Proposed regulations for Houston short-term rentals continue to be a set of compromises, and neither residents nor owners are satisfied.
City officials last year began considering a short-term rental ordinance for units rented for fewer than 30 days following complaints from neighborhoods about disruptive renters that make excessive noise, limit parking and create unsafe environments. Even with the new proposed regulations, residents and city council members have questioned how best to enforce them.
Meanwhile, owners of short-term rental properties say the proposed changes, including mandatory annual registration fees, feel punitive and will limit their ability to grow their businesses.
“There is no excuse for hosts who allow guests to disrupt neighborhoods, but the reality is, the bad actors are not the ones registering, paying taxes or speaking at these events,” said Sebastien Long, a short-term rental operator. “We are just as frustrated as you are. Don’t punish 99.9 percent of law-abiding operators for the actions of a tiny minority.”
The city’s Administration and Regulatory Affairs Department estimates there are more than 8,500 short-term rental properties in Houston. The new regulations will require owners to pay an annual registration fee of $275 per unit, list an emergency contact who can be onsite within one hour at any time, and give the city the authority to revoke registrations.
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The proposal has gone through a number of changes to create a middle ground between disgruntled neighbors and rental owners. A previous version of the ordinance required rental owners to carry a $1 million liability insurance policy, which owners said was cost-prohibitive.
The latest iteration, which City Council will consider Wednesday, could include a series of amendments, including:
- a requirement that the owner or operator of a rental register the property with the city.
- a provision that allows the city to revoke all of an owner or operator’s registrations at one time, if at least two of their registrations are revoked, requiring all the properties be taken off booking sites.
- all rental property applicants and employees must take the city’s free training on how to recognize human trafficking.
The proposed ordinance also outlines how an owner can lose a registration if two or more renters are convicted of violating noise, litter or other ordinances. If a business loses its registration, the city will request all platforms that list the property to remove it as an option.
Residents like Kathryn McNiel, who lives near a Museum District multifamily complex of short-term rentals that she said disrupt her neighborhood, asked council members how rental owners would be forced to follow any new regulations.
“Do we need to take pictures? Do we need to have someone say ‘Yes, we came here for Airbnb’?” McNiel asked at a council committee meeting March 7. “What type of evidence do we need to bring forth?”
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Several city departments, including police, fire and Public Works, are responsible for citing violations of Houston’s health and safety ordinances. Those violations are reported on a monthly basis to Houston’s Administration and Regulatory Affairs Department, which would be responsible for revoking a rental’s registration.
ARA Chief of Staff Bill Rudolph said the city also will open an online portal residents can use to report problems with specific short-term rentals. He said the complaints would be routed to the appropriate city department to address the immediate issue.
The outside vendor operating the portal. Host Compliance, will track short-term rentals and notify them of any registration requirements, Rudolph said. If the online system alerts the city that a rental owner did not register or let a registration lapse, ARA will ask all platforms advertising the property to delist it, he said.
Because many owners maintain multiple properties, they have argued during City Council meetings that requiring annual registration fees for each property will prevent them from expanding their businesses.
Representatives for Airbnb said requiring registration could deter residents from listing their properties, which would have negative impacts to the Houston economy.
“Home sharing offers an economic lifeline for many Houston residents, boosts the local economy, and helps the city absorb surges in demand during major events,” said Luis Briones, senior policy manager at Airbnb, one of the largest operators of short-term rentals in the country. “We remain committed to ensuring the proposed regulations make it as easy as possible for Houston residents to continue earning extra money by sharing their home.”
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Some community members, however, say the new regulations do not go far enough.
The Braeburn Super Neighborhood proposed its own amendments to council that would place further restrictions on how many short-term rentals could be in single-family neighborhoods, increase the registration fee, and allow the city to suspend registration more frequently.
City Hall’s authority is limited because of Houston’s lack of zoning. Legally, the city cannot regulate land use beyond certain circumstances.
For example, council members last week suggested limiting the number of short-term rentals in an apartment complex to 25 percent of the total units, but the city legal department said such a restriction could bring on legal challenges.
Instead, council members hope language in the proposed ordinance revisions allowing the city to revoke registrations when hosts or guests repeatedly break the rules will be enough to help communities.
“I’m not trying to penalize all the multifamilies. We’re trying to get after the ones where there’s a concentration of bad activity,” At-Large District Councilmember Sallie Alcorn said.
Should council approve the ordinance on Wednesday, owners will be able to start registering their properties in August. Rentals will be able to operate as they wait for certification, but all units will have to be certified by January to avoid penalties.
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