Austin, Texas Short Term Rental Regulations

City Code of Ordinances

There are three types of short term rental properties in Austin:

• Type I is rented for periods of less than 30 consecutive days and is owner-occupied or is associated with an owner-occupied principal residential unit. 
• Type II is rented for less than 30 consecutive days, is not part of a multifamily residential use, is not owner-occupied, and is not associated with an owner-occupied principal residential unit. A short-term rental (Type 2) use may not be located on a lot that is within 1,000 feet of a lot on which another short-term rental (Type 2) use is situated unless the license was issued on or before November 23, 2015, and it is not suspended after November 23, 2015, and is renewed timely.
• Type III is rented for periods of less than 30 consecutive days and is part of a multifamily residential use.

For more information, see the Austin Code of Ordinance and Types of Short-Term Rentals

Business License Requirements

You can apply for a short-term rental operating license here, and the property owner needs to obtain a Certificate of Occupancy from Development Services.  The Short-Term Rental Operating License is valid for 12 months from the time of approval and may be renewed on an annual basis. More information can be found here Short-Term Rental License Program and Frequently Asked Questions

Building and Housing Standards

Austin has rules and regulations that specify minimum building, design, maintenance standards, habitability, health, and safety requirements. Some rules and regulations that apply to residential and non-residential properties may apply to your listing. Please see Austin Code of Ordinance Subpart C. - Requirements for Short-Term Rental Uses for more information.

Tourist and Local Taxes

Short-term rental units might be subject to state sales tax and city taxes, including but not limited to the hotel/motel tax, and are liable for payment thereof as established by state law and the city code. The city may seek to enforce payment of all applicable taxes to the extent provided by law, including injunctive relief.

Other Rules

A guest may not use or allow another to use a short-term rental for an assembly between 10:00 p.m. and 7:00 a.m. Guest may not use or allow another to use a short-term rental for an outside assembly of more than six adults between 7:00 a.m. and 10:00 p.m. Assembly includes a wedding, bachelor or bachelorette party, concert, sponsored event, or any similar group activity other than sleeping. Short-term rental use may also not be used by more than ten adults at one time unless a stricter limit applies or six unrelated adults. It is also essential to understand and abide by other contracts or rules that bind you, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable. Visit the Austin website for more information.