Airbnb & VRBO Performance in Houston Texas.

Short-Term Rental Regulations in Houston, Texas for 2024

Licensing and Registration

• No Specific License Requirement for Harris County: However, within the city of Houston, hosts must register with the city's Administration and Regulatory Affairs Department.
• Registration Requirements: Include providing property owner's contact details, a copy of the property deed or lease agreement, and proof of insurance.

Taxes

• Hotel Occupancy Taxes: Hosts must collect and remit a 17% hotel occupancy tax (including state and local taxes). Airbnb and VRBO can automate this collection and remittance.
• Sales Tax: An 8.25% Texas sales tax may apply to rental income. It is advisable to consult with a tax professional to ensure compliance.

Zoning and Property Use

• Zoning Regulations: While Houston does not have specific zoning ordinances dedicated to short-term rentals, properties must comply with general zoning laws. Residential zones have specific limitations to maintain the integrity of the local community.
• Deed Restrictions and HOA Rules: Hosts must ensure their property's use as a short-term rental does not violate any deed restrictions or homeowners association rules.

Safety and Building Codes

• Compliance with Building Codes: All short-term rentals must comply with applicable building codes, health and safety standards, and regulations for sexually-oriented businesses.
• Safety Inspections: Properties must pass inspections to ensure compliance with safety and building codes, including working smoke detectors, carbon monoxide detectors, a fire extinguisher, and a functioning heating and cooling system.

Occupancy Limits

• Occupancy Restrictions: The city imposes restrictions on the number of occupants per rental to ensure safety and reduce neighborhood disruptions. These limits vary but generally restrict the number of guests based on the number of bedrooms plus additional guests.

Advertising and Permit Display

• Permit Number in Advertisements: All advertisements for short-term rentals must include the permit number to demonstrate compliance with local laws.

Enforcement and Penalties

• Complaint Response: The city responds to complaints from residents and may take action against properties violating noise, parking, or other ordinances.
• Fines and Permit Suspensions: Non-compliance can result in monetary fines, permit suspensions, or legal action against the property owner.

Additional Requirements

• Responsible Agent Requirement: A responsible agent must be authorized to act on behalf of the property owner to ensure compliance with all short-term rental regulations.
• Multiple Dwelling Law: For multifamily properties, the law differentiates between hosted rentals (where the host is present) and unhosted rentals (where the host is not present), with specific restrictions on unhosted rentals.

Top Airbnb Neighborhoods in Houston, Texas, by Revenue Potential

1. Midtown

• Average Revenue: $43.3K per year
• Why it's appealing:
• High Average Daily Rate of $235.4, with a maximum daily rate in March reaching $249.
• Close to Houston’s Theater District, attracting a cultured crowd.
• Convenient MetroRail access and a vibrant nightlife with high-end restaurants, rooftop bars, and nightclubs.
• Central location between Downtown and the Museum District, making it ideal for both tourists and locals.

2. EaDo (East Downtown)

• Average Revenue: $43.3K per year
• Why it's appealing:
• Growing popularity with a high Market Score.
• Close to major sports venues like BBVA Stadium.
• High Average Revenue and reasonable range of listings.
• Mix of urban and green spaces, vibrant sports scene, and modern properties offering luxury accommodation.

3. The Heights

• Average Revenue: $38.3K to $37.2K per year
• Why it's appealing:
• High occupancy in July, perfect for capturing family vacations.
• Limited competition due to fewer total listings.
• Family-friendly parks like Donovan Park and Heights Boulevard Park.
• Close proximity to Downtown, offering dual appeal for both leisure and business travelers.
• Charming bungalows, trendy restaurants, and a family-friendly atmosphere.

4. Downtown Houston

• Average Revenue: $35.8K to $35,800 per year
• Why it's appealing:
• Balanced mix of affordability and luxury, catering to a diverse array of travelers.
• Wide range of accommodations from high-rise luxury apartments to cozy, budget-friendly units.
• Central location with access to public transportation.
• Thriving business and entertainment district, ideal for corporate travelers and leisure tourists.

5. Montrose

• Average Revenue: $35,000 per year
• Why it's appealing:
• Vibrant, eclectic neighborhood with a diverse dining scene, unique shops, and a thriving arts community.
• Central location and proximity to popular attractions.
• High season from February to April and September to November, making it attractive for various types of travelers.

These neighborhoods offer a combination of high revenue potential, attractive amenities, and strategic locations that make them highly appealing to both hosts and guests.

