Plano City Council Votes To Ban Creation Of Short-Term Rentals In Neighborhoods

Prospective owners of short-term rentals in the city of Plano will no longer be able to move forward with their plans after the city council voted Monday to end the creation of short-term rentals in single-family neighborhoods.

The decision marks the end of a years-long saga in which the city worked to appease disgruntled homeowners while also weighing the property type’s future in Plano. A yearlong ban was implemented last May, prompting the council to make a decision prior to its impending expiration.

“As we’ve heard so often for the past couple of years, even if there’s not a party house next door, the uncertainty created by not knowing who is there really wreaks havoc on a neighborhood,” Council Member Shelby Williams said. “Look no further than Wall Street — Wall Street hates uncertainty more than almost anything else. The same applies to neighborhoods.” 

In addition to Plano’s ban on new STRs, owners of existing properties must now register with the city and pay an annual fee. An STR license can be revoked if violations are found.

Owners must have an insurance policy of at least $1M, maintain a certain noise level and video monitoring of the property, and assign a designated contact who can quickly respond to any reported incidents, among other items, Community Impact reported.

Regulations outlined in the ordinance caused some consternation in the community, especially among those who said they violate property rights.

“The proposed regulations are excessive and unfairly discriminatory against short-term rental owners and impose excessive burdens on property owners,” said Plano resident Kristin Reinaker, who claimed she felt “badgered and bullied” into agreeing with anti-STR members while serving on the city’s related task force.

Reinaker spoke during the public comment portion of the meeting.

Plano isn't the first DFW-area city to limit the creation of STRs. The Dallas City Council passed a similar ban last summer, and the city of Grapevine voted to restrict STRs to multifamily-zoned districts earlier this year. Houston Mayor John Whitmire pledged last month to crack down on so-called nuisance properties.

Plano’s ordinance stipulates that STRs are still allowed in other parts of the city, including commercial-zoned districts, some multifamily districts and hotel-compliant areas.

The regulations should kick into effect in early May, Director of Planning Christina Day said.