Short-Term Rentals

Changes to Short-Term Rental Regulations

On Feb. 27, 2025, the Austin City Council adopted changes (20250227-039, 20250227-040, and 20250227-041) to the city's short-term rental ordinance. Most of these changes will go into effect on Oct. 1, 2025. Changes to Hotel Occupancy Tax (HOT) collection will go into effect on April 1, 2025. We will post more information about the new regulations on this page as they become available.

All applications submitted during this time will be reviewed under the current regulations. Only applications that are received after the effective date of the new regulations will be under them.

Short-term rentals (STRs), residences rented for less than 30 consecutive days, are regulated by City ordinance and licensed annually by Development Services Department Code Compliance. The goal of STR regulations is to encourage the safety of structures for people and pets, ensure their compatible existence with the surrounding environment, and allocate resources to provide education and address violations.

Types of STRs in Austin

There are three types of STRs within the full and limited purpose jurisdictions of Austin. Use the Jurisdiction Map to determine where your property is located.

Type 1 STR: A use that is rented for less than 30 consecutive days and is owner-occupied or associated with an owner-occupied principal residential unit.

Type 2 STR: A use that is rented for less than 30 consecutive days, includes the rental of an entire dwelling, is not part of a multi-family residential use, and is not owner-occupied or associated with an owner-occupied principal residential unit.

Type 3 STR: A use that is rented for less than 30 consecutive days and is part of a multi-family or condominium residential unit. Type 3 operating licenses are governed by density caps. For additional information on density caps, email STRLicensing@austintexas.gov with the property address.

Each type of STR has its own annual application and rules. Regardless of the type of STR, all must be licensed. Visit the How to Apply section to learn more. Failure to obtain the required license is a violation of Austin City Code (operating without a license) and may result in enforcement action, including citations and fines.

In February 2025, the Austin City Council adopted changes that made STRs an additional (accessory) use to all residential uses in all zoning districts as long as they have a valid operating license. When the ordinance goes into effect in October, we will still issue licenses under these three types.

Responsibilities

STR Licensee/Operator Responsibilities

Licenses

All STR owners/operators in the City of Austin must be licensed annually through the City. Visit the How to Apply section to learn more.

Hotel Occupancy Tax (HOT)

Update

As of April 1, 2025, platforms (including but not limited to AirBnB, VRBO, Expedia, Booking.com, etc.) are required to collect and remit Hotel Occupancy Taxes (HOT) on behalf of Short-Term Rental (STR) owners.

For STR revenue generated from non-online platforms, STR owners are still required to collect and remit the HOT directly to the City of Austin. Additionally, for the quarter beginning on April 1, 2025, STR owners are required to file a report with the City of Austin noting the amount of HOT each platform collected and remitted on the STR owner’s behalf.

The City of Austin is in the process of updating Austin Finance Online (AFO) to accommodate these changes and will provide further notice to current STR license holders once the portal is updated, prior to the June 30, 2025, quarter end. The report and taxes for the June 30, 2025, quarter end is due by July 31, 2025.

If you have questions, please contact the Financial Services Department at hotels@austintexas.gov.

Paying and Reporting HOT

Every person owning, operating, managing, controlling, or collecting payment for occupancy in any hotel (or short-term rental) must collect the Hotel Occupancy Tax (HOT) from their guests for the City. An Austin Finance Online (AFO) Account is required for STRs in Austin's full-purpose jurisdiction.

Online Platforms
- Platforms (including but not limited to AirBnB, VRBO, Expedia, Booking.com, etc.) are required to collect and remit HOT on behalf of STR owners. For the quarter beginning on April 1, 2025, STR owners are required to file a quarterly report with the City of Austin noting the amount of HOT each platform collected and remitted on the STR owner’s behalf.
Non-Online Platforms
- For STR revenue generated from non-online platforms, STR owners are still required to collect and remit the HOT directly to the City of Austin quarterly.
- You may pay online or call the City of Austin, Financial Services: Controller's Office at 512-974-2590, then press 1, or email: hotels@austintexas.gov.
Zero Report/No Rentals
- If there were no rentals during the reporting period, a zero report must be filed.

Exceptions

Short-term rentals located in Austin's Limited Purpose Jurisdiction (LTD) are not subject to City of Austin Hotel Occupancy Tax but are required to obtain a license. Short-term rentals located in the Extra Territorial Jurisdiction (ETJ) do not need a license or pay local Hotel Occupancy Tax (HOT).

Other Requirements

Notification

When a new operating license is issued, the City of Austin will supply a notice of the contact information for the local contact to all properties within 100 feet of the short-term rental. This will be done at the licensee’s or operator’s expense upon issuance of an STR operating license as part of the licensing process. Visit the How to Apply section to view fees.

