Short Term Rentals in Houston – Should you Convert to a Vacation Rental?

Should you convert a long term rental into a short term rental?

There is more interest in STR’s here in Houston to take advantage of the World Cup.  To take advantage of those games, will depend on Location, Location, Location.

For normal times in Houston, what I’ve heard from other owners and neighbors, short term rentals perform better than long term if the house is in a good location.  Medical center for traveling nurses, Energy Corridor for contractors with oil companies, and downtown.  Higher rents when occupied but running the risk of vacancies. Because the manager and a cleaning crew enter more frequently, the units can be kept in better condition than having long term tenants for years.

How are STR’s regulated in Houston?

Houston has started regulating short term rentals in Houston city limits.  Now you have to register and pay a fee, as well as pay the hotel/occupancy tax. We just have long term rentals here, our short term rentals are in Gatlinburg and PCB Florida, but several landlords who own properties in the same development are renting out units short term.

What we’ve learned from other locations where we have short term rentals, the government starts with licensing, then moves to inspections to start operations, then annual fire and safety inspections, including fire extinguisher checks. Those inspections are more strict than the final occupancy inspections done by the city.

Where should you list?

List everywhere, Airbnb and VRBO, but also Traveling Nurses and other medium term rental partners.  Use rental management software to manage availability, or take advantage of links between calendars on the different webpages.

https://www.houstontx.gov/ara/str.html