I have a flip in Austin that isn't selling, and I'm looking at turning it to an AirBnB rental. Anyone hosting AirBnB in Austin that can give me some insights? What trouble should I expect from the city? Have you found it profitable? What kind of cost should I be considering to move it from a (well-done) flip to a vacation rental? I'm hearing that there are many people from the Houston area looking for short-term rentals even this far away.
I already have four traditional rental properties and have done three flips, so I have some basis of comparison, but I'm mostly looking for what is unique about short-term rental in this market.
you have a house in Austin that isn't selling??!! isn't that one of the hottest markets in the US right now? why do you think it's not selling?
Well, to be fair I did get one offer, but I didn't take it--it was lower than what I have in it. Furthermore, its been on the market for about 45 days, so it's not like it's been on there several months (hasn't even exceeded the average DOM yet). I'm just in a hurry because I'm building a house and want to get this flip done with before I have to close on that one.
It's interesting because the 2/1s in that neighborhood that cost more per square foot have sold, but mine (a 3/2) hasn't yet. I hit the market later in the cycle than I wanted (around the time school was starting) so, it looks to me like those buying right now are single or couples with no kids. Frankly, we might have over-improved it a little bit as well.
So, there you go--you win some; you lose some.
There were also some unexpected things in the reno that pushed my "all in" price a little higher than I would have liked to be competitive.
Hey @Jeremy VanDelinder I don't personally do Airbnb in Austin but I do it in Marble Falls, Hunt, & Arlington. I'm also not sure about the laws but a place like Austin would be a cash cow for an Airbnb. Multiple colleges, sports venues, Texas relays, and SXSW. People clean house during SXSW with Airbnb. College towns also bring visiting parents into town very often and they are looking for a place. You would have no problem keeping your place full in that area.
May I ask, where is the property? What part of town?
Please read up on the short term rental restrictions in Austin first. My understanding is that Austin is not granting any permits for short term rental at this point
@Carrie Hiner It's near 183 & MLK, so pretty close to everything. It's a 1970s neighborhood that is being revitalized--so a mixed bag as far as the houses there. Some not-so-nice others have been recently flipped and look pretty new.
@Greg H. Thanks! I've read up on the restrictions/taxes/permitting process, but didn't know if they were currently issuing permits. Worth a phone call to find out.
How ironic that Austin is so strict with short term rentals....given that the headquarters for Homeaway is located there.
By the way--to anyone follow the post that is interested--i did check into it and Austin is not issuing permits for non-owner occupied short-term rentals. And I did get the house under contract. Thanks everyone for the input!
@Jeremy VanDelinder Congrats Jeremy!
@Jeremy VanDelinder any idea when city of Austin opening up the permits? is there any time limit? quote system? wondering if, city is giving out permits for occupied-owner .
I've two properties which i'd like to put on STR.
I called code compliance and the gentleman I talked to was of zero help. I asked if they were allowing any exceptions for hurricane evacuees and all he said was 'no'--wouldn't even carry on a conversation with me. Customer service at its finest!
Anyway, all that to say he didn't give me any indication of if/when a change was expected. According to their website they are accepting permits for owner-occupied, but I don't know much about it since that didn't apply to my situation.
Here is the website: https://www.austintexas.gov/page/short-term-rental...
@Jeremy VanDelinder , how's the Airbnb going? Have you found that managing it can be over whelming?