Council Approves Ordinance to Regulate Short-Term Rentals

Short-term rentals are generally defined as renting a home or a portion of a home for stays of less than 30 days. Given the popularity of apps such as Airbnb and Vrbo, the use of short-term rentals in residential areas has increased. In March 2019, the City Council adopted regulations for such properties in Addison. The regulations required these properties to be registered with the Town and that the owner and occupants agree to abide by certain requirements to minimize their impact on the adjacent neighbors.

The ordinance included a sunset provision after one year, requiring the City Council to review and adjust or extend the requirements by April 30, 2020. Council did elect to extend this program for another year in March 2020. Due to staff transition, these regulations were not brought forward for Council consideration prior to the April 30, 2021 sunset date. As a result, there are no specific regulatory or registration requirements that are currently applicable to short-term rentals in Addison. At its October 26 meeting, the City Council approved an ordinance permanently reinstating the regulations originally adopted in 2019 and amended in 2020.

Since the initial adoption of the short-term rental regulations, six properties have registered with the Town, and only one active registrant remains. Through a cursory review of the most common short-term rental apps – Airbnb and Vrbo – it appears that Addison has a fairly limited supply of short-term rentals, with the majority of those opportunities being accommodated in multifamily dwelling units.
Town staff will monitor the implementation and return to Council by the fourth quarter of Fiscal Year 2022 to address any implementation challenges and needed regulatory refinements.