Lewisville City Council to consider a temporary ban on short-term rentals Monday

The Lewisville City Council is expected to vote on a proposed temporary ban on new short-term rentals during Monday night’s meeting.

The temporary ban would apply to new short-term rentals and would be in place for up to a year until a permitting process approved in January "can be established and initial results are evaluated," according to the city.

The contentious issue has pitted some neighbors against each other and has city officials researching legal parameters.

For months, Lewisville residents and the Texas Neighborhood Coalition have lobbied against short-term rentals in the city.

They have packed city meetings on the subject and captured examples of rowdy parties, and shared concerns about parking and trash left in their neighborhood.

Last October, the city told NBC 5 there were 93 short-term rentals in the city and more than half are owned by people who live in the city.

“The people who were having the most problems have said they’re still having problems,” said David Margulies of the Texas Neighborhood Coalition. “The bad operators are still the bad operators, despite what they say in public, and the fact of the matter is that in a residential area, you don’t want a hotel.”

One homeowner on Firewater Circle told NBC 5 last year he saw a party bus dropping off a large crowd at the short-term rental next door.

NBC 5 reached out to the homeowner for comment but has not heard back.

The city asked residents for feedback last October, receiving hundreds of messages expressing concerns over increased health, safety, and nuisance issues related to these rentals.

Since then, the city has approved new regulations and is now considering the temporary ban.

“Our city council has taken this issue seriously and has had numerous public hearings,” said Lewisville Planning Director Richard Luedke. “We often have to do a lot of analysis and look deeper into these things and there are always two sides to every story.”

City leaders have also heard from several short-term rental operators who say renting their home for less than 30 days at a time helps supplement their income.

The temporary ban would apply to new short-term rentals, not existing properties. Luedke said the city council will consider whether the ban could be lifted this summer when the city’s new permitting and inspection process, approved in January, would begin for existing short-term rentals.

The new regulations, set to begin July 8, also ensure all short-term rentals are paying hotel tax occupancy.

“The concern is people who already have a short-term rental will be able to claim they are "grandfathered in" so we want as few of those as possible once regulations go into effect,” said Margulies.

The coalition has also argued the lucrative short-term rental industry prevents homes from being sold.

Margulies praises the council for listening to their concerns.

“The council is taking notice. They listened,” he said. “They have differing opinions so I’m not sure we’ll get everything we want but it’s a real step in the right direction. It should’ve happened three years ago but the fact is it’s a step in the right direction.”

If the temporary ban is approved, it will go into effect in the coming days.

Violators could face a misdemeanor and a $2,000 fine for each violation, according to the emergency ordinance.