Daily Regulatory Notes 10/22/2025
Cities address STRs. Dallas, TX handles case; Lago Vista, TX reviews draft ordinance; West Fargo, ND moves ahead with regulation; Simi Valley, CA reviews enforcement; Dennis, MA votes on proposed fee; Leesburg, VA works on rules; Salida, CO schedules public hearing. READ MORE.
Dallas is doubling down on its legal battle over short-term rentals, taking its case to the Texas Supreme Court after lower courts blocked its 2023 ordinances banning STRs in single-family neighborhoods.
The city’s Oct. 16 petition argues that both the trial and appellate courts wrongly upheld an injunction that prevents Dallas from enforcing the ban, leaving officials unable to regulate STR activity as the 2026 FIFA World Cup approaches. The challenged ordinances restrict STRs to multifamily and commercial zones, effectively barring operations in residential areas.
City Council is moving ahead with plans to regulate short-term rentals after reviewing a draft ordinance aimed at ensuring operators are permitted, taxed, and compliant with city standards.
Read the full draft ordinance below.
Staff recommended self-certification for initial compliance due to limited capacity but emphasized the city’s right to inspect when needed. Proposed permit fees of $525 for applications and $500 for renewals will be refined after a cost analysis of staff time and software needs. The ordinance also provides a six-month window for current operators to comply and requires posting of operating standards inside each unit.
Simi Valley residents are urging city leaders to crack down on short-term rentals before the issue comes to a vote.
During the Oct. 20 City Council meeting, several speakers called for a full ban on residential STRs and for any council or staff members with rental holdings to recuse themselves from future decisions. Residents cited the newly signed Senate Bill 346, which will allow local governments to require STR platforms to share data starting in 2026, as a key enforcement tool. They also urged the council to create a permit system, collect occupancy taxes, impose fines, and publish a public registry of rentals.
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Dennis voters weighed in on a proposed 3% community impact fee on professionally managed short-term rentals at the fall town meeting on Oct. 21.
Dennis' Short Term Rental Fact Sheet
The fee, allowed under state law, would target properties owned by investment firms that operate multiple rentals, rather than small, owner-occupied homes. At least 35% of the collected fees would go toward affordable housing or infrastructure projects, with voters deciding how the money is allocated. The warrant also includes updated permit and licensing fees, including a new $2,000 comprehensive permit fee and higher rates for film and special event permits.
West Fargo is moving ahead with new licensing rules for short-term rentals after months of debate over whether hosts should be required to live on-site.
On Monday, city commissioners approved the first reading of an ordinance that drops the primary residence requirement, allowing non-owner-occupied properties and LLCs to apply for licenses. The updated ordinance also aligns occupancy limits with existing building codes and shifts the annual licensing period to run from July 1 through June 30. Property owners will need to display their license and “good neighbor guidelines” in visible areas reminding guests of quiet hours and community expectations.
The Planning Commission continued work on proposed short-term rental rules, focusing on operator residency, registration, and annual rental limits.
Staff outlined a new two-part framework that would move the operator registry into town code—separating it from zoning—and simplify zoning requirements by replacing home-occupation permits with zoning permits tied to proof of operator residency. The commission discussed key provisions, including a 185-day residency benchmark, a cap of one STR per parcel, limits for lessees, and documentation standards like driver’s licenses or utility bills. Staff confirmed existing operators would not be automatically grandfathered under the draft.
The City of Salida is moving toward dropping its residency requirement for short-term rental licenses, signaling a potential shift away from one of the city’s stricter pandemic-era housing measures.
Adopted in 2021 when most STR licenses were held by nonlocal owners, the rule was meant to prioritize housing for full-time residents. But with license counts now well below the city’s capped limits, councilors are considering whether the restriction still serves its purpose. The proposal appears on the Oct. 21 council agenda for first reading and could advance to a Nov. 4 public hearing if approved.
In case you missed it:
Genelaine Urbano
Genelaine Urbano
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