Short Term Rental Regulations - City's Will Come Knocking

[Adam Moore]

https://www.austinmonitor.com/stories/2019/07/city-finds-almost-7000-unregistered-str-sites-with-enforcement-on-the-way/

I believe this is a trend that will continue throughout the country.  Too much tax money is being left on the table for municipalities to ignore short term rentals.  Make sure you account for these taxes and registration fees when analyzing your deals!

[David Bergmann]

Austin has come down hard on Type 2 (non-owner occupied) Short Term Rentals.  There is a huge demand for short term rentals in Austin, and the Type 1 (owner occupied) short term rentals are not going to meet the demand for the travelers wanting to visit there.  It's really economics 101, if only Type 1 rentals are left and the demand for STRs stays the same...then prices will go up.  With those higher prices, some of the Type 2 owners are going to see $$$ and take the risk despite the regulations.  This is how black markets get created.  Ultimately, what this does is increase prices for consumers & pull the activity off of legal channels where they can be taxed & monitored.