Operating a lodging property or short-term rentals in Texas comes with its share of challenges—especially if your property is located within a city’s extraterritorial jurisdiction (ETJ). While you may benefit from being near city limits, ETJ properties often face burdensome city-imposed rules, including the costly Hotel Occupancy Tax (HOT), without receiving city services in return.
But here’s the good news: removing your property from the ETJ can eliminate these obstacles, giving you the freedom to run your business on your terms while maximizing profits. Free My Property’s Comprehensive STR Solution is the ultimate tool to help owners of lodging and short-term rentals unlock their property’s potential and secure their financial future.
1. Save 7% by Eliminating the Hotel Occupancy Tax (HOT)
The Hotel Occupancy Tax (HOT) is a city-imposed cost short-term rentals and lodging owners face. While the tax is designed to fund city tourism initiatives, ETJ property owners are often required to pay the tax even though they don’t receive any direct marketing, or city services. With HOT rates reaching as high as 7% of nightly revenue, this city-imposed cost cuts into your profits.
By removing your property from ETJ jurisdiction, you’re no longer obligated to pay the HOT, immediately boosting your profit margin. Here’s a breakdown of potential savings:
- Annual Rental Revenue: $100,000
- City HOT at 7%: $7,000
- Savings with ETJ Removal: $7,000 per year
Over time, these savings can add up to tens of thousands of dollars, making ETJ removal a financially smart decision for short-term rental owners. Best of all, you can still benefit from the city’s tourism efforts funded by HOT revenue, as visitors continue to flock to your area.
2. The ROI of ETJ Removal for Lodging Properties or Short-Term Rentals
The return on investment (ROI) for removing ETJ restrictions is clear. By eliminating the HOT and other fees, you instantly improve your bottom line.
Let’s consider the financial impact for a property generating $100,000 in annual revenue:
- Upfront Cost of ETJ Removal (Comprehensive STR Solution): $3,999 (actual cost)
- Annual HOT Savings: $7,000
- Payback Period: Less than one year
- Actual ROI: $1.75 for every $1.00 paid for the Comprehensive Solution
After the initial investment, the ongoing savings directly contribute to increased profits, providing a meaningful ROI in a short period. Removing ETJ restrictions also adds long-term value to your property, further enhancing your financial gains.
3. Enjoy More Flexibility and Operational Freedom
ETJ restrictions often limit your ability to fully capitalize on your property’s potential. From zoning regulations to usage restrictions, city-imposed rules can make it challenging to modify or expand your property to meet market demands.
By removing your property from the ETJ, you gain:
- Freedom from Zoning Rules: No more restrictions on the number of guests, building expansions, or modifications.
- Control Over Operations: Set your own booking policies, amenities, and usage terms without city interference.
- Opportunity to Innovate: Offer unique guest experiences or tailor your rental to niche markets, attracting more bookings.
This operational freedom allows you to focus on what matters most: delivering exceptional guest experiences and consistently growing your business without the city telling you what you can and cannot do.
4. Maximize Long-Term Property Value
ETJ removal isn’t just about short-term benefits—it also significantly increases your property’s resale value. Properties outside city jurisdiction are more attractive to investors, thanks to reduced regulatory burdens and the absence of HOT.
- Investor Appeal: Properties without ETJ restrictions offer more flexibility and profitability, making them ideal for buyers.
- Higher Market Price: Reduced taxes and operational freedom add tangible value, enabling you to command a premium price if you decide to sell.
- Future-Proofing: ETJ removal protects your property from future city-imposed changes, ensuring it remains a valuable asset for years to come.
By removing ETJ restrictions, you position your property as a lucrative investment for potential buyers while enjoying the benefits of increased operational efficiency.
5. Why the Free My Property Comprehensive STR Solution Is the Best Choice
Navigating the ETJ removal process can be complex, but with Free My Property’s Comprehensive STR Solution, it’s never been easier. Here’s why this solution is the ultimate choice for short-term rental and lodging owners:
- Complete Process Management: We handle every aspect of the ETJ removal process, from preparing the petition to communicating with city authorities.
- Guaranteed Results in 100 Days: Our experts ensure your property is freed from ETJ restrictions within 100 days, or we continue working at no additional cost.
- Expert Support: Receive personalized guidance throughout the process, with unlimited access to our ETJ removal specialists.
- Stress-Free Experience: Let us handle the complexities while you focus on running your business.
The Comprehensive STR Solution is designed to save you time, maximize your ROI, and give you peace of mind knowing your property is in expert hands.
Take Control of Your Lodging Property or Short-Term Rentals Today
If you’re a short-term rental or lodging owner tired of paying unnecessary taxes and dealing with restrictive regulations, removing your property from the ETJ is the solution you’ve been waiting for. By eliminating the Hotel Occupancy Tax (HOT), gaining operational freedom, and increasing your property’s value, you can unlock your property’s full potential and secure its financial future.
At Free My Property, we make ETJ removal simple and hassle-free. Our Comprehensive STR Solution ensures a smooth process, guaranteed results, and unmatched support every step of the way.
Ready to start maximizing your rental profits? Contact Free My Property today and take the first step toward financial freedom and operational independence.