Registration Certificate Limits and Separation Requirements Explained

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 in Residential Zoning Districts (RR-R7).

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.