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  • Wine Country Dreams: Inside Dripping Springs’ Quietly Thriving Short-Term Rental Market

    Wine Country Dreams: Inside Dripping Springs’ Quietly Thriving Short-Term Rental Market

    On a Saturday morning in early fall, the roads leading into Dripping Springs carry a familiar rhythm—cars streaming west from Austin, following FM 290 as it winds through the Hill Country. Some are headed to the wineries that dot the landscape like jewels on a necklace. Others are checking into vacation rentals tucked between live oaks and limestone hills, trading the bustle of the city for a weekend where the loudest sound might be the cicadas at dusk.

    This is Dripping Springs, Texas—a town of fewer than 5,000 residents that welcomes more than 300,000 visitors each year. It’s a place where the wine flows freely, where Hamilton Pool’s turquoise waters draw Instagram pilgrims, and where a new generation of vacation rental hosts has discovered something remarkable: you can build a meaningful income stream while offering travelers a front-row seat to one of America’s most beloved wine regions.

    If you’ve ever wondered what it takes to succeed in the short-term rental business, or why so many investors are quietly buying up properties in this corner of the Texas Hill Country, pull up a chair. Let me tell you what I’ve learned about this market—este mercado especial—and why it might be one of the most compelling STR opportunities in Texas right now.

    The Landscape: A Market Built on Good Foundations

    The numbers tell part of the story. According to StaySTRA’s market data, Dripping Springs currently hosts 616 active short-term rentals. These properties command an average daily rate of $261 and maintain a respectable 38.7% occupancy rate, generating an average of $2,432 in revenue per listing.

    But statistics alone don’t capture what makes this market hum. The real story lives in the details: the 4.84 out of 5 guest rating that speaks to a community of hosts who genuinely care about hospitality. The 4.96 location rating that reflects Dripping Springs’ position at the heart of Texas wine country. The fact that 60% of visitors come from within Texas, creating a reliable base of weekend warriors who return season after season.

    The property mix is diverse—from cozy studios (42 properties) perfect for couples on a wine-tasting weekend, to sprawling 5+ bedroom estates (82 properties) that host family reunions and milestone celebrations. The sweet spot? One-bedroom properties dominate with 212 listings, followed by a healthy distribution across 2, 3, and 4-bedroom configurations. This variety means there’s room for different investment strategies and budgets.

    What strikes me most, though, is the booking pattern. Nearly 77% of properties are booked 1-3 months out, and 68% maintain bookings 4-6 months in advance. That’s the sign of a stable market with consistent demand—not a flash-in-the-pan trend.

    Why Dripping Springs? The Wine Country Effect

    Here’s something that might surprise you: the Texas Hill Country has become the second-largest wine tourism destination in the United States, trailing only Napa Valley. Let that sink in for a moment. The region attracts more than 3 million visitors annually, and the wine industry generates a staggering $20.35 billion in economic impact across Texas.

    Dripping Springs sits at a sweet spot in this wine country boom. It’s close enough to Austin (about 25 miles west) to pull weekend travelers, yet far enough to feel like an authentic escape. The Dripping Wine Trail connects notable wineries like Hawk’s Shadow, Bell Springs, and Parmeson Wines—all within minutes of each other, creating an easy loop for visitors who want to sample the region’s terroir without the sterile, corporate feel of some wine regions.

    I spoke with tourism experts who emphasized that wine tourism isn’t just about the wine. It’s about the experience—the limestone hills bathed in golden afternoon light, the Hill Country cuisine, the live music venues that give this region its soul. According to recent reports, the number of active winery permits across Texas grew by 186% from 2013 to 2023. This isn’t a mature market winding down—it’s still in expansion mode.

    For STR hosts, this wine tourism infrastructure is gold. Your guests aren’t just people looking for a cheap place to crash. They’re experience-seekers with disposable income, celebrating anniversaries, birthdays, and life milestones. They book wine tours, dine at local restaurants, and they’re willing to pay for quality accommodations that enhance their Hill Country experience.

