WS Item 3 - STR MemoCITY OF
SOUTHLAKE
MEMORANDUM
October 30, 2017
To: City Council
From: Ken Baker, AICP — Director of Planning & Development Services
Subject: Work Session Item 3 - Discuss residential units used as short term
rental (STR) properties
The purpose of this work session item is to discuss with City Council possible
approaches to the regulation of residential units that are used as short term rentals
(STRs). The staff will present three (3) possible STR regulatory options to the City
Council for consideration. Each option is outlined in the memo along with a framework
example on possible regulatory components of that option. The framework examples
provided are intended only to demonstrate how regulations would be structured and is
not necessarily intended to be proposed ordinance language. Following the discussion
the staff requests that City Council provide direction on a preferred option. If a preferred
option is selected staff will begin work on the development of an ordinance and present
recommendations for City Council consideration at a future meeting.
Background Information:
On September 5, 2017, the City Council held a work session on STR properties. At the
work session staff provided an overview on the manner in which the City currently
regulates STR properties, provided examples on how other cities regulate STR
properties, and provided an overview on proposed State regulations considered but not
passed into law that would prevent Texas Cities from banning STRs less than 30 days.
Also, during the work session the City Council allowed the public to comment on STR
properties.
At the September 5, 2017 meeting, the City Council instructed staff to set up a work
session on November 7th to discuss the possible regulatory options in more detail.
Also, within in a few days of the work session, the staff set up a "STR" page on the
City's web site to keep the public informed on this topic and allow for written comments
to be submitted. Written public comments are provided electronically in your packet.
Options for Consideration:
Below are three (3) possible options for City Council to consider for the regulation of
STR properties.
Option # 1: Prohibition of Short Term Rentals.
Amend the City Code through the adoption of an ordinance to prohibit "short term
rental" properties as an allowable use. This option would result in the complete
prohibition of STR properties in the City and provide a penalty for a violation. Staff is
recommending that if this option is selected that leasebacks to a home seller be exempt
from the ordinance requirements. Below is an example of possible components of this
option.
Option #1
ARTICLE XX(XXX) - SHORT TERM RENTALS
City Code Sec.X.XX.XXX- Short Term Rentals Prohibited
(a) All short term rentals are hereby prohibited and unlawful with the City of Southlake
(b) Leaseback arrangements as defined in the City Code shall be exempt from the
regulations of this section.
For the purpose of this amendment the following definitions would be added to the City
Code:
City Code Sec.X.XX.XXX - Definitions
Short term rental - the rental of any residence or residential structure or any portion of a
residence or residential structure for a period of less than month(s).
Rental - The renting, bartering, trading, letting or otherwise allowing the use of a
residence or residential structure or room or rooms within a residence or residential
structure. This shall not restrict, limit or interfere with any homeowner from
participating in a leaseback upon the sale of a residence or residential structure.
Leaseback - An arrangement where the seller of a residence or residential structure
leases the home back from the purchaser.
Option #2: Amending the City Code to establish procedures for inspection, registration
and permitting of short term rentals.
Amend the City Code through the adoption of an ordinance to regulate "short term
rental" properties. The City Code language will establish procedures and requirements
for inspections, registration, permits, insurance, parking, life -safety, conduct on the
premise, tenant indoor notification, enforcement, revocation of permits and appeals. A
definition section will also be established. Under this option if an applicant meets the
requirements of the established ordinance regulations, a property will be permitted to
operate as a STIR.
2
Option #2
ARTICLE XX(XXX) - SHORT TERM RENTALS
City Code Sec.X.XX.XXX - Purpose.
(a) The purpose of this article is to establish regulations for the protection of the health
and safety of occupant(s) of short term rental properties, and to protect the integrity of
the neighborhoods in which short term rental properties operate.
City Code Sec.X.XX.XXX - Definitions.
Adult, Agent, Occupant, Owner, Parking area, Short term rental, Sleeping areas, and
zoning district.
City Code Sec.X.XX.XXX - Authority of the Director.
Provides the Zoning Adminsitrator the authority to enforce the ordinance and revoke
permits.
City Code Sec.X.XX.XXX - Permit Required.
