09/07/2026
Has (or will) your income producing short term rental cease to be allowed? This is NOT just a Garland situation. Garland is just the city in the news currently discussing the changes.
Many cities throughout North Texas have either considered some sort of move to slow down or restrict short term rentals or have already taken action to do same.
Similar is also happening in lake communities- such as around Cedar Creek Lake - Lake Palestine - Richland Chambers to name a few.
Have you been watching how this will affect your local home values ? Both now and in the future? Even if you do not own a short term rental there is the potential unintended consequence of supply outpacing demand. When this happens we all know how the market reacts and what happens to sale prices. 🏡🤔
Definitely a conversation to pay attention to in your local community.
If you are looking to purchase an existing STR it is imperative that you know what is being discussed in the area - and does the ability to be a STR transfer with change in ownership?? Having a professional work with you on how to uncover the potential issues in STR ownership is critical.
If you are looking to end your involvement with STR experience and want to sell or maybe 1031 exchange the sale into something else , having a professional work with you to strategize and help you take next steps to your goal is critical.
Reach out anytime - a conversation about the plan and how to begin … long before you go to the market to buy or sell … will help you be in the position of strength. 📱
Garland could soon bar new short-term rentals from residential neighborhoods, including apartments. The move comes after years of waiting for court rulings that clarified how far Texas cities can go in regulating short-term rental properties.
City staff presented the proposed zoning changes during Monday’s City Council work session. Garland has long required permits and imposed rules on inspections, parking and conduct, but it has not regulated short-term rentals through zoning. City Attorney Brian England said the city’s strategy was to “stay defensible and don’t be the test case” while other cities faced lawsuits over their restrictions.
That legal picture is now much clearer. England said recent Texas appellate decisions found that property owners do not have a categorical right to rent homes for stays under 30 days. A Fifth Circuit ruling upheld New Braunfels’ prohibition on short-term rentals in residential zones. The rulings gave Garland staff more confidence to pursue a zoning approach focused on where the use belongs, rather than a citywide ban. England said the city’s zoning power is about “land regulation, not prohibiting uses that otherwise would be lawful.”
Under staff’s initial proposal, short-term rentals would be allowed by right in light- and heavy-commercial districts and prohibited in single-family neighborhoods and most other districts. Multifamily properties would have been able to seek approval through a specific-use permit. Council members directed staff to remove that option and prohibit short-term rentals in multifamily districts as well. Urban Business and Urban Residential districts would also not allow them.
Existing short-term rentals that are legally permitted when the ordinance takes effect could continue operating, but that ability would not transfer to a new owner. Unpermitted operators would not qualify, and staff is considering how quickly a lapsed permit would end the continuation.
England estimated Garland has 200 to 250 short-term rentals, though the city typically deals with two or three serious problem properties at a time.
Council members broadly supported stronger restrictions and pushed for even tighter restrictions, though Council Member Jimmy Tran asked about the scale of the problem and the message the policy could send to businesses.
Short-term rentals have been a contentious issue at the municipality level across North Texas, particularly since residents had unclear options for what to do about problematic properties. Now, Garland hopes to have much more clear guidelines to enforce. Richardson recently adopted regulations that would limit the amount of short-term rental properties within 500 feet on an existing STR.
The direction does not adopt a new rule yet. Staff will revise the proposal to prohibit short-term rentals in multifamily districts, then send it to the Plan Commission for review before public notice, hearings and a final City Council vote. England estimated the process could return to council within roughly six to eight weeks.