    What Makes Investment Here Compelling

    If you’re considering entering the short-term rental market—or expanding your existing portfolio—Dripping Springs presents a compelling case. Let me break down why investors are paying attention.

    First, the real estate fundamentals are stabilizing. After the pandemic-era price surge that affected markets nationwide, Dripping Springs has seen a correction. Recent data shows the median home price around $672,500 to $750,000 (depending on the source and timing), with prices down roughly 10-30% from their peak. For investors, this creates an entry point that wasn’t available 18-24 months ago. As we discussed in our recent analysis of the perfect storm for rental investors in fall 2025, market corrections often create the best buying opportunities for those who understand the fundamentals.

    Second, the tourism infrastructure continues to expand despite the real estate correction. More wineries are opening. Hamilton Pool Preserve remains one of the most photographed natural wonders in Texas. Dripping Springs Distilling has put the town on the map for craft spirits. Each of these attractions pulls visitors who need somewhere to stay—and hotels aren’t the only option anymore.

    Third, the regulatory environment remains relatively friendly. Unlike some Texas markets where new STR regulations have created compliance headaches, Dripping Springs requires a permit through the Planning & Zoning Commission and collection of the 7% hotel occupancy tax—straightforward requirements that professional hosts can easily navigate. There’s no complex lottery system, no caps on the number of rentals, no prohibition on non-owner-occupied properties (though you should verify current zoning for specific properties).

    Fourth—and this matters more than many new hosts realize—the target demographic is ideal. These aren’t party crowds or one-night-stand bookings. The average stay is 2-3 nights. Guests are families, couples celebrating occasions, and outdoor enthusiasts. They tend to be responsible, they respect the properties, and they leave those 4.84-star reviews that become your best marketing tool.

    What Works Well: Lessons from the Field

    After reviewing the market data and speaking with local property managers, certain patterns emerge about what succeeds here.

    Location, location, location—but with a twist. Proximity to wineries matters enormously. Properties within a 5-10 minute drive of the Dripping Wine Trail command premium rates and higher occupancy. But here’s the nuance: guests also value seclusion. The sweet spot is “close enough to the action, but private enough to feel like a retreat.” That might mean a property on a few acres with Hill Country views, where guests can sip their wine on the porch without seeing neighbors, yet they’re still a short drive from Hawk’s Shadow or Bell Springs.

    Amenities that match the experience. This isn’t a budget travel market. Your competition isn’t Motel 6—it’s other vacation rentals and boutique hotels. The properties that command those $261+ nightly rates typically feature outdoor living spaces (patios, fire pits, hot tubs), fully equipped kitchens (wine country guests love to cook), and thoughtful Hill Country design elements. Think rustic modern, not cookie-cutter suburban. One highly-rated property in the area even made Vrbo’s 2025 Vacation Rentals of the Year—a resort-style home that shows what’s possible when you truly understand your market.

    Cleanliness isn’t negotiable. That 4.91 cleanliness rating across the market tells you what guests expect. Budget accordingly for professional cleaning services. This isn’t a corner to cut.

    Smart marketing that tells a story. The listing photos that perform best don’t just show rooms—they sell the experience. Golden hour shots of the Hill Country sunset. Wine glasses on the patio. The cozy reading nook where guests can decompress. Remember, your ideal guests are experience-seekers. Show them the experience.

    Seasonal strategy. Spring and fall are peak seasons, driven by pleasant weather and wine harvest activities. But summer has its own appeal (despite the heat) for families and pool properties. Winter, particularly around holidays, attracts couples seeking romantic getaways. Understanding these patterns helps you price dynamically and target your marketing.

    The Practical Realities: What to Consider

    Before you jump in, let’s talk honestly about the challenges—because every market has them.

    Property management isn’t passive income, at least not at first. Even if you hire a property manager (which most successful hosts do), you’ll need to invest time in the setup, the design, the systems. Think of it as starting a small business, un pequeño negocio, not buying a stock.

