Airbnb Texas: Tips for Creating Vacation Rentals for Every Style

Operating Airbnb rentals in Texas can be very profitable. According to The Dallas Morning News, Airbnb hosts in Texas made more than $10,000 on average in 2022.

To help you claim your share of this market, you need to do your due diligence first. Rules and taxes vary from one city to the next and can also continuously change.

In addition to the legalities, there’s also the expectations of guests. Texas is unique. If you want your rental to stand out, you’ll need to cater to the unique needs and expectations of visitors in search of a truly Texan time like these hosts have done. But before inspiration lets your imagination wander freely, be sure to study the business considerations first.

Taxes in Texas: How Does It Work?

The State of Texas charges a hotel occupancy tax of 6%. In addition to this tax, cities and certain counties can also charge an extra tax. Here are the tax guidelines for some of the major travel destinations in Texas:

• Guests booking rentals in Galveston will be charged a hotel occupancy tax of 9% of the listing price (cleaning fees included) for bookings of 30 nights and shorter.
• In Houston, this hotel occupancy tax percentage is slightly lower (7%) and will apply to reservations of 28 nights and shorter.
• In the Water Oriented Recreational District of Comal County, guests will be charged a lodging user fee of 3% of the listing price (cleaning fees included) for bookings of 29 nights and shorter.

3 Important Considerations for Airbnb Texas Hosts

After you’ve narrowed your list down to Airbnb-friendly cities in Texas, let the following guide you as you set up your property. The following are three of the main factors that will impact the success of your new venture.

1. Location

Texas is the second biggest state in the United States, both in terms of population and area. You have many markets to choose from, however, not all are equally popular or profitable. According to Mashvisor’s recent data, the following are the best cities in Texas for investing in vacation rentals:

• Waco
• Wichita Falls
• Woodway
• Tyler
• Forest Hill

These five cities offer the best cash-on-cash return. However, when it comes to regulations, they’re not necessarily the easiest markets to enter. If you prefer convenience over profitability, you can check out:

• Dallas
• Galveston
• San Antonio

In Dallas and Galveston, your biggest concern will be getting your property registered with the local authorities. In San Antonio, you’ll also need a short-term rental permit if your property is located in the San Antonio City Limits. However, if your property is situated within Bexar County, you won’t need a permit.

Also, keep in mind that each city might define what is regarded as a vacation rental differently. Most of the time, they use the number of days that the property will be rented out. For example, in San Antonio they also consider whether or not the owner will occupy the property.

2. Amenities

Texas has one of the most unique cultures. From cowboys to country music to cuisine, there are several attractions that draw guests to this US state. It’s especially their food that has helped place them on the world map. A Texas barbecue is known across the world and no stay will be complete without spending time outside. To ensure guests can enjoy a true Texan experience, consider adding the following amenities to your rentals in Texas:

• A hot tub
• A fire pit
• A full kitchen

These three amenities in particular can elevate the overall guest experience.

In addition to making your rental entertaining-friendly, also keep in mind the weather when furnishing your property. The summer months are generally hot and humid. To help keep your guests comfortable, the following amenities will be smart investments:

• A swimming pool (ideally, it should be a private pool)
• A deck or spacious porch with outdoor seating
• An outdoor shower
• Air conditioning

3. Property type

The architecture of properties in Texas is inspired by various sources. You’ll also notice that the Airbnb rentals reflect Mexican influences.

When investing in a vacation home in Texas, it’s important to keep an open mind. From cabins in the woods to tiny homes to desert domes, rentals in Texas can be very unique. After you’ve found a good location, be willing to put your traditional ideas of what a vacation home must look like aside and explore less conventional options too.

8 Examples of Unique Stays on Airbnb in Texas

As mentioned, Texas is known for unique stays. Here are eight top-rated vacation rentals that all offer a form of architectural beauty.

1. Salvation Cabin on the Blanco River

If your style is more rustic than sleek, you can check out this award-winning cabin located in Texas Hill Country. One of its biggest features is its porch from where guests can reconnect with nature.

Other highlights include a clawfoot tub, private, open-air, outdoor shower and on-site fire pit. That said, it also includes creature comforts like fast Wi-Fi, central air conditioning, and a gas grill. While it lacks a swimming pool, there’s a wild river and nearby swimming holes for an authentic Texan getaway.

2. The Tiny Farmhouse in Hondo

For inspiration on how you can offer guests a romantic getaway, this tiny home is a great example. It’s small, but the vaulted ceilings and big windows help to make it feel more spacious than what it really is. Plus, guests are treated to over 70 acres outside that they can explore.

To ensure that the property lives up to that romantic atmosphere, it offers private access, a fire pit, and a private hot tub. It might not have a full kitchen, but there’s a mini fridge, microwave oven, and outside grill that guests can use for meal preparation.

3. Hill Country Tower in Boerne

This unique property is built with panoramic views in mind. Designed by an esteemed local architect, it’s a three-story tower that overlooks 100 acres of undeveloped Hill Country. One of the highlights is the private patio from which guests can watch the stars. Thanks to the king size bed with a luxurious mattress and the secluded location, guests are also guaranteed a goodnight’s sleep.

4. Architectural Beauty Near Royse City

For an example of how you can transform a cabin into a modern masterpiece, you can check out this one-bedroom property inspired by Frank Lloyd Wright. While the architecture alone is more than enough reason to rent this property, it also includes features like a relaxing hot tub on the patio, a small kitchen, and queen-sized bed.

5. Off-grid Adobe Dome Nearby Big Bend National Park

Powered by solar power, this is a great place for guests looking to escape the hustle and bustle. It’s also a great example of how a desert location can be turned into an attractive destination.

While it’s very isolated, it’s not too far from attractions and the Big Bend National Park is less than a 30-minute drive away. It’s also a great example of how hosts can double up on space by transforming a couch into an extra sleeping area.

6. The Treehouse Cabin in Tyler

Tyler is one of the most profitable areas in Texas currently and this rental shows why. Nestled among trees, this treehouse cabin is secluded but offers Wi-Fi to ensure you always remain connected on your terms. It offers one bedroom, one bathroom, an indoor fireplace, modest kitchen, washer, dryer, and parking.

7. Modern Tiny Cabin in Dripping Springs

For another example of how you can transform a small space into an inviting rental, there’s this dog-friendly, modern, farmhouse cabin perched on a small hill. It might be small, but the hosts made sure to include a big table and a well-equipped kitchen. Its coffee station deserves special mention.

You’ll have everything you need inside for a great stay, but if you would like to venture outside there’s a big fire ring and canyon.

8. Two-bedroom Duplex in Houston

Not all of the top-rated vacation rentals in Texas are cozy cabins in the woods or some secluded location, there is still a market for apartments and duplexes. If urban living is more your idea of relaxation, let this duplex with two bedrooms guide you.

It features an open-plan layout with a full kitchen, shared backyard, private porch, and hardwood floors. Highly rated for location, it’s a short walk to several amenities like gyms, restaurants, and entertainment venues.

Invest, Furnish, and Automate

As you navigate the short-term rental market in Texas, remember that efficiency and automation can be your best friends. With the right tools, you can enjoy the best of both worlds — become a host and relax like your guests.

While your guests are out and about exploring everything that makes Texas a global attraction, set aside some time and explore iGMS, a leading vacation rental software. It’s designed to streamline your operations and elevate your hosting game. Whether it’s managing bookings, coordinating cleanings, or handling guest communication, iGMS is the solution you need to simplify your Airbnb hosting journey. Don’t wait — take the first step towards smarter hosting by trying iGMS today!