Short Term Rental Ordinance

[Adam Benefield]

City Councilors,

I have submitted to Mayor Sullivan a request for a work session on Short-Term Rentals at our next meeting on October 2, 2025. I included an ordinance that Mr. Bullock provided as a template from another town, as well as a draft ordinance adapted specifically for Lago Vista.

Since this will be a work session discussion, I encourage any thoughts or comments in advance so we can streamline our time together on the 2nd.

 

[Norma Owen]

Thank you for posting, Councilor Benefield. The STR ordinance has been under study for several years, and as I recall, our last conversation focused on the timing of adopting a new ordinance, before or after launch of the STR application. I understand the tracking software has just recently gone live, and I would like to hear the current status and whether this ordinance may require the launch to be delayed.

That said, I appreciate the simplicity and the overall objectives reflected in the draft you created. I'd like to see this adopted. To better understand prior conversations and the ordinances that were once part of our code, I utilized ai to put together the following comparison. I'm placing below in case this is helpful to other councilors as well.

High‑level comparison between the historical STR ordinance that was previously codified in Lago Vista’s code (Article 3.100) and the draft approach Council Member Adam Benefield has floated on the council forum:

Scope & Structure

• Historical ordinance – A single, self‑contained article in the Building Regulations chapter, with sections for purpose, definitions, permit requirements, operational standards, inspections, renewal, and penalties.
• Benefield draft – Modeled partly on another city’s ordinance, but reorganized; appears to integrate STR rules more explicitly with zoning/land‑use provisions rather than keeping them solely in the building code.

Permit Duration

• Historical – Annual permit renewal was the standard.
• Benefield – Proposes a two‑year permit term as the default, with clearer conditions for suspension or revocation mid‑term.

Enforcement & Penalties

• Historical – General fine structure and authority to revoke permits after repeated violations; enforcement largely reactive to complaints.
• Benefield– Stronger, more proactive enforcement language, including:
  • Defined “strike” system for violations.
  • Shorter timelines for corrective action.
  • Potential for immediate suspension in certain safety‑related cases.

Operational Standards

• Historical – Covered occupancy limits, parking, noise, trash, and safety equipment; fairly general.
• Benefield – Adds more specific, measurable standards, such as:
  • Explicit decibel limits for noise.
  • Minimum parking space counts tied to bedroom count.
  • Mandatory posting of permit number in all online listings.

Data & Compliance Tracking

• Historical – No formal data‑collection requirement beyond permit records.
• Benefield – Includes provisions for annual reporting by the city on STR activity, complaints, and enforcement outcomes — likely to build the “local data” record council has said is needed to defend the ordinance legally.

Legal Positioning

• Historical – Written before recent Texas court rulings that limit how cities can regulate STRs differently from long‑term rentals.
• Benefield – Drafted with those rulings in mind; language is more careful to frame rules as health, safety, and nuisance controls rather than outright restrictions on rental type.

 

[Norma Owen]

One other item for consideration as I looked through the history and research by EDAC In May of 2024:

EDAC received the following suggestion from a STR platform during their research: We encourage localities to pass laws to make the specific platform in use, responsible for taxes, which would require not only Vrbo and AirBnB but its competitors to be responsible for these taxes. See below an example of language that would accomplish this:

Short-Term Rental Platforms:
A short-term rental platform that facilitates booking transactions in Lago Vista shall collect in lieu of short-term rental owners and remit to the city the applicable Lago Vista City Hotel Occupancy Tax, as calculated on the amount of consideration the short-term rental guest pays to the short-term rental owner. A short-term rental platform that fails to comply with the requirements in this Article is subject to the applicable penalty provisions of [the Lago Vista Code of Ordinances Chapter (XXX)].

Definitions:
“Short-term rental platform” means a person or entity that provides a means through which an owner may offer a dwelling unit, or portion thereof, for short-term rental use, and from which the person or entity financially benefits.

Effective Date:
This ordinance shall take effect and be in force for Short-Term Rental Platforms 90 days after enactment.

 

[Paul Roberts]

Colleagues,

Several citizens have raised thoughtful concerns about Item 10.1 (STR Ordinance) that deserve discussion. One in particular pointed out that the current draft ordinance does not address deed restrictions, subdivision covenants, or HOA/POA rules.

I think that omission matters. While the draft ordinance requires STR operators to comply with City codes, it makes no mention of private restrictions. Without clarification, a City-issued license could be misinterpreted as “approval” to operate in places where deed restrictions prohibit STRs. The City cannot enforce private covenants, but we also should not create confusion or appear to authorize activity that may violate them.

The citizen suggested three safeguards:

1. Applicant certification – requiring the operator/owner to confirm they have reviewed any applicable subdivision restrictions and will comply with them.
2. Notice to HOAs/POAs – ensuring the relevant association is copied on the application so they have awareness and opportunity to raise concerns.
3. Disclaimer in the license – making it explicit that City approval does not override private deed restrictions.

These are reasonable and would strengthen our ordinance. They would protect the City from potential disputes, provide clarity to applicants, and respect the governing documents of subdivisions throughout Lago Vista. Other cities have adopted similar disclaimers in their STR ordinances for the same reason.

Example Language for Consideration​

Council could insert a new subsection in Sec. 4.1403 (Application) or Sec. 4.1406 (Operator Responsibilities):

Certification of Subdivision Restrictions. The applicant shall certify that they have reviewed any applicable subdivision covenants, deed restrictions, or HOA/POA rules and will comply with them.

Notice to Associations. The City shall provide a copy of the STR license application to the applicable HOA/POA for informational purposes.

Disclaimer. Issuance of a City license does not authorize operation of a short-term rental in violation of any private covenants, deed restrictions, or HOA/POA rules.

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This small addition would directly address the citizen’s concern, avoid misunderstandings, and bring our ordinance into line with best practices seen elsewhere.