Short-term lodging tax and its ripple effects
Blake Carter, co-founder of Cribs Consulting, a company that owns and manages about 85 short-term rental properties in Austin, has already seen the impact on guests.
“It looks like the platforms are adding it to the guest side so that the guests are paying more,” Carter said in an interview with Austin ABC affiliate KVUE.
That could force short-term rental operators to lower their rates to keep their fees steady — and avoid pushing guests away.
On the bright side, Carter added, it could shift demand for short-term rentals to the suburbs.
“They can maintain their rates and still be priced the same as if they were in Austin,” he said, appealing to more attractive to budget-conscious travellers.
If the tax ultimately causes some operators to shut down their short-term rentals, it could open up more long-term housing to local residents, who may currently be pushed out of high-density short-term rental neighbourhoods.
As the summer travel season approaches, visitors and locals will be watching to see how this new tax changes the landscape — and who the winners will be.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.
Try it now
