Investing in dedicated Airbnb properties in Houston is a worthwhile pursuit.
In 2018 alone, Houston Airbnb hosts earned $72 million. While the average Houston host earns just $5,100 per year, not everyone has a dedicated investment property. With a dedicated Airbnb property, you could earn thousands of dollars each month.
The Houston housing market is promising
Whether it’s single-family homes or short-term rentals, Houston is booming. This makes sense considering Houston is the fourth largest city in the U.S. and has a population of 2.2 million people. The city of Houston is growing fast and the population is expected to reach 54 million people by 2025.
If you’re looking for a cheap house to minimize your expenses, it’s doable in any market. There are many ways to find cheap homes in Houston and it’s worth utilizing all of your options. For example, asking around might sound like a long shot, but networking is a great way to get the word out about what you’re looking for. You might be able to find a house before it hits the market and get a better deal.
Airbnb rentals aren’t restricted in Houston
Unlike some cities that have massive restrictions on Airbnb rentals (like San Francisco and Santa Monica), Houston’s short-term rental market is largely unregulated. Legislators don’t want to regulate Houston Airbnb rentals because they’ve brought financial benefit to the city.
If you want to buy an Airbnb investment property, Houston is the ideal place. For some perspective, here are some of the strictest Airbnb regulations outside of Houston that you’ll be avoiding:
- A business license. Some hosts are just trying to generate some extra income to make life easier. Getting a business license takes time, money, and requires regular renewals.
- Paying a 14% occupancy tax. Some cities require hosts to collect a 14% tax from guests that must be paid to the city.
- Being required to provide guest information. In some cities, hosts are required to provide city officials with the names and addresses of all guests.
- Being required to live on the property during all Airbnb stays. Some hosts want to rent out their homes while they’re on vacation, but that’s illegal in some cities.
- Only being able to rent from your primary residence. Certain cities require that all properties rented out through Airbnb must be the host’s primary residence. People in these regulated cities can’t buy properties just to rent out, and they can’t hire someone else to spend the night to satisfy the requirement.
There’s no shortage of guests in Houston
If you own an Airbnb rental property in Houston, you’re going to get guests. Since Houston is still growing, you’re going to get a mix of people on vacation and people traveling to the area to look at homes and schools for their kids.
Since rent is already pretty low in Houston, private rooms are more profitable than renting a full house. Although, you could rent multiple private rooms to different guests at any given time.
According to Smartasset.com, the average Airbnb private room rate in Houston is $70. The average occupancy rate is 64%. That’s lower than other major cities, but it’s still profitable and many hosts can pay their entire rent or mortgage with the money they earn.
Houston has some of the most desirable listings on Airbnb
In every state there are rentals so desirable they have a long waiting list. Many of the top desirable rentals in the U.S. are located in the Houston area. Your property could be the next property to make it on that list.
Check out the listings that made it to the top of the list and use those properties for inspiration. You can turn any home into an appealing Airbnb; your house doesn’t need to be fancy. An eye for interior design and the right décor can make all the difference.
Make your Houston Airbnb profitable
Houston is a great location for an Airbnb property, but Airbnb rentals require a little bit of work. Plan on hiring someone to do hospitality work like changing sheets, washing blankets, and doing light cleaning between guests. You’ll spend a little bit of money upfront, but the long-term gains are worth the investment.