Austin Airbnb Property Management

In Austin, short-term rentals (STRs) are permitted in specific zoning districts, and regulations vary depending on the type of STR. Here's a breakdown:

Zoning Districts Allowing STRs:

• Commercial Zoning Districts: These areas, which include General Retail (GR) and Commercial Services (CS), are primarily intended for commercial activities and generally allow STRs.
• Mixed-Use Zoning Districts: Areas where residential, commercial, and other uses are combined, such as in Vertical Mixed-Use (VMU) overlays, are often suitable for STRs.
• Downtown Mixed-Use Districts (DMU): Central urban areas designed for high-density living and commercial activity typically allow STRs.

Residential Zoning Districts: In specific residential zones, STRs are allowed under strict conditions. These include:

• Type 1 STRs (owner-occupied): Permitted in most residential zones.
• Type 2 STRs (non-owner-occupied, single-family homes): Heavily regulated and limited in residential zones.
• Type 3 STRs (non-owner-occupied, multi-family units): Primarily allowed in commercial and multifamily zones.

Important Note:

STRs face strict regulations in residential districts, particularly in single-family zones (SF-1 through SF-3). Non-owner-occupied STRs (Type 2) are generally prohibited in these areas, and property owners may need to seek variances or other approvals to operate legally.

Austin's regulations are subject to change, so it's crucial for property owners to stay informed about current zoning laws and STR regulations to ensure compliance.

For the most current information, consult the City of Austin’s official resources or legal guidance specific to zoning and short-term rentals.

All short-term rentals (STRs) in Austin must be registered with the city. You can complete the registration process through the City of Austin’s online permitting system, known as the Austin Build + Connect portal. You’ll need to create an account, submit a completed application, and provide the required documentation, which may include:

• A site plan of the property.
• Floor plans of the rental unit.
• Photographs of the property.
• Proof of ownership or authorization to operate a rental.

Pay Fees

The registration process involves several fees:

• Zoning and Application Review: Fees vary depending on the zoning district of your property.
• Fire Inspection: A fire inspection is required, and the fees are determined based on the property’s size and the number of floors.
• Short-Term Rental License: You’ll need to pay a license fee, which typically costs around $500, though this can vary depending on the type of STR (e.g., owner-occupied, non-owner-occupied).

Fire Inspection

Your property must pass a fire inspection to ensure compliance with safety standards. The inspection will assess factors like the number of floors, exits, smoke detectors, and other safety features. The associated fees are calculated based on these specifics.

Obtain a Short-Term Rental License

A short-term rental license is mandatory for legally operating an Airbnb in Austin. You can apply for this license through the Austin Build + Connect portal. The license fee is generally a base amount plus additional costs based on your rental’s expected income.

Annual Renewal and Compliance

Your STR license must be renewed annually. Compliance with city zoning codes and regulations is crucial to avoid fines or penalties. Additionally, STR operators are required to collect and remit hotel occupancy taxes (HOT) to the city and state, typically on a monthly or quarterly basis.

For the most current and detailed guidance, including specific instructions and fee structures, consult the City of Austin’s official website or reach out to the Austin Code Department.

For Austin, short-term rental (STR) operators must collect and remit the following taxes:

Taxes:

• City of Austin Hotel Occupancy Tax (HOT): 9%.
• State of Texas Hotel Occupancy Tax: 6%.

This brings the total hotel occupancy tax for short-term rentals in Austin to 15%.

Responsibilities:

STR operators are required to collect these taxes from renters and remit them to the appropriate authorities. Whether the property is managed directly by the owner or through a property manager, the obligation to collect and pay these taxes remains the same.

Reporting and Payment:

Taxes must be reported and paid monthly to the City of Austin. Late payments can lead to penalties and interest, so it’s essential for STR operators to stay compliant with these regulations.

By understanding and adhering to these tax obligations, Airbnb hosts in Austin can efficiently manage their properties, optimize rental income, and ensure they remain in compliance with local and state laws.

For detailed guidance and updates, it's advisable to consult the City of Austin’s official website or contact the Austin Finance Department.