Short-term rental operators sued the city of Fort Worth, alleging its ordinance banning Airbnb and VRBO-type rentals was illegal.
FORT WORTH, Texas — The city of Fort Worth can restrict short-term rentals from operating in residential areas, a district court judge ruled.
Fort Worth has the authority to regulate short-term rentals in residential neighborhoods, the court ruled. Short-term rental operators who rent out their homes on sites like Airbnb and VRBO filed a lawsuit against the city in 2023, alleging the ordinance is unconstitutional. Over 100 property owners joined the lawsuit filed by the Fort Worth Short Term Rental Alliance, WFAA previously reported.
The ordinance requires short-term rental owners to register with the city, pay hotel taxes and submit a zoning application to be allowed in residential areas. Two property owners have applied for a zoning change that would allow them to list the property on Airbnb or VRBO since the ordinance was passed but both applications were rejected, the Fort Worth Star-Telegram reported. Fort Worth defines short-term rentals as any property rented for less than 30 days.
The Texas Neighborhood Coalition, which has several chapters across the state and advocates for short-term rental regulation, celebrated the ruling.
“Short-term rentals by their nature are mini-hotels and they undermine the character of residential neighborhoods,” David Schwarte, who represents the coalition said. “The fundamental question on these sorts of ordinances is whether the city has a reasonable basis to believe that the actions it’s taking are needed or beneficial in protecting the health and welfare of its citizens.”
The Fort Worth Short-Term Rental Alliance, which brought the lawsuit, said they intend to appeal the ruling.
“We are not surprised or deterred by this outcome,” Lauren Brady, a board member of the alliance said in a statement. “This almost two-year process has been arduous, with delays caused by the city and the court itself while 114 plaintiffs waited patiently with their futures in limbo. We are grateful to finally be reaching the appeals phase of this process where the real action happens in all STR cases.”
Earlier this year, an appeals court ruled in favor of short-term rental operators in Dallas saying short-term rentals could continue operating, despite the city’s ordinance that would ban almost all of them. Schwarte disagrees with the decision the appeals court made in the Dallas case, but remains confident that Fort Worth’s ordinance will stand as the case moves onto its next phase.
“There are other cities in North Texas that are looking at what to do about short-term rentals,” Schwarte said. “If the plaintiffs here appeal to the court of appeals, they are going to go to the very same court of appeals that upheld Arlington’s (short-term rental) ordinance many years ago… This should encourage other cities to act.”
The ruling sets an important precedent for other Texas cities seeking to regulate short-term rentals, Fort Worth spokesperson Reyne Telles said in a statement to the Fort Worth Star-Telegram.
“Fort Worth will continue to defend its position in any appeal and remains dedicated to policies that protect residents and support responsible short-term rental practices,” Telles told the Star-Telegram.
