The City of Austin is shaking things up for short-term rentals – think Airbnb, Vrbo, and the like. New rules are rolling out, especially about how taxes get paid. This could mean a lot more money for the city. That sounds good, right? But as some much-needed bigger changes get kicked down the road, folks in our neighborhoods are left wondering: Is this really solving the problems we face every day?
The Tax Man Cometh (For Real This Time?)
Starting April 1, 2025, a big change hits. Platforms like Airbnb and Vrbo will now have to collect the City of Austin’s Hotel Occupancy Tax (HOT) for every booking. They’ll send it straight to the city. Before, it was up to individual STR owners to do this, and let’s be honest, it seems many just…didn’t.
Why the sudden shift? The city admits it’s been missing out on a pile of cash. Austin was collecting about $7 million a year from licensed STRs. But here’s the kicker: officials think there are around 2,200 licensed rentals, but potentially up to 10,000 – yes, ten thousand! – operating off the books. That’s a massive number of rentals possibly dodging taxes. Will forcing the big platforms to collect these taxes finally make everyone pay their share? And why did it take so long to address this glaring hole?
This new rule means platforms collect taxes on all their Austin bookings, licensed or not. The city expects its piggy bank to get a lot fuller.
Owners, Don’t Get Too Comfortable
If you’re an STR owner and you book guests directly – no platform involved – you’re still in charge of collecting and sending in that HOT tax yourself. No escaping that.
Plus, get ready for more paperwork. Starting with the quarter that begins April 1, 2025, STR owners must file a quarterly report with the City. This report has to show how much HOT each platform collected and paid for them. The city is updating its Austin Finance Online (AFO) portal for this. The first report, for the quarter ending June 30, 2025, will be due by July 31, 2025.
Other Big Rule Changes? Not So Fast.
Beyond grabbing those taxes, Austin was looking at other major changes to its STR rules. One big idea was to move STRs from the Land Development Code to Title 4 of the City’s code. That sounds complicated, but it basically means treating them more like other businesses with permits. But hold your breath – these changes have been pushed back to October 1, 2025.
Why the delay? The city gives a couple of reasons:
They want to see what the 89th Texas Legislative Session cooks up. New state laws could mess with local STR rules, so Austin’s playing it cautious.
They need time to get new software. This tech is supposed to help track STR licenses better and make sure people are following the rules. The hope is it’ll make licensing smoother and get more owners to comply willingly. But will new software truly tackle the on-the-ground issues if enforcement isn’t beefed up too?
The good news for operators, perhaps not for some long-term residents, is that STRs will still be allowed in all residential parts of Austin, as long as the operator has a valid license.
What People Are Saying (And Why It Matters)
Let’s not forget the backdrop to all these talks. Many Austin residents are worried. They’ve seen more and more STRs pop up in their neighborhoods. They’re concerned about how these mini-hotels are changing the feel of their communities, the noise from constant new faces, and whether it’s making it harder for regular folks to find a place to live. Are these new tax rules going to quiet those concerns, or is it just about the money?
Austin’s Plan: Slow and Steady, or Too Slow to Help?
It looks like Austin is taking this one step at a time. Getting the platforms to collect taxes is the first big move. It’s a fairly easy win because these big companies often do this elsewhere. This way, the city quickly gets more tax money it was missing.
Pushing back the more complex rule changes gives them time. Time to see what the state does, time to get their new tech running, and time to think more about the rules. This careful approach makes sense when dealing with something as tricky as STRs. But for residents dealing with problem properties now, does “strategic delay” feel more like the city is dragging its feet?
Why This Tax Change is a Big Deal
Making platforms collect HOT is significant. Here’s why:
More City Cash: As we said, it should mean a lot more money for Austin by getting taxes from rule-breakers.
Fairer Competition: Hotels and licensed STRs have been paying these taxes. Unlicensed ones haven’t. City officials say this levels the playing field. Was it ever really a “field” if so many weren’t playing by the rules?
Platforms as Tax Cops: Basically, the city is making the STR platforms do some of the work of tax collection. These companies have the systems, so it should mean more people pay up. But are we now relying on private companies to enforce public good?
So, Austin’s new STR rules, especially making platforms collect taxes, are a big step. It will mean more money for the city and aims for fairer competition. But the delay on other rules shows the city is being careful. They want to see what the state does and get better tools to manage STRs in the future. The question remains: will these changes ultimately address the quality-of-life issues that Austinites are so vocal about, or is this just the first act in a much longer play?
Houston, Texas, has officially entered the arena of comprehensive short-term rental (STR) regulation. On April 16, 2025, the City Council unanimously passed a new ordinance aimed squarely at mitigating the negative externalities often associated with STRs, particularly disruptive “party houses,” while establishing a clear framework for operators. This move culminates a period of deliberation and marks a significant step for a major city previously lacking such specific oversight.
Establishing the Ground Rules: Registration and Operation
The ordinance introduces a mandatory registration system, requiring operators to obtain an annual certificate for each STR unit.
Timeline: Applications open on August 1, 2025, with the ordinance taking full effect on January 1, 2026.
Cost: The annual registration fee is set at $275 per unit.
Scope: The rules apply to an estimated 8,500 STRs operating within Houston city limits.
Beyond registration, the ordinance mandates adherence to several operational standards. Operators must:
Comply with Existing Codes: Ensure properties meet noise, waste management, building safety, and fire safety standards.
Provide Emergency Contact: Designate a contact person available 24/7 who can respond promptly to issues arising at the property.
Remit Taxes: Pay the requisite Hotel Occupancy Taxes (HOT) (taxes levied on sleeping accommodations, akin to those paid by traditional hotels).
Undergo Training: Complete annual training focused on identifying and reporting human trafficking.
Prohibit Event Advertising: Explicitly forbid marketing STR properties as venues for parties or large events.
Crucially, the ordinance leverages the cooperation of hosting platforms like Airbnb and Vrbo. These platforms will be required to remove listings for unregistered properties within 10 days of receiving notification from the city, adding a significant layer of enforcement capability.
Enforcement Mechanisms: Addressing Violations
Recognizing that rules without enforcement are often ineffective, the Houston ordinance includes specific mechanisms for addressing non-compliance. Registration certificates can be revoked for several reasons, including:
Multiple violations of the sound ordinance.
Serious criminal convictions involving guests at the property (e.g., disorderly conduct, prostitution, reckless firearm discharge).
Failure to adhere to other provisions of the ordinance or relevant city codes.
The city has also implemented measures to target problematic operators managing multiple properties:
Portfolio Revocation: An owner or operator accumulating three or more certificate revocations across their entire portfolio within a two-year period may have all their STR registration certificates revoked city-wide.
Building-Specific Revocation: Within a single multifamily building, if 25% or more of an owner/operator’s STR certificates are revoked, the city reserves the right to revoke the remaining certificates held by that operator in that specific building.
To manage complaints and monitor compliance, Houston has contracted with Host Compliance, a service provided by Granicus, indicating an investment in technological solutions for oversight.
Initial Reactions and Lingering Questions
The ordinance received public praise from Expedia Group (parent company of Vrbo), which lauded the collaborative process and positioned the outcome as a potential model for other cities. This suggests that at least some segments of the industry see value in clear, albeit potentially strict, regulatory frameworks.
However, concerns remain. Some operators worry about the breadth of host liability for guest actions and the potential for subjective interpretation of offenses like “disorderly conduct” leading to revocation. Furthermore, despite the unanimous vote, several council members expressed reservations about the city’s practical ability to enforce the new rules effectively, citing historical challenges in responding to complaints even before this comprehensive system was in place. City officials have acknowledged that this ordinance represents a starting point, subject to potential amendments as implementation proceeds and data is gathered.
