Airbnbs/Home Owners Making Millions In Private Rentals

By
Real Estate Agent with DFW FINE PROPERTIES 0506509

 

SHOULD CITIES & TOWNS REGULATE STRs? 

In major cities throughout the United States, including Flower Mound and Lewisville Airbnb is BIG business! In 2018 Airbnbs flourished in Flower Mound and neighboring communities in Lewisville with more than 30,000 homeowners sharing their homes, and more than 24,000 guests staying in STRs (short term rentals) resulting in excess of $2.8 million in rental fees and the numbers keep growing.

 

WHAT'S THE PROBLEM?

Cities like Flower Mound and Lewisville do not collect hotel occupancy taxes and nobody seems to know exactly who is renting, who are the renters, how long are they staying, how are the renters finding Airbnb, and what impact does Airbnbs have on the economy, the environment, property conditions, people living in residential neighborhoods, and the other neighboring communities? 

 

Neighborhoods are designed for residents and when owners are renting out their homes as Airbnb, neighbors begin to complain about too many occupants, too many cars parked on the streets, unidentified cars, trucks, campers, strange people, loud parties, intoxication, disturbance of the peace, crime and other safety concerns. 

 

If property owners advertise their homes as HomeAway or Airbnb they are subject to paying local hotel tax which varies from city to city and within each state. For example, in Texas, there is a 6% hotel tax and in Flower Mound, there is a 7% hotel tax. Without regulations, neighborhoods are up for grabs, people are complaining, and taxes for some owners renting out their homes as Airbnb are not paying hotel taxes. 

 

WHAT ARE AIRBNBS RESPONSIBILITIES?

Airbnb should have agreements in place that collects a portion of the hotel taxes for each state per the terms of their agreement and collaborate with cities and states. 

 

WHY IS AIRBNBS BIG BUSINESS?

Making easy money is big business for supplemental income to property owners and to pay taxes to the city and state.  

 

WHAT'S NEXT?

In Texas, the 86th Legislative Session is working on Short-term rentals and occupancy regulations. House Bills are under review at the Capitol in Austin.  

 

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                                         Patricia Feager
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                                                        Email: patricia.feager@gmail.com

 

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Show All Comments
Rainmaker
2,734,465
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Would you want to talk couple million my way? Totally just kidding but what a fascinating perspective

May 21, 2019 11:50 PM #1
Rainmaker
1,403,072
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Air BNBs are definitely a hot topic in many areas. From a user's perspective, I love them. You can rent a wonderful home, complete with kitchen, and use it as a home away from home. And usually at a lower price than a nearby hotel might cost. There should be guidelines in place, though, so neighborhoods don't wind up with disturbances/garbage/etc. 

Interesting topic.

May 22, 2019 04:10 AM #2
Rainmaker
2,972,738
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Patricia... I'm one of those people who believes these kinds of businesses do need to be regulated (and taxed). I pay taxes on what I earn, why shouldn't these homeowners? Fortunately, here in Charlotte many of our subdivisions have CCR's that put limits on renting short term, which is a good thing. I want to know who my neighbors are.

May 22, 2019 04:24 AM #3
Rainmaker
1,176,401
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

The Town of Addison recently passed ordinances regulating short term rentals and this includes hotel occupancy taxes.

May 22, 2019 06:14 AM #4
Rainmaker
3,239,845
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Patricia - a definite "hot button" issue these days as our world continues to evolve.  I am somewhat conflicted about the subject and wonder about unintended consequences as "overreach" becomes a part of the picture.  

May 22, 2019 06:22 AM #5
Rainmaker
2,445,857
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

These are very popular in my area and my brokers manage quite a few vacation rentals.  It really is a good deal for everyone, as it is usually more affordable than staying in a nice hotel, yet you get all of the comforts of home.

May 22, 2019 06:33 AM #6
Rainmaker
2,474,529
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

The topic of AirBnbs are popular in some areas, and create issues for others.  In Lake Tahoe, homeowners are up in arms with them because they have brought chaos to their neighborhoods.  Think loud parties, excessive cars parked on the streets, etc.

May 22, 2019 08:16 AM #7
Rainer
471,033
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Cities and counties can regulate almost anything and access fees or require licenses to operate any type of approved business, yet, if it's unenforceable, what's going to happen to the the offenders? The answer is absolutely nothing, isn't it?

Nearly everyone breaks the speed laws while driving but few get a citation for speeding, so, how would the laws regarding STR's be enforced is the question that should be addressed before a law is passed, shouldn't it?

May 22, 2019 11:52 PM #8
Rainmaker
1,960,099
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Hi Kimo Jarrett - In my area, we have red light cameras and they do work and people do get caught. I just had to pay $75.00 for stopping for a long red light, going under a viaduct that dipped and when I got out from under the viaduct the sun was so bright I could barely see. I didn't expect a second light so quickly within seconds of going under that viaduct and then it happened, I clearly saw the brightest camera flash and they got me! If I didn't pay that city by a certain date, it would be reported and go on my driving record. So, I paid. The increase in insurance premium and the hassle simply wasn't worth the fight for me. 

I'm so glad I'm not serving on my Town Council or a politician at our State Capitol to make decisions like the one you stated.  

May 23, 2019 12:23 AM #9
Rainmaker
5,263,384
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Many communities are facing the challenges of regulating these rentals.

May 23, 2019 10:22 AM #10
Ambassador
798,297
Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876

Thanks for sharing this, I have always wondered if I should convert my rental properties into AirBnB's?!?! I have great tenants and have for a while so I haven't pushed the idea to the top of my priority list yet. Your post has me thinking about it a little deeper now, thank you. 

May 23, 2019 10:39 AM #11
Rainmaker
496,154
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I certainly see the attraction for homeowners to host Airbnb guests, and our family has used them--never had a bad experience.  I do think it displaces regular folks who really need rental housing.

May 23, 2019 01:10 PM #12
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Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP

Selling Homes Changing Lives
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