The future of short term rentals (STR) in Kyle was debated in a public hearing April 4 as part of a special Planning and Zoning Commission meeting at the Plum Creek Community Center.
The meeting’s purpose was to elicit comments and concerns from residents on STR prior to the city making a final decision on the topic.
Residents’ comments and questions throughout the meeting, however, showed there is still dissent on the issue and little indication on whether the city will allow or restrict STR.
Angie Pereira, a resident of Plum Creek, has had issues with nearby houses that have had Airbnbs. Pereira was worried about the vetting process of bringing strangers into her neighborhood. She also cited previous issues with litter, cigarette butts strewn on lawns, congested parking, along with noise complaints.
“No one is going to want to move into a house next to what is essentially a hotel with strangers coming in and out,” Pereira said.
Other residents against STR were confused as to why the city has so many of them. Points raised by those residents extended to the rural nature of Kyle and how the city already has three, 200-plus room hotels.
Heather Mayo, who lives in Austin but works for an area vacation rental management company, said the Hill Country, including Kyle, are destination areas for weekend trips and weddings. People who come to visit may want to have a more cozy experience compared to a hotel room, Mayo said
Allison Pflaum, a realtor in the area, added some home owners also use Airbnb to supplement rising property taxes.
Visitors to the community would also contribute to the local economy by buying gas and groceries and going to local businesses, several people at the meeting noted.
While thoughts on STR differ, there was agreement the city should create some sort of standard oversight and regulation. Some went as far as to say background checks should be required for visitors coming into STR, although Mayo disagreed.
However, regulation could lead to a cost of Kyle hiring a new staff position for STR oversight.
“I think a lot of it has to do with debunking myths and getting at the facts. Anyone who moves in next to you can be crazy, and you have no control over that,” Mayo said.
Dave Douglas, who spoke on behalf of the Home Town Kyle homeowners association (HOA), read a statement on the HOAs decision to ban STR in the subdivision based on nuisance and litter concerns.
Douglas added the management of an STR would turn a family’s home into a commercial business. However, in August 2017 the Third Texas Court of Appeals ruled that STR do not turn a property into commercial use.
Douglas hopes that HOAs will still have autonomy to regulate STR within their neighborhoods.
Hotel Occupancy Taxes (HOT) were also discussed during the meeting. If the city opts to collect a HOT from STR, they would also have to decide how to levy and regulate it.
HOT taxes collected would have to go toward tourism and advertising, the taxes cannot go toward city administration, said Koontz.
Under current city regulations and according to Planning Director Howard Koontz, STR are not legal within city limits. However, a handful of STR are available in the city on various websites, but only because the city has yet to figure out how to regulate them.
Additionally, a report based on public comment and research made by the P&Z will be presented to city council by mid-May, and a final decision is estimated to be made by June or July.
Responses from a survey on the P&Z website will also be compiled in the report. The survey is open to the public on the city’s website.