Ultimately, Houston’s ordinance represents a concerted local effort to harness the economic benefits of STRs while actively managing their impact on residential communities. Its success will likely hinge on the city’s commitment and capacity for consistent enforcement.
Hello again, it’s Edna Stewart. As a data analyst who has spent nearly four decades looking at market trends, I always find it interesting to explore the stories hidden within the numbers. Today, we’ll turn our attention to Dripping Springs, Texas, another beautiful spot in the Hill Country. Using the latest information from our trusted data partner, StaySTRa.com, let’s see what the short-term rental market looks like there as of April 2025.
Rapid Growth, Recent Plateau?
Dripping Springs has seen remarkable growth in its short-term rental scene. Back in April 2014, StaySTRa.com tracked only 4 listings. Think about that! Just four places available. By April 2024, that number had surged to 665 listings. It’s clear that Dripping Springs became a popular place for both visitors and rental hosts. However, the most recent count in January 2025 shows 642 active rentals, a slight dip from the peak. It will be interesting to watch if this leveling-off continues.
What Rentals Look Like in Dripping Springs
Similar to nearby areas, the vast majority of rentals here are ‘Entire Place’ options – StaySTRa.com counts 544 of them. This means guests typically get a whole house, cabin, or apartment to themselves. There are far fewer Private Rooms (35 listings) and only a single Hotel Room listed in this dataset.
What about size? The average rental in Dripping Springs accommodates about 7 people (6.9 guests) and has between 2 and 3 bedrooms (2.6 bedrooms on average). This suggests properties might be slightly larger on average compared to some other Hill Country towns, making them well-suited for families or groups attending events, perhaps like weddings, which Dripping Springs is known for.
How Often Are Rentals Booked? (Occupancy)
Occupancy tells us how frequently properties have guests. Over the last twelve months (LTM), the typical (median) ‘Entire Place’ rental in Dripping Springs was booked about 38.7% of the time (LTM Occ: 0.387…). So, for every 10 nights available, just under 4 were booked, on average. This is a bit lower than some neighboring markets.
Looking at recent months, March 2025 saw occupancy rise to around 48.4% (0.4838…), which is common as weather improves and travel picks up. However, the winter months were slower – January 2025 had a median occupancy of only 25.8% (0.258…), and February was around 30% (0.3…).
What Does It Cost to Stay? (Average Daily Rate – ADR)
How much does a night cost? The Average Daily Rate (ADR) gives us that picture. Over the last twelve months, the median ADR for an entire place was $261 (LTM ADR: 261).
Like occupancy, rates fluctuate. March 2025 saw a median ADR of $264.23. Interestingly, April 2024 had a higher median ADR at $295.60, while rates dipped in late summer/early fall 2024 (around $250-$270). This shows how prices adjust based on demand throughout the year.
How Much Can Hosts Earn? (Revenue)
When we combine how often a place is booked (occupancy) with the nightly rate (ADR), we get the monthly revenue. For the past year, the typical (median) monthly revenue for an entire place rental in Dripping Springs was $2,432 (LTM Revenue: 2432).
Again, seasonality plays a big role. March 2025 brought in median revenue of $3,185.50. But the slower winter months saw significantly lower earnings, like January 2025 with a median of just $1,493. August and September 2024 were also notably low, around $1,840-$1,845.
Understanding Demand
StaySTRa.com provides a “Rental Demand” score, which for Dripping Springs is currently 33.21. Compared to other areas we’ve looked at, this score suggests a somewhat lower level of organic rental demand. This aligns with the lower overall occupancy rate we observed. For those wanting to dig deeper into metrics like these, the StaySTRa Analyzer is a great resource. You’ll often find these properties listed on platforms like Airbnb and VRBO.
Looking Ahead
The Dripping Springs short-term rental market shows a history of strong growth, though recent data might suggest a potential leveling off in supply. Rentals tend to be slightly larger family- or group-sized homes. While nightly rates are solid, overall occupancy and resulting monthly revenues appear lower than in some nearby Hill Country destinations, with significant seasonal dips, particularly in winter and late summer.
Considering investing or hosting in Dripping Springs? Understanding these trends is vital. We always recommend connecting with a local real estate professional who knows the nuances of the short-term rental market in this specific area. They can offer tailored guidance.
Don’t forget to check back with us next month for fresh data and insights on Dripping Springs and other markets!
TL;DR Dripping Springs STR Market (April 2025):
Growth: Huge increase from just 4 rentals in 2014 to ~650 now, but recent numbers show a slight plateau/dip.
Typical Rental: Mostly entire homes, average size fits ~7 people (2-3 bedrooms), slightly larger than some neighbors.
Last Year’s Performance (Median):
Booked about 39% of the time (Occupancy) – lower than some nearby areas.
Average nightly rate was $261 (ADR).
Typical monthly earnings were $2,432 (Revenue) – impacted by lower occupancy.
Seasonality: Clear busy (Spring) and slow (Winter, late Summer) periods impacting bookings and earnings significantly. Jan 2025 revenue was particularly low ($1493).
Data Source: StaySTRa.com
In short, Dripping Springs has grown fast but might be stabilizing. Rentals are often larger homes, but they get booked less often than in some nearby towns, leading to lower typical monthly revenue despite decent nightly rates. Watch out for the slow seasons!
Hello there, I’m Edna Stewart, your guide through the world of short-term rental data. With many years spent looking at numbers and market trends, I find it fascinating to see how places like Wimberley, Texas are growing and changing. Today, let’s take a calm look at what the data tells us about Wimberley’s short-term rental market as of April 2025. All the information we’ll discuss comes directly from our trusted source, StaySTRa.com.
A Growing Destination
Wimberley has certainly become more popular over the years for visitors looking for a getaway. Think back to April 2014 – the data shows there were only about 20 short-term rentals listed. Fast forward ten years to April 2024, and that number jumped significantly to 875 listings! As of January 2025, StaySTRa.com tracked 886 active rentals. This tells us that more homeowners are seeing the opportunity to share their properties, and likely, more guests are discovering the charm of Wimberley.
What Rentals Look Like in Wimberley
So, what kind of places are available? Most rentals in Wimberley are ‘Entire Place’ listings – 747 of them, to be exact, according to StaySTRa.com. This means guests usually rent the whole house or cabin, not just a room. There are also some Private Room (68 listings) and a few Hotel Room (19 listings) options.
On average, these rentals can host about 6 people (6.3 accommodates) and typically have 2 or 3 bedrooms (2.4 bedrooms on average). This makes Wimberley a great spot for families or small groups looking for a comfortable stay.
How Often Are Rentals Booked? (Occupancy)
Occupancy tells us how often properties are rented out versus sitting empty. Over the last twelve months (LTM), the typical (median) Wimberley rental was booked about 46.2% of the time (LTM Occ: 0.4615…). Think of it like this: for every 10 nights available, a typical rental was occupied for just over 4 and a half nights.
Looking at recent months, March 2025 saw a higher occupancy rate, with the median property being booked about 58.1% of the time (0.5806…). This makes sense as spring often brings more visitors. January and February 2025 had lower rates, around 29% and 33% respectively, which is common for the post-holiday season.
What Does It Cost to Stay? (Average Daily Rate – ADR)
The Average Daily Rate, or ADR, is simply the average price paid per night. For the last twelve months, the median ADR in Wimberley was $251 (LTM ADR: 251).
Rates do change with the seasons. For example, StaySTRa.com data shows the median ADR for March 2025 was higher at $261.10, while back in January 2025, it was a bit lower at $246.29. This shows that prices adjust based on demand, often higher during peak travel times.
