I'm still learning about real estate investment and appreciate all of the great advice I've received from the group. I was wondering if anyone has had experience with Airbnb'ing their property in Austin and how the process was like. I did some research on it and it seems it involves applying for the Short term rental license, paying the proper fees, and hotel taxes. How difficult was the process of getting these licenses and was there any unanticipated setbacks that you experienced? Is Austin friendly to Airbnb and other short term rentals? I know COVID has put the breaks on a lot of vacations, but what are some areas that you can't go wrong with investing your property as an Airbnb? In other words, great areas/destinations that are attractive? I assume Zilker, Barton Creek, and Downtown? I'd appreciate any advice or feedback to start this conversation.
I just posted a video about the STR rules in Austin. I hope this is helpful.
STR's are my specialty. Unfortunately, Austin is no longer a STR friendly city if it's a Type 2 license/non-owner occupied. However, good news was that the Texas higher courts have ruled some of Austin's STR ordinances illegal. I think it's still in limbo at this point but don't hold me to it. You're better off doing it in STR friendly cities close by such as Round Rock and Pflugerville. San Antonio has its restrictions too but a little better off then Austin. Good luck!
@Austin Stowell where can we see your video?
Sorry on vacation with bad wifi. It apparently didn’t post yesterday.
Here it is on YouTube
Thanks for the information @Austin Stowell and @Qui Chau . Could you clarify why it is good news that TX courts have ruled some of Austin's STR ordinances illegal? And just to confirm: if I were to make the home my primary residence, and rent the entire property out occasionally when I'm out of town, that would be considered owner-occupied correct? Is Type 2 the scenario where I have the property as a pure investment and I'm not living inside of it at all? Also, if I purchase the property using an LLC and live inside of it, and occasionally rent it out as mentioned, would that qualify me as Type 1 (owner occupied)? How easy is it to get the Type 1 license? Thanks!
@Kevin Y. If you hold the deed as an LLC you cannot declare Homestead, thus you cannot qualify for an owner-occupied STR Type-1 license. If you own it as a natural person, you can declare Homestead as long as you comply with the occupancy requirements and getting an STR Type-1 license is pretty straightforward, but fraught with redtape.
@Kevin Y. If you hold the deed as an LLC you cannot declare Homestead, thus you cannot qualify for an owner-occupied STR Type-1 license. If you own it as a natural person, you can declare Homestead as long as you comply with the occupancy requirements and getting an STR Type-1 license is pretty straight forward, but fraught with red tape.
Thank you @Jeffrey Schnabel