Short-term rental regulations in Austin approved by city council

AUSTIN, Texas - Austin City Council has approved some changes to regulations on short-term rentals (STRs) like Airbnbs and Vrbos. 

However, they're delaying some changes from taking effect to see how other factors in the legislature and ongoing court cases play out.

Part of the change moves STRs from the land development code to the business code.

Short-term rental regulations approved

What they're saying:

"We are very dedicated to working through a better system of short-term rental regulation in this city," Mayor Kirk Watson said in the meeting. 

Council voted to push back the implementation day to Oct. 1, which is well after the legislative session. 

That will also give the city time to get software that better tracks STR licenses. 

Other parts of the proposal include requiring license numbers to be shown on rental platforms, not having more than one STR owned by the same person less than 1,000 feet apart, and requiring platforms to collect hotel occupancy tax. 

This is all in an attempt to help with affordability and enforcement. 

Mayor Pro Tem Vanessa Fuentes says there are about 10,000 unlicensed STRs in Austin. 

"Asking if they require licensure when people go in and set up their rental, asking for a local contact, things like that uphold greater enforcement to the platforms, those pieces will be considered at a later time," Fuentes said. "We have some dates later in the summertime where we'll retake up those items."

Collecting hotel occupancy taxes will go into effect sooner, on April 1, to give the platforms time to make the change. Fuentes wanted it in 10 days, but that motion did not pass.

"Every single day that we're not collecting those fees, that's thousands of dollars that we're missing out on," she said.

The tax goes towards things like local artists, cultural preservation, and building a new convention center.

The following changes will go into effect on Oct. 1, 2025:

• STRs will be primarily regulated through Title 4 of the City’s code pertaining to business regulations and permit requirements, instead of the Land Development Code.
• STRs will continue to be allowed in all residential areas, as long as the owner has a valid license.

The Austin City Council also adopted an ordinance requiring STR platforms to collect Hotel Occupancy Tax (HOT) on behalf of their users. This change will go into effect April 1, 2025.

Local perspective:

Many public commenters on Thursday expressed concerns about the number of STRs around them.

"These proposed regulations, in my view, do nothing to stem short-term rentals from taking over our neighborhoods," Austin resident Marisa Perales said. "Our concern is going to be turning our neighborhood from a gentrifying neighborhood into a hotel neighborhood."

Existing STRs can continue with their licenses provided they don't become a nuisance.