How Much Can Hosts Earn? (Revenue)
Putting occupancy and nightly rates together gives us revenue – the amount hosts typically earn per month. Over the last year, the median monthly revenue for an entire place rental was $3,104 (LTM Revenue: 3104).
Again, this varies month by month. March 2025 was a strong month with median earnings around $4,153, likely due to higher occupancy and rates. In contrast, January 2025 saw median revenue closer to $2,207. Summer months like July 2024 also showed strong earnings, reaching a median of $4,222.
Understanding Demand
StaySTRa.com gives Wimberley a “Rental Demand” score of 42.75. While this specific score requires deeper context, it generally suggests a moderate level of demand compared to other markets. Keeping an eye on how this score changes can help understand market dynamics. You can explore detailed metrics like this using tools like the StaySTRa Analyzer. Properties are often listed on popular platforms such as Airbnb and VRBO.
Looking Ahead
The data paints a picture of a growing, moderately busy short-term rental market in Wimberley, with clear seasonal patterns in bookings and pricing. The typical rental is a whole house suited for small groups or families.
Understanding these numbers is key whether you’re a host, an investor, or planning a visit. Remember, markets change, so it’s always good to stay updated.
Thinking about buying, selling, or optimizing a short-term rental in Wimberley? Market knowledge is crucial. We recommend connecting with a local real estate agent who specializes in vacation rentals. They can provide personalized advice based on your specific goals.
Be sure to check back with us next month for another update on Wimberley and other markets!
LT:DR Wimberley STR Market TL;DR (April 2025):
Growth: The number of rentals has boomed, from just 20 in 2014 to nearly 900 today.
Typical Rental: Mostly entire homes, averaging 2-3 bedrooms and hosting about 6 guests.
Last Year’s Performance (Median):
Booked about 46% of the time (Occupancy).
Average nightly rate was $251 (ADR).
Typical monthly earnings were $3,104 (Revenue).
Seasonality Matters: Bookings and rates spike in spring and summer (March 2025 was strong), lower in winter (Jan/Feb 2025 were slower).
Data Source: StaySTRa.com
Basically, Wimberley is a popular, growing market, especially for family-sized rentals, with clear busy and slow seasons impacting how often places are booked and what hosts earn.
Hi everyone, Meredith Lane here, digging into the tough stuff impacting our communities. Right now, all eyes are on Maui. It’s a place known for beauty, but scarred by fire and now facing a huge fight over vacation rentals. Thousands of families are still reeling from the Lahaina disaster, desperate for homes. Mayor Richard Bissen says he has a solution: kick out thousands of short-term rentals (STRs) to make room for locals. But will it work? Or will it just wreck Maui’s economy and leave even more people struggling? Let’s break it down.
The Plan: Targeting the “Minatoya List”
So, what’s the actual plan? Mayor Bissen wants to phase out about 7,000 vacation rentals. These aren’t illegal operations; they’re condos, mostly in apartment zones, that got special permission years ago to operate as STRs. People call this the “Minatoya List,” after the lawyer who gave the opinion back in 1992.
These are places many tourists stay, especially in West Maui (near Lahaina) and South Maui (like Kihei). They are mostly one or two-bedroom condos. Here’s the timeline the Mayor proposed:
July 1, 2025: Ban starts for about 2,200 units in West Maui.
January 1, 2026: Ban extends to the rest of the Minatoya List condos across Maui.
The idea is simple: force these condo owners to either rent long-term (180 days or more) to residents, live there themselves, sell, or leave them empty. The goal? Get those units back into the housing pool for locals. But notice, this plan doesn’t touch STRs in hotel zones or permitted B&Bs. It’s laser-focused on this specific group of condos.
Why Now? A Housing Crisis Meets a Wildfire Tragedy
This didn’t come out of nowhere. Maui has struggled for decades to house its own people. Land is limited, building is expensive, and for years, more homes were turned into vacation rentals than were built for residents. You needed to earn nearly $200,000 a year just to afford the average rent! Teachers, nurses, hotel workers – the people who make Maui run – couldn’t afford to live there.
Then came the Lahaina fire in August 2023. It wasn’t just a fire; it was a catastrophe. Lives lost, thousands homeless overnight. The housing crisis became a humanitarian emergency. Suddenly, those vacation condos looked like potential homes for survivors. Groups like Lahaina Strong started demanding action, standing with the Mayor. They argued: these units were meant for residents anyway, let’s take them back.
And importantly, a state law passed in May 2024 (SB 2919) gave Maui County the clear power to make this kind of move, removing legal roadblocks that stopped earlier attempts. The fire created the urgency, and the state law provided the tool.
The Million-Dollar Question: Will This Actually House Locals?
Okay, so the plan is to free up 7,000 units. Sounds great, right? Proponents, like the Mayor, say this is a direct path to more homes and maybe, just maybe, lower prices. One study (from the University of Hawaiʻi Economic Research Organization, or UHERO) suggests condo prices could drop 20% to 40%.
But hold on. Critics are shouting warnings.
No Guarantees: Owners can’t be forced to rent long-term. They could sell – maybe to mainland buyers looking for a cheaper second home, not locals. They could use it themselves part-time. They could just leave it empty. Where’s the guarantee these become homes for fire survivors or local workers?
Wrong Kind of Homes? Many of these condos are small studios or one-bedrooms. Are they right for families? Plus, they often have huge monthly HOA fees ($1,000-$1,500 or more!) and are in tourist zones, maybe far from schools or local jobs. Are these really the affordable homes people need?
Still Too Expensive? Even if prices drop, add those high HOA fees, property taxes, and mortgage payments. Will working families actually be able to afford them?
It seems like a big gamble. Will kicking out tourists really create the affordable, suitable homes Maui desperately needs? Or are we just shuffling the deck chairs?
Economic Tremors: Jobs, Taxes, and Maui’s Lifeline
Then there’s the economy. Maui runs on tourism. Pulling thousands of rental units offline is like pulling threads from the island’s main fabric. The warnings are stark:
UHERO Study: Predicts $900 million less visitor spending each year, about 1,900 jobs lost (maybe double that), and up to $60 million less in county property taxes annually. That’s money needed for fire recovery and basic services.
Other Studies: Some paint an even bleaker picture, talking about billions in lost economic activity and over 14,000 jobs gone. They call it an “economic crash and burn.”
Mayor Bissen pushes back. He says these models don’t capture the “lived experiences” of struggling residents. Calling the ban “pro-resident,” arguing it’s about community balance, not just dollars and cents. Bissen believes Maui depends too much on tourism anyway. But the question hangs heavy: Can Maui afford this, especially now? Who pays the price if thousands lose their jobs – cleaners, landscapers, shop owners, restaurant workers?
Where Things Stand Now (April 2025): Waiting and Worrying
Nearly a year after the Mayor announced this plan, Maui is still waiting. The County Council has the final say. They got the bill back in December 2024 and face a deadline: June 18, 2025. They need to vote yes, no, or change the plan.
But the Council hasn’t even scheduled the big hearing yet, likely waiting until after budget season. They tried to get their own independent economic study done, but couldn’t find anyone to do it. So, they’re relying on reports like UHERO’s and their own staff research.
Meanwhile, the uncertainty is already hurting. People are calling it a “chilling effect.”
Condo sales listings have exploded – nearly four times higher than two years ago! Prices are starting to dip.
Some STR owners are selling, cutting rates, or seeing fewer bookings. Businesses that support STRs are feeling the pinch.
Mayor Bissen is publicly standing firm, saying the focus must be on residents. But there are whispers – unconfirmed rumors, mind you – that maybe he’d consider shrinking the ban to target fewer units, perhaps only those originally meant for workers. We don’t know if that’s true, but it shows how tense things are. Maui is caught in limbo, feeling the economic pain before any potential housing gain.
