Short Term Rental Buying Season is Here!

[Karl McGarvey]

If you are an agent in a summer vacation area you can probably relate to the title of my post! Short Term Rental buying season, especially in Galveston Texas, is here! 

Starting just after the new year buyers/investors come out of hiding to try to capitalize on their next investment so that they can have it ready by Spring Break, allowing them to make money almost immediately after purchase. With Airbnb and VRBO boosting your property for the first few weeks to "test" it, listing right before Spring Break is a GREAT chance to get your property boosted to the top of searches right away! Timing can be everything, and being able to take advantage of the Spring Break/April/May Weekends is a fantastic way to have your property boosted for the summer. 

Yes, the market is still crazy, and will probably continue to be busy into the foreseeable future, but there are deals to be found/negotiated. My partner and I closed on an off market MF deal in Galveston in November, and in the last month I have had two clients close on their first STRs!

Even better, the City of Galveston recently signed a deal with Airbnb/VRBO billing our HOT tax straight to the guests, with no pass through to the owner, making us pay the city on the backside. This deal instantly gave every owner on Galveston a 9% increase in revenue (assuming rental rates stay the exact same, which mine are compared to my 2021 numbers thus far). This has made deals that were previously marginal, much much better.

A lot of interest in our great little market lately, especially after being named the National Association of Realtor's 2021 Best Place to Buy a Beach house, so I thought I would shoot a quick post with some knowledge to help the rest of you out in your search!

[Lucas Love]

Quote from @Karl McGarvey:

Originally posted by @John Underwood:

The places I have been looking have had no off season for buying a STR. That makes me think that Galveston might not be as hot as other areas of the country.

Drastically more buyers show up in the spring knowing big earnings are ahead in the summer months. Galveston is booming and offers year round rentals even outside of the summer, such as our HUGE Mardi Gras celebration in February, but that does not change the fact that buyers prefer to buy in time to make money.

Don't let the fact that the majority of STR buyers show up in the early Spring make you think the rental market here is not on fire. Even through COVID our STRs set record numbers.

I own several long term rentals in Port Lavaca. Looking to get some STR in Galveston and Bolivar. Trying to buy at least 2 this year. Looking for an agent in the area. I have looked at some airdna data and some other data points. Is it unrealistic to expect $20k net income after expenses and debt service on a $375k house?

I noticed that Bolivar appears to have a higher occupancy rate and nightly rate, but it's normally families so that makes sense. Looking to buy in both Bolivar and Galveston.