Short-Term Rentals

City staff answer several frequently asked questions about the proposed Short-Term Rental Code Amendments

The Short-Term Rental Code Amendments touch on a variety of topics. A few notable changes are highlighted below.

• A short-term rental is clarified to be a dwelling unit or bedroom. It cannot be a nonpermanent structure such as an RV or tent.
• The term ‘Local Emergency Contact’ is defined and required to be listed with each application. The Local Emergency Contact is an individual authorized to address any complaints disturbances, and emergencies that may arise at a short-term rental, and his/her contact info is given to nearby property owners.
• A 1,000 registration certificate limit is established for short-term rentals in residential zoning districts. The limit is based on responses from our public outreach.

Look under “Important Documents” for the full language of the proposed Code amendments.

City staff has worked with the Development Code Review Committee to amend short-term rental requirements. The code amendments will be presented to the Planning and Zoning Commission in a public hearing on May 29, 2024. The Commission had recommended approval of the Short-Term Rental Development Code Amendments at its March 20, 2024 meeting. However, this additional public hearing is being provided to give residents another opportunity to participate in the process. The amendments are scheduled to go before City Council on June 4, 2024.

Explore this web page to learn more about the Code amendments and the anticipated timeline for adoption. For questions, check the Frequently Asked Questions or reach out to staff members listed under Who’s Listening.

Short-Term Rental Code Amendments are moving forward! After months of research, public outreach, and discussion with the Development Code Review Committee, City staff is ready to present the proposed Code amendments for short-term rentals. On May 29, 2024, the Planning & Zoning Commission recommended approval. The amendments are scheduled go before City Council on June 4, 2024.

For short-term rental owners, be on the lookout for additional outreach from the City to help you register and become compliant with the Development Code.

One of the proposed Code amendments regarding how short-term rentals will be regulated in Denton is the introduction of a registration certificate limit and a minimum separation distance requirement. How and when these amendments apply vary based on the zoning district and the type of structure the short-term rental is in.

Which Zoning District is the Short-Term Rental in?

• Residential Zoning Districts (RR – R7):
  1. Maximum of 1,000 short-term rental certificates allowed City-wide per calendar year.
  2. Registration certificates are per short-term rental unit.
  3. Each parcel is allowed a maximum of 2 certificates (including multi-family developments).
  4. A short-term rental unit cannot be within 100 feet from an existing short-term rental unit, measured at the property line. This does not apply to units on the same parcel.
• Non-Residential Zoning Districts (MN – GO):
  1. Registered short-term rentals do not count toward the registration certificate limit.
  2. 100-foot separation requirement does not apply.

What type of Residential Structure is the Short-Term Rental in?

• Multifamily Developments (5 units or more on a lot)
  • In Residential Zoning Districts (R7): Maximum of 2 short-term rental units may be registered per parcel. All other requirements for registering short-term rentals in residential zoning districts still apply.
  • In Non-Residential Zoning Districts (MN-GO): No more than 10% of units within a given development may be registered as short-term rentals, and up to 2 units can be registered per multifamily development if there are less than 20 units on lot.
• Not Multifamily (single-family, duplex, townhomes, triplex, etc.): Maximum of 2 short-term rental units may be registered per parcel.

These amendments are based on the feedback received from the public outreach survey conducted in the Summer of 2023. The survey results indicated a desire to limit the number of short-term rental units in established neighborhoods due to potential impacts on neighborhood character. Generally, respondents found the location of short-term rentals near Downtown, Universities and Commercial Areas to be more favorable. The proposed regulations encourage short-term rentals to locate in commercial and mixed-use areas of the City near the City’s core. Registering short-term rentals within residential neighborhoods is still permissible, but capped at a total number of 1,000 registration certificates per year to preserve neighborhood character and address community concerns.

Staff has been working with the Development Code Review Committee (DCRC) since March 2023 regarding various other potential DDC amendments to the City’s Short-Term Rental development regulations, in addition to addressing the primary residency requirement. On June 12, 2023, the DCRC instructed staff to prepare a Public Engagement Plan in order to receive input from the community regarding the potential DDC amendments before initiating the formal public hearing process. The DCRC believed it was important to hear from the community first in the event any changes may need to be considered to the potential DDC amendments. All of the other potential DDC amendments being evaluated by the DCRC aside from this limited change regarding primary residency will be finalized and brought forward for consideration after the public engagement occurs in August 2023 since those potential amendments are mainly clarifying existing regulations, proposing additional Use-Specific Standards, and not time sensitive.

The City of Denton will be hosting two Town Hall meetings in August, one in-person and one virtual. See below for more details. The purpose of the Town Hall meetings is to hear from the community.

At the meetings, staff will share the City's current standards and requirements on Short-Term Rental and present draft amendments. After the presentation, staff will facilitate a discussion to determine if the current regulations with the draft amendments represents the community's collective vision for Short-Term Rental properties.

The City's current standards and requirements and the draft amendments are saved as Important Documents on this webpage for your review prior to the Town Hall meetings.

In-person Town Hall Meeting

Thursday, August 17

6 to 8 pm

Development Service Center (401 N Elm Street)

Virtual Town Hall Meeting

Monday, August 21

6 to 8 pm

Registration is required. Use the link below

https://cityofdenton.zoom.us/webinar/register/WN_I9EtRRShTWappWR6aTBSJw

The Denton Development Code (DDC) allows for Short-Term Rental uses within all residential zoning districts, and current regulations require that the Short-Term Rental be the owner’s primary residence. Therefore, staff is proposing to amend the DDC to remove the primary residency requirement.

This proposed Code amendment is in response to a recent 5th Circuit court decision in the case of Hignell-Stark v. City of New Orleans. The 5th Circuit recently held that the City of New Orleans’ regulation requiring Short-Term Rental applicants to demonstrate that the Short-Term Rental dwelling unit was their primary residence was unconstitutional under the dormant federal Commerce Clause; it was determined to be unconstitutional because it discriminated against out-of-state real estate owners who wanted to operate Short-Term Rentals in New Orleans. Because of this court decision, staff determined that the DDC requirement that a Short-Term Rental be the applicant’s primary residence could be legally challenged.

More recently, there has been a lawsuit filed against the City of Fort Worth where Short-Term Rental owners allege that the city’s regulations are essentially a ban on Short-Term Rental uses in residential districts. With this lawsuit, coupled with the 5^th Circuit decision, staff believes that it is necessary that the DDC be amended at this time solely as it relates to removing the primary residency requirement in order to minimize any potential litigation against the City of Denton.

The City of Denton Planning and Zoning Commission will hold a public hearing and consider making a recommendation to City Council amending the Denton Development Code related to Short-Term Rental, specifically amendments to Sections 5.3.5T.1.b and 5.3.5T.2.e.iii related to requiring that a short-term rental property is the applicant’s primary residence. After the P&Z meeting, the recommendation of P&Z will be forwarded to the City Council for consideration and final action.

MEETING DETAILS:

Planning and Zoning Commission Public Hearing

Wednesday, July 19, 2023, 6:30 pm

City Hall, City Council Chambers

215 E McKinney St

Denton, TX 76201

City Council Public Hearing

Tuesday, July 25, 2023, 6:30 pm

City Hall, City Council Chambers

215 E McKinney St

Denton, TX 76201

Contact the Project Manager or Assistant Project Manager for information on the Code Amendments.

The Short-Term Rental Survey has concluded. Contact the Project Manager or Assistant Project Manager for more information on the Code Amendments.