As supply rises, San Antonio's STR industry sheds some investors

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Demand for short-term rentals remains strong in San Antonio, but with supply rising even faster, some investors are pulling back.

the property generated approximately $50,000 in revenue in 2021. That home has been on the market for more than 250 days, according to Zillow.

Shelley Galbraith has been renting the carriage house behind her historic King William home since 2016. She formed the Short Term Rental Association of San Antonio, which educates and advocates for property owners and managers, and moderates one of the three San Antonio-area Facebook groups for Airbnb hosts.

Despite the current churn, there’s still money to be made, said Alex Cruz, owner of Welcome Home Club, a local STR property management company. Like White, Cruz owns a handful of properties and manages others. Good quality hosting benefits everyone, he said — the guests, the property owners and the neighbors who live nearby.

What he and others very much do not like, however, are the number of scofflaws — operators who don’t get the required permit or pass along the collected 16.75% hotel occupancy tax. As of July 11, the city’s zoning map showed just 3,459 permitted properties.

 

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