Furnishing and Design Tips for an Inviting Airbnb in Houston, Texas

Bedroom

• Rug Placement: For a large bedroom, use an 8×10 foot rug for a queen bed and a 9×12 foot rug for a king-sized bed. In smaller bedrooms, opt for a 5×8 foot rug for queen beds and a 6×9 foot rug for king beds. Ensure the rug extends 36 inches on either side of the bed.
• Essential Furniture: Include a bedframe, closet or clothing rack, nightstand(s), and lamp(s). Provide comfortable mattresses, such as memory-foam mattresses in primary bedrooms, and complete bedding sets including sheets, pillows, duvets, and comforters.
• Decor and Accessories: Add a full-length mirror, hangers, and consider decorative items like artwork or plants to enhance the ambiance.

Living Room

• Seating and Layout: Choose furniture that fits the room's size. For larger spaces, consider an oversized sectional couch, while smaller spaces might benefit from a sofa that converts to a pull-out bed. Include accent chairs for additional seating without taking up too much space.
• Lighting: Replace harsh overhead lighting with smaller, warmer lights. Use lamps, floor lamps, and table lamps to create a cozy atmosphere. Mirrors can reflect natural light and create the illusion of more space.
• Decor: Add throw pillows, throw blankets, and rugs to create a warm and cozy environment. Consider decorative items like candle holders, candles, vases, plants, and paintings to reflect Houston's unique style.

Kitchen and Dining Room

• Essential Furniture and Appliances: Include a dining table and chairs, kitchen table and chairs, and barstools if applicable. Ensure the kitchen is equipped with a refrigerator, cooktop, oven, microwave, coffee maker, and basic cookware like pots, pans, and utensils.
• Tableware and Accessories: Provide durable and modern tableware, including plates, bowls, serving dishes, drinking cups, silverware, and cutlery. Add accessories like a trash can, recycling bin, and paper towel holder to maintain a clean and organized space.

Bathroom

• Amenities and Essentials: Stock up on fresh, fluffy towels and washcloths. Provide essential toiletries and consider adding a hair dryer, bathrobes, and a magnified makeup mirror. For pet-friendly or business traveler accommodations, include a lint roller and iron with ironing board.

General Tips

• Vertical Space Utilization: Use leaning, floating, or doorframe-mounted shelves for efficient storage and to reduce visible clutter. Hide cables, remotes, and knick-knacks in elegant boxes or baskets.
• Local Style Integration: Incorporate elements that reflect Houston's unique style, such as vibrant colors, eclectic decor, or local artwork to make the space inviting and authentic.
• Flexibility and Refresh: Easily swap out rugs, accent chairs, and lighting fixtures to refresh the space without significant expenses. This can help maintain a fresh and inviting atmosphere for guests.

Discover Houston: Top Attractions and Insider Tips for Your Visit

Top Local Attractions

Space Center Houston

• An interactive space exploration center with tram tours to historic Mission Control and astronaut training facilities. Features include the Saturn V exhibit, retired shuttles, and hands-on experiences.

Houston Museum of Natural Science

• Delight in four floors of dynamic permanent exhibits, including dinosaur bones, Egyptian artifacts, a butterfly habitat, and a planetarium. Don't miss the vast timeline of fossils, gems, and minerals.

Houston Zoo

• A fun and inspirational experience with a variety of ecosystems. Feed giraffes, get eye-to-eye with gorillas, and support animal conservation efforts.

Downtown Aquarium

• An underwater adventure featuring the Aquarium Restaurant, the Aquarium Adventure Exhibit, the Shark Voyage train ride, and amusement rides. Perfect for a family outing.

Kemah Boardwalk

• A waterfront location with fabulous restaurants, retail stores, amusement rides, and festivals. Enjoy the All-Day Ride Pass for a day of fun.

Children's Museum Houston

• America’s No. 1 children’s museum, offering interactive activities, live demonstrations, and performances. Explore Kidtropolis, USA, and the 3-story climbing structure at PowerPlay.

Museum of Fine Arts, Houston

• One of the largest museums in the U.S., featuring nearly 70,000 works of art from around the world. Enjoy the sculpture garden, cafe, and ever-changing schedule of activities.

The Galleria

• Texas’ largest shopping center and the fourth largest in the U.S., offering over 375 shops, an ice rink, and a variety of restaurants.

Insider Tips

Getting Around

• For short stays, consider using Metro buses or cabs to get to downtown from the airports. The light rail is also a convenient way to explore the Museum District and Hermann Park.

