Austin STR Rules: What Hosts Need to Know (2025)

Austin's short-term rental regulations continue to evolve. Here's everything property owners need to know about staying compliant in 2025.

License Types Explained

Type 1: Owner-Occupied

• Requirement: Property owner must live on-site
• Limit: Maximum 2 guests per bedroom + 2 additional
• Fee: $285 annually
• Good for: Homeowners renting spare rooms or ADUs

Type 2: Non-Owner-Occupied

• Requirement: Property owner does not live on-site
• Limit: Must be outside central core area or grandfathered
• Fee: $1,520 annually
• Good for: Investment properties in allowed zones

Type 3: Commercial

• Requirement: Multi-unit buildings with 5+ units
• Limit: Complex regulations vary by location
• Fee: $3,040 annually
• Good for: Apartment complexes and commercial buildings

Application Requirements

All STR licenses require:

1. Property Registration: Detailed property information and photos
2. Safety Compliance: Smoke detectors, carbon monoxide detectors, fire extinguisher
3. Parking Plan: Designated off-street parking arrangement
4. Good Neighbor Agreement: Written plan for addressing neighbor concerns
5. Insurance: Proof of liability coverage (minimum $1M recommended)

Zoning Restrictions

Central Core Area

• Type 2 STRs prohibited (with grandfather exceptions)
• Increased enforcement and penalties
• Focus on preserving residential character

Neighborhood Planning Areas

• Some NPAs have additional restrictions
• Check specific area regulations before applying
• Community input heavily weighted

Compliance Tips

For Current Hosts

• Renew licenses before expiration dates
• Maintain required safety equipment
• Respond promptly to neighbor complaints
• Keep detailed records of guests and incidents

For New Hosts

• Verify zoning eligibility before investing
• Budget for application fees and safety upgrades
• Consider professional management for compliance support
• Build good neighbor relationships early

2025 Updates

Recent changes include:

• Streamlined online application process
• Enhanced penalty structure for violations
• New noise monitoring requirements in some areas
• Increased focus on affordable housing preservation

Getting Help

STR regulations can be complex. Consider working with:

• Attorneys: For legal compliance questions
• Professional Managers: For ongoing compliance support
• City Resources: Development Services Department guidance

Need help navigating Austin's STR rules? Our team stays current on all regulations and can guide you through the compliance process. Contact us for personalized assistance.