Is Cotulla, Texas Good for Airbnb Investment?

To start an Airbnb in Cotulla, Texas, begin by researching local regulations through the City of Cotulla and La Salle County offices, as most small Texas towns don't have specific short-term rental ordinances but may require general business licenses or permits. Contact the Cotulla City Hall at (830) 879-3242 to verify any local requirements and obtain necessary permits, which typically include a general business license and potentially a hotel occupancy tax permit. Find suitable property by searching local real estate listings, considering proximity to Eagle Ford Shale activity centers and Highway 35 for oil worker accommodations, with average property prices ranging $80,000-$150,000 for modest homes. Furnish the property with durable, comfortable furniture focusing on essentials like quality beds, basic kitchen appliances, reliable Wi-Fi, and air conditioning crucial for South Texas heat, budgeting approximately $8,000-$15,000 for a complete setup. List your property on Airbnb and VRBO platforms with competitive pricing around $75-$120 per night given the area's oil industry demand, highlighting amenities like parking, proximity to local businesses, and clean accommodations. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company if you're not local, while maintaining responsive communication with guests and monitoring occupancy rates that can be strong due to transient oil field workers seeking alternatives to limited hotel options in the area.

For identifying profitable short-term rental properties in Cotulla, Texas, focus on locations near major oil and gas operations, particularly properties within 10-15 minutes of Eagle Ford Shale activity centers and along Highway 35, as this area attracts numerous energy workers requiring temporary housing. Target 2-4 bedroom properties with dedicated parking, reliable internet, and basic furnishings, as corporate housing demand from companies like ConocoPhillips and EOG Resources drives consistent occupancy rates of 70-85% with average daily rates of $120-180. Conduct pricing analysis by researching extended-stay hotels like Hampton Inn & Suites Cotulla and comparing rates to similar workforce housing markets in Karnes City and Three Rivers, while monitoring competition through Airbnb and VRBO listings within a 20-mile radius. Utilize AirDNA for market data specific to La Salle County, connect with local property management companies familiar with corporate contracts, and leverage relationships with oil field service companies established since the 2010 shale boom to secure long-term booking agreements that can generate $3,000-5,000 monthly revenue per property during peak drilling seasons.

To obtain an Airbnb/STR permit in Cotulla, Texas, contact the Cotulla City Hall at 400 Main Street or call (830) 879-3242 to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed STR permit application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), fire safety inspection certificate, and a site plan showing parking and occupancy limits. Required documents may also include a business license, sales tax permit from the Texas Comptroller, and neighbor notification forms. Application fees typically range from $100-300 initially with annual renewal fees of $50-150. The approval process generally takes 30-45 days after submitting a complete application, including time for inspections and city council review if required. Cotulla-specific requirements may include maximum occupancy limits based on bedrooms, designated parking spaces (usually 1-2 per unit), quiet hours enforcement between 10 PM and 7 AM, and compliance with residential zoning restrictions. You must also register for local hotel occupancy taxes and maintain a local contact person available 24/7 for guest issues, with some properties requiring professional property management if the owner lives more than 50 miles away.

Short-term rentals (STRs) are generally legal in Cotulla, Texas, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with standard Texas state regulations including sales tax collection through the Texas Comptroller's office and potentially hotel occupancy taxes if the rental period is less than 30 days. Cotulla, being a small city in La Salle County with a population of approximately 4,000, has not implemented the restrictive zoning or permitting requirements seen in larger Texas cities like Austin or San Antonio. Property owners should ensure compliance with general zoning laws that may restrict commercial activities in residential areas, and homeowners association rules if applicable. There have been no recent significant legal changes specific to Cotulla regarding STR regulations, though operators should monitor potential future municipal ordinances as the practice becomes more common in smaller Texas communities.

