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Short-term rental supply Short-term rentals—which operate within a gray area on the local level—are becoming more prevalent in some parts of the Houston area, according to experts such as AirDNA, a website that tracks short-term rental data.
a March 23 meeting, the two council members heading the committee— Chair Sallie Alcorn and Vice Chair Amy Peck—sent a memo to Mayor Sylvester Turner. In it, the council members asked the mayor to look more closely at short-term rentals citywide, speci cally mentioning the Museum Place Apartments, a 24-unit apartment complex in Hous- ton’s Museum District with units listed on STR sites. “Neighbors complained of street takeovers, loud noise, unruly behav- ior, drug use, garbage being left behind, unmanageable parties in the units and at the communal pool, damage to the nearby park, and suspected tra cking,” Alcorn and Peck’s memo said. “The property has been on Airbnb’s radar given the complaints submitted by neighbors and council members.” The city is exploring its legal options regarding STRS, which could include developing regulations for rental properties operating as hotels, said Billy Rudolph, chief of sta for Houston’s O ce of Administrative and Regulatory A airs. In West University Place, city lead- ers adopted an ordinance in 2018 that made it illegal for properties in residential districts to be rented for less than 30 days. Apartment own- ers in the city have multiple steps to complete to rent in nonresiden- tial districts, including purchasing a rental permit, providing sketches of the oor plan and providing proof of insurance. They must also pay hotel occupancy taxes. Neighboring conflict Mac Hoak has been a resident of his Museum District home for over a decade. Almost two years ago, the Museum Place Apartments were sold to husband-and-wife duo Thawda and Sara Aung, and the property began operating as a de facto STR hotel, Hoak said. “I’m an Airbnb host as well; we have a little cottage that we rent out,” he said. “And I think it’s a great resource for people and for people to make some money.” The problem, Hoak said, is that despite operating like a hotel, the 24-unit apartment complex has no front desk or real-time monitoring of guests. “This is a hotel that’s unlicensed, unregulated. And the owner, despite COMMUNITYIMPACT.COM
Percent change in total short-term rental listings, April 2022 vs. April 2023
Total short-term rental listings, occupancy rates and housing type breakdown in ve local ZIP codes, as of April
< -30.1%
0 to -30%
HOUSING TYPE House
33 393 455 102 20 77005 77025 77030 77096 77401 TOTAL LISTINGS 77005 77025 77030 77096 77401 OCCUPANCY RATE 50.5% 51.8% 55% 52.8% 41.8%
> 30.1%
0.1% to 30%
Apartment/condo
77030 7%
77005
77025
69
18%
33%
77005
77030
77401
82%
67%
93%
77025
610
77401
77096
40%
25%
77096
288
90
75%
60%
N
SOURCE: AIRDNA COMMUNITY IMPACT
STR vs Hotel The city of Houston has no regulations for properties used as short-term rentals. Some residents have said these properties should be regulated similar to hotels. STR Hotel Properties with 50 rooms or less cannot be built within a 1,000-foot radius of a residential neighborhood. Properties with fewer than 75 units cannot be situated in residential areas unless on a highway’s access road. Must obtain a tra cking certi cate
Some residents living among these STRs have brought their concerns to the local government, including the city of Bellaire. The last time a proposed ordinance regarding STRs was presented to Bel- laire City Council was in May 2021. Council Members Catherine Lewis and Jim Hotze proposed a minimum six-month term for rental or leases of single-family homes. In the coun- cil agenda packet at the time, Hotze and Lewis listed tra c, nuisance violations, littering and “general dis- respect for our Bellaire neighbors” among concerns. Ultimately, the city’s decision to propose an ordinance on the matter was postponed. As of 2023, Bellaire does not have a speci c ordinance prohibiting or regulating STRs, according to city o cials. Instead, Bellaire only requires property own- ers who rent out their space to com- plete a certi cate of occupancy, city o cials said. As Bellaire city o cials work to complete the city’s 2024 comprehensive plan, some residents have voiced their dismay with STRs, which they said disrupt Bellaire’s moniker as a “City of Homes.” Meanwhile, after the city of Hous- ton’s Regulatory and Neighborhood A airs Committee discussed STRs at
Must pay annual lodging facility permit of $81 Must pay lodging facility inspection fee of $192
SOURCES: CITY OF HOUSTON, STATE OF TEXAS COMMUNITY IMPACT
Defining short-term rentals The city of Houston de nes a hotel as any building or buildings in which the public may obtain tran- sient sleeping accommodations and de nes STRs as residential dwellings rented out for less than 30 consecu- tive days. According to data from AirDNA, a site which tracks STR data, there are 10,050 listings for entire properties in the city of Houston, compared to 1,003 for ve core ZIP codes making up the Bellaire, Meyerland and West University areas. The lion’s share of those listings, a total of 455, can be found in the 77030 ZIP code, which covers the Texas Medical Center and parts of the Museum District.
Houston—which I feel like would be the vast majority of them—should not be allowed to operate under the section of the city code,” Ginsburg said. City leaders, including District C Council Member Abbie Kamin, are listening to residents’ concerns as the city looks at regulating STRs. “Many district residents rent out as an additional (and often needed) source of income. It’s a great eco- nomic booster for our city, and it’s that property owner’s right,” Kamin said in a statement texted to Com- munity Impact . “At the same time, we have to have some parameters in place with companies to ensure rent- ers participate safely.”
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