This section will provide that no short term rental shall operate in the City without a
permit.
City Code Sec.X.XX.XXX - Permit Application Requirements.
This section will provide the application submittal requirements. Components likely to
include:
List of owner, address, email address, location, zoning
A sketch and narrative describing the location of parking spaces
A sketch of the floor plan which identifies sleeping areas, maximum number of
guests, evacuation routes, location of fire extinguishers
24 hour telephone number and a list of contacts
Proof of hotel occupancy tax compliance — (Proof of registration from Finance)
Proof of coverage under a homeowners property insurance policy
Proof of coverage under a Commercial General Liability Insurance policy with
minimum limits per occurrence and aggregate established, including Host Liquor
liability coverage.
City Code Sec.X.XX.XXX- Expiration and Renewal of Permit.
This section will establish the length of valid permit (i.e. 1 year). It will require the permit
holder to apply for a renewal at least 30 days before expiration of the permit. It will also
establish a permit fee.
Option #2 (continued)
City Code Sec.X.XX.XXX- Standards.
All short term rental properties will be permitted pursuant to the chapter and the
following standard requirements.
(a) Occupancy. The maximum number of persons allowed to reside in a short term
rental.
(b) Short term rental permit display. Required posting of the permit in a prominent
location.
(c) Parking. Establishes the minimum number of off-street parking spaces which is a
function of the number of sleeping areas or maximum occupancy. Also can require
parking on a concrete or asphalt surface and prohibit required parking in the right of way
(street).
(d) Life Safety.
Shall conform to all applicable City adopted codes, regulations and ordinances
Fire extinguishers shall be properly mounted within 75 feet of all portions of the
short term rental on each floor
Smoke and CO2 detectors shall be installed and conform to all applicable city
adopted codes.
Every sleeping area shall have at least one operable emergency escape and
rescue opening per City adopted codes
An evacuation plan shall be posted conspicuously in each sleeping area
(e) Conduct on the premises. Short term operators shall be responsible for informing
their occupants in writing of all relevant codes such as noise or standards in this
ordinance including possible liability. Also the ordinance can be developed in a manner
that limits or prohibits outdoor activities after a certain hour.
(f) Advertisement. This section could require that all advertisements including
proprietary or online include a short term rental permit number within the description or
body for public reference.
(g) Tenant indoor notification. This would require that an operator post in a
conspicuous location of the dwelling the following type of information: maximum number
of occupants; location of off street parking; prohibition of parking on the grass; quiet
hours, 24 hour contact; property cleanliness requirements; trash pickup requirements;
flood hazards and evacuation routes.
(h) Zoning district permitted. This section will outline the zoning districts in which STR
properties are permitted.
rd
Option # 2 (Continued)
City Code Sec.X.XX.XXX - Inspections.
Initial inspections — As part of the new permit the City will conduct an
inspection to ensure the regulations of the ordinance are met.
Fire extinguishers — owner responsible for obtaining annual independent
inspection of fire extinguishers
Annual inspections to ensure the regulations of the ordinance are met.
City Code Sec.X.XX.XXX - Enforcement, Penalty, Revocation Procedure,
Appeals
The Administrator of the ordinance is authorized to suspend or revoke the permit issued
under the provision of the chapter if issued in error, incorrect information is provided, or
where it is determined that the use is in violation of the ordinance.
Option #3: Continue to regulate STR under current zoning/noise regulations
The City of Southlake currently regulates STR properties through its existing ordinances
-- primarily the zoning ordinance and noise ordinance.
Option #3
The zoning ordinance identifies "Residential Uses" as a permitted use all
residential zoning districts.
Residential districts do not allow commercial uses such as bed and breakfast.
Provides a definition for "Family" FAMILY - One (1) or more persons who are
related by blood or marriage, living together and occupying a single
housekeeping unit with single kitchen facilities, or a group of not more than five
(5) unrelated persons living together by joint agreement and occupying a single
housekeeping unit with single kitchen facilities, on a non-profit, cost-sharing
basis.
Southlake Parking Standards Ordinance 480 — Must park vehicles on a hard
weather all-weather surface.
KMB/kmb
Link: Public Comments on STR properties