The Opposition: Property Rights and Finding Fault
Who’s fighting this? Lots of people.
STR Owners: They say they bought these condos legally, relying on that Minatoya opinion. They argue taking away their right to rent short-term is unfair and possibly illegal – a violation of property rights. Lawsuits are almost certain if the ban passes.
Tourism & Real Estate Groups: They point to the economic damage and job losses. They also argue it won’t solve the housing crisis because the units aren’t right or owners won’t convert.
Some Residents: Polls cited by opponents suggest many Maui voters prefer cracking down on illegal STRs, not banning legal ones. They worry about the cost of living and homelessness more than vacation rentals.
The “Scapegoat” Argument: Many feel STR owners are being blamed for decades of the county failing to plan and build enough affordable housing. Is this ban fixing the real problem, or just pointing fingers?
Is There Another Way? Ideas on the Table
Opponents aren’t just saying “no.” Many agree housing is a crisis. They suggest other paths:
Tax, Don’t Ban: Hike property taxes way up for STRs. Maybe that pushes some owners to sell or rent long-term, and it brings the county more money, not less. Tax empty homes, too.
Go After Illegal Rentals: Focus police power on the rule-breakers, not the legal operators.
Build, Build, Build: Cut the red tape that makes building new homes so slow and costly. Give real incentives for affordable projects. Fix infrastructure.
Smarter Rules: Maybe cap the number of STRs in certain areas? Make rules stricter? Phase things out much slower?
Maui’s Crossroads: A Painful Choice
Here’s the bottom line: Maui is facing a heartbreaking choice with no easy answers. The need for housing, especially after the fire, is real and urgent. People are suffering. But the risk of crippling the economy that supports so many families is also terrifyingly real.
Will the ban work as intended? Can Maui afford the potential fallout? Are there better ways to help families find homes without causing an economic meltdown?
The County Council has a heavy burden. Their decision by June 18th will echo for years. Whatever they choose, legal fights are likely, and the deep problems of housing and tourism won’t disappear overnight. This isn’t just about condos; it’s about Maui’s future, its people, and its soul. We’ll be watching closely. Stay tuned.
Other Cities that are trying to Ban Short Term Rentals.
Let’s talk about the rules for short-term rentals (STRs) – like Airbnb and VRBO – in New Braunfels, Texas. It can seem like a lot, but we can break it down in a way that’s easy to understand.
What’s a Short-Term Rental?
In New Braunfels, a short-term rental is a house or a two-family house that people rent out for less than 30 days at a time. Think of it like a hotel, but it’s someone’s home. This doesn’t include regular hotels, motels, or apartments that rent for longer periods. If you advertise your house online for short stays, you need to follow these rules!
Getting Permission: The Permit
If you want to run a short-term rental in New Braunfels, you need to get a special permission slip from the city called a permit. You can’t just start renting without it. You have to apply online through the city’s website.
To get a permit, you’ll need to show them some important papers, like:
Proof that you own the house.
A drawing of your property showing where the house is and where people can park their cars (not in the garage!).
A drawing of the inside of your house, showing all the rooms and where people sleep.
Proof that you have insurance in case something goes wrong.
The name and phone number of someone who can be there quickly if there’s a problem.
A letter if someone else is helping you manage the rental.
A paper that tells renters the rules and who to call if there’s an emergency.
Information about your water and other bills.
There’s also a fee to apply for the permit and another fee every year to keep it active. Someone from the city will also come to check your house to make sure it’s safe for renters. Once everything is okay, you’ll get your permit!
Where Can You Have a Short-Term Rental? Zoning Rules
This is a big one. The city has rules about where you can and cannot have short-term rentals based on how the land is zoned (what the city says that area can be used for).
No STRs in Normal Neighborhoods: If your house is in an area zoned for regular houses (like where most people live), you usually can’t have a short-term rental. This is something people are fighting about in court right now.
STRs in Some Business Areas (Maybe with Extra Steps): In some areas zoned for businesses, you might be able to have a short-term rental, but you might need to get another special permission called a “Special Use Permit” (SUP). This is like asking the city extra nicely if it’s okay.
No SUP Needed in Certain Business Areas: There are a few specific business zones where you might not need the extra SUP, but you still need the regular permit.
Getting a Special Use Permit (SUP): Getting an SUP can take a while (maybe three months!) and cost extra money. The city will tell your neighbors you want to do this, and there will be public meetings where people can say if they agree or disagree. You’ll need to give the city a lot more information about your property. Even if you do all this, the city might still say no.
No STRs in Floodways: If your house is in an area that floods easily (a floodway), you can’t have a short-term rental, no matter what the zoning is.
How to Check: The city has a cool online map where you can type in an address and see if short-term rentals are allowed there.
Rules for Running Your Rental
Once you have your permit, you need to follow some rules to make sure everything runs smoothly and doesn’t bother the neighbors:
How Many People Can Stay? You can have two adults for every bedroom, plus two more adults in the whole house.
Parking: You need to have at least one parking spot outside the garage for each bedroom.
Noise: You have to follow the city’s general rules about noise. If your renters are too loud, people can complain to the police.
Trash: You and your guests need to follow the regular trash rules for houses in the city.
Safety: You need to have things like smoke detectors and fire extinguishers that work. You also need to have a plan for how people can get out of the house in an emergency, and it needs to be easy for guests to see.
Insurance: You need to keep your insurance up to date.
Someone to Call: You need to have a person who is available 24/7 and can get to the property within an hour if there’s a problem.
Things to Show: You need to put your permit sticker on the property and give your guests the information sheet with the rules and emergency numbers.
The city also suggests having a written agreement with your renters.
Paying Taxes: Hotel Occupancy Tax (HOT)
If you rent your place for less than 30 days, you have to collect a special tax from your guests called the Hotel Occupancy Tax (HOT). There are a few parts to this tax:
State Tax: Texas charges a 6% tax.
City Tax: New Braunfels charges a 7% tax.
County Tax (Maybe): If your property is in a certain part of the city (Guadalupe County), you might have to collect another county tax.
Water District Fee (Usually Not in the City): There’s another fee for properties near the lake, but this usually doesn’t apply to rentals within the city.
Important! You are the one who needs to collect and send the city’s 7% tax (and the county tax if it applies). Websites like Airbnb and VRBO might collect the state tax, but they usually don’t handle the city’s tax for you. You have to do it yourself through the city’s online portal every month, even if you didn’t have any renters that month. If you don’t pay on time, you’ll have to pay extra fees! The city can also check your records to make sure you’re paying the right amount.
What Happens if You Break the Rules?
The city has people who check if short-term rentals are following the rules. If people complain about your rental or if you don’t have a permit, you could get in trouble. This could mean getting fines or even having your permit taken away. If you don’t pay your taxes, you’ll also have to pay penalties and could even face legal charges.
Things Are Changing: New Rules and a Court Case
The rules for short-term rentals in New Braunfels have been updated recently, and there’s a big court case going on right now. Some people think the city’s rule that bans short-term rentals in regular neighborhoods is unfair. The court case is still ongoing, so the rules might change in the future.
What Should You Do?
If you’re thinking about running a short-term rental in New Braunfels, it’s really important to:
Check the City’s Website: The city has a lot of information online about the rules.
Use the Online Map: See if short-term rentals are allowed where you want to operate.
Read the City’s Guide: They have a special guide for short-term rentals.
Talk to a Lawyer (If Needed): If you have questions about the rules or the court case, it’s a good idea to talk to a lawyer who knows about this stuff.
Contact the City: You can also call the city if you have specific questions.
It’s important to follow all the rules so you can run your short-term rental safely and without problems!
