Texas Senate Passes Bill That Would Ban City Control Over Short-Term Rentals

AUSTIN, TX — The Texas Senate on Tuesday approved a bill designed to overturn Austin's rules overseeing short-term rental properties, according to reports.

The bill authored by Kelly Hancock, a Republican lawmaker from North Richland Hills, would prohibit cities to ban STRs, allowing local officials to regulate them just for health and safety purposes, the Austin American-Statesman reported.

As the city's reputation as a tourist destination (particularly given its status as the "live music capital of the world") grows, the demand for STRs from visitors is great. But city officials have tried to compromise with established residents complaining of noise and late-night disturbances at properties rented out by neighbors as STRs for events such as the massive SXSW festival.

To that end, Austin officials passed new rules last year restricting capacity limits along with a phase-out of full-time short-term rentals by 2022. The move was decried by property owners profiting off of STRs as an an alternative revenue stream as well as free market thinkers who eschew government interference in capitalistic gains.

As the Statesman reported, senators Larry Taylor, a Republican from Galveston, Kirk Watson, an Austin Democrat, and José Menéndez, a Democrat from San Antonio, all tried to insert amendments to the bill that would exempt their regions from the ordinance. All three of those measures failed.

The bill next moves to the Texas House toward final approval.

As the Statesman noted, the Senate vote came the same day as Austin Mayor Steve Adler was testifying before the House Committee on Urban Affairs on a similar STR ordinance. At that gathering, Adler defended the city's stance on STRs and the steps council members have taken toward exerting some measure of control over the industry.

>>> Image via Shutterstock