Is Bee Cave, Texas Good for Airbnb Investment?

To start an Airbnb in Bee Cave, Texas, begin by researching local regulations as Bee Cave requires short-term rental permits and compliance with city ordinances that limit rentals to no more than 30% of units in certain residential areas, with registration fees around $200-300 annually. Contact the Bee Cave Planning Department at 512-767-6600 to obtain the necessary Short-Term Rental Permit and ensure compliance with Travis County health department requirements for occupancy limits and safety standards. Find a suitable property in residential zones that allow STRs, focusing on areas near Lake Austin or Hill Country attractions, with average property prices ranging $400,000-800,000 for suitable homes. Furnish the property with quality furniture, linens, and amenities targeting the area's affluent demographic, budgeting $15,000-25,000 for a 3-bedroom setup including outdoor furniture for patios overlooking the lake. Create listings on Airbnb, VRBO, and other platforms with professional photography highlighting the Hill Country location and proximity to Austin (20 minutes), pricing competitively at $150-300 per night depending on size and amenities. Manage the property by establishing cleaning protocols between guests (budget $75-125 per turnover), installing keyless entry systems, providing 24/7 guest communication, and maintaining compliance with Bee Cave's noise ordinances and parking restrictions that typically limit guest vehicles to 2-3 per property, while monitoring occupancy limits of 2 guests per bedroom plus 2 additional guests maximum.

To identify profitable short-term rental properties in Bee Cave, Texas, focus on locations within 10-15 minutes of Lake Travis waterfront areas, Hill Country scenic spots, and proximity to Austin (20-30 minutes) while avoiding HOA restrictions common in luxury subdivisions like Rough Hollow and Falconhead. Target 3-4 bedroom properties with 2+ bathrooms, outdoor spaces, lake or hill views, pools, and modern amenities, as these command $200-400+ nightly rates compared to $150-250 for standard homes. Analyze pricing using AirDNA and Mashvisor to identify properties generating 15-25% annual returns, with acquisition costs between $400K-800K typical for the area. Research competition by studying existing STRs on Airbnb and VRBO within 5-mile radius, noting occupancy rates average 60-75% during peak season (March-October) due to lake activities and Austin events like SXSW. Utilize tools like Rabbu, STR Helper, and local market reports from Austin Board of Realtors, while consulting with Bee Cave city planning department regarding STR regulations and Travis County tax implications, and consider partnering with local property management companies like RedAwning or Vacasa who understand the Lake Travis tourism patterns and seasonal demand fluctuations.

To obtain an Airbnb/STR permit in Bee Cave, Texas, you must first contact the Bee Cave Planning and Zoning Department at City Hall located at 4000 Galleria Parkway to determine if short-term rentals are permitted in your specific zoning district, as the city has restrictive regulations on STRs. If permitted, you'll need to submit an application including a completed STR permit application form, proof of property ownership or lease agreement, site plan showing parking and occupancy details, contact information for a local property manager within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. Required documents also include a floor plan indicating maximum occupancy, emergency contact information posted visibly in the rental, and compliance with all fire safety codes. The application fee is approximately $200-300 with annual renewal fees of $150-200. The review process typically takes 30-45 days and includes inspections by building, fire, and health departments. Bee Cave specifically requires STRs to maintain residential character, limits occupancy to 2 people per bedroom plus 2 additional guests, mandates 24/7 local contact availability, restricts parking to designated areas only, and prohibits events or gatherings exceeding the occupancy limit. You must also register with the Texas Comptroller for state tax collection and may need additional permits from Travis County depending on your location within city limits.

Short-term rentals (STRs) are legal in Bee Cave, Texas, but operate under specific regulations established by the city. Bee Cave requires STR operators to obtain a short-term rental permit and comply with occupancy limits, parking requirements, and noise ordinances. The city typically limits occupancy to two people per bedroom plus two additional guests, requires adequate parking spaces on the property, and enforces quiet hours from 10 PM to 7 AM. STRs are generally prohibited in certain residential zoning districts or may require special use permits depending on the specific zoning classification. Recent changes around 2021-2022 included stricter enforcement mechanisms and updated permit requirements, with the city implementing a complaint-driven enforcement system and requiring annual permit renewals. Property owners must also comply with Travis County health and safety regulations, maintain liability insurance, and provide emergency contact information to the city. Violations can result in fines ranging from $500 to $2,000 per incident, and repeat offenders may face permit revocation.