    The occupancy rate of 38.7% means your property will sit empty more than 60% of the time. That’s normal for vacation rentals, but it means you need to run the numbers carefully. Your profitable nights need to cover your mortgage, property taxes, insurance, utilities, cleaning, maintenance, property management fees, and platform commissions. That $261 average daily rate sounds great, but after expenses, your net might be significantly lower.

    Competition is real. With 616 properties already in the market, you’re not discovering some secret. Success requires differentiation—whether that’s exceptional design, superior hospitality, unique amenities, or strategic pricing.

    If you’re considering nearby markets, you might also look at Canyon Lake’s STR landscape, which offers similar Hill Country appeal with waterfront advantages. Understanding the regional landscape helps you make informed investment decisions.

    And remember: real estate markets fluctuate. That price correction could continue, or it could reverse. Don’t count on appreciation alone—your investment thesis should stand on the fundamentals of rental income.

    Why This Market Still Makes Sense

    Despite the realities, here’s why experienced investors keep circling back to Dripping Springs:

    The Hill Country isn’t going anywhere. Wine tourism in Texas is still growing, not shrinking. Austin continues expanding westward, bringing more potential guests. The experiential travel trend—where people prioritize experiences over things—plays perfectly into what Dripping Springs offers.

    The barriers to entry aren’t insurmountable. You don’t need millions to start. A well-chosen property in the $500,000-$750,000 range, properly financed and professionally managed, can generate meaningful cash flow while building equity.

    And perhaps most importantly, this is a market where hospitality still matters. Those 4.84 guest ratings reflect a culture of hospitalidad—hosts who care about creating memorable experiences. If you’re the kind of person who genuinely enjoys welcoming guests, who takes pride in the details, who wants to be part of a community rather than just extracting rent, Dripping Springs rewards that approach.

    The best hosts here don’t just manage properties—they curate experiences. They stock local wines, create guidebooks to hidden gems, respond warmly to guest questions. That human touch still differentiates in a world increasingly dominated by algorithms and automation.

    Frequently Asked Questions

    What’s the average return on investment for a Dripping Springs STR?

    ROI varies significantly based on property price, occupancy management, and expenses. With an average revenue of $2,432 per month per the market data, a property generating $29,000 annually needs to be analyzed against all costs. Well-managed properties with strong occupancy and smart pricing can achieve 6-10% cash-on-cash returns, but this requires professional management and ongoing optimization. As we covered in our guide on choosing the right business structure, setting up properly from the start impacts your long-term profitability.

    How seasonal is the Dripping Springs STR market?

    Spring (March-May) and fall (September-November) are peak seasons, driven by ideal Hill Country weather and wine harvest activities. Summer attracts families despite the heat, especially properties with pools. Winter sees a dip but picks up around holidays. The booking data shows 77% of properties booked 1-3 months out, indicating consistent year-round demand with seasonal fluctuations in rate and occupancy.

    What are the permit and regulatory requirements?

    Currently, Dripping Springs requires a permit through the Planning & Zoning Commission and collection of the 7% hotel occupancy tax. You’ll also need to meet safety equipment requirements and comply with zoning restrictions for your specific property. Always verify current regulations directly with the city before purchasing, as STR rules can change. Working with a local real estate attorney familiar with STR properties is wise for any investment.

    Can I self-manage or do I need a property management company?

    Both options work, but each has tradeoffs. Self-management saves 20-30% in fees but requires significant time for guest communication, cleaning coordination, maintenance, and marketing. Professional management costs money but brings local expertise, faster response times, and established cleaning/maintenance networks. Many successful hosts start self-managing to learn the business, then transition to professional management as they scale or add properties. The 38.7% occupancy rate suggests the market rewards professional operations.

    What’s the ideal property type for Dripping Springs?

    The data shows one-bedroom properties dominate (212 listings), but success isn’t about bedroom count alone—it’s about experience. Properties that work best typically feature: Hill Country views or acreage for privacy, outdoor living spaces (covered patios, fire pits), proximity to wine trail (5-10 minutes), quality design reflecting the Hill Country aesthetic, and amenities matching your target guest (hot tubs for couples, pools for families, outdoor kitchens for groups). The property that made Vrbo’s 2025 top rentals list demonstrates what’s possible when you nail the experience.