Austin is a cool city with music, great food, and a chill vibe. But something new is happening that could change your next Airbnb or Vrbo booking. Starting April 1, 2025, if you rent a short-term place in Austin, you’ll have to pay an extra 11% in taxes.
What’s This New Tax All About?
Before, not all short-term rentals in Austin had to collect this Hotel Occupancy Tax, or HOT. It depended on if they had the right papers. But now, the city says everyone renting out a place for less than 30 days has to add this 11% tax. That’s like adding a little extra cost to your stay. This tax has two parts: 9% is a general hotel tax, and 2% goes to special city projects.
What Does This Mean for You When You Book?
If you’re planning a trip and using sites like Airbnb or Vrbo, your total cost will likely go up a bit. These websites now have to collect that 11% tax for the owners. Some owners think that because of this extra cost, they might lower their nightly prices to stay competitive. So, while you’ll see the tax added on, the base price of the rental might drop a little. It’s also possible that hotels in Austin, which already charge this tax, might look like a better deal now.
What About the People Renting Out Their Places?
For folks who rent out their homes, this new rule changes who takes care of the tax money. Now, Airbnb and Vrbo will handle collecting the 11% from guests and sending it to the City of Austin. Before, the owners usually had to do this themselves. One owner, Joe Arenella, thinks this will make things easier for them and maybe they won’t have to fill out as many reports for the city.
But here’s a catch: for the first three months after April 1, 2025, owners still need to tell the city how much tax the websites collected for them. This seems like the city wants to make sure everything is correct while this new system gets started. By having the big websites collect the tax, Austin hopes to get more tax money from short-term rentals. They think some owners weren’t following the rules before.
Why Is Austin Doing This?
Why is the city making this change? Councilmember Vanessa Fuentes says it’s a big step in dealing with rentals that weren’t following the rules and how these rentals affect the housing situation in Austin. The city wants to better control short-term rentals and use the extra tax money for important things like tourism, local artists, and keeping Austin’s culture alive. Mayor Pro Tem Vanessa Fuentes even said the city might have been losing thousands of dollars in tax money each day because not everyone was paying what they should. This tax money helps fund things like promoting Austin as a tourist spot, supporting art programs, and the Austin Convention Center. The city figured it would be easier to have the big online platforms collect the tax instead of chasing down lots of individual owners.
This is also part of a bigger plan to find a balance between the money tourism brings in and the concerns of people who live in Austin about affordable housing and the quality of their neighborhoods. The city is using this tax and other rules to manage the growing number of short-term rentals.
To make sure everyone knows the rules, the city has made some clear definitions. A “Platform” is a website or company that helps people book short-term rentals. A “Short-Term Rental” is renting out a home or part of a home for less than 30 days in a row. This doesn’t include longer stays or rentals between people buying or selling a house. These clear definitions help everyone understand what the new rules mean.
Austin’s Long Road with Short-Term Rentals
Austin has been trying to figure out how to handle short-term rentals for a while. Back in 2016, they tried to put stricter rules on rentals that weren’t the owner’s main home. But the courts said no to some of these rules, saying the city couldn’t treat short-term rentals differently from long-term rentals in some ways. So, now the city is trying a new way – making the online platforms collect taxes. This shows how tricky it can be for the city to manage short-term rentals while respecting the rights of property owners.
Austin Hotel Occupancy Tax Breakdown
Tax Component
Rate
Description
Occupancy Tax
9%
General tax on hotel and short-term rental stays
Venue Project Tax
2%
Tax dedicated to financing venue projects
Total HOT Rate
11%
Applicable to all short-term rentals
What Do the Experts Say?
People who work in the short-term rental business have different thoughts about this new tax. Blake Carter from Cribs Consulting thinks that at first, guests will pay more, but then prices might go down. He also thinks rentals outside of Austin’s main city area might become more popular because they won’t have this extra tax. Matt Curtis from Smart City Policy Group believes these changes are needed to go after the “bad actors” in the rental market. Five Star Vacation Home Rentals thinks it’s smart for the city to wait on other big rule changes because the state might pass new laws about short-term rentals. They like that platforms will collect the tax for owners who were already following the rules. But they worry it could be tough for those who weren’t paying taxes before and might lead to more enforcement. Luis Briones from Airbnb says they’ve been wanting platforms to collect these taxes for a long time and they support rules that let people earn money by renting out their homes. This new tax could change things in Austin’s short-term rental scene. Places outside the city or those run by big companies might become more attractive. While websites like Airbnb are okay with collecting the tax, we’ll have to see how it really affects individual owners and the overall market. Some think it will be simpler, while others see potential problems with higher costs and more competition.
This is Just One Piece of the Puzzle
This new tax rule is just one part of a bigger conversation about how Austin regulates short-term rentals. The city council has also made other changes that will start on October 1, 2025. These changes will move the main rules for short-term rentals to a different part of the city’s rules, the part about business regulations. But even with this change, you’ll still be able to have a short-term rental in any neighborhood in Austin as long as you have the right license. The city is also thinking about making rental listings show their city permit numbers, limiting how close together rentals owned by the same person can be, and maybe putting rules on who can own a lot of rentals. Austin is also watching what the state government in Texas might do with short-term rental laws, because that could affect the city’s rules. Mayor Kirk Watson has suggested waiting on some of these ideas until the state decides on its laws. So, the rules for short-term rentals in Austin are still changing, and this new tax collection is likely just the first step. What happens next will depend on what the state does and what the Austin City Council decides in the coming months.
What Do Owners Still Need to Do?
Even though the online platforms will now handle the tax collection, short-term rental owners in Austin still have some things they need to do. For the first three months starting April 1, 2025, owners need to tell the city how much tax each platform collected for them. The city is updating its online system to make this easier. Owners need to remember that these reports and any tax payments they still need to make (like for direct bookings not on websites) are due by the last day of the month after each three-month period ends. If they don’t file or pay on time, they’ll have to pay late fees. Also, it’s still super important for all short-term rental owners in Austin to have a valid license to rent out their property. So, while the new system makes tax collection easier for many, owners still need to stay on top of their reporting duties and make sure they have all the right licenses to run their rentals legally in Austin.
What Does This All Mean?
In the end, this new way of collecting hotel taxes for short-term rentals in Austin is a big change in how the city deals with this growing part of its tourism. Travelers might see a small bump in the cost of their stay, but this should help make things fairer in the lodging market and bring in money for important city services. For owners, the big websites will now handle most of the tax stuff. But they still need to keep up with reporting to the city and making sure they have the right licenses. As Austin keeps growing, how it manages short-term rentals will keep changing. For everyone involved – the visitors wanting a cool Austin experience and the owners sharing their homes – staying informed about these changes will be key to navigating Austin’s short-term rental world.
Key Dates for Austin Short-Term Rental Tax Changes
Date
Event
April 1, 2025
New HOT collection by platforms (Airbnb, Vrbo, etc.) becomes effective
July 31, 2025
First quarterly report due under new system (for the quarter ending June 30, 2025)
October 1, 2025
Other STR regulation changes effective (regulation moves to Title 4, business regulations)
Summary of Key STR Regulations in Austin
Regulation Area
Status
Brief Description
Tax Collection
Effective April 1, 2025
Platforms (Airbnb, Vrbo) required to collect and remit 11% HOT. Owners must also report platform-collected taxes for the first quarter.
Licensing
Ongoing
Required for all STRs.
Regulatory Code Location
Effective October 1, 2025
STRs primarily regulated under Title 4 (Business Regulations) instead of Title 25 (Land Development Code).
Zoning
Effective October 1, 2025
STRs allowed in all residential areas with a valid license.
