Houston council faces backlash over proposed short-term rental liability regulations

On December 9, 2024, the Houston City Council's Quality of Life Committee convened to discuss proposed regulations affecting short-term rentals (STRs) in the city. The meeting highlighted significant concerns from both corporate housing providers and individual property owners regarding the implications of the new regulations.

Brooke Bornick, co-founder of Lodger, a corporate housing provider, voiced strong opposition to the proposed requirement that property owners accept liability for all STR violations. Bornick argued that this regulation would unfairly penalize property owners for the actions of their guests, drawing a comparison to traditional rental agreements where landlords are not held responsible for tenant behavior. She warned that such regulations could effectively eliminate professional operators from the market, leaving only owner-occupied homes or buildings converted entirely to STRs. This shift, she argued, could lead to a proliferation of unregulated properties functioning as hotels without the necessary safety standards, countering the city’s goals for responsible housing.

Bornick proposed a more effective regulatory approach that focuses on the operators rather than the properties themselves. She suggested that the city should streamline enforcement by targeting irresponsible operators, which would allow responsible businesses to thrive and meet the housing demands of locals, especially in times of crisis, such as after a storm.

The discussion also included input from individual property owners, such as Ted Powell, who expressed concerns about the clarity of the regulations and their potential impact on small STR operators. Powell highlighted his situation as a retired homeowner who has converted part of his property into furnished apartments listed on platforms like Vrbo and Airbnb. He raised questions about the definitions and exemptions outlined in the proposed ordinance, particularly regarding the classification of bed and breakfasts and the potential for confusion among property owners.

The committee's discussions underscored the tension between regulating STRs to ensure community safety and preserving the viability of both corporate and individual operators in Houston's housing market. As the city grapples with these regulatory challenges, the outcomes of these discussions will likely shape the future landscape of short-term rentals in Houston, impacting both residents and visitors alike. The committee is expected to continue refining the proposed regulations, taking into account the feedback from stakeholders in the coming weeks.