State and National STR News

STR Regulations Found Unconstitutional in Texas:

Renting Property is a Fundamental Privilege of Property Ownership

Understandably, COVID-19 has certainly slowed the demand for short-term rentals (STRs). In fact, at least one county in North Carolina has prohibited STR operators from renting their properties to out-of-county and out-of-state guests while the state is under the stay-at-home order. However, once COVID is far behind us and people are comfortable traveling again, I suspect local governments will continue to explore options for regulating these properties. And for those local governments, there is a case in Texas that is worth following: Zaatari v. City of Austin, 2019 WL 6336186 (Tex. App. Nov. 27, 2019) Read More

Texas Supreme Court Sides with Homeowners

in Dispute Over Short-Term Rentals to Travelers

One popular subject of recent litigation is suits by cities and neighborhoods to prevent homeowners from allowing travelers to use their homes for short-term rentals through companies like VRBO (Vacation Rental By Owner).  In Tarr v. Timberwood Park Owners Association, Inc., __ S.W.3d __, No. 16-1005, 2018 WL 2372594 (Tex., May 25, 2018), the Texas Supreme Court tackled one such lawsuit, addressing whether the plaintiff’s short-term vacation rentals of his home in San Antonio violated certain restrictive covenants of his subdivision, which limited residential tracts to “residential purposes” and “single-family residences.” Read More

TX State Court Rules - Restrictions Unconstitutional

Austin's short-term rental bans and restrictions ruled unconstitutional

On Thursday, the Texas Court of Appeals Third District found that part of Austin's ordinance that regulated short-term rentals (STRs) was unconstitutional. The ordinance in question was approved by Austin City Council in February, 2016, and would ban the STR of non-homestead residential properties by 2022. It also included several restrictions to the properties ... Read More