Permit Display
Proposed/Discussed
Potential requirement for STR listings to display city-issued permit numbers.
Proximity Restrictions
Proposed/Discussed
Potential limitations on the proximity of multiple STRs owned by the same person.
Ownership Restrictions
Proposed/Discussed
Potential limitations on the type of ownership (e.g., favoring individuals over corporations).
State Legislation Impact
Ongoing
Future local regulations may be influenced by bills passed by the Texas Legislature.
Owner Reporting
Effective April 1, 2025
For the quarter beginning April 1, 2025, owners must report HOT collected by platforms. Ongoing quarterly reporting of direct bookings still required.
The short-term rental (STR) markets in Houston and San Antonio represent significant sectors within Texas’s accommodation landscape. Houston, a sprawling metropolis with a diverse economic engine, exhibits a thriving STR market characterized by substantial demand. One analysis indicates a robust market score of 81 for Houston. Key performance indicators highlight an annual revenue potential of $12,400, coupled with an occupancy rate of 45% and an average daily rate (ADR) of $183.7. It is pertinent to acknowledge that alternative data suggests a median occupancy rate closer to 60% and an ADR around $121, underscoring the variability inherent in market data collection. Nevertheless, the presence of over 13,000 active listings on prominent platforms such as Airbnb and Vrbo firmly establishes the considerable scale of Houston’s STR market. Furthermore, notable year-over-year growth in new Airbnb listings within specific Houston zip codes—for instance, a 75% increase in 77006 and a remarkable 112% surge in 77020—signals a market experiencing rapid expansion, presenting both opportunities and intensifying competition for hosts.
San Antonio’s STR market also demonstrates considerable vigor, primarily fueled by its well-recognized tourism sector, anchored by iconic attractions like the Alamo and the River Walk. The number of active listings in San Antonio is substantial, with figures exceeding 8,000 in some reports and registering at 5,685 as of September 2024 and 5,733 by January 2025, again illustrating the nuances across different data capture periods. Key performance indicators for San Antonio include an average annual revenue of $27,000 in 2023, with another source indicating a higher average of $30,950 as of January 2025. The median occupancy rate in San Antonio is reported at 61%, while the average daily rate hovers around $128, with a more recent figure suggesting $167 as of January 2025. Notably, San Antonio’s STR market experienced significant growth, ranking 5th nationally in 2023. This upward trajectory is further supported by an average of 123 new STR permits issued monthly in 2024. This robust growth, intertwined with the city’s strong reliance on tourism, paints a picture of a dynamic and promising environment for short-term rentals.
Metric
Houston (Source 1)
Houston (Source 2)
San Antonio (Source 1)
San Antonio (Source 2)
Data Year/Period
Active Listings
> 13,000
10,535
> 8,000
5,685 (Sep 2024)
Various
Annual Revenue
$12,400
$26,000
$27,000 (2023)
$30,950 (Jan 2025)
Various
Occupancy Rate
45%
60%
61%
55% (Jan 2025)
Various
Average Daily Rate
$183.7
$121
$128
$167 (Jan 2025)
Various
Regulations and Legal Frameworks
The regulatory landscape governing short-term rentals presents a notable divergence between Houston and San Antonio. Houston has been actively engaged in formulating formal regulations for STRs in response to increasing concerns voiced by local homeowners. A proposed ordinance seeks to establish a registration-based system for STR property owners, requiring an annual fee initially proposed at $250 and subsequently set at $275, in addition to a $33.10 administrative fee for 2025. The scope of these proposed regulations in Houston is comprehensive, encompassing adherence to noise and sound ordinances, building and neighborhood protection standards, solid waste and litter control, fire safety codes, a minimum rental period of one night, and the mandatory collection and remittance of hotel occupancy tax. Furthermore, the ordinance stipulates that the certificate of registration number must be prominently displayed on all public listings, and a designated emergency contact must be available around the clock with a one-hour response capability. Currently, Houston does not impose specific zoning restrictions on short-term rentals, provided that all relevant safety and building codes are satisfied. This allows for the registration of a diverse array of property types, including accessory dwelling units, duplexes, and multi-family homes. Regarding taxation, hosts in Houston are obligated to collect and remit a 17% hotel occupancy tax, which incorporates both state and local levies, a process that platforms like Airbnb and VRBO may facilitate. Additionally, an 8.25% Texas sales tax may be applicable to rental income. The ongoing deliberations and refinements of this proposed ordinance, addressing aspects such as parking limitations and the responsibility for registration, underscore the intricate nature of regulating this evolving market segment.
In contrast, San Antonio operates under a more established regulatory framework for short-term rentals, mandating a permit for operation within city limits. It is important to note that a city-issued permit is not required for properties situated in Bexar County or other incorporated cities within the county; however, establishing a Hotel Occupancy Tax account with the City of San Antonio remains a prerequisite. San Antonio distinguishes between two categories of short-term rental permits: Type 1, applicable to properties where the owner or operator resides on-site as their primary residence (with no density limitations), and Type 2, for non-owner-occupied properties, which are permitted by right but are subject to density limitations, allowing up to 12.5% of units on a block face or within a multi-family building. Exceeding the Type 2 density limit necessitates obtaining a special exception from the Board of Adjustment. The permit application process in San Antonio involves fees of $300 for Type 1 and $450 for Type 2 (though some sources cite $400/$600 for homestead/non-homestead properties), along with the submission of required documentation such as the application form, parking and floor plans, and proof of insurance. Permits issued in San Antonio are valid for a period of three years. Zoning regulations in San Antonio permit short-term rentals in the majority of residential and multi-family zoning districts, as well as certain commercial districts, but specifically exclude C-3, L, I-1, and I-2 zoning districts. Hosts are required to report and remit the Hotel Occupancy Tax (HOT) on a monthly basis via the city’s online portal, irrespective of whether any taxable income was generated. The City of San Antonio does not have a partnership with short-term rental platforms for HOT collection. Furthermore, San Antonio has implemented specific safety requirements, including occupancy limits, the provision of fire extinguishers, smoke and carbon monoxide detectors, and the posting of evacuation plans. Liability insurance is also a mandatory requirement for operators. Recent increases in STR permit fees in San Antonio, with differentiated rates for on-site and off-site operators ($300 vs. $450 for a three-year permit), indicate an ongoing adjustment of the regulatory costs associated with short-term rentals in the city.
Primary Demand Drivers
The primary factors driving demand for short-term rentals exhibit some divergence between Houston and San Antonio, reflecting the unique economic and cultural landscapes of each city. Houston’s demand is significantly influenced by its standing as a major economic center with a diverse array of industries, including energy, healthcare, and technology. This robust economic foundation attracts a substantial volume of business travelers attending conferences, meetings, and engaging in project-related work. Additionally, Houston boasts a rich cultural scene, featuring attractions such as Space Center Houston and a vibrant arts community, which draws leisure travelers. Major events, such as the Houston Rodeo and various large-scale conferences, also play a pivotal role in bolstering occupancy rates for short-term rentals throughout the year. This confluence of business and leisure travel creates a more diversified demand base for Houston’s STR market.
Conversely, San Antonio’s short-term rental market is heavily reliant on its well-established tourism sector. The city’s historical significance, marked by iconic landmarks like the Alamo, coupled with popular attractions such as the River Walk and numerous annual festivals, attracts millions of visitors annually. San Antonio’s favorable climate and vibrant cultural scene further enhance its appeal as a leisure travel destination. Major events, such as Fiesta San Antonio, serve as significant demand drivers, leading to peak occupancy periods. The allure of San Antonio lies in its unique blend of historical charm and modern attractions, making it a consistently popular choice for tourists from across the globe. Consequently, the demand for short-term rentals in San Antonio is primarily driven by leisure travelers seeking to immerse themselves in the city’s distinct cultural and historical offerings.
