Purchasing A House to Use as a Vacation Rental in the Austin Area

By
Real Estate Agent with E*Rae Real Estate Group- Brokered by eXp Realty LLC 651873
 
If you’re looking for a great investment opportunity in the Austin real estate market, you may be considering purchasing a property to use as a full-time vacation rental.  With the rising popularity of websites such as AirbnbVRBO, and homeaway visitors to the Austin area have simpler ways to identify places to stay besides hotels.  Furthermore, renting out a property as a short term rental (STR) may be even more lucrative than a traditional long term rental.  
Picture
 
​Unfortunately, in order to use a home as a short term rental in the Austin city limits, you must have a permit.  At this time, they are no longer issuing any more Type 2 permits.  Type 2 permits apply to single family, non-owner occupied homes.  Even if you find a home for sale that is currently operating as a STR with a Type 2 permit, that permit does not transfer with the sale of the home. 
 
Thus, if you would like to purchase a property to use as a full-time short term rental in the Austin area, you have two options.  Find a condo that allows short term rentals, or look for a property outside the city limits to use as a short term rental.  Homes located in the City of Austin’s ETJ can be used as vacation rentals, and do not require a permit.  Homes located in the LTD do require a permit; however, they do not have to pay City of Austin hotel taxes.  
Picture
 
If you identify a property outside of the city limits that you would like to use as a short term rental, you must verify that there are no HOA restrictions that prohibit the use of the home as a vacation rental.  You will also want to check that the home is not in another city’s jurisdiction.  For example, the City of Lakeway has developed its own guidelines and regulations regarding short term rentals.
 
If you are looking for a property to use as a short term rental in the Austin Area, you may be interesting in reading these other posts. 


SHORT TERM RENTALS- UNDERSTANDING REGULATIONS

FINDING AN AUSTIN INVESTMENT PROPERTY TO USE AS A SHORT TERM RENTAL

Contact me today for help finding the perfect investment property for your needs.  
 
This post originally appeared on shesellsaustin.com
Posted by
Erika Rae Albert 
Realtor®, GRI
 
 
9600 Great Hills Trail
Austin, TX 78759
t: 512-779-7597
e: erika@shesellsaustin.com
 
www.shesellsaustin.com Facebook icon   LinkedIn icon   Twitter icon   Instagram icon
 
Banner
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Texas Travis County Austin
Tags:
austin
short term rental
str
buying a vacation rental austin
short term rentals for sale austin
austin short term rentals
austin vacation rentals
purchasing a short term rental
austin homes you can use as vacation rentals
buying an str austin

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
500,451
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Erika Rae,

Some of my clients have had great success with short term rentals, but as this market matures, it seems that there are restrictions coming. I believe San Francisco just implemented 90-days-per-year maximums, unless the owner lives in the same home. This will likely spread within a few years.

Oct 07, 2018 06:31 PM #1
Rainmaker
2,580,206
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Vacation rentals are big business, especially in warm winter areas.  My brokers manage quite a few vacation rentals and often help people purchase new properties to use as such.  I think the rules and laws are getting better with regard to these being allowed.

Oct 08, 2018 07:14 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
170,143

Erika Rae Albert, Austin Real Estate Expert

Exceeding Expectations in Every Transaction
Considering buying or selling in the Austin area?
*
*
*
*
Spam prevention