Airbnb & VRBO Performance in Galveston Island Texas.

Short-Term Rental Regulations in Galveston Island, Texas for 2024

Registration and Licensing

• Property Registration: Each short-term rental property must be registered with the Galveston Park Board of Trustees. Registration must be renewed annually by December 31st.
• Registration Fees: A $250 registration fee is required for both new registrations and renewals. An additional convenience fee applies if paying by ACH or credit/debit card.
• GVR Number: Upon registration, the property will be assigned a Galveston Vacation Rental (GVR) number, which must be displayed on all advertisements, including booking platforms and private listings.

Tax Requirements

• Hotel Occupancy Tax (HOT): A 9% HOT must be collected on gross revenues, including nightly rental rates, cleaning fees, pet fees, and other charges. Taxes must be reported and paid on a monthly or quarterly basis.
• State HOT: Additionally, a 6% state HOT applies, but if an online platform like Airbnb or Vrbo collects and remits this tax, the host does not need to register or file returns for the state tax.

Compliance and Reporting

• Tax Reporting: Reports are due by the 20th of the month following the reporting period. Properties generating less than $500 per month in taxes or $1,500 per quarter can report quarterly (due dates: April 20th, July 20th, October 20th, and January 20th).
• Penalties for Non-Compliance: Failure to file reports or pay taxes on time results in a $25 fine and potential late payment penalties and interest. Non-compliance is a Class C misdemeanor offense, punishable by a fine up to $500 per offense.

Operational Requirements

• Local Contact Person: Each property must have a local contact person available 24/7 to respond to emergencies.
• Minimum Standards of Conduct: Owners must provide renters with information about the minimum standards of conduct.

Zoning and Property Types

• Zoning: Short-term rentals are allowed in all zoning districts on the island except R-0. There are no specific zoning laws for STRs, provided the property is registered and complies with safety and building codes.
• Property Types: Various types of dwellings, including accessory dwelling units (ADUs), duplexes, and multi-family homes, can be registered as short-term rentals.

Additional Regulations

• Occupancy Limits: Properties must comply with applicable overnight and daytime occupancy limits.
• Noise, Parking, and Other Restrictions: Owners must adhere to noise restrictions, parking rules, trash collection schedules, water restrictions, and burn bans.

Enforcement and Complaints

• Complaint Process: Issues such as parking, noise, or trash can be reported through a 24/7 hotline or an online complaint form. Emergency issues should be directed to the Galveston Police Department.

Top Airbnb Revenue-Generating Neighborhoods in Galveston Island, Texas

1. Historic Downtown and Beachfront (77550)

• This area, encompassing neighborhoods like Beachtown Galveston, Fort Crockett, and The Strand Lofts, is highly lucrative due to its dynamic mix of attractions.
• Key Attractions:
  • Luxurious beachfront properties and upscale amenities in Beachtown Galveston and Fort Crockett.
  • Historic charm and modern conveniences in Lindale Park and Galveston Townsite, with proximity to The Strand and downtown Galveston.
  • Unique stay experiences amidst antique shops, art galleries, and museums in The Strand Lofts and Galveston Electric Company Lofts.
  • High demand during special events like Dickens on the Strand.

2. The Strand Lofts/Galveston Electric Company Lofts

• Known for its 19th-century architecture and vibrant cultural scene, this area attracts history buffs and culture enthusiasts.
• Appeal:
  • Historic lofts, antique shops, art galleries, and museums create a unique urban and coastal living experience.

3. West End Areas (Including West Point and Beachtown Galveston)

• These areas offer a diverse range of accommodations, from quiet suburban environments to bustling beachfront locales.
• Appeal:
  • Upscale beachfront properties with luxury amenities, making them ideal for guests seeking high-end accommodation with easy beach access.

4. Lost Bayou Historic District

• Characterized by Victorian-era homes and tree-lined streets, this district provides a quaint, residential feel.
• Appeal:
  • Quiet, historical neighborhood close to downtown attractions, appealing to guests seeking a peaceful stay.

5. Eaton and Galveston Outlots

• These areas cater to a wide demographic, including families, couples, and nature enthusiasts.
• Appeal:
  • Diverse offerings from quiet suburban environments to bustling beachfront locales, ensuring something for every type of guest.

6. Bayou Vista/Tiki Island (77554)

• Known for waterfront homes and a strong sense of community.
• Appeal:
  • Luxurious and tranquil experience with beautiful beachfront properties and high-end amenities.