  • When the Music Starts, So Does the Money: How Austin City Limits Fills Both Hearts and City Coffers in 2025

    When the Music Starts, So Does the Money: How Austin City Limits Fills Both Hearts and City Coffers in 2025

    On a warm October evening in Austin, as 75,000 music lovers stream into Zilker Park for Austin City Limits, another story unfolds in neighborhoods across the city—one of short-term rental hosts, new tax policies, and the half-billion dollars flowing through Austin’s economy.

    On a cool Sunday afternoon in early October, Maria Gonzalez stands on the porch of her Hyde Park bungalow, watching a young couple from Seattle unload their luggage. They’re here for Austin City Limits, and they’ve booked her guest cottage for the entire first weekend. As she hands them the keys, Maria thinks about how much has changed since April—not just in her own life as a short-term rental host, but in the very fabric of how Austin collects revenue from visitors like these.

    “Bienvenidos,” she says warmly, slipping into Spanish as she often does when excitement takes over. “You picked the perfect weekend to visit our city.”

    What Maria’s guests might not realize as they settle in for their ACL adventure is that their stay is part of a much larger story—one that intertwines music, money, and a fundamental shift in how Austin captures the economic value of its most beloved events.

    A New Chapter in Austin’s Tourism Tax Story

    The sense of comunidad (community) around Austin City Limits has always been palpable. But in 2025, there’s something different in the air—a new understanding of how the city’s biggest music festival contributes to its fiscal health, particularly through the short-term rental market.

    This year marks the first ACL festival since Austin implemented a groundbreaking change: as of April 1, 2025, platforms like Airbnb and Vrbo must collect and remit the city’s 11% Hotel Occupancy Tax directly from short-term rental bookings. The policy shift, designed to close loopholes that allowed thousands of unlicensed rentals to operate without paying taxes, arrives just in time for ACL’s October weekends—when the city welcomes 450,000 music fans over two consecutive weekends.

    Walking through East Austin one Thursday before the festival, I couldn’t help but notice the preparations. Hosts were refreshing their outdoor spaces, stocking their kitchens, and preparing welcome guides filled with ACL tips. Each of these properties, whether licensed or not, would now contribute to the city’s tax base in a way they hadn’t before.

    The Half-Billion Dollar Harmony

    Where some see disruption in new tax policies, others see opportunity—and Austin City Limits 2025 represents the perfect moment to witness both perspectives in action.

    The numbers tell a compelling story: ACL generates approximately half a billion dollars for Austin’s economy each year. That’s not a typo—$500 million flowing through hotels, restaurants, shops, music venues, and yes, short-term rentals. In 2024 alone, the festival generated $534.8 million, the highest in its history, with attendee spending jumping to $415.4 million.

    But here’s where the story gets interesting for our community of STR hosts: before April 2025, Austin collected only about $7 million annually in hotel occupancy taxes from short-term rental operators. That represented just 4% of the city’s total Austin City Limits tax revenue, despite thousands of properties hosting visitors during peak events like ACL.

    Ziyu Huang, who manages rental properties through Austin Homes and Rental Management, shared his perspective: “We do a lot of marketing from the beginning of the year to drive the demand.” His company’s properties get booked months in advance for ACL, and now, for the first time, they’re automatically contributing their full share to the city’s tourism infrastructure.

    The Human Side of Tax Collection

    A host who’s run her South Congress STR for five years shared a candid moment with me over coffee at Jo’s. Let’s call her Rebecca, because she asked me not to use her real name—she’s still navigating the new licensing requirements.

    “Look, I always wanted to pay my fair share,” Rebecca explained, stirring her cortado thoughtfully. “But the old system was confusing. You had to register, track everything yourself, file quarterly… For someone running just one property while working a full-time job, it felt overwhelming. Now Airbnb just handles it automatically. Honestly? It’s a relief.”

