Airbnb Market Overview in Austin TX

Austin, Texas, allows three distinct categories of Short-Term Rentals (STRs), catering to diverse accommodation needs within city limits. Whether you're an owner looking to rent out your property or a visitor seeking a temporary stay, understanding the differences between Type 1, Type 2, and Type 3 STRs is crucial for compliance and convenience.

• Type 1 STRs: These properties are perfect for homeowners looking to rent out their space for periods shorter than 30 days. Type 1 STRs are either owner-occupied or linked to an owner-occupied principal residence, blending the comfort of home with the excitement of travel.
  
• Type 2 STRs: Ideal for those seeking independence, Type 2 STRs are standalone rentals not exceeding 30 days. These units are not owner-occupied nor part of a multi-family residence, offering complete privacy and freedom for guests.
  
• Type 3 STRs: Situated within multi-family residential complexes, Type 3 STRs provide short-term lodging solutions for less than 30 days. They cater to guests looking for community living experiences during their stay in Austin.

Each STR category in Austin has specific licensing requirements and regulations to ensure quality and safety for both owners and guests. Obtaining an annual license is mandatory for all STRs, ensuring a secure and legal rental experience.

For property owners and travelers alike, familiarizing yourself with Austin's STR types, application processes, and rules is key to a hassle-free rental experience.

All mixed-use and most form-based districts, commercial and industrial districts with a Certificate of Occupancy from the Development Services Department. They are not allowed in residential districts, such as single-family, two-family and multi-family areas.

Navigating the application process for a Short-Term Rental (STR) license in Austin? Ensure a smooth experience by providing all necessary documentation. Austin's STR licensing process is designed to be comprehensive, ensuring all rentals meet the city's standards for safety, compliance, and quality.

Key Requirements for STR License Applications:

1. Application Form: Submit the completed form corresponding to your STR type (Type 1, Type 2 Residential, Type 2 Commercial, or Type 3).
2. Application Fees: Pay $863.80 covering the application fee ($817), notification fee ($45), and a technology fee ($1.81) to support the city’s permitting infrastructure. Payments can be made via cash, check, or money order to the City of Austin.
3. Proof of Property Insurance: Include documents from your insurance policy's declaration, information, or summary pages.
4. Hotel Occupancy Tax (HOT) Account Proof: Provide a copy of a canceled check for HOT payment and the most recent quarterly tax report to the City Controller, or a zero report if no rentals occurred within the quarter.
5. Certificate of Occupancy: Attach a copy to verify the property's legal use and safety.
6. Owner’s Identification: A copy of the owner’s driver's license is required.
7. Agent Authorization Form: If using third-party STR management, include a completed, notarized form from the property owner.

Additional Fees for Late Applications: If applying after receiving a violation notice for operating an STR without a license, additional fees will apply under City Code section 25-2-793.

Submission Options:

• In-Person Delivery: Schedule by emailing STRLicensing@austintexas.gov.
• Online Submission: Available for uploading required documents.
• Mail: Send to City of Austin – DSD Code Compliance, Attn: Finance- STR, PO Box 1088, Austin, TX 78767.

STR licenses are valid for one year from the issuance date, supporting your commitment to offering compliant and quality lodging options in Austin.

$863.80 covering the application fee ($817), notification fee ($45), and a technology fee ($1.81) to support the city’s permitting infrastructure

Current Austin HOT is 9%. STR's are required to report all HOT due to the City on or before the due date on a monthly basis using the remittance form. The report is due even when there are no room reciepts.

Payments are due on the 1st of the month and considered late after the 25th. The STR is required to retain all records used to support the amounts on the monthly HOT reports submitted to the City.