7. Kempner Park Neighborhood

• Home to historic bungalows like the Bon Temps Bungalow.
• Appeal:
  • Charming historic homes with New Orleans flair, short walks to the Seawall, and easy access to Pleasure Pier and The Strand District.

These neighborhoods are highly appealing due to their unique blend of historical charm, modern amenities, and proximity to key attractions, making them prime locations for generating significant Airbnb revenue.

Designing an Inviting Airbnb in Galveston Island, Texas: Tips and Considerations

Durable and Easy-to-Clean Design

• Use durable materials and easy-clean surfaces to withstand the wear and tear from guests. This includes smooth concrete floors, which are durable and easy to clean, although they can be hazardous for breakable items.
• Opt for under-counter drawers in the bathroom and kitchen instead of cupboards to simplify cleaning.

Beach-Friendly Amenities

• Incorporate an outdoor shower for guests to rinse off sand before entering the house, especially in beach houses.
• Provide ample space for hanging wet bathing suits and beach towels, such as drying racks or hooks.

Practical Layout and Safety Features

• Design the space with a straightforward and traditional layout, avoiding walk-through spaces or areas that need explanation. This includes safety gates at the beginning of any stairs to isolate dogs and babies.
• Ensure electrical plugs are placed practically where guests are likely to use them, and avoid overloading circuits to prevent breakers from blowing.

Guest Convenience and Comfort

• Provide necessary amenities such as washers, dryers, kitchens, and wireless internet, which are highly sought after by guests in Galveston.
• Include comfort-enhancing features like air conditioning, heating, and luxury amenities such as hot tubs, fire pits, and BBQ grills.

Location and Accessibility

• Choose properties close to popular beaches, main attractions, restaurants, and entertainment areas. Proximity to the Seawall or the Strand Historic District is highly desirable.
• Ensure the property is easily accessible and offers convenient parking options.

Unique Galveston Touches

• Incorporate elements that reflect Galveston’s unique cultural and historical heritage. This could include decorative items or recommendations for local historical sites and cultural experiences.
• Offer guided tours or information about Galveston’s attractions to enhance the guest experience.

Space for Larger Groups

• Consider properties with multiple bedrooms to cater to larger groups or families. Properties with 3-5 bedrooms are in high demand in Galveston.

Guest Rules and Communication

• Establish clear rules and communicate them effectively to guests. For example, advise guests to lift luggage instead of rolling it to protect the floors, and provide alternatives for wet towels and luggage storage.

Outdoor and Leisure Spaces

• Create inviting outdoor spaces such as covered patios, balconies, and wrap-around decks to enjoy the Gulf views and breezes.
• Include outdoor amenities like beach gear, BBQ areas, and fire pits to enhance the beach vacation experience.

Discover the Charm of Galveston Island: Local Attractions and Insider Tips

Top Attractions

1. Moody Gardens

• Explore the Aquarium, Rainforest, and Discovery pyramids, featuring a variety of marine life, tropical plants, and interactive exhibits. Don't miss the 3D and 4D theaters, ropes course, and zip line.

2. Galveston Island Historic Pleasure Pier

• An amusement park over the Gulf of Mexico, offering thrilling rides, Midway games, and live entertainment. Enjoy dining at the Bubba Gump Shrimp Co. restaurant.

3. Schlitterbahn Galveston Island Waterpark

• A waterpark with exciting water slides, wave rivers, and water coasters. Highlights include the MASSIV Monster Blaster and the 70,000-square-foot indoor waterpark.

4. Galveston Island State Park

• A perfect spot for beach activities, camping, hiking, fishing, and wildlife watching. Ideal for birders and those looking to enjoy the outdoors.

5. The Strand Historic District

• Stroll through the charming Victorian-era buildings, visit art galleries, and enjoy shopping and dining. This area is also known for its live music and nightlife.

6. Unique Museums

• Visit The Bryan Museum for Texas and Southwestern history, the Texas Seaport Museum to see the 1877 Tall Ship Elissa, and the Ocean Star Offshore Drilling Rig & Museum for an oil rig experience.

7. Galveston Railroad Museum

• Explore transportation artifacts, locomotives, and passenger cars. Take a ride on the Harborside Express caboose for a unique experience.