    Rebecca’s ACL weekend bookings exemplify the festival’s impact on short-term rental revenue. Her two-bedroom cottage near St. Edward’s University, which typically rents for $150 a night, commands $450 per night during ACL weekends. With the 11% hotel tax now automatically collected, her three-night ACL booking generates $148.50 in tax revenue for the city—money that previously might have slipped through the cracks if she’d been operating without proper licensing.

    Multiply that by thousands of properties across Austin, and you begin to understand the scale of the revenue shift.

    October: When Austin Becomes a Tax Revenue Symphony

    “In October, the eyes of the world are on Austin,” says Wesley Lucas from Visit Austin. And when those eyes arrive, they bring wallets—and now, thanks to the new collection system, they bring Austin City Limits tax revenue in a way the city has never quite captured before.

    The Austin City Limits festival doesn’t just fill Zilker Park; it fills every corner of the city. Properties in neighborhoods miles from the festival grounds see booking spikes. Guests want to experience “real Austin,” as one visitor from Germany told me, staying in a Clarksville apartment and taking the ACL shuttle from downtown each day.

    Austin-Bergstrom International Airport expects up to 35,000 passengers on high-volume days across both ACL weekends. Many of those travelers will bypass traditional hotels in favor of short-term rentals, seeking the authenticity and space that a whole house or apartment provides.

    The city’s 11% hotel occupancy tax—comprised of a 9% base tax and an additional 2% venue project tax—now captures revenue from nearly all of these stays. The tax revenues, by law, must be spent on tourism promotion, creating a virtuous cycle: ACL generates STR bookings, STR bookings generate tax revenue, and that revenue supports the tourism infrastructure that makes events like ACL possible.

    The Enforcement Evolution

    Behind every policy change lies a network of people working to make it real. Mayor Pro Tem Vanessa Fuentes has emphasized the urgency of acquiring enforcement technology to capture “thousands of hotel tax dollars” from properties that were previously operating under the radar.

    The city estimates around 10,000 unlicensed short-term rental properties have been operating in Austin. While the city has nearly 2,200 active licenses, data suggests the true number of operating STRs is far higher. The new platform collection requirement means that even unlicensed properties contribute to the tax base when guests book through major platforms—a significant shift in enforcement philosophy.

    Marc, a Hyde Park homeowner who attended city council meetings about the new regulations, told me: “It’s not about punishment. It’s about fairness. Traditional hotels have always paid these taxes. Now we all do, and honestly, it should have been this way from the beginning.”

    The Ripple Effect Beyond Tax Revenue

    The story of ACL’s tax revenue impact extends beyond the literal dollars flowing into city coffers. It touches on questions of equity, community impact, and what it means to be a responsible host in a rapidly changing city.

    During ACL weekend, some neighborhoods transform entirely. Streets that are normally quiet hum with out-of-state license plates and groups of festival-goers comparing outfits before heading to Zilker. Long-term residents share sidewalks with visitors trying to navigate unfamiliar streets.

    I spoke with Thomas, a long-time Bouldin Creek resident who lives next door to an STR property. “Look, I love ACL. I’ve gone every year since 2008,” he said, standing in his driveway as festival traffic hummed nearby. “But I also want to know that the impact on our neighborhood—the noise, the parking challenges, the strain on our infrastructure—is at least generating some benefit for the city. If these properties are paying hotel taxes like they’re supposed to, that helps me accept the trade-off.”

    His neighbor, the STR host, sees it similarly: “I want to be a good neighbor and a good citizen. Paying the hotel tax is part of that responsibility. The new system makes it easier to do the right thing.”

    What the Future Holds

    As I watched Maria’s guests head out for their first night at ACL, festivalgoers dressed in their finest Austin weird, I thought about what this all means for the future of our city’s relationship with tourism, music, and short-term rentals.