Information Packet

Under section 25-2-791 of the City Code, a licensee/operator must provide renters a copy of an information packet in a conspicuous common area of the STR that includes:

Name and contact information of the local contact designated on the STR application
Restrictions on noise applicable under section 25-2-794 of the City Code
Parking restrictions
Trash collection schedule
Information on relevant burn bans and water restrictions
Applicable requirements of the American with Disabilities Act
Other guidelines and requirements applicable to short-term rental uses

Local Contact Information

Under section 25-2-796 of the City Code, a licensee/operator who does not live within the Austin Metro Area must identify an individual or individuals to serve as local contacts and respond to emergency situations.

A local contact must:

Be present within the Austin Metro Area
Be available to respond within two hours after being notified of an emergency by an STR guest, City employee or other individual references in section 25-2-792, during any 24-hour period

If there is a change related to a local contact, the licensee must provide updated or new information to the director in writing within three business days by emailing STRLicensing@austintexas.gov.

STR Guest Responsibilities

Beyond the owner/manager policies specific to individual STRs, there are common issues that create unreasonable and potentially unsafe conditions for STR guests and area residents:

Loud Noise (parties, events, etc.)
Advertising without a license (AirBnb, VRBO, etc.)
Operating without a license

City ordinance governs these matters in section 25-2-794 of the City Code. An STR licensee or guest may not:

Use or allow the use of sound equipment that produces sound in excess of 75 decibels at the property line between 10 a.m. and 10 p.m.
Use or allow use of sound equipment that produces sound audible beyond the property line between 10 p.m. and 10 a.m.
Make or allow another to make noise or play a musical instrument audible to an adjacent business or residence between 10:30 p.m. and 7 a.m.
Advertise or promote, or allow another to advertise or promote, the dwelling as a short-term rental if it is not licensed as such.

How to Apply

An Austin Finance Online (AFO) Account is required for anyone owning, operating, managing, controlling, or collecting payment for occupancy of a STR in Austin's full-purpose jurisdiction.

Short-term rental operating licensing packets can be submitted online, in person, or by mail. Partial applications will not be processed. Fees are non-refundable.

Fees

An operating license for a new STR is $779.14. This includes the $729 license fee, $47.30 notification fee, and $2.84 Development Services Department technology fee, which supports the City’s permitting system infrastructure. Fees are non-refundable.

If a STR operator received a notice of violation or citation for operating a short-term rental without a license under section 25-2-793 of the City Code, they must also pay an additional non-compliance fee.

View all STR-related fees on the Code Compliance Fee Schedule ^(PDF).

Apply Online

Gather Required Documentation

Copy of Certificate of Occupancy
Proof of property insurance found on the declaration, information, or summary pages of a policy
Copy of front of owner’s driver's license or state-issued identification
If the applicant is not the property owner, a completed, notarized Agent Authorization Form ^(PDF) is required. The form, which is completed by the property owner, must include all individuals who are authorized to act on the property owner's behalf regarding short-term rental licensing matters.

Submit Through Austin Finance Online

Complete the Austin Finance Online (AFO) application for your STR type. Visit the Types of STRs section to determine your type. Follow instructions in AFO, upload the required documents, and pay fees associated with the application process. Fees can be paid via credit card or e-check.

Email Driver’s License

Email a copy of the front of the owner’s driver’s license or state-issued identification to STRdocs@austintexas.gov. If the STR location is different than the address on your driver’s license or ID, please include the address for the STR in your email.

Processing and Approval

Once you have submitted your application and supporting documents, and paid the application fee, your license will be in our queue for processing.

Our current processing timeline is:

Type 1 licenses: 4 – 6 weeks
Type 2 licenses: 4 – 6 weeks
Type 3 licenses: 8 – 10 weeks

Incomplete Applications

Submitting applications with missing documents will delay the processing of your application. During the review of your application our team will email you to collect any missing documentation. Please email STRdocs@austintexas.gov with your updated documentation.
Make sure to include your STR property address in any emails you send us.
If you do not submit missing documentation by the deadline provided, your application may be canceled without a refund.

Approval

If your application is approved, your operating license and required postings will be sent to the email address on the application. If you need to update that email address, please email us at STRlicensing@austintexas.gov. STR licenses are valid for one year from the date of issuance. Visit the Renewing a STR License section to learn more.

Denial

If denied, you will be mailed a notice that includes information about your right to appeal.

Responsibilities and Hotel Occupancy Taxes

All short-term rentals operating in Austin must collect Hotel Occupancy Tax (HOT). As of April 1, 2025, STR booking platforms (e.g. AirBnB, VRBO, Expedia, Booking.com, etc.) must collect HOT on your behalf. You will still be required to complete quarterly reports.

Visit the STR Licensee/Operator Responsibilities section for more information on HOT and other responsibilities.

Apply in Person