Operating a short-term rental (STR) in Austin, Texas, requires compliance with city ordinances that have undergone significant changes in 2025 and 2026.
All STRs—residences rented for less than 30 consecutive days—must be licensed annually by Austin Development Services Code Compliance[citation:6].
This guide covers licensing requirements, fees, hotel occupancy tax obligations, local contact requirements, neighbor notification, and the new platform regulations taking effect July 1, 2026.
Recent regulatory changes (2025–2026)
In February 2025, the Austin City Council adopted changes making STRs an additional (accessory) use to all residential uses in all zoning districts as long as they have a valid operating license[citation:6].
In October 2025, additional changes took effect:
- All licenses are now valid for two years instead of one year
- A Certificate of Occupancy and proof of insurance are no longer required for new applicants or renewals
- Tenants may now operate STRs with the permission of their landlord
- Single-family sites: an individual may operate up to two STR units on a site and may operate additional STRs elsewhere, provided they are at least 1,000 feet apart
- Mixed-use sites with four or more residential units and at least one commercial use: an individual may operate the greater of one unit or 25% of their units
- Multi-family residential sites: an individual may operate the greater of one unit or 10% of their units
- The local contact must live in the Austin Metro Area (Travis County, Williamson County, Hays County, Bastrop County, or Caldwell County)
- STRs must respond promptly to complaints and fix repeated violations
- Notification to neighbors occurs at every renewal, instead of only when a new license is issued
Important July 1, 2026 deadline: The City of Austin will begin requesting removal of unlicensed properties from STR platforms.
If you do not have an active license, submit an application as soon as possible[citation:6].
Licensing fees
An operating license for a new STR is $836.30. This includes the $789 license fee and $47.30 notification fee.
Fees are non-refundable[citation:6]. View the complete fee schedule on the Code Compliance Fee Schedule (PDF).
How to apply for an STR license in Austin
STR operating licensing packets can be submitted online, in person, or by mail.
Partial applications will not be processed[citation:6].
Step 1: Gather required documentation
- Copy of the front of the owner's driver's license or government-issued identification
- Proof of tenancy, if applicable
- If the applicant is not the property owner: a completed, notarized Agent Authorization Form (PDF) completed by the property owner, including all individuals authorized to act on the property owner's behalf regarding STR licensing matters[citation:6]
Step 2: Submit through Austin Finance Online (AFO)
An Austin Finance Online (AFO) Account is required for anyone owning, operating, managing, controlling, or collecting payment for occupancy of an STR in Austin's full-purpose jurisdiction[citation:6].
Complete the AFO application for your STR type, upload the required documents, and pay fees via credit card or e-check.
Step 3: Email driver's license
Email a copy of the front of the owner's driver's license or government-issued identification to [email protected].
If the STR location is different from the address on your driver's license, include the STR address in your email[citation:6].
Step 4: Processing
Once you have submitted your application, supporting documents, and paid the application fee, your license will be in the queue for processing.
Applications are not complete until all documents have been submitted and the application fee paid.
Current processing timelines[citation:6]:
- Type 1 licenses: 6 to 8 weeks
- Type 2 licenses: 6 to 8 weeks
- Type 3 licenses: 8 to 10 weeks
Submitting applications with missing documents will delay processing. If you do not submit missing documentation by the deadline provided, your application may be canceled without a refund[citation:6].
Step 5: Approval
If approved, your operating license and required postings will be sent to the email address on the application.
STR licenses are valid for one year from the date of issuance. If denied, you will receive a notice including information about your right to appeal[citation:6].
Hotel Occupancy Tax (HOT) requirements
Every person owning, operating, managing, controlling, or collecting payment for occupancy in any hotel or short-term rental must collect Hotel Occupancy Tax from guests for the City of Austin[citation:6].
As of April 1, 2025, STR booking platforms (including Airbnb, VRBO, Expedia, Booking.com, etc.) are required to collect and remit HOT on behalf of STR owners.
However, STR owners are still required to file a quarterly report with the City of Austin noting the amount of HOT each platform collected and remitted on their behalf[citation:6].
For STR revenue generated from non-online platforms (direct bookings), STR owners must collect and remit HOT directly to the City of Austin quarterly.
You may pay online or call the City of Austin Financial Services at 512-974-2590.
Important: If there were no rentals during the reporting period, a zero report must be filed[citation:6].
Local contact requirements
A licensee/operator who does not live within the Austin Metro Area must identify an individual or individuals to serve as local contacts and respond to emergency situations[citation:6].
A local contact must:
- Be present within the Austin Metro Area (Travis County, Williamson County, Hays County, Bastrop County, or Caldwell County)
- Be available to respond within two hours after being notified of an emergency by an STR guest, City employee, or other individual referenced in section 4-23-33 of the City Code, during any 24-hour period
If there is a change related to a local contact, the licensee must provide updated information in writing within three business days by emailing [email protected][citation:6].
Neighbor notification
When a new operating license is issued or an existing license is renewed, the City of Austin will supply a notice of the contact information for the local contact to all properties within 100 feet of the short-term rental.
This is done at the licensee's or operator's expense upon issuance of an STR operating license as part of the licensing process[citation:6].
Information packet for renters
Under section 4-23-41(E) of the City Code, a licensee/operator must provide renters a copy of an information packet in a conspicuous common area of the STR that includes[citation:6]:
- Name and contact information of the local contact designated on the STR application
- Restrictions on noise applicable under section 25-2-794 of the City Code
- Parking restrictions
- Trash collection schedule
- Information on relevant burn bans and water restrictions
- Applicable requirements of the Americans with Disabilities Act
- Other guidelines and requirements applicable to short-term rental uses
Exceptions: Limited Purpose Jurisdiction and ETJ
Short-term rentals located in Austin's Limited Purpose Jurisdiction (LTD) are not subject to City of Austin Hotel Occupancy Tax but are required to obtain a license[citation:6].
Short-term rentals located in the Extra Territorial Jurisdiction (ETJ) do not need a license or pay local Hotel Occupancy Tax[citation:6].
Use the Jurisdiction Map to determine where your property is located.
Critical deadline: July 1, 2026, is a key date. Starting then, the City of Austin will begin requesting removal of unlicensed STR properties from booking platforms[citation:6].
If you are operating an unlicensed STR, submit your application immediately. Processing takes 6 to 10 weeks, so apply well before the deadline.