Texas Supreme Court Sides with STR Owners

[David Ivy]

It may only be a matter of time before strict short-term rental regulations in Texas cities, such as Austin, are a thing of the past (or at least significantly limited). In fact, a Texas Supreme Court ruling on May 25, 2018 could also severely limit an HOA/POA's ability to prohibit or restrict AirBnB-style rentals. The ruling doesn't directly address regulations implemented by the City of Austin and elsewhere in the state. However, it bolsters the case against such ordinances in several major ways. You can see a Texas Tribune article about the recent ruling.

A bill to block cities from heavily regulating short-term rentals made it through the Texas Senate during the last legislative session, but it died in committee in the Texas House. This recent ruling may cause the Texas Legislature to pick up the issue again with increased support during the 2019 session. 

[Krishna Chava]

Thanks for sharing. This is good news for real estate investors irrespective of whether we like STR or not. HOAs and condo associations have the power to make investor life miserable with their unpredictable bylaws. I support taxing and making STRs pay for hotel like use, but banning outright is bad precedent.