City Council Agenda Includes Short Term Rentals - Again

posted on January 12, 2012

 The controversy over short term rentals continues as property owners, their irate neighbors and the Austin city council struggle to reach a conclusion on what to do about them.

In June of this year, the Board of Adjustment made a ruling that if you rented your home for less than 10 days it violated the city's code. That ruling resulted in the formation of an alliance of 5 property owners who then sued, claiming violation of their constitutionally protected property rights. Since the ruling was handed down, the city has been in "review" mode, electing not to enforce the ruling, until everyone has had their say – a process that has been going on for 18 months.

Councilman Bill Spelman wants to stop the review process and let the city auditor research how many properties there are, their location and how the neighborhoods are affected.

As a member of the Austin Board of Realtors, the Texas Assocation of Realtors and the National Association of Realtors I can sympathize with the plight of the vaction property owners. And of course, the businesses that advertise these vacation listings, like HomeAway.com and VRBO.com have a lot at stake if Austin ends up prohibiting them altogether. 

I have utilized these vacation rental services many times, with family as well as friends and reunion groups. I would truly hate to see these businesses disappear because of a few irate neighbors. For the most part, the owners are either in the same structure or on the same property. Quite often they live next door to the rental property or in the same neighborhood. These homes are just that – a nicely furnished, comfortable and clean home that beats the heck out of a mundane motel or hotel room! All the owners I have interacted with are truly in the hospitality business and they take their obligations very seriously. 

I always recommend these short term rentals for my clients who come to Austin to find a home. If they've already identified a neighborhood they think they would like to live in, I encourage them to find a short term rental there so they can actually get the "feel" of what it would be like to live there. And the best part is everything is there, no hauling a weeks worth of paper towels, garbage bags, soap or shampoo, etc.,  like a lot of weekly home rentals.

In Port Aransas, Texas, the short term rental issue caused the same ruckus and the city council there decided not to eliminate them, but to zone certain geographical areas that could and could not be used for short term rentals. Not sure how that is working out, but if you look in the newspaper for properties for sale, you'll see that "short term rentals allowed" has become a major selling point.

Whatever, the Austin City Council does, I hope private property rights will be protected and preserved and that somehow it can end up being a win-win situation for everyone. Maybe a more strict enforcement and collection of the hotel/motel tax on these properties would sway some opinions?

Author: Cheri Stringer, CNE, SRES

Categories: Leisure, Travel & Tourism, Real Estate