Fredericksburg, TX - Short Term Rentals (AirBNB/VRBO)

[Michael Le Blanc]

Hi, I'm interested in picking up a short-term rental property in Fredericksburg (Hill Country), TX. If anyone could share any recommendations for realtors in the area that would be great. As well as any advice from current STR owners in the area would be appreciated as well. Cheers!

[Ian Fortney]

Current STR owner in Fredericksburg. I used Stacey Lancaster (she's pretty active on Bigger Pockets) and she was fantastic. 10/10 would recommend to a friend. She specifically does a lot of STRs, so I believe she's the go-to in the area.

As for Fredericksburg itself, I agree with @Evan Tuuk. I would look at the zoning map when purchasing a house in Fredericksburg. Our house is in the R2 zone (4 blocks off main) and the process to transfer the permit back in March was a breeze. I will say that from my discussions with the City during my due diligence, they really seem to be cracking down quite a bit on STRs. You can find the latest and greatest ordinances here. There's also a STR Alliance in Fredericksburg that works with the city. I believe when I was checking with the city, they were proposing a few more new changes. I can't remember exactly, but I believe the main ones had to do with additional parking restrictions and water. Water had to do more with pools and hot tubs. They were cracking down on how often you can use city water to refill them. Doesn't affect us, but it would affect anyone with a hot tub because it would really hinder your ability to refill it. If you wanted to refill it more than the city allows, you would have to get private water to come to your house. My best piece of advice is to buy a house with an existing permit. Even when we got ours transferred, they were super strict when it came time  to an inspection. We passed, but even little things like  string lights or not having a grate over the fire pit were big concerns.

Overall the numbers in Fredericksburg are staying the same compared to 2022 in my experience. The extremely hot summer has subdued the demand this month though. I would buy again if I had the chance.

Why I choose Fredericksburg?

- regional / drivable destination (I've personally rented out a bunch of Airbnbs here)

- already established STR laws (while very strict, they have shown to grandfather in permits and haven't proposed a flat out ban that would also retroactively take away permits)

- Fredericksburg also fights new hotels just as hard as STRs. This is why you don't see a bunch of national chains near main street

- numbers made sense compared to other regional destinations (Gulf Shores, Smokey Mountains, Galveston, ect.)