How to Sell Vacation Rentals in Austin, Texas

If you’re looking to sell your vacation rental business in Austin, Texas, you’ve come to the right place! In this guide, we’ll explore some valuable insights shared by Erika Albert from E-Rae Realty, a specialist in helping people buy vacation rentals. With her background in hospitality and real estate, Erika has a unique perspective on the short-term rental market in Austin. Let’s dive into the key aspects of selling your vacation rental property.

Discovering Erika’s Niche in Vacation Rentals

Erika stumbled upon her niche in vacation rentals after working in hospitality and real estate for several years. She began blogging about the rules and regulations governing short-term rentals in Austin, and organically, her expertise started gaining attention. Through her blog, she was able to gather valuable information and connect with potential clients interested in the vacation rental market.

Understanding Short-Term Rental Licenses

In Austin, short-term rentals fall into three main categories Owner Occupied, Non-Owner Occupied, and Multifamily. 

Each type has its own set of regulations. Type Two permits, which are for complete investments without owner occupancy, face certain restrictions. While there was a hope that these permits would be reissued, the situation remains unchanged. Type Three permits apply to condos and apartments, but the rules vary depending on occupancy status.

Exploring Lucrative Vacation Rental Areas Outside Austin

While Austin is known for its popularity in vacation rentals, there are other promising areas surrounding the city. Locations like Dripping Springs, Round Rock, and Pflugerville are attracting travelers seeking unique experiences outside traditional hotel stays. Dripping Springs, in particular, has seen tremendous growth due to its wedding destination status and proximity to wineries and breweries.

Tips for Real Estate Agents Entering the Vacation Rental Niche

For real estate agents looking to assist clients in the vacation rental market, here are some essential steps to follow

Identify Suitable Properties

Understand the jurisdictions and regulations governing short-term rentals in different areas. Check whether properties are in compliance with local HOA rules and deed restrictions.

Assess Profit Potential

Utilize tools like AirDNA’s Rentalizer or Rabbu to calculate potential revenue for the property. Keep in mind the differences between waterfront and non-waterfront properties while comparing data.

Communicate Risks

It’s crucial to make clients aware of potential risks associated with short-term rentals. Emphasize that as an agent, you can provide preliminary information, but it’s essential for clients to consult legal professionals for accurate advice.

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Addressing Annexation Concerns

Investing always carries some level of risk. In the case of short-term rentals, the fear of annexation looms. However, it’s essential to understand that even if the worst-case scenario occurs, there’s still a demand for 30-day rentals in the area. This can provide a viable alternative to long-term rentals.

Importance of Vacation Rental Management

Vacation rental management is a critical aspect of maintaining a successful business. Agents should have reliable vendors, including property management services, on hand. While management fees for short-term rentals are higher than long-term rentals, the potential for increased revenue makes it a worthy investment.


Selling vacation rentals in Austin requires careful consideration of local regulations, property characteristics, and market trends. With the right expertise and understanding, you can navigate this market successfully. Whether you’re a property owner or a real estate agent, these insights will help you make informed decisions in the vacation rental industry.

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