police against short-term rentals were parties, excessive noise and trash being left out, Director of Neighborhood Services Curtis Howard said. Plano staff also used the collection of point-in- time data from Deckard Technologies throughout the study, which identified a total of 464 operational short-term rentals when the one- year interim ban went into effect. Council also appointed 22 members of the community to a short-term rental task force in May 2023, which met from June through February. Day said city officials examined short-term rental regulations in other cities, which were used to craft language for Plano’s regulations. She added the entire process followed rigorous data collection and public vetting, both of which have been tools other cities have used to successfully enact short-term rental regulations.

$15M

$790K

$700K

$10M

$450K

0.08%

6.38%

$5M

$0

2022-23

2020-21

2021-22

SOURCE: CITY OF PLANO/COMMUNITY IMPACT

the Plano chapter of the Texas Neighborhood Coalition. “It is irrevocable and unenforceable.” Additionally, Howard said city staff are creating a training program for short-term rental operators that would highlight potential issues with human trafficking as well as provide information on city and state laws. He added that the registration ordinance gives the city the tools it needs to address any problematic properties. “If they continue to be a problem, we have the ability to suspend their registration,” Howard said.

Council elected to adopt regulations limiting new short-term rentals almost entirely to multifamily complexes and nonresidential zoning districts that allow for new housing development. Members of the community also claimed there was a potential for litigation if council proceeded with a less-strict recommendation from the planning and zoning commission, and allowed prospective rental owners to apply for a specific- use permit. “The planning and zoning proposal would open the city to a multitude of unintended and dire consequences,” said Bill France, president of

What they’re saying

Another view

What’s next?

Corey Reinaker, who has operated a short- term rental for seven years, said the regulations could impact his ability to make extra income and afford a home in Plano. “There was never any data presented to the task force by the city saying there was a prob- lem with people renting out a spare bedroom,” Reinaker said. He also raised concerns about the economic feasibility of the registration requirements, such as the $1 million liability insurance cover- age and $300 annual registration, for operators.

Several Plano residents, including those with the Texas Neighborhood Coalition, rallied against new short-term rentals in neighbor- hoods for more than a year. “I don’t trust the market to determine the proliferation of short-term rentals,” resident John Bourke said. Council considered a recommendation from the planning and zoning commission but opted to ban new short-term rentals from most neigh- borhoods because of concerns about potential legal trouble.

To be allowed to operate within Plano, short-term rental owners will need to register with the city by Aug. 1 to be in compliance when registration requirements take effect. Howard said city staff will likely rely on information provided by Deckard Technologies and registration applications to monitor compliance in Plano. “It’s about being good neighbors, [and] making sure that the owners have every opportunity to be successful and develop good relationships in the neighborhood,” Day said.

"I don’t think it’s fair for us to charge the same registration fees to owner-occupied rentals that

"We should not have new short- term rentals in single-family neighborhoods; I don’t think that’s a compatible use." ANTHONY RICCIARDELLI, PLANO CITY COUNCIL MEMBER PLACE 1

More information on the registration process for existing short-term rentals to remain in operation can be found online.

are renting out one room for as little as $28 a night." JULIE HOLMER, PLANO CITY COUNCIL MEMBER PLACE 7

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