    The Austin City Limits tax revenue from October’s ACL weekends will help fund Visit Austin’s marketing efforts, support the convention center, and contribute to the live music infrastructure that makes Austin the Live Music Capital of the World. Fifteen percent of new revenue from hotel occupancy taxes goes directly to Austin’s live music scene, another 15% to historic preservation.

    City officials expect the new platform collection system to “drastically increase” the $7 million previously collected from STRs. While exact projections aren’t available yet, some estimates suggest the city could see a 300-500% increase in STR tax revenue, potentially adding $20-30 million annually to the city’s tourism budget.

    For hosts like Maria, the change means peace of mind. For guests, it’s largely invisible—just another line item in their booking cost. But for Austin as a whole, it represents a fundamental shift in how the city captures value from its tourism economy.

    The Music Plays On

    As dusk settled over Austin on that first Friday of ACL 2025, I found myself at a coffee shop near Barton Springs, talking with yet another host preparing for the weekend’s guests. She’d been part of the short-term rental community for nearly a decade, watching Austin grow and change, watching regulations come and go, watching neighborhood debates flare and settle.

    “You know what’s beautiful about ACL?” she said, looking out the window toward Zilker Park, where stage lights were beginning to glow in the distance. “It’s not just about the music, though God knows that’s magical. It’s about what happens when people come together. And now, for the first time, we’re all really coming together—hosts, the city, the platforms—to make sure this incredible event benefits everyone.”

    The half-billion dollars that ACL generates for Austin’s economy isn’t just a number. It’s Maria welcoming guests to her cottage. It’s Rebecca finally feeling like the system works for her instead of against her. It’s Thomas accepting the trade-offs because he knows his neighborhood’s impact is recognized and compensated. It’s tax revenue that will support the very cultural infrastructure that makes events like ACL possible in the first place.

    As the first notes of Friday’s headliners drifted across the city that evening, Austin’s short-term rental hosts could rest easy knowing they were part of something larger—a symphony of music, community, and now, finally, fair taxation.

    The music plays on, and so does the city’s economic engine, now running more efficiently than ever before.

    Frequently Asked Questions

    How much hotel tax do short-term rentals pay during Austin City Limits?

    Short-term rentals in Austin pay an 11% Hotel Occupancy Tax, comprised of a 9% base tax and 2% venue project tax. During ACL weekends, when nightly rates often triple, a typical $450/night STR booking generates $49.50 in tax revenue per night. With thousands of properties booked across two festival weekends, this represents millions in Austin City Limits tax revenue for the city.

    When did Austin start requiring platforms to collect STR taxes?

    On April 1, 2025, Austin implemented a new requirement mandating platforms like Airbnb and Vrbo to automatically collect and remit Hotel Occupancy Tax for short-term rental properties. This policy change arrived just months before ACL 2025, ensuring maximum tax collection during the festival’s peak booking season.

    How much revenue does Austin City Limits generate for the local economy?

    Austin City Limits generates approximately half a billion dollars annually for Austin’s economy. In 2024, the festival reached a record $534.8 million in economic impact, with attendee expenditures alone totaling $415.4 million. The festival welcomes 450,000 fans over two weekends, creating massive demand for lodging, dining, and entertainment.

    What happens to hotel tax revenue collected from STRs?

    By law, Austin’s Hotel Occupancy Tax revenue must be spent on tourism promotion and related infrastructure. Currently, 15% of new revenue goes to Austin’s live music scene, another 15% supports historic preservation, and 70% funds convention center expansion. This creates a cycle where festival tax revenue supports the tourism infrastructure that makes festivals possible.

    How many unlicensed short-term rentals operate in Austin?

    Austin officials estimate around 10,000 unlicensed short-term rental properties operate in the city, despite only 2,200 active licenses on record. The new platform collection requirement means even unlicensed properties now contribute hotel taxes when guests book through major platforms, significantly closing the tax gap without requiring immediate licensing compliance.

