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, suspension, 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 August 14, 2023

The City of Plano has prioritized neighborhood conservation to ensure our community has beautiful, engaged, safe and thriving neighborhoods.  Additionally, the City’s strategic vision states that Plano residents wish for an unparalleled quality of life bonded by a shared sense of community. 

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 led to an increase in citizen concern about transient and vacation rental uses that infringe on the property rights of neighbors in the City of Plano.

In the last year, there have been over 113 speakers attending public meetings to express concerns about the increase in health, safety, and nuisance issues related to short-term rentals (STRs) in dwelling units within the City of Plano.  There have also been reports of tenants and visitors at STRs in the city engaging in criminal conduct negatively affecting the public sense of well-being and security, including operation of a prostitution enterprise and discharge of a firearm into a nearby residence occupied by a child. Further, some STR properties are being used for gatherings that are disruptive to neighborhoods. 

The need for possible short term rental regulations has been discussed during several City Council meetings as a result of these public comments.  Presentations regarding the legal opportunities and limitations have been provided and there have been numerous opportunities for residents and property owners to voice their concerns and wishes regarding STRs within the city.  As the City wishes to respond to residents’ concerns and address issues with property owners and managers of STRs, a Short Term Rental Registration Program is being proposed.

In order to assist in the prevention and investigation of incidents involving criminal conduct or public nuisances related to STRs, the registration will identify:

• Existence and location of an existing STR,
•   Ownership, management and designated contacts,

• Floor plan with identified sleeping areas, furniture layout, evacuation routes and location of all fire extinguishers as well as smoke and carbon monoxide detectors,

• Photographs of all interior and exterior rooms, hallways and spaces,

• Proof of insurance,

• Host rules for the premises, including the maximum number of guests,

• Sworn statement from the owner regarding: compliance with any property covenants, applicable laws, completeness of application, payment of appropriate fees and potential revocation of registration for failure to comply with ordinance requirements. 

The registration will also aid in obtaining compliance with and enforcement of building standards, property maintenance codes, and other laws affecting STRs through required self-inspections and sworn statements regarding the operation of the STR in accordance with adopted City of Plano regulations.  Due to the breadth of existing ordinances indicated, the interdepartmental staff reviewing City ordinances relating to STRs does not find that a separate “party house” ordinance is necessary at this time. 

The registration ordinance will become effective on September 1, 2023; this time will allow sufficient opportunity for the final configuration and activation of the online registration portal.  An application for registration or renewal may be denied or a registration may be revoked permanently if the premises cannot be legally used as a short-term rental as determined under the provisions of the City of Plano Zoning Ordinance.

Application for registration or renewal may be denied if the registrant, owner or designated person failed or refuses to comply with a requirement of this ordinance and remains in non-compliance for ten (10) business days after being notified in writing.  Additionally, nuisance incidents occurring at the property may result in suspension, revocation or denial of Short-Term Rental Registration.  

Notice of denial or suspension shall be provided in writing with the reasons for denial or suspension. Suspensions shall become effective five (5) business days following the date of mailing.  There is provision of an appeals process for both denial or suspension of the registration.

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.