Thinking about dipping your toes into the short-term rental market in Austin, Texas? Whether you're considering renting out your spare room or your entire property, getting a permit is a crucial step to ensure you're operating legally within the city.
We've got you covered with this straightforward guide.
Step 1: Determine Your Eligibility
Short-term rentals are governed by the City Code Chapter 25-2Â Familiarize yourself with these guidelines to ensure compliance.
Not all properties are eligible for short-term rental permits in Austin. Make sure your property meets the city's requirements, including zoning regulations and occupancy limits. You'll also need to ensure your property is up to code and has the necessary safety features in place.
Step 2: Complete the Application
Click here to apply for a license online or visit the Development Services Department in person. Be prepared to provide detailed information about your property, including its address, owner information, and rental history.
Step 4: Gather Required Documents
Along with your application, you'll need to submit several supporting documents, such as:
proof of ownership
a site plan
a floor plan of the property
documentation related to parking availability *if applicable
neighborhood notifications *if applicable
Step 5: Pay the Fees
The cost of a short-term rental permit in Austin can vary depending on the type of property and the length of the permit. Generally, you can expect to pay
an application fee (non-refundable $863.80 as of Jan. 2024)
a license fee
and possibly additional fees for inspections or background checks *Check the city's website for the most up-to-date fee schedule.
Step 6: Wait for Approval
The city will review your application to ensure it meets all requirements and complies with local ordinances. This process can take several weeks.
Step 7: Start Renting
Once you receive your short-term rental permit, you're officially ready to start renting out your property. Just remember to abide by the city's regulations, including occupancy limits, noise ordinances, and tax requirements. Important Updates on Rental Regulations
A recent court ruling impacts how short-term rentals (STRs) are licensed in Austin. Here's what you need to know:
License Types: All STRs must be licensed. Now, Type 2 licenses are available where Type 1 licenses are.
Eligibility: If you owned your property before the 2016 ordinance, you're eligible for a Type 2 license.
Application Update: The online application is being updated to accept Type 2 license applications. Until then, choose Type 2 Commercial for Type 2 Residential applications.
The rules for STRs were established by City Council ordinances from 2012 to 2016. They aim to balance STR use with neighborhood quality of life. Previously, Type 2 rentals were mainly in commercial areas, but now they're available in the same areas as Type 1 rentals.
The Code Compliance STR operations have moved to the Permitting and Development Center at 6310 Wilhelmina Delco Drive.
Owners must renew their STR license annually. This applies to all properties rented for less than 30 consecutive days. Report violations by calling 3-1-1, using the app, or online.