Understanding Short Term Rentals in Austin

Renting your house out on Homeaway or AirBnB can be a great way to make some extra money. Understanding Short Term Rentals in Austin is essential for success. There are three categories of STRs in Austin this article will explain.

You will also learn what is required to apply for and keep your rental license current.

I have also created a page where you can look at the STR regulations for other neighboring cities to Austin.

Scroll down for an easy-to-read and share infographic with the key points.

What is a Short Term Rental in Austin?

The city of Austin has established regulations for anyone that wants to rent out their property for a short term rental. This is defined as any Property (including rooms and guest houses) that will be rented for less than 30 consecutive days within the City Limits.

These are the three categories of STRs:

  • Owner Occupied Properties – Type 1
  • Non-Owner Occupied (Single Family or Duplex) – Type 2
  • Non-Owner Occupied (Multifamily) – Type 3

Each needs a permit issued through the City of Austin. Currently (as of 2022), the city is not issuing any more Type -2 Permits.

Note that there are also limits on the number of short-term rentals in certain geographic areas and that the permit does not convey with the sale of Type 2 units.

What do I need to renew my short term license in Austin?

According to the city ordinance you need to renew your STR license in Austin every year.

There are different application forms available here – make sure you get the correct one.

In addition to the application here are some other requirements to follow for new applications

  • A non-refundable fee ($643 in 2022)
  • Proof of Property Insurance
  • Proof of Payment to City of Austin Hotel Occupancy Taxes
  • A copy of your Certificate of Occupancy
  • A copy of your Driver’s License
  • All 3rd Party Agents must have Notarized authorization from Owners allowing them to manage the property.

Renewals also require a $355 yearly fee and additional documentation.

Other Requirements for doing an AirBnB in Austin

In addition to the city requirements, there can be other rules you need to follow if you want to rent rooms in your house or your entire property out.

Your HOA may have rules regarding what is allowed in your neighborhood or building. I have learned from reading hundreds of HOA docs that they can be much more strict than the city rules, and there is generally no process for approval or appeal within the HOAs.

In addition to HOA rules, if you live in a condo association, there may be rules to follow as well. Sometimes the condos allow for a certain percentage of rentals to be available, and they may be waitlists you need to join.

It is important to check all these sources before purchasing a property for Short Term Rentals if you intend to rent it out for income in this way.

Final thoughts

Overall it can be challenging to get your property ready for doing 30-day or less rentals in Austin. You might want to consider looking outside the city limits where the regulations are more relaxed. I’ve written a new post on STR rules in areas near Austin.

Hopefully, this series of articles will get you Understanding Short Term Rentals in Austin, and what you can do to achieve your goals!

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