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When you get in your car to drive anywhere, you take the risk of getting in an accident (whether your fault or not). If you workout, you risk injury. If you have an addiction or bad genetics, your health is at risk. Even investment firms make the statement that all investments come with a risk and earning money is not guaranteed. With that being said, nothing in this life is guaranteed. So, why should short-term rental owners live risk free with their choices of owning and/or operating an STR in a city where are no current regulations? The prohibition of operation of whole house STRs in residential neighborhoods does not affect owners as gravely as it sounds. The IRS allows for all kinds of tax deductions for rental properties, including improvements to a property through depreciation reporting. https://www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping and allows for losses up to $25,000 a year, through deductions. The REAL risk of short-term rentals resides with the neighbors and it is a risk we cannot easily escape. I want to clarify that it isn’t the owners that are the true risk (ie. bad actors), but what their clientele bring to the neighborhood with the lapse in background checks, false renter statements, and inability (or unwillingness) to monitor renter behavior by owners/operators. The claim that hosts closely vet their guests is not an entirely true statement. Per Airbnb legal terms (https://www.airbnb.com/help/article/3100), they do not require verified government ID and cannot guarantee users are who they claim to be as their background checks are limited. A simple Google search for “bad airbnb renters” hits on pages of horror stories from both renters and operators. A complaint to Airbnb goes into the dark abyss of Airbnb support which is why the Better Business Bureau gives the company a 1.07/5 stars for poor customer service. Economy 101 - High supply and low demand, prices are reduced to drive up demand. This, in turn, lowers the quality of renters which increases the risk taken on by neighbors. STR owners only risk damage to property, maybe some press coverage, but they don’t risk the death or injury of a family member who happens to be sleeping next door if there are stray bullets. InMaslow’s hierarchy of needs, Security and Stability rank just behind the physiological needs of food and water. Short term rentals create a lapse in the sense of security that you require to function. In fact, 84% of residents in North Texas do not want to live next door to a short-term rental (WFAA poll from 2018). STR owners don’t even want to live next to STRs because they don’t add desirability or value to a neighborhood, per DouglasNewby.com. In summary, no one is immune from risk. We all deal with it everyday, whether we choose to acknowledge it or not. However, while Lewisville has hotels operating in single-family neighborhoods, residents will continue to bear the brunt of the above risks and live in fear of if the next group of renters will be "bad".

Myth 1 - STRs are ‘mom-and-pops’ trying to make house payments - In Lewisville, our research has found that to be less than 20%. Of all the known owners of STRS, we excluded: 1)      Management companies and LLC owners, as they are obviously registered businesses, using real estate for profit. 2)      Owners with verifiable multiple properties in Denton, Dallas, Collin and Tarrant counties according to their appraisal district websites. 3)      Hosts with multiple listings. Myth 2 - STRs are good for cities and the economy For Lewisville: STRs drive-up housing costs. According to the Journal of Urban Economics citation of Kosteretal’s publication, a 1% increase in Airbnb listings increase rent by 0.0108% and housing prices by 0.026%.  Although this doesn’t sound like much, let’s put it into perspective: Based on the STR presentation from Sept. 11 presented to Council, there has been an 86% increase in STR listings in Lewisville from 2020-2023 For rental prices: 1)      Equates to an almost 1% increase (0.0108% * 86 = 0.9288%) a.       Zillow states the median rental price in Lewisville is $2415/mo. as of 9/26/23 b.       Without STR inflation, rent would decrease $24.15/mo or $289.80/year            i.      According to Point2pointhomes.com, 58.44% of the 45,886 housing units in Lewisville are renters (26,816) 1.       Saving renters a total $647,606.40/mo or $7.77M/year For housing prices: 1)      Equates to over a 2% increase (0.026% * 86 = 2.223%) a.       Zillow says the median home price in Lewisville is $402,039 as of 8/31/23 b.       Without STR inflation, home prices would decrease $8,040.78 or almost a $10k reduction Myth 3 - I can do what I want with my private property. When buying in a residential neighborhood, you are subject to local zoning ordinances that forbid certain activities incompatible with residential neighborhoods. Lewisville currently has 6 residential zoning districts. Exhibit VII.2.3-2 shows the allowable uses in a residential zoning district. If I wanted to have a cemetery in my single-family residential zoned district, I would be required to apply for a supplemental use permit for legal construction and operation. The requirements for a SUP are well documented in city code and would come at great expense to homeowners provide enough detail as to elicit city support and approval. Additionally, my neighbors could weigh in support or opposition of my SUP request. However, if I wanted to start a car repair shop on my property, Section VII.2.1 states “unlisted uses are NOT allowed.” Thus, my neighborhood is not equipped to support or deal with the traffic, chemical use, machinery noise, etc., that would come with me starting this business out of my house. Therefore, just because it is MY private property, it doesn’t mean I can do whatever I want to with it. If I did, there could be civil and/or financial penalties put on me by the City because I am in violation of zoning laws.

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