The best areas for Airbnb investment in Bee Cave, Texas are the Lake Austin waterfront neighborhoods, particularly around Lakeway and the Hill Country Galleria vicinity, and the Falconhead West/Serene Hills developments. The Lake Austin waterfront properties are highly attractive due to their proximity to water recreation activities, scenic views, and appeal to weekend tourists from Austin seeking lakeside retreats, with companies like Lake Austin Spa Resort driving luxury tourism demand since the 1990s. The Hill Country Galleria area benefits from its upscale shopping and dining destinations, attracting visitors for retail therapy and special events, while being conveniently located near major employers like IBM and Dell (established in the region since the 1980s-1990s) that generate business travel demand. The Falconhead West and Serene Hills neighborhoods offer newer luxury homes that appeal to corporate retreats and family gatherings, benefiting from Bee Cave's reputation as an affluent suburb with easy access to downtown Austin via Highway 71, making them ideal for both leisure travelers seeking Hill Country experiences and business travelers needing proximity to Austin's tech corridor.

Airbnb properties in Bee Cave, Texas are subject to multiple lodging taxes including the Texas state hotel occupancy tax of 6%, Travis County hotel occupancy tax of 6%, and the City of Bee Cave hotel occupancy tax of 7%, totaling 19% in combined occupancy taxes on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though individual hosts should verify their registration status with the Texas Comptroller's office and local jurisdictions. The state tax applies to stays under 30 consecutive days, while local taxes generally follow similar guidelines with potential exemptions for monthly stays, certain medical-related accommodations, and stays by government employees on official business. Hosts must register with the Texas Comptroller for a hotel occupancy tax permit and may need separate registrations with Travis County and the City of Bee Cave, with remittance typically required monthly or quarterly depending on the volume of collections, and failure to properly collect and remit these taxes can result in penalties and interest charges from the respective tax authorities.

To start an Airbnb in Bee Cave, Texas, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $580,000-$650,000 based on median home prices in this affluent Austin suburb. Furnishing costs typically range $25,000-$40,000 for a complete 3-4 bedroom home including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-$3,500. Permits and fees in Travis County include short-term rental permits ($285 annually), business license ($50), and potential HOA approval fees totaling around $500-$800 initially. Insurance for short-term rentals costs approximately $2,500-$4,000 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, water, internet, cable, and trash service average $300-$450 monthly or $1,800-$2,700 for six months. First six months operating costs encompass cleaning services ($150-$200 per turnover), maintenance reserves ($200-$300 monthly), property management software ($50-$100 monthly), restocking supplies ($100-$150 monthly), and marketing expenses ($200-$400 monthly), totaling approximately $4,200-$7,500 for the initial six-month period.

Airbnb properties in Bee Cave, Texas demonstrate strong profitability potential with average daily rates ranging from $150-$300 depending on property size and amenities, generating monthly revenues of $3,000-$7,500 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities averaging $200-$400 monthly, resulting in net profit margins of 35-45% for most properties. Success factors in this affluent Austin suburb include proximity to Lake Austin recreational activities, modern amenities like pools and hot tubs, professional photography, and responsive guest communication, with luxury 4-bedroom homes near the lake consistently outperforming smaller properties. Properties within 2 miles of Hamilton Pool Preserve and featuring lake access command premium rates, with some hosts reporting annual profits of $25,000-$45,000 after expenses on properties valued at $400,000-$800,000, though seasonal fluctuations occur with peak performance during spring and summer months when Austin tourism and lake activities drive higher demand.

Airbnb investments in Bee Cave, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Austin and Lake Travis recreational activities. Properties in desirable neighborhoods near the lake or Hill Country views can achieve occupancy rates of 65-75% with average daily rates of $180-280 depending on property size and amenities. Initial profitability usually occurs within 18-24 months after accounting for furnishing costs, property management fees of 15-25%, and local short-term rental regulations. The market benefits from consistent demand from Austin visitors, corporate travelers, and weekend tourists, with peak seasons during spring and summer months generating 20-30% higher rates, while luxury properties with pools or lake access can command premium pricing and achieve the higher end of ROI expectations.

STRSearch leads the market in Airbnb investment property analysis nationwide including Bee Cave, Texas, providing comprehensive data on rental performance and market trends. Local real estate agents specializing in short-term rental investments in the Austin metro area include Keller Williams Realty agents who focus on Lake Travis properties, Coldwell Banker Realty specialists in luxury vacation rentals, and RE/MAX Capital City agents experienced in Airbnb acquisitions around Bee Cave and Lakeway. National services like Awning (formerly RedAwning) offer turnkey Airbnb investment solutions, while Mashvisor provides property analysis tools for the Austin-Bee Cave market. Local property management companies such as Austin Luxury STR, Lake Travis Vacation Rentals, and Hill Country Short Term Rentals offer investor services including property sourcing and management. Additional resources include BiggerPockets for networking with local investors, AirDNA for market data analysis, and specialized investment firms like Techvestor and Austin-based real estate investment groups that focus on short-term rental properties in the Lake Travis and Hill Country regions where Bee Cave is located.