NEW BRAUNFELS, Texas --  Short-term rentals like AirBNB are on the rise seemingly everywhere, especially in the tourist-heavy city of New Braunfels.

  • STR market grown 97 percent in 5 years
  • Some owners not paying hotel occupancy tax
  • Outside company helping to enforce rules

The Chamber of Commerce in New Braunfels reports since 2014, the short-term rental market has grown 97 percent. In January, Spectrum News told you the city had an issue with rental property owners who were not properly permitted and/or skipping the local hotel occupancy tax requirement, which is unfair to those entities like hotels and bed and breakfasts that are compliant.

RELATED | New Braunfels Economy Losing Millions From Short-Term Rental HOT Tax Evasion

Cecil Eager has been running the Gruene Mansion Inn in New Braunfels for two decades now. Even though he's seen short-term rental properties like AirBNB enter the lodging market, he's had no shortage of guests at the historic bed and breakfast. It also doesn't hurt that his next door neighbor is the iconic Gruene Hall.

"Being here in the heart of Gruene, our business has not had adverse effects. I've heard from other hoteliers that they sense the competition, they feel it.,” said Eager.

Eager said he would like to see all property owners following the rules, instead of taking advantage of people who do.

"In a way, they kind of ride the wave that those of us who pay the tax create," Eager said.

New Braunfels City Council has since approved an outside company to monitor listings and enforce the tax local HOT tax law on property owners. "Lodging Revs" checks the hundreds of short-term rental properties in town and makes sure they're in compliance by being properly permitted.

"It's just a matter of making the playing field equal with the traditional properties that actually built the market that they are taking advantage of," said Judy Young, Vice President of the Convention & Visitors Bureau. ​

The company has already started sending letters to those found non-compliant. The Chamber of Commerce said getting the local hotel occupancy tax back into the city will not only provide an economic impact, and keep the industry fair for the area hotels and bed and breakfasts. The city said so far, most property owners have gotten on board.

"Sometimes they're like, ‘OK I didn't know.’ And they'll just sign up to do the automatic payments that need to take place and get tracked through that system. Sometimes they're not real excited about it," Young said.

Eager hopes the new software the city implements keeps property owners compliant. For now, he will continue enjoying running the Inn.