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Complete Guide To Get A Short Term Rental License in Austin, TX [UPDATED 2024]

Table of contents

How Does Austin, TX Define a Short-Term (Airbnb) Rental (STR)?

In Austin, TX, a short-term rental (STR) is defined as any non-owner-occupied residential unit that is not part of a multifamily dwelling. It serves as a public transient lodging option rented to guests for periods of less than thirty days. The terms "short-term rental" and "vacation rental" are interchangeable in this context.

What Are the Requirements for Obtaining a Short Term Rental License in Austin, TX?

To obtain a Short Term Rental License in Austin, TX, applicants must follow these steps:

  • Complete the appropriate STR license application available online.
  • Pay a non-refundable total fee of $733.80, covering the application fee, notification fee, and DSD technology fee.
  • Submit proof of property insurance.
  • Provide proof of payment of Hotel Occupancy Taxes, if applicable.
  • Obtain a Certificate of Occupancy.
  • Ensure driver's license information matches the applicant's property details.
  • If using third-party agents, provide notarized authorization from property owners.

What Are the Costs Associated with a Short Term Rental License in Austin, TX?

The costs associated with obtaining a Short Term 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.

Can Investors Own Multiple Short Term Rental Properties in Austin, TX?

Yes, Austin, TX allows investors to own multiple short term rental properties without specific restrictions. However, each short term rental property must have its own separate license issued by the city.

Does Austin, TX Have 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, certain residential zoning districts have a maximum of four unrelated adults per site.

Can Investors Operate Airbnb Properties as Business Entities in Austin, TX?

Yes, in Austin, TX, investors can own and operate their Airbnb properties as business entities without restrictions. The city does not impose specific limitations on the use of business entities for owning and operating short term rental properties.

Can Investors Register ADUs, Duplexes, and Multifamily Homes as Short Term Rentals in Austin, TX?

No, in Austin, TX, investors cannot register accessory dwelling units (ADUs), duplexes, and multifamily homes as short term rentals under the specified regulations. 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.

Does Austin, TX Have Short Term Rental Occupancy Limits?

Yes, Austin, TX has Short Term Rental occupancy limits. Short-term (Airbnb) rental use is restricted to a maximum of ten adults at one time, with a further limitation of a maximum of six unrelated adults.

Does Austin, TX Require an Inspection for Investors to Obtain an STR License? What Are the Physical and Structural Requirements for a Short Term Rental?

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

Does Austin, TX Have Responsible Agent Requirements for Short Term Rentals?

Yes, Austin, TX has responsible agent requirements for short term rentals. Property owners must provide the name, street address, mailing address, and telephone number of a local contact, serving as a responsible agent for addressing issues or concerns related to the short term rental property.

Does Austin, TX Have Specific Insurance Requirements for Short Term Rentals?

Yes, Austin, TX has specific insurance requirements for short term rentals. Property owners are typically required to maintain property insurance providing coverage for liability and property damage. The exact insurance requirements may vary, necessitating consultation with local regulations or authorities for compliance.

What Are the Duration and Renewal Terms of an Austin, TX Short Term Rental License?

The Austin, TX Short Term Rental license is valid for 12 months from approval and can be renewed