Property Types and Rental Rates
Both Houston and San Antonio offer a diverse spectrum of property types for short-term rentals, catering to a wide range of traveler needs and preferences. In Houston, common options include apartments, townhomes, single-family homes, condominiums, and lofts. Average monthly rental rates in Houston exhibit significant variability depending on the property type, ranging from approximately $1,500 to $2,500 for studio apartments, $2,000 to $3,500 for one-bedroom apartments, and $6,000 to $15,000 for single-family homes. Average nightly rates in Houston also display a broad range, from budget-friendly options starting around $22-$30 to more upscale rentals exceeding $200-$300, contingent on location and the amenities provided. One source indicates an average nightly rate of $108 for apartment rentals in Houston. The average weekly rental rate in Houston is reported to be around $1,282. Furnished monthly rentals in Houston also vary in price, with examples showing nightly averages ranging from approximately $102 to over $400, depending on the size and location of the property.
San Antonio’s short-term rental market encompasses residential dwelling units, apartments, condominiums, and accessory dwellings. Average nightly rates in San Antonio are reported to be around $174 for weeknights and $281 for weekend nights. Another source suggests an average nightly cost between $252 and $275 for vacation homes in San Antonio. The average weekly rental rate in San Antonio is approximately $1,534. Furnished monthly rentals in San Antonio also exhibit a range in nightly averages, from around $70 to nearly $200, depending on the type and size of the property. Overall, both cities provide a diverse selection of short-term rental options, with rental rates influenced by factors such as property size, location, amenities, and seasonal demand. While Houston might offer a broader range of price points, particularly at the higher end for single-family homes, San Antonio’s average nightly and weekly rates appear generally competitive, especially considering its strong tourism appeal.
Occupancy Rates and Seasonality
Occupancy rates and seasonal fluctuations in demand are crucial considerations for individuals investing in short-term rentals in both Houston and San Antonio. In Houston, the average occupancy rate is reported as 45% by one source and 60% by another, highlighting potential discrepancies in data. Occupancy rates in Houston are known to fluctuate based on local events such as the Houston Rodeo and major conferences. July is often observed as a peak month for bookings in certain Houston zip codes. The general rental market in Houston experiences a low season from September to February and a high season from February to July, with August also noted as a high-demand month. These seasonal trends likely impact the occupancy rates of short-term rentals, with higher demand and occupancy during peak travel periods and major event seasons.
San Antonio reports a median occupancy rate of 61% according to one source and 55% as of January 2025 according to another. A typical short-term rental listing in San Antonio is booked for approximately 223 nights per year. Seasonality in San Antonio generally peaks during the summer months of June through August, driven by warm weather and outdoor activities. Another source indicates a high season from March to July, with the highest occupancy in April due to Fiesta San Antonio, and a low season from November to January. March is also a strong booking month in some San Antonio zip codes. San Antonio’s occupancy rates appear generally robust, potentially benefiting from a consistent influx of tourists throughout much of the year, with notable peaks around major events and during the summer travel season.
Investment Potential and ROI
Both Houston and San Antonio present compelling investment opportunities within the short-term rental market, although their specific advantages and characteristics differ. Houston is regarded as a highly attractive destination for STR investments due to its diverse cultural offerings and significant economic activity, even in light of evolving regulatory frameworks. Examples of short-term rental properties listed for sale in Houston demonstrate varying cash flow and cap rates, indicating the potential for profitability depending on the specific property and its location. The Texas Medical Center area in Houston is particularly noted as a high-demand area for short-term rentals, often experiencing occupancy rates exceeding 70%. Return on investment (ROI) scores for specific Houston zip codes, as reported by Rabbu, range from 35 out of 100 in 77006 to 66 out of 100 in 77020, underscoring the significant influence of location on investment potential.
San Antonio also offers a promising market for short-term rental investments, with a median occupancy rate of 61% considered favorable. The average gross yield for short-term rentals in San Antonio is reported as 12.34% as of January 2025. Rabbu’s ROI score for San Antonio is 48 out of 100, with a score of 59 out of 100 for the 78240 zip code. A key advantage of San Antonio as an investment market is its relative affordability compared to other major Texan cities such as Austin and Dallas, which contributes to a steady return on investment.
Metric
Houston
San Antonio
Source(s)
Average Gross Yield
Not consistently reported
12.34% (Jan 2025)
10
Rabbu ROI Score
35-66 (by zipcode)
48 (overall), 59 (zipcode 78240)
5, 6, 44, 42
Key Investment Hotspots
Texas Medical Center, Montrose, The Heights
Downtown, Southtown, Alamo Heights, Tobin Hill
43
Affordability Comparison
More expensive than San Antonio
More affordable than Austin and Dallas
45
Export to Sheets
Understanding the typical operating expenses is essential for accurately evaluating the true investment potential in both cities. In Houston, common expenses for short-term rentals include cleaning, maintenance, utilities, insurance, property management fees (if applicable), and taxes, including the hotel occupancy tax and potential sales tax. Similarly, in San Antonio, operating expenses encompass the hotel occupancy tax, permit fees, cleaning, maintenance, utilities, insurance, and property management fees. These costs can vary based on property type, location, and management strategies, and accurately estimating them is crucial for projecting realistic returns on investment in either market.
Key Differences and Opportunities
Several key distinctions characterize the short-term rental markets in Houston and San Antonio. Houston’s demand drivers exhibit greater diversification, encompassing a significant segment of business travelers in addition to leisure tourists, whereas San Antonio’s market is predominantly driven by its well-established tourism industry. The regulatory environments also differ, with San Antonio having a more mature permitting system that differentiates between owner-occupied and non-owner-occupied properties and includes zoning and density limitations for the latter. Houston is in the process of implementing a registration system with specific operational requirements. Average rental rates and occupancy rates show some variations across different data sources, but generally, San Antonio appears to have strong occupancy, potentially benefiting from consistent tourist traffic.
Opportunities for investors in each market are also distinct. Houston’s increasing number of listings may present opportunities for those who can differentiate their properties through unique amenities or experiences, particularly catering to the business travel segment or capitalizing on its diverse cultural attractions. Areas such as the Texas Medical Center consistently demonstrate high demand. San Antonio’s robust and consistent tourism base offers a reliable demand for well-located and well-managed properties, especially those situated near major attractions like the River Walk and the Alamo. The city’s relative affordability compared to other major Texan markets can also enhance investment returns. Investors should carefully weigh these nuances, their investment objectives, and their target audience when considering these two dynamic Texan cities.
Conclusion
In summary, both Houston and San Antonio present robust and evolving short-term rental markets with unique characteristics and investment opportunities. Houston offers a larger market with a more diversified demand base and a regulatory environment that is currently being formalized. Its economic strength and cultural attractions drive a consistent flow of both business and leisure travelers. San Antonio, conversely, boasts a well-established tourism industry and a more mature regulatory framework focused on managing the density of non-owner-occupied rentals. Its historical charm and popular attractions ensure a consistent demand from tourists. The decision between investing in short-term rentals in Houston or San Antonio will likely hinge on an investor’s risk tolerance, investment goals, and preference for a market driven by diverse economic factors versus one primarily centered on tourism. Further in-depth research and thorough due diligence are paramount for anyone seeking to capitalize on the opportunities presented by these two distinctive Texan cities.
