Experience with STR regulations in New Braunfels, TX

[Elaina Burkhart]

Hello all, we are looking to possibly purchase an STR in New Braunfels, TX. The numbers seem to work well in this area as I run them, but I'm a little concerned about the STR regulations. I have looked at their city website and it looks like they do not allow STRs in 60% of the area, they do allow STRs (with a Special Use Permit) in about 30% and then the remaining 10% are "allowed by right with permit" but don't require the Special Use Permit. Obviously it would be ideal to find a property within that 10% area that allows a basic permit because the website says the special use permit process can take 8-12 weeks with a public hearing. Has anyone had to get a SUP for their STR in this area? To think that we would be purchasing a property with the plan to rent it out, just to be denied the permit seems very risky, however I read that a lot of people invest in STRs in this area. I feel like maybe I'm missing something or may I'm being too intimidated by this SUP process because I'm not familiar with it. I understand that having set regulations in the STR world is not a bad thing, but I don't want to run the risk of being denied a permit. Thanks!!!

[Seth Teel]

New Braunfels is not STR friendly at all. If STR is not allowed by right, you can either try an re-zone the property or get a special use permit. They SUP requires public notification and a public hearing. All properties owners within a certain radius of the subject property will be notified via mail of the special use request and hearing date. The mailer they send has checkboxes (For or Against) and a comment space, and can be sent back to the city in lieu of attending the hearing. Both the City and the residents tend to fight STRs, and especially SUPs. They have approved very few over the last couple years. NB's handling of STRs has been so egregious that one of our clients has even filed suit again the City.

If you haven't purchased the property yet, I wouldn't count on getting a SUP approved.  Run your numbers for a long term rental; if it still makes sense, full speed ahead. Then apply for the SUP, and if you get it, it's icing on the cake.  If the numbers don't work for LTR, and you're still interested in STRs in New Braunfels, I'd try to source a property that has them allowed by right.  It's my understanding commercial zoned properties in NB are not subject to the ordinance.  There are several houses that for one reason or another have been zoned commercial (at some point) but still operate as homes.