The best areas for Airbnb investment in Cotulla, Texas are primarily concentrated around the downtown historic district near Main Street and Tilden Street, which attracts visitors interested in the area's ranching heritage and proximity to hunting ranches. The neighborhoods near Highway 35 and Interstate 35 intersection offer excellent potential due to heavy truck driver and business traveler traffic, as Cotulla serves as a major transportation hub between San Antonio and Laredo. Properties near the Cotulla Independent School District and South Texas College campus area appeal to visiting families, educators, and temporary workers in the education sector. The residential areas around FM 468 and CR 410 are attractive for oil and gas industry workers, as Cotulla sits in the Eagle Ford Shale region with significant energy sector activity requiring temporary housing for contractors and field personnel. Additionally, properties within a 5-mile radius of major ranches and hunting operations can capitalize on seasonal hunting tourism, particularly during deer season from October through January, when hunters seek comfortable accommodations near prime hunting locations.

Airbnb properties in Cotulla, Texas are subject to the state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. La Salle County, where Cotulla is located, imposes an additional 2% county hotel occupancy tax, bringing the total occupancy tax rate to 8%. The City of Cotulla may impose its own municipal hotel occupancy tax of up to 7%, though the exact rate varies and should be verified with local authorities. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state and many local taxes on behalf of hosts in participating jurisdictions. For taxes not collected by Airbnb, hosts must register with the Texas Comptroller's office and file monthly returns by the 20th of the following month, remitting collected taxes directly. Exemptions generally include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government and nonprofit organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Cotulla, Texas, expect total costs around $85,000-$95,000. Property purchase represents the largest expense at approximately $65,000-$75,000 based on median home prices in this small South Texas town. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees are relatively minimal in Cotulla at around $200-$500 for business licenses and any required short-term rental permits. Insurance costs approximately $1,200-$1,800 annually for landlord and short-term rental coverage. Utility deposits and connections total roughly $300-$500. First six months operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), and marketing ($75/month) add approximately $2,250. Additional considerations include property management software subscriptions ($50/month) and emergency repair funds ($1,000 reserve), bringing the comprehensive startup investment to the estimated range.

Airbnb properties in Cotulla, Texas show moderate profitability potential with average daily rates ranging from $75-120 for typical 2-3 bedroom homes, generating monthly revenues of $1,800-3,200 with 60-70% occupancy rates driven by oil field workers and Eagle Ford Shale activity. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($1,200-2,000 annually), and maintenance costs averaging $200-400 monthly. Net profit margins generally range from 25-35% for well-managed properties, with successful operators like those targeting corporate housing for energy sector employees achieving higher margins of 35-45% by offering longer-term stays and premium amenities. Key success factors include proximity to major employers like ConocoPhillips and EOG Resources facilities, reliable internet for remote workers, and properties that can accommodate work crews, with some investors reporting annual returns of 15-25% on properties purchased for $150,000-250,000 when properly positioned for the transient workforce market that characterizes this South Texas energy hub.

Airbnb investments in Cotulla, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by oil field worker demand and limited local accommodation options. Properties in this Eagle Ford Shale region often reach profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 65-75% due to consistent industrial workforce housing needs. Initial investment costs are relatively low at $80,000-150,000 for suitable properties, while monthly gross revenues average $2,800-4,200 per unit. The market benefits from Cotulla's position as a key service hub for energy companies like EOG Resources and ConocoPhillips, though investors should expect some volatility tied to oil price fluctuations and drilling activity cycles that have characterized the area since the shale boom began around 2010.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Cotulla, Texas, offering comprehensive market analysis and property recommendations. Local real estate agents in the Cotulla area who work with investors include Century 21 agents and Keller Williams Realty professionals who understand the South Texas market dynamics. National services like BiggerPockets connects investors with local experts, while AirDNA provides crucial market data and revenue projections for the Cotulla region. Mashvisor offers property analysis tools specifically for short-term rental investments in smaller Texas markets like Cotulla. Local property management companies such as South Texas Property Solutions and regional firms like Vacasa can handle day-to-day operations for out-of-state investors. RE/MAX agents in nearby Laredo often serve the Cotulla market and have experience with investment properties. RedAwning and AvantStay provide turnkey solutions for investors looking to enter the Cotulla Airbnb market, while local contractors and cleaning services like Merry Maids support property maintenance needs for successful short-term rental operations.