8. Bishop’s Palace

• Tour one of the most well-preserved Victorian homes in the country, showcasing Galveston’s rich history and architecture.

Insider Tips

Getting Around

• Use the historic trolley, rent bikes, or hail an Uber/taxi to navigate the island easily. The free Galveston Island Ferry link to the Bolivar Peninsula is also a convenient option.

Seasonal Activities

• Summer: Enjoy water sports like jet skiing, parasailing, and kayaking. Visit Schlitterbahn Waterpark for family-friendly fun.
• Year-round: Explore the beaches, museums, and historic mansions. Take advantage of the temperate weather for outdoor activities like golfing, fishing, and surfing.

Dining and Nightlife

• Head to Pier 21 for fresh seafood and high-end restaurants. Enjoy live music and bars along Seawall Boulevard. Recommended spots include Gaido's Seafood Restaurant and Rudy & Paco Restaurant & Bar.

Special Events

• Check out the year-round festivals and events such as Mardi Gras, Dickens on The Strand, and Oktoberfest. These events add to the vibrant atmosphere of the island.

Family-Friendly Activities

• Rent bikes or surreys along Seawall Boulevard for a family-friendly outing. Visit the Galveston Duck Tours and take a guided tour of the island.

Additional Tips for Airbnb Hosts

• Provide Local Maps and Guides: Leave a map of the island and a guide to local attractions to help guests plan their stay.
• Recommend Local Favorites: Share recommendations for the best restaurants, beaches, and hidden gems that only locals know.
• Offer Bike Rentals: Arrange for bike rentals or surrey rentals to make it easy for guests to explore the island.
• Highlight Seasonal Events: Inform guests about upcoming events and festivals during their stay to enhance their experience.
• Include Insider Tips: Share tips on how to navigate the island, the best times to visit popular attractions, and any local secrets that can make their stay more enjoyable.

Practical Tips to Run a Successful Short Term Rental Business in Galveston Island, Texas

To ensure a smooth and successful short term rental business in Galveston Island, Texas, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about quiet hours and noise regulations to avoid any potential issues. Include this information in your digital and physical house manual, and consider posting reminders in the rental property. This helps maintain a good relationship with neighbors and complies with local ordinances.

Comprehensive House Manual

Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details. This manual should cover everything from appliance usage to emergency contact information, ensuring guests have all the information they need at their fingertips.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and ensure that guests receive all necessary access codes in advance.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests navigate any parking challenges. This can prevent confusion and reduce the likelihood of parking-related issues.

By implementing these strategies, you can enhance the guest experience, reduce potential conflicts, and ensure your short term rental business operates smoothly and efficiently in Galveston Island, Texas.

Here is a brief list of house cleaning providers in Galveston Island, Texas:

House Cleaning Providers

Longoria's Cleaning and More, Corp

• Family-owned, reliable, and trustworthy
• Specializes in residential cleaning only
• Certified, insured, and bonded W2 employees
• Background checked, drug tested, and thoroughly vetted.

Merry Maids of Galveston

• Locally owned and operated, backed by a nationally known name
• Offers stress-free, guaranteed professional cleaning services
• Specializes in residential cleaning, including high-traffic areas and high-touch surfaces.

3 Broads & a Broom

• Provides weekly, bi-weekly, monthly, and seasonal cleaning services
• Also offers vacation rental cleaning, office cleaning, move-in/out, and deep cleaning services
• Bonded, insured, and background-checked team members
• Services areas include Galveston Island and surrounding mainland areas.

Turno Vacation Rental Cleaners

• Specializes in vacation rental cleaning services
• Features vetted and experienced cleaners with current bonding, background checks, and liability insurance
• Offers services tailored to individual needs, including decontamination and environmental cleaning.

These providers are well-regarded for their quality and reliability in the Galveston area.

Managing Short-Term Rentals on Galveston Island, Texas: Fees and Services

On Galveston Island, Texas, managing short-term rentals involves a range of services and associated fees, typically ranging from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often starting at around 15% of revenue and potentially higher based on the property's characteristics and the level of service required.

Basic services, which might include only booking management and minimal support, can be less expensive, starting as low as 10%. Additionally, property owners may incur extra fees for services like cleaning, repairs, and design, which are not always included in the base management fee. Ensuring compliance with local regulations, such as the $250 registration fee and the 9% Hotel Occupancy Tax, is also a crucial aspect of managing short-term rentals in Galveston.