Austin Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Operator's License

This permit type does not require primary residence.

Application Process

Apply on form approved by director and pay fees ($836.30 new, $385.30 renewal). Must provide: certification of no outstanding code violations, contact info for operator and local contact, property address, self-certified safety checklist, platform names, proof of utility payment (for lessees), owner authorization. Notification sent to properties within 100 feet. Processing time: Type 1 & 2 (4-6 weeks), Type 3 (8-10 weeks). Operators can be tenants with landlord permission.

Tax Obligations

Combined rate: 15% of gross rental income.

Collection: Hotel owners, operators, managers, property management companies, and online travel platforms must collect and remit. Platforms must provide quarterly tax documentation to users. State filing through Webfile or TEXNET depending on volume.

Filing: Monthly (due 20th of following month) or quarterly if qualified

Rental Limits

Austin does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 consecutive days.

Occupancy & Density Limits

On a site with 3 or fewer housing units, an individual can operate up to 2 STRs. On sites with 4+ units and commercial use, the greater of 1 or 25% of units. On sites with 4+ units and no commercial use, the greater of 1 or 10%. If not renting entire unit, guest must have exclusive use of a bedroom and shared use of a full bathroom.

Zoning & Restrictions

STRs are permissible accessory uses across all residential zoning districts with valid licenses (as of February 2025). Individual operators may run up to 2 units at one location, plus additional properties at least 1,000 feet apart.

Insurance & Safety

Insurance

Austin does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Self-certified safety checklist required with application. Fire extinguisher locations must be provided to each guest. A habitable housing unit is required. Third-party inspection may be required if prior violations exist.

Penalties for Non-Compliance

Up to $500 fine per day for each violation. Each day the violation continues is a separate offense. Culpable mental state is not required. License may be revoked for nuisance, failure to comply with compliance plan, or failure of local contact to respond within 2 hours. Director can issue delist notices to platforms for unlicensed STRs.

Platform Requirements

Platforms must require users to include license number in advertisements. Platforms must delist unlicensed STRs within 10 days of director's delist notice. Platforms must provide tax documentation to users quarterly. Platforms may not accept fees for bookings of unlicensed STRs.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Austin:

1. Meet safety requirements. Self-certified safety checklist required with application. Fire extinguisher locations must be provided to each guest. A habitable housing unit is required. Third-party inspection may be required if prior violations exist.
2. Apply for Short-Term Rental Operator's License. Submit application + $836.30 fee.
3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
4. Display your permit number. Include your permit/license number in all listings and advertisements.
5. Collect and remit taxes. 15% on all bookings.
6. Renew every 2 years. $385.30 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Austin?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Austin requires a Short-Term Rental Operator's License.

How much does a short-term rental permit cost in Austin?

A Short-Term Rental Operator's License in Austin costs $836.30 per year. Renewal is $385.30 per year.

Does Austin require a short-term rental to be your primary residence?

No. Austin allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Austin?

Austin does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Austin?

Short-term rental stays in Austin are subject to a combined 15% in lodging taxes. This combines 6% Texas State Hotel Occupancy Tax + 9% City of Austin Hotel Occupancy Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Austin?

Operating without a permit can cost up to $500/day plus license revocation and 12-month ban for nuisance properties.