Things to Know About the Texas Third Court of Appeals Ruling and Short-Term Rentals

Will Austin Code Department (ACD) continue to issue Short-Term Rental (STR) Type 2 licenses?

Type 2 commercial – Yes

Type 2 residential – No, the decision does not require the City to issue new Type 2 licenses in residential areas.

Will I be able to renew my current STR license?

Austin Code Department will continue to renew existing residential and commercially zoned STR Type 2 licenses as long as they are renewed on or before the expiration date. A STR residential Type 2 license will not be re-issued if it becomes expired. An application qualifies as a renewal if the application is submitted before the existing license expires.

How many licenses can I apply for?

There is no limit to the number of licenses that an individual can apply for, every license is processed on a case-by-case basis. Density limits are established by ordinance without regard to who the applicant is, but Type 2 licenses can only be issued in commercially zoned areas.

Additionally, the City ordinance § 25-2-793 places a cap on the percentage of STRs allowed to legally operate in each census tract of the city. Ownership information on the application must match the deed as recorded with the Travis County Clerk's office or Williamson County Clerk's office.

Will Austin Code continue to enforce STR violations?

Yes, ACD will continue its enforcement efforts pertaining to short-term rental properties. 

Will Austin Code continue to enforce STR occupancy limits?

As a result of this ruling, Austin Code can no longer enforce STR occupancy limits (neither internal nor external of a structure). However, upon receiving an over-occupancy complaint, ACD can investigate and enforce Property Maintenance Code minimum square footage requirements related to occupancy.