Airbnb Rental Laws and Regulations Austin, TX

How does Austin, TX define a short-term (Airbnb) rental (STR)?

• Any non-owner-occupied residential unit that is not part of a multifamily dwelling. 
• A public transient lodging option that is rented to guests for periods of less than thirty days. 

Please note that in the following context the phrases “short-term rental” and “vacation rental” are exchangeable. 

Source: Austin, Texas Short-Term Rental Ordinance

Can investors own more than one vacation rental property in Austin, TX? 

Yes! Austin, TX does not have restrictions on investors owning multiple vacation rental properties. However, each vacation rental property must have its own separate license issued by the city.

Source: Austin Short Term Rental FAQs

Does Austin, TX have any zoning restrictions for STRs?

Yes, Austin, TX has zoning restrictions for short-term (Airbnb) rentals (STRs). In non-commercial zoning districts, the maximum allowed percentage of dwelling units designated as STRs is 3% of the total number of units at the property or within any building or detached structure. In commercial zoning districts, the limit is 25%. Additionally, for certain residential zoning districts, a maximum of four unrelated adults may reside on the site.

Source: Austin, Texas Short-Term Rental Ordinance

In Austin, TX can an investor own and operate their Airbnb property as a business entity? 

Yes, in Austin, TX, an investor can own and operate their Airbnb property as a business entity. There are no restrictions prohibiting the use of a business entity to own and operate a vacation rental property in the city. 

Source: Austin Short Term Rental FAQs

In Austin, TX, can investors register accessory dwelling units (ADU), duplexes, and multifamily homes as Vacation Rentals?

No, in Austin, TX, investors cannot register accessory dwelling units (ADUs), duplexes, and multifamily homes as vacation rentals under the specific regulations mentioned. Airbnb rental use is limited to entire dwelling units that are not part of a multifamily residential use, are not owner-occupied, and are not associated with an owner-occupied principal residential unit.

Source: Austin, Texas Short-Term Rental Ordinance

What is Austin, TX requirement for obtaining a Vacation Rental License?

• Application: Complete the appropriate STR license application available online or apply online through the provided link.
• Total Fee: Pay a non-refundable total fee of $733.80, which includes an application fee of $687.00, a notification fee of $45.00, and a DSD technology fee of $1.80. Payment can be made in cash, check, or money order payable to the City of Austin.
• Proof of Property Insurance: Submit Declarations, Information, or Summary Pages from your property insurance policy.
• Proof of Payment of Hotel Occupancy Taxes: If applicable, provide a copy of a canceled check and the most recent quarter tax report submitted to the City Controller’s Office. If no renters were present in the quarter, submit a copy of the zero report filed.
• Certificate of Occupancy: Obtain a Certificate of Occupancy by visiting the Development Services webpage for more information.
• Driver’s License: For Type 1 Applications, ensure that the information on the driver’s license matches the information for the applicant property.
• Notarized Authorization for 3rd Party Agents: If using 3rd party agents, they must have notarized authorization from the property owners to manage the property.

Please note that it’s essential to submit all listed documents, as partial applications will not be processed.

Source: License My Short-Term Rental Austin, Texas

What are the costs associated with a Vacation Rental License in Austin, TX?

The costs associated with obtaining a Vacation Rental License in Austin, TX amount to a total of $733.80. This includes a non-refundable application fee of $687 for the Licensing Fee, a $45 notification fee, and a $1.80 DSD Technology fee. The full payment is required at the time of submitting the application.

Source: Austin Short Term Rental FAQs

Does Austin, TX have Vacation Rental occupancy limits?

Yes, Austin, TX has Vacation Rental occupancy limits. A short-term (Airbnb)rental use is restricted to a maximum of ten adults at one time, unless a stricter limit applies. Moreover, the occupancy is further limited to a maximum of six unrelated adults.

Source: Austin, Texas Short-Term Rental Ordinance

Does Austin, TX require an inspection for investors to obtain an STR license? What are the physical and structural requirements for a vacation rental?

Austin, TX does not generally require an inspection for investors to obtain an Airbnb rental (STR) license. However, if a property has received a notice of violation related to the life, health, or public safety of the structure, and the STR license meets the requirements for annual renewal, the property may be subject to an inspection every three years by the building official. 

Source: Austin, Texas Short-Term Rental Ordinance

Does Austin, TX have any responsible agent requirements?

Yes, Austin, TX has responsible agent requirements for vacation rentals. Property owners are required to provide the name, street address, mailing address, and telephone number of a local contact, as mandated by Section 25-2-796 (Local Contacts). This responsible agent serves as a point of contact for addressing any issues or concerns related to the vacation rental property.

Source: Austin, Texas Short-Term Rental Ordinance

Does Austin, TX have specific insurance requirements for a Vacation Rental?

Yes, Austin, TX has specific insurance requirements for vacation rentals. Property owners are typically required to maintain property insurance that provides coverage for liability and property damage. The exact insurance requirements may vary, so it is important for vacation rental owners to consult the local regulations or contact the appropriate authorities to ensure compliance with the specific insurance requirements in Austin, TX.

Source: Austin, Texas Short-Term Rental Ordinance

What are the duration and renewal terms of a Austin, TX Vacation Rental license?

The Austin, TX Vacation Rental license is valid for a duration of 12 months from the time of approval. It can be renewed annually, and the renewal can be done up to 60 days prior to the expiration date of the current license. 

Source: Austin Short Term Rental FAQs

In Austin, TX, do Airbnb and VRBO remit taxes on the host’s behalf? Are there any taxes that the host must track and pay directly to Austin, TX?

Yes, both Airbnb and VRBO (HomeAway) remit taxes on behalf of hosts in Austin, TX. They collect and remit the Hotel Occupancy Tax (HOT) and the Austin Tourism Public Improvement District Assessment (ATPID) on the host’s behalf. These platforms handle the tax collection and payment process directly.

However, hosts in Austin, TX are responsible for tracking and paying other applicable taxes directly to the city. This includes the Hotel Occupancy Tax (HOT) for any bookings made outside of Airbnb and VRBO platforms, such as direct bookings or bookings through other platforms. 

Source: Texas Comptroller’s Office

Who should I contact if I have questions regarding Austin, TX  Vacation Rentals?

Austin Code Department – Short-Term (Airbnb) Rentals: (512) 974-8779 & [email protected]

Are there any new laws and regulations that the city is requiring?

No, at the time Get Chalet collected the information, there were no new laws or regulations that the city was requiring regarding vacation rentals.