Airbnb in Houston - What do I need to know?

7 Replies

Hey Houston BPers - 

I've been doing a lot of research on utilizing Airbnb for your rental properties, rather than a traditional lease and wanted to start a thread for those interested and have experience in the space, particularly in Houston.  I'd like to talk about regulations (existing and coming in the future), numbers, areas, tips, etc.

The first big question I have is around regulations, are there any big ones and are there any regulations coming in the future that could impact this business model?

I'm thinking about building a portfolio of 1/1's around the loop and utilizing Airbnb.

Harrison

Originally posted by @Harrison Yat :

Hey Houston BPers - 

I've been doing a lot of research on utilizing Airbnb for your rental properties, rather than a traditional lease and wanted to start a thread for those interested and have experience in the space, particularly in Houston.  I'd like to talk about regulations (existing and coming in the future), numbers, areas, tips, etc.

The first big question I have is around regulations, are there any big ones and are there any regulations coming in the future that could impact this business model?

I'm thinking about building a portfolio of 1/1's around the loop and utilizing Airbnb.

Harrison

 I have not used Airbnb but I have heard that you have to get a permit from the city to be legal. I believe it is called a short term occupancy permit but I am not 100% sure

@Harrison Yat I use Airbnb in the DFW area. You just have to comply with your city tax which you can either call the city council or go to their website to check if you will owe any taxes. You will also have to go to the Texas comptroller website and register with the state. State tax is due every month on the 20th and it is 6% of your nightly rental. In the DFW area I pay a total of 15% tax for city and state. I'd like to connect with more people that use Airbnb in Houston. I heard some people made $2000 -$3000 Super Bowl weekend just renting out 1 - 2 bedroom houses and apartments.

I invest in North TX, and am managing airbnb properties there and in Houston. Where I am, there's not much of a footprint, so not much regulation. But I know there have been major crackdowns in Houston. Houston could be right behind places like California, who actually gets Airbnb to charge the appropriate taxes straight to the guests. I don't see it being a huge issue if you have a good CPA with you. Airbnb should eventually catch up and if it becomes a city-wide problem, implement their own tax setup to help hosts out.

thanks for all the input! After doing research it still looks promising, but HOA fees are killer

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So you think investment in airbnb will have good profit? or long term rental to tenants would bring better profits after all property tax, cost of fixing, and other related costs?

I have the same question. I saw a property that I think would be great for this type of investment. My question has to do with zoning and if you run an Airbnb or event venue. I went to the city website but couldn’t really find any clear answers. 

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