Short Term Rentals in Austin Are Hot
More and more homeowners are eager to cash in on Austin events. Keep in mind the city takes the permitting process seriously, so make sure you’re legal by getting licensed.
Even though the licensing deadline for headliner SXSW has passed, there’s plenty more going on all year long in the city that loves its festivals. Hundreds of thousands from all over the world descend on Austin each year to immerse themselves into a city that likes to keep things not only weird but jumping, be it through music, food, art, or sporting events.
It might take a bit of time for first-time renters to figure it all out, but the Code Department can help you get through the process quickly, offering help by phone and online.
The Process and Documents
You’ll need to get licensed through the Austin Code Department. It starts with filling out an application. There are three types of applications, simply named Type 1, Type 2, and Type 3. If you’re a homeowner, you’re going to be Type 1 (owner occupied) or Type 2 (non-owner occupied). If you own an apartment complex or condo or other multi-family property, you’re Type 3.
There are caps on Type 2 and 3 applications. It’s based on the census tracts for the city. The Code Department has a link on their site to help you determine your census track number you’ll need for the application. The page also lists the number of licenses available.
Licensing works on an annual basis, with renewals each year. The first year it’s $285, which includes a one-time $50 notification fee. Why so steep? It helps the city pay for the cost of letting your neighbors know you’re licensed, which is required by ordinance.
Other documents you’ll have to provide:
- Proof of property insurance.
- Proof that you’ve paid the Hotel Occupancy Tax. It’s 9% and reports must be filed quarterly, even those months when you’re not renting. Yes, as a short-term renter, you’re considered a hotel, which the city defines as “any building or buildings in which the public may obtain sleeping accommodations for a cost of 2 dollars or more each day for a consecutive duration of 30 days or less.” However, there are exceptions based on whether your property is located in a “full purpose” or “limited purpose jurisdiction.” A call to the city and a web link can help you determine that.
- A Certificate of Occupancy (CO) or proof that you’ve had a certified inspection. You can get the CO from the Building Inspections Division. There’s no cost. If you have a certified inspection done, you’ll need to schedule that with a professional inspector recognized by the Texas Real Estate Commission. Again, the Codes Department can help you with that process.
It takes about 3-5 business days for an application to be processed and approved. You can download the application at https://austintexas.gov/str You can also schedule an appointment with a Code Department staff person.
Your license will arrive by mail. Make sure you have all requested documentation or it will slow the process.
By the way, if you’re thinking of selling your property, the Short Term Rental license is not transferable in a property sale or transfer.
Online Resources for Short Term Rental in Austin
You can download an application and a licensing checklist online, get FAQs, requirements, other helpful information, and follow the most recent Short Term Rental social media chatter:
https://austintexas.gov/sites/default/files/files/Code_Compliance/STRs/STR_FAQ_Packet_2-20-2015.pdf
https://www.austintexas.gov/sites/default/files/files/Code_Compliance/STRs/HOT_flyer.pdf
https://austintexas.gov/department/financial-services/faq
www.ffiec.gov/Geocode/default.aspx
Search Twitter: #ATXSTR
Advertising Your Short Term Rental in Austin
A quick Google search of “short term rentals in Austin” will turn up places where you can list your rental and post descriptions and photos. To save you some time, here are some places to start:
https://www.airbnb.com/s/Austin--TX
https://www.homeaway.com/vacation-rentals/texas/austin/r7116
https://www.roomorama.com/short-term-rentals/austin/