As we delve into the intricacies of Houston’s short-term rental (STR) market in April 2025, a notable characteristic emerges: the absence of a comprehensive, city-wide ordinance specifically governing these accommodations. Unlike some of its Texan counterparts, Houston’s primary regulatory touchpoint for STRs has been the collection and remittance of the Hotel Occupancy Tax (HOT). Currently standing at a combined rate of 17% (encompassing state, city, county, and sports authority levies), this tax obligation underscores the city’s recognition of STRs as a form of lodging. Platforms like Airbnb and Vrbo often streamline this process for hosts by managing the tax collection and remittance.
However, this relatively light regulatory touch at the city level is poised for potential change. The Houston City Council is actively engaged in deliberations surrounding a formal ordinance aimed at addressing the increasing prevalence and the associated impacts of short-term rentals on residential communities. This move is largely fueled by a growing chorus of concerns from residents, citing issues such as noise disturbances, safety anxieties, and a perceived disruption of neighborhood tranquility.
The Proposed Short-Term Rental Regulations in Houston: A Framework for the Future?
The proposed ordinance under consideration outlines a registration-based system for short-term rentals. This framework would necessitate operators obtaining a certificate of registration from the city, accompanied by an annual fee (currently proposed at $275). The registration process would require detailed information about the property and the operator, including 24-hour emergency contact details and a declaration of compliance with any applicable deed restrictions or Homeowner Association (HOA) rules.
Beyond registration, the proposed ordinance also sets forth specific operational requirements. These include adherence to the city’s noise ordinances, building codes, and neighborhood protection guidelines. Proper waste management, compliance with construction and fire codes, and the prohibition of rentals for less than one night are also stipulated. Notably, short-term rental properties would not be permitted to operate as event venues, and all public listings would need to display the registration certificate number.
The proposed regulations also address enforcement, outlining penalties for non-compliance, including potential fines and the revocation of registration certificates for repeated violations or serious offenses. Furthermore, amendments under consideration include a requirement for short-term rental platforms to remove listings lacking valid registration.
However, the path to implementation is not yet finalized. As of early April 2025, the City Council’s vote on the proposed ordinance has been postponed, indicating ongoing discussions and potential revisions. The timeline initially suggested a registration website launch around August 1, 2025, with a compliance deadline of January 1, 2026, but these dates are contingent on the ordinance’s final approval.
The Enduring Influence of Homeowner Associations
In the current and likely future regulatory landscape of Houston’s short-term rentals, the role of Homeowner Associations (HOAs) and deed restrictions cannot be overstated. Many HOAs in Houston have established their own sets of rules and regulations that can significantly impact, or even outright prohibit, short-term rental activities within their communities. These regulations can range from limitations on rental frequency and duration to guest screening procedures and parking restrictions.
Property owners considering or currently operating short-term rentals must meticulously review their HOA’s governing documents to understand any applicable restrictions. The proposed city ordinance acknowledges this existing authority by requiring operators to declare that their activities do not violate any HOA rules. This suggests a collaborative approach where city-level regulations would work in concert with community-specific rules.
Enforcement: Bridging the Gap Between Regulation and Reality
Historically, enforcing short-term rental regulations in Houston has presented challenges, particularly in the absence of a dedicated ordinance. The proposed regulations aim to address this through the registration system, defined penalties, and the potential accountability of short-term rental platforms. A 24-hour hotline, managed by Host Compliance by Granicus, has been contracted to facilitate the reporting of concerns by residents.
The Administration and Regulatory Affairs Department (ARA) for the City of Houston is likely to be the primary body overseeing the implementation and enforcement of the new ordinance. However, the ultimate effectiveness of these measures will depend on the resources allocated and the city’s commitment to active enforcement.
Looking Ahead: A Shifting Landscape
The future of short-term rental laws in Houston appears to be heading towards a more regulated environment. While the specifics are still under deliberation, the trend suggests increased oversight and accountability. Property owners and other stakeholders should remain informed about the progress of the proposed ordinance and be prepared to adapt to the evolving legal landscape. Learning from the experiences of other major Texas cities that have already implemented short-term rental regulations will likely be a valuable resource for Houston as it refines its approach.
Big changes arrived in Port Angeles, Washington this past summer. New rules for short-term rentals (STRs) started on July 1, 2024. The city calls it the Short-Term Lodging Business License program. They say it’s meant to control the growing number of STRs. These rentals often stir up debate in towns everywhere. But here’s the real question: Do these rules actually help the people living here? Or is it just more paperwork?
What Kinds of Rentals Are We Talking About?
First, let’s be clear. In Port Angeles, an STR is any home rented for less than 30 days straight. The city created two types:
Type I: This is when owners rent out part of the home they live in. There’s no limit on how many Type I rentals the city can have.
Type II: This is for rentals where the owner doesn’t live on the property. These are the ones getting the most attention. The city first capped these at 200 licenses, or 2% of all homes in the city – whichever number was higher.
Why make two types? The city seems to want homeowners renting out their own space. They want fewer properties acting just like hotels. That sounds good, right? But what does it mean in reality?
Safety Steps or Just Hoops to Jump Through?
Every STR owner now needs a license. Getting one means passing a Fire Life-Safety Inspection. Owners must also give the city detailed floor plans. These plans need to show important safety gear. Think smoke alarms, carbon monoxide detectors, fire extinguishers, and clear escape routes. Plus, owners need liability insurance and must follow a “Good Neighbor Policy.” These seem like smart steps for guest safety. They could also help keep neighborhoods peaceful.
A Surprising Twist in the Rules
But wait, there’s more. In August 2024, the city added a twist. A new rule change might let some Type II owners hold licenses for more than one property. Why? These owners need to meet certain rules about following past regulations and when they bought their properties.
This change made people talk, according to the Peninsula Daily News. And it makes you wonder. Why allow some people to own multiple non-owner-occupied rentals? Wasn’t the point to limit those? Does this new rule help responsible owners who’ve been here a while? Or does it create an unfair advantage? Could it let a few people control many rentals?
Who Makes Sure Rules Are Followed?
The city started enforcing these rules on November 1, 2024. They began by focusing on teaching owners and hoping they’d comply willingly. That makes sense – give people time to adjust. But the real challenge is long-term enforcement. Does the city have enough people and determination to check on these rentals? Will they deal with problems quickly? Or will neighbors have to do the policing? Why should residents be the ones reporting issues, instead of the city enforcing its own rules?
What the Market Looks Like
Data from Airbtics in September 2024 showed about 280 active Airbnb listings in Port Angeles. Rentals were booked about 69% of the time, costing an average of $176 per night. That sounds like good money for owners. The report called the rules “lenient,” but that might have been before the new 2024 rules really kicked in. Will these new regulations actually change the market? Or is the money just too good to pass up?
Balancing Tourists and Townspeople
Looking online, you can find lots of STRs in Port Angeles. They offer places for tourists visiting the beautiful Olympic Peninsula. But as these rentals multiply, what’s the cost to our community? Are we losing homes that local families could rent or buy long-term? Are we trading neighborhood peace for tourist money? Do officials really listening to residents worried about noise, parking, and strangers next door?
The Big Questions Remain
Port Angeles took a step by creating these STR rules. That’s a start. But the real story is in how these rules work day-to-day. We have to keep asking tough questions. Are these rules strong enough to protect our neighborhoods? Is the city enforcing them fairly? And the biggest question: Do these rules truly balance tourism benefits with the needs of the people who live in Port Angeles year-round? How the city answers these will show if we’re moving forward or just stuck in the same debate.
Sources for Regulations:
City of Port Angeles – Short-Term Lodging: This is the official city page detailing the new regulations, definitions, requirements, and links to helpful documents.
City of Port Angeles – STR Frequently Asked Questions (FAQ): Provides answers to common questions about the rules, application process, and types of STRs.
City of Port Angeles – News Flash on 2023 Moratorium: Information about the temporary moratorium on new STRs in residential zones that expired in December 2023.
