Finding An Austin Investment Property To Use For Short Term Rentals

Dated: 05/28/2018

Views: 601

If you’re looking to invest in Austin, you may be considering purchasing a property to use as a short term rental.  Oftentimes, you can earn significantly more renting your property out short term than you can long term.  Unfortunately, it has become more and more difficult to find properties you can use as vacation rentals in Austin as the city limits the number of permits available for short term rentals.   
The City of Austin classifies short term rentals into 3 categories:  STR Type 1, STR Type 2, and STR Type 3.  Type 1 refers to primary residences used occasionally for vacation rental purposes.  Type 2 refers to non-owner occupied single-family investment properties, and Type 3 refers to multifamily short term rentals.  Take a look at this article to learn more about the different types of short term rentals. 
 
The City of Austin is no longer issuing Type 2 permits.  So, if you want to purchase a property to use solely as a vacation rental in Austin, you have two options.  You can look outside the city limits to find a single family property or you can find a unit in a multi-family building to use as a short-term rental. Picture   If you want to buy a single family home, consider the type of people that would like to procure a short-term rental in the Austin area.  Austin has become a very popular wedding destination.  Consider looking for homes outside the city limits near wedding venues.  Areas like Dripping Springs, Driftwood, and Bee Cave are all outside the city limits of Austin and popular for tourists coming into Austin for weddings or simply for a weekend getaway to check out the breweries/wineries.  A home with a pool tends to perform well as a short term rental as well.  Guests are willing to stay a little bit further out if they can envision a group get-together with plenty of room to relax and play poolside.  A number of tourists also come to Austin to enjoy the lakes.  Consider looking at lakefront communities in the Austin ETJ such as Apache ShoresVolenteHudson Bend, and Cuernavaca. Picture   If you want to purchase a condo to use a short term rental, you will want to make sure the condo allows for short term rentals, and that there are STR Type 3 permits available for the building.  Below is a list of downtown condo buildings that have units which have been issued STR Type 3 permits in the past.  This list is for informational purposes only, please note that condo regulations can change and that permit availability is not guaranteed.
  • The Railyard Condos:  201 E 4th St. and 301 E 4th St.  Austin, TX 78703

 
  • Encinal Condos:  1106 W 6th St. Austin, TX 78703

  • 1510 W 6th St.  Condos Austin, TX 78703

  • Brazos Lofts:  411 Brazos St.  Austin, TX 78701

  • Terrace on Shoal Creek:  1101 Shoal Creek Blvd Austin, TX 78701

  • 1306 West:  1306 West Ave Austin, TX 78701

  • Avant Garde Condominiums:  609 Blanco Austin, TX 78703

 
If you are interested in purchasing a property to use as a short term rental in Austin, contact me today. My background in vacation rental management coupled with my real estate experience is sure to give you the upper hand in procuring a solid vacation rental investment property.   This post originally appeared on shesellsaustin.com
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Erika Albert

Erika Rae Albert is an Austin native who has built her business around one guiding principle, YOU always come first. Prior to joining the real estate industry, she honed her her customer service s....

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