Must-Visit Parks

• Discovery Green: A vibrant park in downtown Houston with plenty of green space, public art, and events. It's a great spot for lunch at The Grove restaurant.
• Hermann Park: Located near the Museum District, this park offers beautiful gardens, a lake, and plenty of walking trails.

Unique Experiences

• Audio Walking Tours: Download these tours to explore downtown Houston and learn about its history and landmarks.
• The Heritage Society: Visit historic Texas homes and explore the city's rich heritage.

Shopping Beyond The Galleria

• GreenStreet: Features a flagship Forever 21 store and BCBG, among other shops.
• Rice Village: Known for boutique shopping, including Dao Chloe Dao.
• Uptown Park and Highland Village: Upscale shopping centers with a variety of stores and restaurants.

Food Scene

• Houston is a foodie destination with a diverse range of restaurants and food trucks. Check out the MICHELIN Guide for top recommendations.

Budget-Friendly Tips

Houston CityPASS

• Save up to 50% on admission to top attractions like the Houston Museum of Natural Science, Houston Zoo, and Kemah Boardwalk by using the Houston CityPASS.

Free Attractions

• Explore the Museum District on Thursdays for free admission to several museums.
• Visit the National Museum of Funeral History for a quirky and unique experience.

By providing these tips and recommendations, you can help your guests make the most of their visit to Houston and enjoy all that this vibrant city has to offer.

Practical Tips to Run a Successful Short-Term Rental Business in Houston, Texas

To ensure the success and compliance of a short-term rental business in Houston, Texas, several practical tips can be implemented. Here are some key strategies:

Noise Regulations and Guest Communication

Inform guests about quiet hours and noise regulations to maintain good relations with the neighborhood. Including this information in both digital and physical house manuals helps set clear expectations and reduces the likelihood of complaints.

Comprehensive House Manual

Create a detailed house manual that includes essential instructions, Wi-Fi passwords, and other pertinent information. This manual should be available both digitally and in physical form to cater to different guest preferences.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions and photos of the property, including parking areas, to ensure guests can navigate the premises easily.

Additional Tips

• Ensure compliance with local regulations, such as obtaining the necessary short-term rental permit and collecting the required hotel occupancy tax (17% in Houston, including state and local taxes).
• Maintain positive community relations by engaging with neighbors and keeping them informed about your hosting activities.
• Use property management software to manage bookings, finances, and guest communications efficiently.

By implementing these strategies, hosts can enhance guest satisfaction, reduce potential issues, and ensure their short-term rental business operates smoothly and profitably in Houston.

Here is a brief list of house cleaning providers in Houston, Texas, presented in markdown format:

House Cleaning Providers in Houston, Texas

Merry Maids of Houston

• Offers maid services, house cleaning, move in/out cleaning, apartment cleaning, holiday cleaning, home deep cleaning, and small office cleaning.
• Services include vacuuming, dusting, mopping, sanitizing bathrooms and kitchens, and laundry.
• Maids are thoroughly trained, background-checked, and insured.
• Enhanced disinfection services available.

Detail Cleaning Services

• Provides house cleaning, maid services, and other specialized cleaning services.
• Serves Houston and nearby communities including Bellaire, Cypress, and Sugar Land.
• Known for fixed pricing, no hidden charges, and fully insured and bonded services.
• Cleaning technicians are experienced, professional, and background-checked.

MoreHands

• Offers professional house cleaning services for homes and apartments in Central Houston.
• Services start at $104 for homes and $94 for apartments.
• Family-owned business with a team of siblings, in-laws, cousins, friends, and long-time staff.
• Provides customizable cleaning packages and various cleaning services including deep cleaning.

CleanArte Maid Service

• Provides high-quality cleaning services at competitive prices.
• Offers regular house cleaning, deep cleaning, office cleaning, move-out cleaning, and organizing services.
• Uses eco-friendly cleaning products and follows the Jeff Campbell’s System for cleaning.
• Customizable cleaning packages based on home size and condition.

Houston, Texas, Short-Term Rental Management Fees: A Comprehensive Guide

In Houston, Texas, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as Grand Welcome Houston and Soda Stays, which handle guest communication, marketing, and maintenance, tend to charge fees on the higher end of this spectrum, often between 12% to 35%.

In contrast, basic or partial management services may incur lower fees, such as the 7.9% to 12.9% rates offered by Real Property Management Preferred. Additional costs may include fees for cleaning, repairs, and design services, as well as leasing fees that can range from 50% to 100% of the first month's rent. Understanding these fee structures is crucial for property owners to make informed decisions and maximize their rental income.