Research

Home-sharing sites such as AirBnB appeared on the scene approximately one decade ago causing a dramatic shift in the lodging industry. While initial assumptions were that STRs would have a negative impact on property values, the handful of studies to date that have focused specifically on AirBnB rentals have found the opposite to be true - they have had a positive impact on property values. Likewise, there have been studies not on home-sharing sites in particular, but on restrictive occupancy covenants in general that indicate such covenants can cause a negative impact on property values. We urge homeowners to do their own research. Please do not accept blanket statements that these restrictions will improve property values. Ask for evidence to substantiate those assertions.

Texas Property Code Section 209.006

The Texas Supreme Court recently ruled in Tarr v. Timberwood that the Residential Purpose clause cannot be used by HOAs to restrict or prohibit Short Term Rentals. This is a stricter ruling than has been found in other states. Cities and states across the country and across Texas are grappling with the idea of STR restrictions and how to strike a balance between property rights and property protections implicated by such restrictions. We maintain that it would be wiser and safer to let the legal dust settle, especially given how recent the Tarr case is, before passing restrictions that may end up falling on the wrong side of the decisions soon to be made by the courts. There are five bills currently under consideration by the Texas legislature and there are rumors that the City of Carrollton may soon enter into the STR debate. Any restrictions we write now may be invalidated by, or worse, contradict, laws to be passed in the near future. Rashness belongs to youth; prudence to old age.

The City of Carrollton has many laws already in place to address issues included in the Proposed Deed Restrictions. Vague wording in deed restrictions exposes homeowners to risks of selective enforcement, inconsistent application, harassment, and increased litigation by homeowners against the HOA and also by homeowners against other homeowners. We maintain the restrictions should give the HOA the power to enforce provisions that homeowners are already required to comply with by law whenever possible. This gives the Board the greater power and control it desires to address neighborhood issues without depriving property owners of additional rights or exposing them to the risks associated with vague wording.