Consideration of an Ordinance to amend Chapter 6, Buildings and Building Regulations, of the Code of Ordinances of the City of Plano by adding Article XXIV, Registration of Short-Term Rental Properties; providing for procedures for the registration and self-inspections of short-term rentals for operation; providing for procedures for approval, denial, and revocation of registration of short-term rentals; and providing a penalty clause, a severability clause, a repealer clause, a savings clause, a publication clause, and an effective date. Tabled to a future meeting.

The rise of digital platforms, such as Airbnb and VRBO, has led to an increase of residential properties being rented for less than thirty days, known as “short-term rentals.”  The popularity of these short-term rentals has subsequently led to a growing number of transient and vacation rental uses within neighborhoods in the City of Plano. The City of Plano has prioritized neighborhood conservation to ensure our community has beautiful, engaged, safe and thriving neighborhoods.  

Residents of the City of Plano have expressed concerns about short-term rentals related to nuisances such as noise, littering, and parking concerns.  Such nuisances put at risk the health, safety and welfare of adjacent residents as well as short-term rental guests.

The need for possible short term rental regulations was recently discussed during the October 10, 2022, City Council meeting. A presentation regarding the legal opportunities and limitations was presented and a large number of residents and property owners voiced their concerns and desires. Following the presentation and public comments, City Council determined that an ordinance requiring the registration of short term rentals was necessary in order to:

•  advance the objective of championing great neighborhoods in Plano,
• respond to residents’ concerns, 
•  address issues with property owners and managers of short-term rentals, 
•  protect the health, welfare, safety, and property of occupants of short-term rentals and the general public, and,
• aid in enforcement of applicable ordinances and other laws.  

The registration of short-term rental property is intended to allow the City to collect data on the existence and location of short-term rentals and provide information as to who can be contacted if short-term rentals are creating nuisances or if crimes are occurring or suspected of occurring on the property. The identification of individuals responsible for short-term rental properties will aid in enforcement of compliance with building standards, property maintenance codes, and other laws at these properties. Further, required self-inspections of short-term rental properties will increase the safety of those staying at short-term rentals in the City of Plano.

The ordinance will be effective on January 3, 2023, which will provide staff the opportunity to finalize preparation for the registration program.  Additionally, this time should allow sufficient time for short-term rental owners/manager to be aware of the registration provisions. 

This item will impact revenue collected from Short-Term Rental registration and any related fines. The anticipated registration fee will be $300 per short-term rental unit. The exact financial impact is unknown at the time and is expected to have minimal impact on the General Fund budget. 

 Approval of this item supports the City’s Strategic Plan Critical Success Factor of Safe, Vibrant Neighborhoods.