Austin Airbnb & STR Licensing Guide (2026)

Before You Apply

· Confirm your property is inside Austin city limits (not the ETJ).

· Check whether your HOA, condo association, or lease allows short-term rentals.

· Make sure the ownership information matches TCAD.

Permit Information

· New License: $836.30

· Renewal: $385.30

· License Term: 2 years

· Properties rented for fewer than 30 consecutive days generally require an Austin STR license unless they are in the ETJ.

Know Your Jurisdiction

· Full Purpose Austin: License required + Austin HOT applies.

· Limited Purpose Austin: License required, but Austin HOT does not apply.

· ETJ: No Austin STR license and no Austin HOT.

Tip: An Austin mailing address doesn’t necessarily mean the property is in Austin city limits.

Major Rule Changes

· Certificate of Occupancy is no longer required.

· Proof of insurance is no longer required for standard applications.

· Tenants may operate STRs with landlord permission.

· Booking platforms collect and remit Austin HOT, but operators must still file quarterly HOT reports.

· Unlicensed listings may be removed from booking platforms as City enforcement increases (was targeted for July 1,^, 2026 but they have extended this 6 months)

Ownership Rules

· Operators must own or lease the property.

· LLCs are allowed only if every member is an individual.

· Trusts are allowed only if every trustee and beneficiary is an individual.

The City looks through LLCs and trusts when applying ownership restrictions.

Common mistake: Creating multiple LLCs does not bypass the ownership or 1,000-foot rules.

Single-Family Restrictions

· Properties owned by the same individual must generally be at least 1,000 feet apart.

· Up to two STR units may operate on the same site.

Multifamily Restrictions

· Residential: Greater of one unit or 10% of units (example: if it’s a triplex, only 1 unit can be STR for the same owner)

· Mixed-use: Greater of one unit or 25% of units.

Hotel Occupancy Tax (HOT)

· Airbnb, Vrbo, Expedia, Booking.com and similar platforms collect & remit city & state HOT.

· You still need to file quarterly HOT reports.

· Austin HOT is 11%, separate from the 6% Texas HOT.

Other Important Notes

· STR licenses are property-specific and cannot be transferred.

· Application fees are non-refundable.

· Owners outside the Austin Metro Area must designate a local contact.

· HOA rules or deed restrictions may prohibit STRs even if the City approves a license.

Five Star VHR Opinions, Observations & Tips

· Expect a wait. Applications and renewals are currently taking about 3–4 months. If your application has been submitted, the City is generally not issuing citations while it's pending.

· Before renewing, confirm all of your quarterly HOT reports have been filed. Missing reports are one of the most common causes of delays.

· Match TCAD exactly. The owner listed on your application must match TCAD. For example, if TCAD lists ABC LLC as the owner, your application must also list ABC LLC.

· Don't forget your ID. Email a copy of your government-issued ID to strdocs@austintexas.gov and include your property address in the subject line.

Helpful Links

· City of Austin STR Program: https://www.austintexas.gov/development-services/short-term-rentals

· STR Application Portal: https://www.austintexas.gov/development-services/short-term-rentals

· TCAD Property Search: https://traviscad.org

Disclaimer: This guide was created by Five Star Vacation Home Rentals (Five Star VHR) to simplify Austin short-term rental licensing requirements. It summarizes publicly available information and practical experience helping homeowners navigate the Austin STR licensing process. Always verify current requirements with the City of Austin before submitting an application. This guide is for informational purposes only and is not legal or tax advice.

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