Austin, Texas is a popular destination for tourists from both in and out of state. It's no surprise that there is a thriving short-term rental market in the city and that more investors are looking to get in on the action.
Finding a great location for your short-term rental is only the first step toward a high ROI. Although the business model is straightforward on the surface, there are many things to consider and account for.
The first step is getting your short-term rental licensed. Failure to do so can result in fines of up to $1000 per day if you continue to market your unlicensed property.
What else should you know? Read on for three additional things to consider about your Austin short-term rental.
1. Type 2 Rentals are Allowed
In the mid-2010s, the city of Austin started to make legislative moves to curb short-term rentals within city limits. One of the biggest changes they put into effect was the restriction on Type 2 rentals. Type 2 rentals are short-term rentals that are not owner-occupied at any time.
In the summer of 2023, however, this legislation was struck down in court. Though there is some confusion in the wake of this court case, property owners may now rent out a property for less than 30 consecutive days even if it is not their own primary or secondary dwelling.
2. Vacation Rental Management Is a Must
Type 2 rentals are great because they allow investors to develop a short-term rental portfolio, rather than operating a rental business out of their own home. However, there is still a lot of hands-on work to do to ensure that your rental is clean, well-maintained, and comfortable for guests.
Whether you're living outside of the city or you don't want to take on this role yourself, vacation rental management is a must. We'll handle everything from marketing your property to guest check-in services to emergency and routine maintenance.
3. Amenities Make for Competitive Listings
Between the allowance of Type 2 rentals and the appeal of Austin to tourists, short-term rentals are booming in the city. In order to attract guests, you'll need to offer a reasonable price. In addition, you can sweeten the deal with desirable amenities.
Guests are often looking for a full kitchen, free WiFi, and in-unit laundry. Other desirable amenities include access to private outdoor space where guests can relax and entertain and Bluetooth-enabled TVs and speakers. You can also offer complimentary gifts such as snacks, beverages, and Austin swag.
Invest in Short-Term Rental Management
If you're ready to create a portfolio of short-term rental properties in Austin, you're making the right choice. If you're hoping that it will be as simple as buying a property and getting it licensed, you're going to need someone else to take on the additional responsibilities.
PMI Austin Metro has years of experience managing vacation rentals in and around the city of Austin. We can turn your dream of earning a passive income into a reality. Schedule a consultation to learn more about our services, packages, and pricing.