(214) 658-1900 
Major Victory for Homeowners Associations as Court Upholds the City of Fort Worth’s Short-Term Rental Restrictions
By: Kristen Pierce
One of the hottest topics in community association law is the restriction on short-term rentals in subdivisions. Homeowners Associations (“HOAs”) across the State of Texas have implemented these types of restrictions on short-term rentals which limit an owner’s ability to rent their property through certain provisions such as minimum leasing restrictions, leasing caps, and other provisions that aim to lessen potentially negative impacts that short-term rentals may have on their communities. In response to these HOAs implementing short-term rental restrictions, municipalities have created their own restrictions on short-term rentals within the city, including many requiring permits in order for an owner to rent their residence. As expected, there is a significant divide between homeowners as some appreciate having a primarily owner-occupied community while other homeowners feel that short-term rental restrictions negatively impact the ability for them to use or profit from their property.
As certain homeowners take issue with short-term rental restrictions, some have filed suit in an effort to remove the restrictions. The City of Fort Worth is no exception. In Kelray LLC, et al. v. City of Fort Worth, a case out of the 352nd Judicial District of Tarrant County, Texas, Plaintiffs filed suit against the City claiming that the City’s short-term rental restrictions violate certain provisions of the Texas Constitution, including the due process clause, the equal protection clause, and the retroactivity clause. The City, in opposition to Plaintiffs’ Original Petition, filed a Traditional Motion for Summary Judgment (“MSJ”). Among other items of contention, the City’s MSJ argues that (1) the Plaintiffs do not have a constitutionally protected right to rent their properties for less than thirty days in residentially zoned districts, (2) the short-term rental restrictions are rationally related to a legitimate purpose and a compelling interest of protecting the public health and safety, preserving the residential character of a community, and are not unduly burdensome, (3) the Plaintiffs cannot show that they have been treated differently than other similarly situated parties, and (4) since the Plaintiffs do not have a “settled expectation” to rent their homes for less than thirty days, the City’s short-term rental restrictions are not unconstitutionally retroactive.
On March 6, 2025, Judge Josh Burgess of the 352nd Judicial District of Tarrant County, Texas, entered an Order Granting City of Fort Worth’s Traditional Motion for Summary Judgement stating, “[a]fter considering the Motion, the Plaintiffs’ response to the Motion, the evidence, any reply filed by City, the pleadings on file and applying the applicable legal standard, the Court is of the opinion that City’s Motion should be, and is hereby, GRANTED.” While the City can most certainly expect an appeal by Plaintiffs, this case, as it stands, is a victory for those Cities and HOAs that implement or intend to implement short-term rental restrictions as this case shows a clear deference for keeping residential neighborhoods residential.
Kristen Pierce is an Associate Attorney with Henry Oddo Austin & Fletcher, P.C., with a focus on Property Owners and Community Associations law. This article is made available by the attorney and/or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law; it is not being made available to provide specific legal advice. By using this website and/or article, you understand that there is no attorney-client relationship between you and the law firm publisher or attorney author. This website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. The references to particular sets of events are meant for illustration purposes only and do not constitute opinions, comments, or advice about any specific case whether pending, resolved, anticipated, actual, or partially constructed from actual cases. The author expresses that she is not bound to any particular legal opinion or future professional judgment or decision on the basis of this article.
Jun 20, 2025
