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What does the Dallas short-term rental ban mean for SFR?

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Smiling woman relaxing on hotel bed with suitcase, ready for summer vacation

On June 14, Dallas, Texas passed a ban on short-term rentals (STRs) in single-family neighborhoods.

From December, around 1,000 registered STRs – and thousands more unregistered ones – will have to shut down in the city. While STRs will still be allowed in multifamily and commercial zones, hosts will now be required to register with the city annually and pay the same taxes and fees as hotels.

Dallas city officials implemented these restrictions to improve the quality of life for residents, who often cite increased crime, excessive noise, and limited parking as significant issues that come with short-term rentals.

Many STR owners oppose the ban. Some are considering moving their operations to more STR-friendly cities. Others may choose to sell their properties and exit the rental market altogether. It's possible, however, that many owners will stick around and convert their properties into long-term rentals, creating the opportunity for a property manager to facilitate the transition.

Either way, the Dallas short-term rental ban could make more homes available and raise property values in single-family neighborhoods that are now safer and quieter.

More SFR headlines

NYC postpones enforcing short-term rental law – The Real Deal

Once an evangelist for Airbnbs, she now crusades for affordable housing – The New York Times

The effect of home-sharing on house prices and rents: evidence from Airbnb – Social Science Research Network

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