Does Austin Require a License for Short-Term Rentals?
Yes. All short-term rental properties in Austin, defined as residences rented for fewer than 30 consecutive days, must have an active operating license from Austin Development Services Code Compliance. This applies whether you rent out a room, a guesthouse, or an entire home.
Operating without a license is a violation of Austin City Code and can result in fines up to $500 per day, with each day considered a separate offense.
Framework change: October 2025
As of October 2025, STR regulations have moved from the Land Development Code (Title 25) to the Business Regulations framework (Title 4). STRs are now classified as an accessory use permitted in all residential zoning districts with a valid license.
How Long Is an Austin STR License Valid?
Under the post-October 2025 framework, Austin STR licenses are valid for up to two years from the date of issuance, replacing the previous annual renewal cycle. Renewals may be submitted 60 days before expiration.
What Are the Types of STR Licenses in Austin?
Austin classifies short-term rentals into three types based on owner occupancy and property configuration.
Type 1
Owner-Occupied
The owner must occupy the property for at least 51% of the calendar year. Commonly used for homesharing arrangements where the host rents out a room or the home while away.
Type 2
Non-Owner-Occupied
Entire homes rented as vacation rentals where the owner does not live on-site. The most common type for investment vacation rentals. Subject to spacing requirements.
Type 3
Multi-Family / Condo
Properties in multi-family or condominium buildings. Subject to density caps: the greater of 1 unit or 10% of units in standard residential zones (25% in buildings with commercial uses).
For Type 3 questions, contact STRLicensing@austintexas.gov with your property address for details on density caps applicable to your building.
What Changed With the October 2025 Regulatory Overhaul?
Austin City Council adopted the current STR ordinance (No. 20250911-012) in two phases: structural zoning changes in February 2025 and the full operator and platform framework in September 2025. Key provisions took effect October 1, 2025.
Regulatory framework shift
STRs moved from the land development code (Title 25) to business regulations (Title 4) and are now permitted as an accessory use in all residential zoning districts with a valid license.
Spacing requirements
Operators running STRs on more than one site must maintain at least 1,000 feet of separation between sites. On a site with three or fewer housing units, up to two may be operated as STRs.
Local contact requirement
All STR operators must designate a local contact in the Austin metro area (Travis, Williamson, Hays, Bastrop, or Caldwell County) who can respond to emergencies within two hours, including being present at the property within two hours if requested.
Tenants can operate STRs
Tenants may operate an STR with written permission from the property owner and proof of utility responsibility.
Simplified application
A Certificate of Occupancy and proof of insurance are no longer required for new applicants or renewals as of October 2025.
What Happens on July 1, 2026?
July 1, 2026 is the date that matters most for current and prospective hosts. This is when platform enforcement provisions take effect.
If you do not have an active license by July 2026, your listing may be removed from Airbnb and Vrbo. The city has stated it will begin systematic removal requests on the July 1 deadline.
Platforms must require license numbers
Airbnb, Vrbo, and other booking platforms must require all Austin listings to include a valid city-issued license number.
Platforms must comply with delist notices
The City can send formal delist notices to platforms, which must remove the listing within 10 days.
No fees for unlicensed bookings
Platforms are barred from accepting fees to facilitate bookings for properties without a valid license.
Quarterly tax documentation
Platforms must provide operators with quarterly documentation showing the amount of hotel occupancy tax collected on their behalf.
What Are Austin's Hotel Occupancy Tax Requirements?
Short-term rental operators in Austin are required to collect hotel occupancy tax on all stays of fewer than 30 days. The combined rate is 17%.
| Tax component | Rate |
|---|---|
| City of Austin HOT | 9% |
| City of Austin Venue Tax | 2% |
| State of Texas HOT | 6% |
| Combined total | 17% |
As of April 2025, Austin requires STR platforms (Airbnb, Vrbo) to collect and remit the city portion of HOT on behalf of operators. However, operators still have reporting obligations, including quarterly reporting through the Austin Finance Online (AFO) portal to reconcile platform collections. Even periods with no activity require a filing.
How Do I Get an Austin STR License?
Verify your property's jurisdiction
Use the Austin Jurisdiction Map at austintexas.gov to confirm your property falls within full or limited-purpose city boundaries.
Create an Austin Finance Online (AFO) account
The AFO portal is used for license submission and ongoing tax reporting.
Gather required documents
Owner's driver's license or state-issued ID, notarized Agent Authorization Form (if applicable), self-certified safety checklist, and guest information packet with noise rules, trash schedules, and emergency contacts.
Submit application and pay the fee
$836.30 for a new license ($789 license fee + $47.30 notification fee, non-refundable). Renewal fee is $385.30 ($338 + $47.30).
Wait for processing
Type 1 and Type 2 licenses currently take approximately 4 to 6 weeks. Type 3 takes 8 to 10 weeks.
The City of Austin has indicated it will launch a simplified application and license management tool in spring 2026. Check austintexas.gov for the latest application process details.
How Does Co-Hosting Help With Regulatory Compliance?
Navigating Austin's STR regulations, including licensing, tax reporting, local contact requirements, and the upcoming July 2026 platform enforcement, is one of the biggest operational burdens for property owners, especially those who live out of state.
As your co-host, we stay current on all regulatory requirements and help ensure your property operates in full compliance. We can serve as your designated local contact, help coordinate your licensing process, and keep you informed of any regulation changes that affect your property.
Book a free consultation to discuss your compliance needs