Short-term Rentals and Property Rights

In the 2017 legislative session, Texas lawmakers considered numerous bills aimed at limiting the ability of local governments to pass ordinances regulating private property. One of these bills addressed short-term rentals (STRs). According to the Texas Tribune, proponents of SB451 (the Senate bill addressing STRs), said that the bill “would protect homeowners from strict local laws that infringe on property rights while still allowing local regulations that limit or prohibit short-term rentals.” The bill did not pass, and the issue will likely be resurrected in the 2019 legislative session.

Critics of the legislature contend that the state should not intervene in local affairs, that the citizens of a community should be allowed to enact the ordinances that they desire, even those that restrict the use of private property.

Unfortunately, the debate over STRs has not considered all of the alternatives for dealing with the issue. Until the alternatives are considered, the status quo will continue to violate property rights and any bill passed by the legislature is unlikely to truly protect property rights. Let us begin by looking at what STRs are.

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