Airbnb in Houston - What do I need to know?

Question

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

Cody L. · Answer

I have nearly 100 of my units leased by a small handful of guys that then rent them on Airbnb. So I know they’re making $ or they wouldn’t be leasing more units from me to grow their portfolio

(inner loop Houston)

Kelli Brewer · Answer

@Harrison Yat what did  you end up doing? I am thinking about doing this in Houston as well.

Austin Hughes · Answer

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.

Account Closed · Answer

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

Jeffrey D. · Answer

I live in EaDo and know there is a good market for AirBnB there for convention go-ers. Hotel prices in the area can be pretty high.

I'm pretty sure the medical center would also be a good area for medical people, traveling nurses, students. The Heights and Midtown also has a lot of visitors.

You can go to AirBnB, look at someones calendar, see their nightly rate and get an idea of how much business/potential you can get by doing an AirBNB.

Jeremy Pakalka · Answer

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

Alex Bush · Answer

How are you guys avoiding HOA restrictions on the number of unrelated persons living under one roof?

Seems like everywhere I look in Houston are there is a clause in HOA rules restricting it so no way I get a 5br house and rent it by room on Airbnb.

Account Closed · Answer

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.

Katie Nguyen · Answer

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?

Airbnb in Houston - What do I need to know?

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