  • Beyond the Waterfront: A Legal Guide to Short-Term Rental Rules in Canyon Lake

    Beyond the Waterfront: A Legal Guide to Short-Term Rental Rules in Canyon Lake

    Operating a short-term rental (STR) in the scenic Canyon Lake area of Texas presents a regulatory landscape far more complex than many property owners initially assume. From my experience analyzing zoning laws, a common yet costly mistake is believing that a property’s postal address dictates its governing body. While your property may indeed have a “Canyon Lake” address, it is crucial to understand that a multi-layered governance structure is at play, and the rules are not always what they seem.

    A frequent misconception is that properties strictly within Canyon Lake are exempt from the stringent regulations of the City of New Braunfels. However, the legal reality is more intricate. Successful operation requires a nuanced understanding of a tripartite governance model involving the City of New Braunfels, Comal County, and a special taxing district known as W.O.R.D.. Let’s dissect the role each entity plays.

    The City of New Braunfels: The Primary Gatekeeper

    Counterintuitive as it may seem, the City of New Braunfels often serves as the primary gatekeeper for STRs in the region, even for many properties with a Canyon Lake address. This is due to the city’s extensive Extraterritorial Jurisdiction (ETJ)—a designated buffer area outside the formal city limits where the municipality’s ordinances on matters like subdivision and zoning can still apply.

    The city’s authority is the first and most significant hurdle for any prospective operator.

    • Restrictive Zoning: The City of New Braunfels expressly prohibits short-term rentals in all residentially zoned districts. This single ordinance renders a vast number of single-family homes in the area ineligible for legal STR operation.
    • Mandatory Permitting: For properties in the few non-residential zones where STRs are allowed, the city manages a comprehensive permitting process, including applications, inspections, and renewals. In some cases, a costly and arduous Special Use Permit (SUP) process, involving public hearings before the City Council, is required.

    Before any other step, an owner must consult the city’s official Short Term Rental Map to determine if a property is eligible for any type of STR permit.

    Comal County: Guardian of Environmental Health and Public Nuisance

    While the city handles operational permitting, Comal County enforces critical regulations, particularly in unincorporated areas that may not have municipal services. The county’s authority is most acutely felt in two areas:

    • On-Site Sewage Facilities (OSSF): This is a critical, and often overlooked, compliance point. The Comal County Engineer’s Office (CCEO) treats the conversion of a single-family home to a commercial STR as a “change in use”. If the number of guests you advertise online exceeds the original design capacity of your septic system, you may be required to obtain a new commercial OSSF permit and install a costly upgraded system. This is not a suggestion; it is a mandate backed by the Texas Commission on Environmental Quality (TCEQ).
    • Nuisance Abatement: The county’s Environmental Enforcement division is responsible for investigating complaints regarding public nuisances like improper trash disposal, which can be common issues associated with STRs. For noise complaints, the Comal County Sheriff’s Office is the responding authority.

    The Water Oriented Recreation District (W.O.R.D.): The Specialized Taxing Authority

    The third entity every STR operator in the Canyon Lake area must engage with is W.O.R.D.. It is essential to understand that W.O.R.D. does not issue operational permits; it is a special district whose purpose is to collect a specific lodging user fee (a tax) to fund local environmental and recreational improvements.

    All STRs within W.O.R.D.’s boundaries must:

    • Obtain a Revenue (Tax) Permit: This is a free, one-time registration that provides you with a W.O.R.D. permit number. The individual homeowner is responsible for obtaining this permit, even if a platform like Airbnb remits taxes on their behalf.
    • Collect and Remit a 3% Lodging User Fee: This tax is levied on your gross rental income and is paid quarterly to W.O.R.D..
    • Display the Permit Number in All Advertisements: This is a crucial and easily verifiable rule. Your W.O.R.D. permit number (e.g., “WP# L1234”) must be included in any online listing for your property on sites like Airbnb or Vrbo. Failure to do so immediately signals non-compliance.

