Surfside Beach to Galveston Texas STR managers?

Question

Hi everyone! I just moved to the Lake Jackson, TX area, and I am looking for Airbnb short term rental style listings on the beaches around here. Looking to get recommendations for maid services and such and also wanting to see how I can link up and help other short term rental managers around here.

Hope everyone is killing it out there! I’d love to get a meet up together of short term rental and flip/rehab or folks!

Timothy Church · Answer

I've never done something that far west but I've heard good things! I currently manage about a dozen properties on the island but I am onboarding 4 this month! If you are looking on the island, let me know and I'd be happy to share my knowledge. I also have an AirDNA subscription for the island so I can generate some reports to give you an idea of potential performance.Let me know if you make it over to the island and we can meet for a coffee and talk about the island

Timothy Church · Answer

@Justin Anderson & @Karl McGarvey Karl is right! The city of Galveston receives so much income from HOT as well as the economic boost of guests staying on the island that they aren't going to restrict STRs that way. Currently, the only places in the city of Galveston that have restrictions are those with HOAs. Galveston is a tourism market and we will always cater to that. EDIT: As soon as I sent this, I got my email from the Parks Board about HOT. January, even though it is one of the slowest months, they collected $768,229.16! HOT is typically due quarterly so this is just a part of what they will get. Most months this number doesn't go under $1M. The city isn't going to stop this income stream from helping to improve the island.

Timothy Church · Answer

@Christina JohnsonThe Park Board states,"Reports are due by the 20th of the month following the reporting period. Properties which do not generate more than $500 per month in taxes or $1,500 per quarter in taxes can report on a quarterly basis. Those due dates are April 20th, July 20th, October 20th, and January 20th."Reference: https://www.galvestonparkboard.org/174/Hotel-Occupancy-TaxIt isn't $500/month in income. It is less than $500/month in taxes. At a 9% HOT, that means all properties making less than $5,555.56 in a given month or $16,666.67 a quarter can pay quarterly. If everyone you know is making $67k a year off all their properties, hats off to them but not all properties make that much. Just making sure the correct information is presented.

Timothy Church · Answer

@Christina Johnson Any property owing less than $500/month in HOT to Galveston (income of less than $5500/month), can pay quarterly. While you can definitely beat that with certain properties, I wouldn't say very few qualify. The average 3-bedroom in 77550 grosses around $40k/year based on Airdna data. I do believe there is a cap coming as the amount of STRs begins to cause rental prices to decrease but as that comes, properties that aren't managed well will come back on the market for people to own as primary residences and second homes. Our surge in appreciation over the last 5 years has finally slowed down and as home prices stabilize plenty of people will be moving to the island. We just have an overall change in demographics happening.

Karl McGarvey · Answer

@Ben Nelson buying. I found the deal myself using basic zillow/realtor.com, but used @Holly Kaufman to make the deal happen (I don’t have my Realtor License yet). She also got us into an REI meetup group in the Clear Lake area. Shes a pro for sure and I would recommend her to anyone, her help in negotiations were instrumental.

Karl McGarvey · Answer

Galveston is just fine and loves its STRs. Its just a Jamaica Beach issue. Jamaica beach is a small community with alot of fulltime people living there so they are trying to take back their community from tons of rentals.

Karl McGarvey · Answer

@Ben Nelson closing on our first STR on Galveston Beach on Monday. Watch out for Jamaica Beach, it looks like they are about to stop allowing STR.

Luke Carl · Answer

@Ben Nelson Best way to find a housekeeper is to drive around the area looking for housekeepers. Saturday is a great day to give it a shot. Also Facebook marketplace.

Megan Black · Answer

I see that this thread is a little older but I’m curious how the market in this area is for STR now? Are you seeing changes in recent months? I was born and raised in the area and am eager to have a second home there for personal use and STR income. We aren’t in a hurry though. Any new insights?

Christina Johnson · Answer

If your making less then $500 a month you need to change your business plan, which was my point when saying that. Nobody I know pays quarterly because they use the right people, make the right plan, and execute. That’s why that statement truly reflects more monthly.