Lewisville City Council examines regulations for short term rentals and multifamily units

Lewisville City Council is taking significant steps to regulate short-term rentals (STRs) in the community, following a recent meeting that highlighted key discussions on compliance, density limits, and the future of multifamily units.

During the meeting, city staff presented findings from research on STRs, revealing that there are currently 98 active permits in Lewisville, with a total of 113 applications. The council discussed the importance of ensuring that the amounts remitted to the city align with state figures, emphasizing compliance as a priority.

One of the most impactful decisions made was the proposal to establish a distance requirement for STRs. Council members expressed a preference for a distance of 1,000 feet between rentals, which would potentially limit the number of STRs to about 3% of the city's housing stock. This distance requirement aims to prevent clustering of rentals in specific neighborhoods, addressing concerns from residents about the impact of STRs on community dynamics.

Additionally, the council considered implementing a cap on the number of STRs allowed in multifamily units. While some members suggested a limit as low as 1%, others argued for a more flexible approach, noting that current market conditions show little demand for STRs in multifamily settings. The council agreed to revisit this topic, allowing for adjustments based on future demand and community feedback.

The discussions also touched on the need for ongoing evaluation of STR regulations, with council members emphasizing the importance of monitoring trends and potential impacts on neighborhoods. The consensus was to maintain a limit of 150 STRs citywide, while also allowing for periodic reviews to adapt to changing circumstances.

As Lewisville moves forward with these regulations, the council aims to strike a balance between supporting property owners' rights and addressing community concerns about the proliferation of short-term rentals. The next steps will involve drafting an ordinance reflecting these discussions, with further opportunities for public input and adjustments as needed.