SXSW puts short-term rentals in demand

AUSTIN (KXAN) - Many local and national short-term rental property management companies are seeing a big jump this year in the number of renters looking for places to stay for South by Southwest .

"We're doing everything we can to find accommodations for every tenant that's calling. But, when you're getting 50, 60 or 70 calls a day, sometimes that can be a little daunting for us as well," said Taylor Perkins with STR Austin .

"What we have is a series of companies that are actually bidding us up for these properties. Just from last year to this year, we've noticed probably a 25 to 30 percent increase in the value of these properties," he said.

STR Austin is a local company that works with other short-term rental companies and homeowner's to help find temporary renters, and for those renters to find homes. They also check the tenant's background, create contracts for them and even keeps an eye on the home when the owner is away and the renters move in.

"The fact that there are so many people desperate to find housing here that aren't from here, they're from New York, Chicago, California, the fact that they have a point person they can call and really help them navigate through this process seems to be something that's going over very well with them. They're having a lot of success with it," Perkins said.

National companies like Homeaway , also based here in Austin, and Airbnb , also cater to the short-term rental crowd. Airbnb temporarily rented out 1,000 spaces to 1,500 people for South by Southwest last year, a number they've already surpassed this year, even weeks before the event starts.

Hundreds of Craigslist ads are popping up as well, with some properties going for upwards of around $2,500 a night. But, some worry that without a middle-man, things could be dicey.

"I think anybody would be nervous with this concept of inviting strangers to use all your things and sleep in your bed and things like that, but I've been super confident after reading through the contract with STR really carefully," said Jena Karam, who's renting out her property through STR Austin for the first time this year.

"Just thought it would be a good way to accommodate some people that couldn't find hotel rooms or things like that and also a great way for me to make a little extra money. So, everyone wins," she said.

There are few rules regarding short-term rentals in the city of Austin. Besides a hotel occupancy tax, there are really no other guidelines restricting homeowners. But, staff members are trying to finalize an ordinance that will make temporarily renting out your home more difficult. A final study on short-term rentals is expected to hit city council members in April, with an ordinance possible sometime after that.