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.
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 by the City of Austin to obtain an operating license and renew annually. Swipe left on the table below to view all 3 Short-Term Rental types when viewing this on a mobile device. If someone other than the owner will be managing a property, download the Agent Authorization Form (PDF 280KB).
Type 1Owner-Occupied (single-family, multifamily or duplex) |
Type 2*Not Owner-Occupied (single-family or duplex) |
Type 3Either Owner-Occupied or Not Owner-Occupied (multifamily, not a duplex) |
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Type 1 Definition:Are owner-occupied or associated with an owner-occupied principal residence Include the rental of an entire dwelling unit OR If only part of the unit, include at a minimum a sleeping room (with shared full bathroom), is limited to a single party of individuals, and the owner is generally present during the rental |
Type 2 Definition:Are not owner-occupied or associated with an owner-occupied principal residence Are single-family or duplex properties Include rental of an entire dwelling unit |
Type 3 Definition:Are either owner-occupied or not owner-occupied Are part of a multifamily use (apartments, condos, etc.) property Include the rental of an |
Type 1 Rules:Owners must provide documentation that the property is owner-occupied or is associated with an owner-occupied principal residential unit. Ownership information on your application must match the deed as recorded with the Travis County Clerk's office or Williamson County Clerk's office. |
Type 2 Rules:Ownership information on your application must match the deed as recorded with the Travis County Clerk's office or Williamson County Clerk's office. |
Type 3 Rules:Owners must provide documentation of the total number of buildings on the property and the number of units per building. Owners must comply with applicable geographic caps. Contact us for more information. Ownership information on your application must match the deed as recorded with the Travis County Clerk's office or Williamson County Clerk's office. |
Type 1 Application Form:Type 1 Application Form (PDF 715KB) Annual Renewal Required (download .pdf application) |
Type 2 Application Forms:Type 2 Residential Application Form (PDF 415KB) *Residential Type 2 licenses are not allowed in an Extra-Territorial Jurisdiction (ETJ) area Type 2 Commercial Application Form (PDF 281KB) *Commercial licenses are only allowed in the following commercial zoning districts: Central Business District (CBD) Downtown Mixed Use (DMU) Planned Unit Development (PUD) General-Retail - Mixed Use (GR-MU) Commercial Services - Mixed Use (CS-MU) Commercial Services - Vertical Mixed Use (CS-V) General Retail - Vertical Mixed Use (GR-V) Annual Renewal Required (download relevant .pdf application) |
Type 3 Application Form:Type 3 Application Form (PDF 794KB) Annual Renewal Required (download .pdf application) |
Return to the Short-Term Rental Licensing homepage to apply for a Short-Term Rental license.
Background:
In August 2012, the Austin City Council passed an ordinance requiring a license to operate a STR (single-family and two-family properties). The ordinance was amended in September 2013 and then again in February 2016.