Welcome back! Recall last week's post that looked at Austin City Limits 2016? We were astounded by the nearly 7,000 possible opportunities for illegal or contract-breaking short-term rentals in ATX. As a refresher, as of July 11, 2016, on AirBNBs website more than 1,000 homes are being advertised for ACL. Of those homes, more than 300 identified as apartments, and 269 as condos. This isn't even looking at each neighborhood, caps and permits. In accordance with Ordinance 20160223-A.l that is a lot of illegal or contract-breaking short-term rentals. In case you didn't know, industry standard prohibits short-term rentals in the lease. Find out more here, here and here.
Not only does this break the law and violate contracts, this is also a way for illegal rentals to avoid paying taxes. Lodging taxes, to be precise. To be even more precise, 15% in Austin, Texas. Taxes that promote travel to Austin, Texas. These dollars bring in conventions and tourism.
On July 11th, when we identified at least 569 illegal or contract-breaking listings, the average nightly cost was $232. Austin City Limits runs for 6 nights. We decided not to factor in the week between shows or the possibility that travelers would come in on Thursday as performances begin at 11am.
6 nights x 569 rentals x $232 = $792,048
And 15% of $792,048 is $118,807
$118,807 being the potential amount of lost tax revenue from illegal and contract-breaking AirBNBs during Austin City Limits.
Want to get in front of this BEFORE it is too late? Contact us today and find out how BNB Shield can help identify these rentals in your building or neighborhood.