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Short Term Rentals. Good or Bad?

Posted by in Buyer Representation, Lake LBJ Real Estate, Resources on Feb 14, 2023

Short Term rentals have been a hot topic of contention in the last few years, even more in the last few months, as real estate investors have been buying up good real estate in highly desired communities to offer them out for rent on a nightly basis.  Proponents say this is a great way to cover holding costs and earn a return on “second home” type properties that are normally vacant for most of the year.  Critics argue that these nightly rentals ruin communities by increasing transient traffic and push locals farther out.



As a productive Real Estate Professional and an active real estate owner and investor I believe in Property Rights and the need to protect them.  I never like to see rule changes after someone has invested in a property, many of which rules are pushed through by a small number of active residents.  I also believe there is a big misconception surrounding the type of people that typically rent homes out on a nightly basis but due to a few bad apples the “Bunch gets spoiled”.  Lastly, most, if not all communities that do allow short term rentals also have nuisance laws in place but rarely do concerned residents take the proper steps to correct the issue. Instead they cope with the disturbance and it goes unreported.

When buying Lake LBJ Real Estate it is important to first decide if the ability to short-term rent is important to you. You may ask yourself questions like:

  1. Do I want to rent now?
  2. Will I want the option to rent in the future?
  3. How would I feel if my neighbor was renting their home out?


Answering these simple questions at the beginning of your search will really help you narrow your search and focus on communities that meet your needs.  If you decide to pursue a property that is a rental you need to pay close attention to waste water system. Is it on septic vs sewer?  We prefer an actual sewer system that moves the waste off site as opposed to a septic system that leaches everything on site.  With large groups, and non-consistent use, these rental days can stress the septic systems out and cause big problems.  Guests also tend to dispose of items that are bad for the system which will damage that septic system over time.  Before you panic, many successful rental properties use convention or aerobic septic systems and do just fine, so long as they are properly maintained to ensure functionality and guests are informed on proper usage.

I also recommend paying close attention to HOA rules as well as deed restrictions that may be specific to your property and uncovered only by careful review of your title commitment.  Understanding how these short-term rental rules might change in the future is important to understand before you make a long-term financial commitment.

Buying and selling waterfront property on Lake LBJ is no easy feat.  We recommend engaging a Local Expert that is active in the Lake LBJ Real Estate market to help you understand what you are buying and avoid costly mistakes.  Reach out if I can be of assistance!


Apr. 11