Non-owner occupied short-term rentals (STRs) in Austin, Texas, known as Type 2 STRs, are subject to specific regulations as of February 2025:Licensing:

• Type 2 STRs require an annual operating license from the city1.
• A federal judge recently struck down part of Austin's STR law, allowing Type 2 licenses in residential areas for properties owned before the 2016 ordinance1.
• The city is updating its online application process for Type 2 licenses in residential zones1.

Location Restrictions:

• Type 2 STRs are typically found in commercial areas1.
• Recent legal changes may allow some Type 2 STRs in residential areas, subject to specific conditions1.

Operational Requirements:

• Operators must provide proof of property insurance2.
• A local contact's name, address, and phone number must be provided2.
• Compliance with occupancy limits, noise restrictions, and parking regulations is mandatory2.
• Operators must follow trash collection schedules and water restrictions2.
• An information package must be posted in the common area of each STR unit2.

Taxes:

• Austin collects a hotel occupancy tax of 11% on STRs2.
• The city is considering new rules to require rental platforms to collect hotel occupancy taxes7.

Upcoming Changes:

• The city is proposing an overhaul of STR regulations to achieve better compliance with licensing requirements and increase tax collection3.
• Public hearings are scheduled for February 2025 to discuss proposed code amendments4.
• New policies may reshape Austin neighborhoods and add regulations for STR owners78.

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