Important Updates Regarding August 2023 Ruling Impacting Short-Term Rentals in Austin
A recent ruling from the United States District Court, Western District of Texas, Austin Division has brought changes that will affect the Short-Term Rental Program.
What does this ruling mean for short-term rentals moving forward?
STRs must continue to be licensed. However, the court ruled that Type 2 licenses must be made available in the same parts of the City where Type 1 licenses are available. Additionally, the court found that individuals who owned their property prior to the approval of the 2016 ordinance are eligible for a Type 2 license. The City stopped issuing new Type 2 licenses in residential neighborhoods in 2016. We are working on updating the online application to accept Type 2 license applications and do not know when it will be ready to “go live”. Until that time, please choose Type 2 Commercial to submit a Type 2 Residential application.
What was the decision-making process behind the regulations related to short-term rentals and when were they established?
The rules pertaining to STRs were established through several ordinances approved by the City Council from 2012 to 2016. The STR rules are meant to balance the use of STRs with the surrounding area and promote neighborhood quality of life, among other goals. For Type 1 rentals, the owner lives on-site to encourage responsiveness to neighbor complaints. Type 2 rentals, by contrast, were primarily zoned to commercial areas where they are more compatible with surrounding uses. As stated above, the ruling changes this by finding that Type 2 licenses must be made available in the same parts of the City where Type 1 licenses are available.
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Development Services Department Code Compliance - STR Relocation
As part of the ongoing merger with the Development Services Department, Code Compliance STR operations have relocated to the Permitting and Development Center located at 6310 Wilhelmina Delco Drive.
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Owners of Short-Term Rentals (STRs) are required to obtain an operating license annually (Ordinance No. 20160223-A.l). This law applies to all properties (including rooms and guest houses) rented for less than 30 consecutive days. Report a code violation by calling 3-1-1, using the 3-1-1 app, or by submitting a report online.