Non-owner occupied short-term rentals (STRs) in Austin, Texas, known as Type 2 STRs, are subject to specific regulations as of February 2025:Licensing:
- Type 2 STRs require an annual operating license from the city1.
- A federal judge recently struck down part of Austin's STR law, allowing Type 2 licenses in residential areas for properties owned before the 2016 ordinance1.
- The city is updating its online application process for Type 2 licenses in residential zones1.
Location Restrictions:
- Type 2 STRs are typically found in commercial areas1.
- Recent legal changes may allow some Type 2 STRs in residential areas, subject to specific conditions1.
Operational Requirements:
- Operators must provide proof of property insurance2.
- A local contact's name, address, and phone number must be provided2.
- Compliance with occupancy limits, noise restrictions, and parking regulations is mandatory2.
- Operators must follow trash collection schedules and water restrictions2.
- An information package must be posted in the common area of each STR unit2.
Taxes:
- Austin collects a hotel occupancy tax of 11% on STRs2.
- The city is considering new rules to require rental platforms to collect hotel occupancy taxes7.
Upcoming Changes:
- The city is proposing an overhaul of STR regulations to achieve better compliance with licensing requirements and increase tax collection3.
- Public hearings are scheduled for February 2025 to discuss proposed code amendments4.
- New policies may reshape Austin neighborhoods and add regulations for STR owners78.
