ETJ

The extraterritorial jurisdiction or ETJ refers to an area just outside a given municipality's boundaries. Properties in the ETJ are good contenders for STR investments for a few reasons. First, since they are located outside the city limits, they generally are not subject to city short term rental regulations.  The one exception to this is Johnson City where the short term rental regulations do apply to properties located in the ETJ as well as within the city limits.

Homes in the ETJ also make good short term rental investments since they will not be subject to city hotel occupancy taxes.  Furthermore, properties in the ETJ generally have lower property taxes too.  This means less expenses for your short term rental investment.

Check out these potential short term rental investments that are located in the ETJ of Austin or surrounding suburbs.