I believe this is a trend that will continue throughout the country. Too much tax money is being left on the table for municipalities to ignore short term rentals. Make sure you account for these taxes and registration fees when analyzing your deals!
Property Manager · Columbia, SC · Member since 2017 · 121 posts · 163 votes
7y
Austin has come down hard on Type 2 (non-owner occupied) Short Term Rentals. There is a huge demand for short term rentals in Austin, and the Type 1 (owner occupied) short term rentals are not going to meet the demand for the travelers wanting to visit there. It's really economics 101, if only Type 1 rentals are left and the demand for STRs stays the same...then prices will go up. With those higher prices, some of the Type 2 owners are going to see $$$ and take the risk despite the regulations. This is how black markets get created. Ultimately, what this does is increase prices for consumers & pull the activity off of legal channels where they can be taxed & monitored.
Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
7y
Generally these taxes are pass thru to the guest anyway (permitting is not but usually only a few hundred dollars)...however, if you are operating currently out of compliance and not collecting, you might want to save some aside in case the tax man come a calling to your town for past taxes due that you can no longer collect from the guest. : )
I believe this is a trend that will continue throughout the country. Too much tax money is being left on the table for municipalities to ignore short term rentals. Make sure you account for these taxes and registration fees when analyzing your deals!
The government does like to get tax money! So this area is paying big bucks for a 3rd party to find the guilty parties not paying. This will lead to identifying people operating in areas where they are not allowed.
Property Manager · Columbia, SC · Member since 2017 · 121 posts · 163 votes
7y
Austin has come down hard on Type 2 (non-owner occupied) Short Term Rentals. There is a huge demand for short term rentals in Austin, and the Type 1 (owner occupied) short term rentals are not going to meet the demand for the travelers wanting to visit there. It's really economics 101, if only Type 1 rentals are left and the demand for STRs stays the same...then prices will go up. With those higher prices, some of the Type 2 owners are going to see $$$ and take the risk despite the regulations. This is how black markets get created. Ultimately, what this does is increase prices for consumers & pull the activity off of legal channels where they can be taxed & monitored.
Austin, TX · Member since 2018 · 62 posts · 26 votes
7y
Thanks for posting! I'm in Austin, and been considering renting out a spare bed in my primary residence.
wondering if I should consider this trend / news a net positive or negative (possibly better market for "type 1" STR, but increased regulatory burden across the board)
Rental Property Investor · Charlotte, NC · Member since 2019 · 57 posts · 26 votes
7y
Different scenario here in Charlotte, Airbnb has a deal with the city/county and actually collects taxes directly from guests when they book on Airbnb.
Great revenue source for the city with minimal effort. Can see other cities following suite.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
My market has more log cabin bedrooms than hotel rooms. The SFH STR reigns supreme. It has since before Airbnb existed and it will should Airbnb disappear.