Short-term rental surge prompts rules in Bastrop

The specifics

Vivianna Andres, assistant to the city manager, said the ordinance seeks to balance regulation, growth and the protection of Bastrop’s character.

“Bastrop has a fantastic historical charm with an intimate, small-town feel,” Andres said. “We want to maintain community continuity by educating STR owners about our values so they can pass it on to their guests.”

Andres said that in addition to creating a database with the city, the policy will also ensure STR properties comply with regulations such as noise restrictions and safety precautions.

Bram Gallagher, director of economics and forecasting at AirDNA, which analyzes STR data, said STRs in Bastrop have increased over the years and are not projected to slow down.

Gallagher also noted the registration fee in Bastrop is more affordable than some other locations.

“Austin has a proposed $800 registration fee,” council member Cynthia Meyer said during a Feb. 12 meeting. “Twenty-five dollars is much more friendly to everyone.”

During the meeting, City Manager Sylvia Carrillo-Trevino said the regulations are more of a registration process.

“We just want to know who’s here, who’s in our midst, who may need help,” Carrillo-Trevino said. “We are asking, ‘Are you registered, and are you paying your HOT taxes?’”

The impact

Data from STR data site Rabbu shows that Bastrop STR owners generate more money annually than those in surrounding areas, highlighting the city’s attractiveness for STRs—which can increase HOT funds and sales tax revenue, said Ashton LaFuente, Visit Bastrop director of marketing.

Since 2015, STRs have been required to contribute to HOT funds, which Andres said supports assets such as the Bastrop Visitor Center, Bastrop Opera House and Kerr Community Center.

LaFuente said 35% of Bastrop’s HOT funds go to Visit Bastrop for tourism-related events, marketing and meetings—adding that the goal is to generate more overnight visitors and boost the city's overall HOT revenue, which benefits everyone.

While the exact increase in HOT funds from registered STRs is still uncertain, as Bastrop is in the process of collecting data, Gallagher said the overall economic impact is expected to be noticed based on projections.

The timeline

Bastrop Public Information Officer Colin Guerra said 14 STR owners had registered as of April 29. Existing owners had until April 26 to comply.

STR owners with more than one property must fill out a separate application for each structure on the property. New owners must register within 60 days of opening, according to the ordinance.

STR registration will expire after one year or when ownership of the property changes.

Under the ordinance, violations can result in fines of up to $500, as determined by a judge.