Pre-Existing vs New Construction Homes: Which Is Right for You?

So are you ready to turn Fredricksburg Charm into cash flow? In today's video, we are diving deep into short term rental investing right here in Fredericksburg, Texas. Ryan Reardon, Reardon Realty Group, your favorite realtor right here in the Texas Hill Country. That's right. If you've had thoughts of investing in a short term rental right here in Fredericksburg, Texas. Today's video is the day for you because we are diving deep into my guide for investing in short term rentals right here in the Texas wine country. Okay, so number one, let's discuss why Fredericksburg. Well, there are many reasons, but it's deeply rooted in the blend of rich German heritage with that modern Texas flair. We have yearly festivals like our famous Octoberfest, monthly art walks, and of course, a prominent wine scene that ensures a steady influx of visitors every single weekend. In fact, with over 50 wineries and tasting rooms, Fredericksburg has rightfully earned its title as Wine Capital of Texas. You know, these vineyards are not just places to taste wine. They offer events like live music and experiences, drawing wine enthusiasts from all over the US. Plus, here's a big one. Our central location between cities like San Antonio and Austin make it a super easy weekend getaway for all those folks who live in the major cities. Okay, so number two on the list today is your ROI potential, your return on investment. So an average short term rental here in Fredericksburg can yield significant ROI, especially if it's properly maintained and managed the right way. So our town's increasing tourist numbers. And then of course, all the bachelorette parties and the trend toward choosing stress bnbs over hotels create a lucrative environment. And again, all of our local events like the Octoberfest, the wineries, Main Street, shopping, further drive accommodation needs. So that allows for premium pricing. And when comparing against the traditional long term rentals, the short term rentals here in Fredricksburg tend to yield a higher monthly income, even when you factor in the cost associated with that rental. And then, given the current market trends favoring isolated stays and then varied property options catering to different traveler demographics, Fredericksburg presents a prime opportunity for investors in the short term rental space. Okay, so this brings us to number three, which is the legal considerations. One of the first things you will want to do is make sure that the property is in the right zoning. And finally, the city of Rexburg made it super easy to look this up on the new and improved online city map. So basically what this means you can't just buy a house anywhere in the city limits of Fredericksburg and start renting it out as a short term rental. The city does have regulations and guidelines for these stars, and also you want to always make sure you have your license in. Just remember, no wild parties. The city actually requires you to have quite our signs posted around the property just to remind your guests that hey, you need to pipe it down after a certain time. I mean, come on, the guest can have a super awesome time, but they just can't get too crazy at 2:00 in the morning whooping and hollering. And if the property you're looking at is located outside of the city limits in the itJ, you actually will not have to have a rental permit, but you still will have to pay for the hotel occupancy tax. And if you're selling your short term rental, that buyer will have to transfer that permit within ten days, preferably when the utilities are swapped over and heads up inspections from the city are done on Wednesdays only. So just keep that in mind. And don't forget you have that hotel tax. So 7% is going to go back to the city of Fredericksburg, while 6% goes to the state, making it 13% per booking for your hotel tax. Okay, so this brings us to number four on the list, which is properly managing your STR. So here in the Texas Hill Country, Fredericksburg isn't just a tranquil retreat, it's a hotbed for short term rentals. So with our town's rise as a must visit tourist destination, there is a significant surge in competition amongst our properties. It's really not just about having a space to rent out anymore, it's about how you stand out in the sea of options. And this is where that top notch rental management becomes an ace card. So property management ensures that the property isn't just clean and welcoming, but also memorable and worth revisiting. It means staying ahead with responsive communication and timely maintenance, and adding those personal touches that guests love. And in competitive markets like Fredericksburg, it can also mean leveraging local events and the trends to adjust pricing and promotions. So whether you're managing it yourself or working with one of our local management companies. Remember in Fredericksburg. Bustling rental scene is the details and management that really make the difference. Number five, we are talking about setting the right price for your short term rental. So here's the catch. With all this setting, the right price can either make or break your rental game. It's really a delicate balance of understanding your market demand, your property's unique value, and the ever changing rhythm of our towns, events and seasons. If you price it too high, you risk vacancies. But if you price it too low, you're leaving money on the table. It's best to start off by researching comparable rental properties here in Fredricksburg. What are they charging? What amenities do they offer? You really need to factor in our local events like the Octoberfest or our wine festivals, or seasonal peaks, which can allow for a higher rate. Then you want to ensure your costs from maintenance to management to ensure your profitability. And just remember dynamic pricing. Adjusting based on demand and local happenings can be your best friend, especially in competitive markets like here in Fredericksburg. It's not just about setting a price, it's about setting the right price and then being nimble enough to adjust as the market demands. Okay, so for number six, we are talking about adding a local touch to your short term rental. So what truly sets a short term rental apart from all the others? It's not just the amenities, but it's soul. When a guest chooses a rental, they're not just looking for a place to sleep, they're seeking an experience, a taste of Fredericksburg rich heritage and charm. This is where your rental, staging and decorating come into play. So going beyond just generic esthetics and integrating a local touch can elevate your property from just another listing to a highly sought after destination. You may consider some of our locally sourced artwork really showcasing our deep German heritage. Or maybe even a basket of our locally grown peaches sitting right there on the kitchen countertop. I think that decor inspired by the rustic beauty of the Texas Hill Country, or nods to our renowned wineries, can maybe resonate with guests, making them feel more connected to the local. And just remember, in bustling short term rental markets like here in Fredericksburg, it's the esthetic local touches that create memorable stays. Turning first time guests into repeat visitors. And it's also extremely important to get reviews from our guests. Which brings us to number seven on the list today. In today's digital age, a review isn't just feedback, it's the lifeblood for your rental. When potential guests browse properties in Fredericksburg, they're often greeted by a sea of options. So what makes them click on one over the other? Reviews. Glowing testimonials on platforms like Airbnb or Google reviews act as endorsements, ensuring potential guests of memorable stays. They offer credibility. They showcase your hospitality and can even help improve your listings ranking on these platforms. Feedback from these reviews also provide an invaluable insight on improvements, making sure you're meeting or exceeding your guest expectations. But remember, it's not just about quantity, it's really about quality. Reviews one genuine, detailed review describing your property's unique charm or your contentedness as a host can do wonders compared to ten generic comments, so encourage your guests to share their experiences and let the world know what makes your rental truly special. And it's also extremely important to plan for your peak and off seasons, which is our eighth topic for today. So here in Fredericksburg, with our vibrant festivals and scenic beauty, we see waves of visitors. But like any sought after destination, it has its ebbs and flows. While peak seasons might see your rental booked back to back, off, peak periods can be quieter. But here's the thing. Success for your staff is all about preparation. Planning for these slower times is not just essential, it's really strategic. You can use this time to refresh and renovate, ensuring your property remains at its prime. Another thing you could do is offer off season promotions targeting demographics like remote workers or artists seeking a tranquil retreat. It's also a really good idea to collaborate with local businesses. Maybe you can do a wine tour weekend, or maybe even a spa week. One thing to remember is that off season doesn't mean off radar. With innovative strategies and proactive planning, you can keep your occupancy rates healthy year round, ensuring a consistent revenue stream and maintain your property's reputation as a must stay destination here in Fredericksburg. Okay, so what do you guys think? Are you ready to take your next step in investing in a short term rental here in Fredericksburg? If you've had thoughts of buying or selling anywhere around the Texas Hill Country, I would love to be a realtor. Choice. All my contact information is above, but also down in the description. And if you haven't done so already, make sure you watch this next video, which is the top ten wineries here in Fredericksburg. We'll see you in the next video.