STR backup — original pdf

Backup

My name is Luis Bonet and since 2018 my wife and I have operated an Airbnb guest house (ADU) on our property located on District 9, with zipcode 78751. We live on property and have homestead exemption. We are fully compliant of Austin STR ordinance and have paid for permits and hospitality taxes every single time they are due. As a fully compliant STR operator we are very frustrated with City of Austin lack of prioritization and enforcement of the STR ordinance. Back in 2022 I wrote to Mrs. Tovo about this issue and in 2023 to Mr. Qadri with no response. I have reported numerous non-permit operators and sadly they are still operating without much consequence. Multiple articles have been published stating that in Austin only 10% of the STR operators have a permit, which is a pitiful record. It is my speculation that if a non- compliant STR does not bother to get a permit they will also never pay hospitality taxes. This is a huge gap in revenue for the City of Austin and wonder why the Council is not addressing it more forcefully. I also anticipate that the non-compliant operators are your problem child that overcrowd their properties with excessive guests and causes problems with neighbors thereby disrupting the community. Data from AirDNA shows that in 2 years the number of STR lis�ngs in 78751 has grown from 250 to 375 lis�ngs (50% increase). AirDNA also reports that total revenue for STRs in 2023 was about $14M which translates to about $1.5M in taxes most of which is not collected. The COA database shows that over the last 3 years there has been an average of 76 permit holders, which means there are about 300 non- compliant operators in 78751. That’s about 2/3 STR are non-compliant, and the numbers keep growing. City wide the number of STR licensees have hovered around 2,100 effec�vely staying flat. I conclude new STR operators are not seeking a permit. From our view non-compliant operators will continue to operate and violate the ordinance as there are no significant consequences. I have been asking if the ordinance allows for back charging non-compliant operators for permits and taxes not paid. This situation has been going for years and I am amazed that we are still not addressing it in a more aggressive way. In summary, it seems unreasonable for STR licensed property owners to pay for permit fees and pay hospitality taxes while our competition gets by and not be penalized or even shutdown. My recommendation is for the City to either enforce the ordinance or eliminate it altogether so we level the playing field. AirDNA data a. STR Ac�ve Lis�ngs Growth (78751) In 2 years, the number of STR lis�ngs in 78751 has grown from 250 to 375 lis�ngs (50% increase). COA database shows that over the last 3 years an average of 76 permits have been issued which means there are about 300 non-compliant operators in 78751. City wide the number of STR licensees have hovered around 2,100 effec�vely stay flat. I conclude that the new STR operators do not seek a permit. b. 78751 STR bookings and revenue Tax Calcula�on All Properties 2023 Revenue Days Booked 3200 3000 4600 4500 4300 3600 3700 3600 3800 5600 4600 4000 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Listings 261 238 293 285 300 276 256 264 280 341 329 314 Revenue $ $ $ $ $ $ $ $ $ $ $ $ 835,200 714,000 1,347,800 1,282,500 1,290,000 993,600 947,200 950,400 1,064,000 1,909,600 1,513,400 1,256,000 Tax $ $ $ $ $ $ $ $ $ $ $ $ 91,872 78,540 148,258 141,075 141,900 109,296 104,192 104,544 117,040 210,056 166,474 138,160 $ 14,103,700 $ 1,551,407 c. 78751 Marke�ng Data Median Revenue: $36,000/year Hospitality Tax: $3,960/year