    A Word to the Wise

    Navigating the regulatory maze for a Canyon Lake STR is a task that demands meticulous due diligence. The assumption that a property is governed solely by a single, permissive “county” jurisdiction is a pathway to significant financial and legal risk. The authority of the City of New Braunfels, through its ETJ and restrictive zoning, is paramount. The county’s OSSF regulations can trigger unexpected capital expenditures, and W.O.R.D. adds a mandatory layer of tax registration and compliance. Legal and profitable operation in this market is achievable, but it is contingent upon a nuanced understanding of this multi-layered system and strict adherence to the rules of each governing body.

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  • Austin’s New STR Tax Grab: More Cash for City Hall,But What About Neighborhood Peace?

    Austin’s New STR Tax Grab: More Cash for City Hall,But What About Neighborhood Peace?

    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:

    1. 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.
    2. 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?

    StaySTRa Insider
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  • Houston Implements Comprehensive Short-Term Rental Ordinance: Balancing Growth and Neighborhood Concerns

    Houston Implements Comprehensive Short-Term Rental Ordinance: Balancing Growth and Neighborhood Concerns

    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:

    1. Comply with Existing Codes: Ensure properties meet noise, waste management, building safety, and fire safety standards.
    2. Provide Emergency Contact: Designate a contact person available 24/7 who can respond promptly to issues arising at the property.
    3. Remit Taxes: Pay the requisite Hotel Occupancy Taxes (HOT) (taxes levied on sleeping accommodations, akin to those paid by traditional hotels).
    4. Undergo Training: Complete annual training focused on identifying and reporting human trafficking.
    5. 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.

    Stay up to date on the changing STR regulations.

    StaySTRa Insider
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  • Dripping Springs Short Term Market Overview: April 2025

    Dripping Springs Short Term Market Overview: April 2025

    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!

    Name

    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!

  • Wimberley Short Term Market Overview: April 2025

    Wimberley Short Term Market Overview: April 2025

    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!

    Talk To A Local Agent
    Name

    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.

  • Maui’s Housing War: Is Banning Vacation Rentals the Cure or Just More Chaos?

    Maui’s Housing War: Is Banning Vacation Rentals the Cure or Just More Chaos?

    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.

    Dallas, TX

  • Short-Term Rentals in New Braunfels: What You Need to Know

    Short-Term Rentals in New Braunfels: What You Need to Know

    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!

    Learn More Here: City Of New Braunfels

  • Austin Short-Term Rentals Get a Little More Taxing: What You Need to Know

    Austin Short-Term Rentals Get a Little More Taxing: What You Need to Know

    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 ComponentRateDescription
    Occupancy Tax9%General tax on hotel and short-term rental stays
    Venue Project Tax2%Tax dedicated to financing venue projects
    Total HOT Rate11%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

    DateEvent
    April 1, 2025New HOT collection by platforms (Airbnb, Vrbo, etc.) becomes effective
    July 31, 2025First quarterly report due under new system (for the quarter ending June 30, 2025)
    October 1, 2025Other STR regulation changes effective (regulation moves to Title 4, business regulations)

    Summary of Key STR Regulations in Austin

    Regulation AreaStatusBrief Description
    Tax CollectionEffective April 1, 2025Platforms (Airbnb, Vrbo) required to collect and remit 11% HOT. Owners must also report platform-collected taxes for the first quarter.
    LicensingOngoingRequired for all STRs.
    Regulatory Code LocationEffective October 1, 2025STRs primarily regulated under Title 4 (Business Regulations) instead of Title 25 (Land Development Code).
    ZoningEffective October 1, 2025STRs allowed in all residential areas with a valid license.
    Permit DisplayProposed/DiscussedPotential requirement for STR listings to display city-issued permit numbers.
    Proximity RestrictionsProposed/DiscussedPotential limitations on the proximity of multiple STRs owned by the same person.
    Ownership RestrictionsProposed/DiscussedPotential limitations on the type of ownership (e.g., favoring individuals over corporations).
    State Legislation ImpactOngoingFuture local regulations may be influenced by bills passed by the Texas Legislature.
    Owner ReportingEffective April 1, 2025For the quarter beginning April 1, 2025, owners must report HOT collected by platforms. Ongoing quarterly reporting of direct bookings still required.