Now we get to see how well it works. Future revisions may be needed, and that’s fine.
Starting Jan. 1, all houses and apartments rented out for fewer than 30 days must be registered with the city’s Administration and Regulatory Affairs Department for an annual fee of $275 per unit. Those licenses are subject to revocation if the unit owners, operators or tenants repeatedly are cited for breaking sound, litter or health codes.
Some Houston residents have pushed for such legislation for more than a year and asked the City Council to limit the number of units that could be on a single block or in a multifamily property. The council, however, was restricted by the lack of zoning in Houston, which limits how the city regulates property use.
Council members on Wednesday said the ordinance would act as the start of a larger conversation about enforcement, and they could return later to make it stronger if needed.
“We have to enforce this now,” At-Large Councilmember Julian Ramirez said. “If we don’t take the steps necessary to enforce it then people will still be unhappy.”
Neighbors will be able to report units that break the ordinance and unruly behavior through an online portal next year, ARA Chief of Staff Billy Rudolph said last week.
Citations from police, fire and Public Works will be reported on a monthly basis to ARA, and the director will have discretion through the ordinance to revoke a rental’s license.
If a rental owner or operator has three or more registrations revoked within a two-year period, the ARA director can decide to revoke all of their registrations.
See here and here for the background. Houston Public Media adds some details.
The ordinance requires owners “and/or” operators to register properties with the city for a fee of $275. It also provides criteria for the revocation of registrations, including instances of renters committing certain crimes, like reckless discharge of a firearm, disorderly conduct, prostitution or multiple violations of the city’s noise ordinance.
City council members introduced several amendments, including one to allow the city to revoke all registrations for operators or owners who accrue three or more convictions within a two-year period based on the actions of their renters.
“We’re trying to narrowly tailor this while giving the city some leverage,” Council member Abbie Kamin said. “We’re trying to tread as lightly as possible while still addressing the concerns and needs of the city of Houston.”
A violation of the ordinance classifies as a misdemeanor carrying a fine of up to $500.
The rules are intended to address complaints about noise, parties, crime and other nuisances associated with some short-term rentals.
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Ursula Jessee operates a portfolio of short-term rentals and was part of a “responsible landlords” group pushing for changes to the ordinance.
“I’m not furious, I’m not thrilled,” Jessee told Houston Public Media after the ordinance was approved. “I understand the intent behind it. I do think that some of these things are a bit of an overreach.”
Jessee said the group was concerned about the inclusion of disorderly conduct as grounds for potential revocation of registration as well as the lack of language in the ordinance allowing operators or owners off the hook if they take proactive measures to remove problematic guests.
She also said the group didn’t have time to review the updated amendments introduced by council members, such as the rule allowing revocation of all registrations in an owner or operator’s portfolio if three or more properties lose their registrations in a two-year period. She argued the rule doesn’t take into account owners or operators with large portfolios, and she said the city should have included a timeframe for regaining the right to host short-term renters.
“I personally am uncomfortable with anything that takes away landlord rights,” Jessee said. “So in this case, it makes me a bit uncomfortable that, like, all of a sudden you wouldn’t be able to rent out your properties for less than 30 days. I recognize why they’re doing it, though, and what I would have preferred is that there was a cap.”
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Council member Letitia Plummer called for the creation of a task force consisting of community leaders, owners and operators “that can share with us what they’re experiencing on the back end of this and how it’s either positively affecting them or negatively affecting them.”
Council member Julian Ramirez, who chairs the quality of life committee that first considered the rules, said the ordinance could change in the future. He also said the city needs to ramp up enforcement of not just the new rules but also existing ordinances, like those regulating loud noise in residential areas.
“This is not final. We can always amend it,” Ramirez said. “We have to enforce this now. And so we can pass this, but if we don’t take the steps necessary to enforce it, then people will still be unhappy.”
I think Council did a lot of work on this and produced an ordinance that should be workable. It will almost certainly need some refining as we get data on its effects, and for sure it will only be as good as its enforcement capabilities are. The ordinance comes online in January, so we will have plenty of time to get ready for it. We’ll see how it goes.