All Forum Posts by: Kevin McGovern

Also interested in the tracking company.

If you're going to be within Austin city limits, get a permit, period.

Just because most listings are illegal doesn't mean it's OK to do.  It's a slap in the face to legal operators who paid for their permits and pay quarterly occupancy taxes.

@Scott Mac Correct.  It is the HOT that's taking 11%.  However, Airbnb collects the State tax from the guest on my behalf.  I am on the hook for paying the 11% city HOT tax as Airbnb does not collect the city HOT tax from the guest on my behalf.

Thanks for that info - I had no idea and I suppose that makes it sting a little less.

@William Beck haha. I will keep my current legal listing in Austin. My next STR will be outside of Austin city limits fortunately.

See you there! 

@Michael Baum It's worth a shot.  They are overwhelmed, but maybe I can gather enough intel to make it easier for them. Thanks for the feedback.

@Paul Cox We are doing OK.  I imagine we will be doing a lot better after the illegal listings go.  Yes, I do attend a meet up and will be making it a topic. Thanks for the feedback.

@Kenneth Garrett I thought about this.  It's very possible some simply forgot to post their license #.  However, the city does expose licensed STRs publicly and you can export the data.  I checked my area / street and then compared to the number of listings on airbnb and the data is not matching up.  I also know how painful the permitting process is and there's just no way every listing is legal.

@John Underwood I plan on it.  Thanks

@Eliott Elias

I plan on continuing to do things by the book regardless.  What I am considering is going after my illegal competition OR leave them be and accept the fact that I will have to pay an extra 11% in taxes, renewal fees, etc.

@Jordan Moorhead Austin has major power outages, though I think most areas have power again.

I'm torn because I told myself I would stay out of other people's business and only focus on my own, but after paying my quarterly STR taxes to the city of Austin, I'm thinking twice.

Austin is known for heavy STR regulation and a cumbersome, painful permitting process. It tested my patience, but I played by the rules, paid an obnoxious application fee, waited 3 months and finally got my permit. There is no way that most of my competition has done the same. In fact, 8/10 listings don't have an STR operating license number in their listing which is required by the city of Austin.

What does this mean?  This means I am paying 11% (in addition to state taxes) to the city on every single booking -  and wow, does it add up at the end of the quarter.  I am playing by the rules, but I get penalized.  Other listings can ask for less knowing they won't get hit by that 11%.  Not the mention bypassing the application fee and the annual renewal fee.

I'm torn because I think Austin's regulation is a bit ridiculous and needs reform - if the process wasn't so awful, then maybe most would play by the rules.  The city is basically incentivizing the illegal listings and penalizing legal listings - I get why people don't play by the rules.

So, what do I do?  What would you do?  Mind your own business, pay that extra 11% + renewal fee and get dinged on non-competitive pricing or go after the illegal competition and shut them down - or at least attempt to?

@Jordan Moorhead Will there be power?