🎯STRisker: Bulletin - Austin, TX

A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.

Austin Council Votes for STR Regulation Changes Amid Ongoing Concerns

The Austin City Council has taken steps to update its short-term rental (STR) regulations, but there are delays before some of the changes take full effect.

In a recent meeting, the council moved to shift STRs from the land development code to the business code which will allow for clearer regulation. However, they are holding off on some measures until further legal factors and legislative developments unfold.

Mayor Kirk Watson and Mayor Pro Tem Vanessa Fuentes stressed that the city is committed to finding a more effective way to regulate STRs. Fuentes noted that there are about 10,000 unlicensed STRs in Austin.

One of the key changes that will take place sooner is the requirement for STR platforms to begin collecting the Hotel Occupancy Tax (HOT), set to take effect on April 1, 2025. The collected tax will support projects such as local arts and cultural initiatives, as well as the construction of a new convention center.

Residents including local activist Marisa Perales raised concerns that the regulations don’t go far enough to prevent STRs from affecting the fabric of local neighborhoods.

Perales argued that these changes won’t stop STRs from transforming their neighborhood into a more hotel-like environment. While these concerns were acknowledged, council members moved to approve other measures including limits on how close multiple STRs can be and requirements for license numbers to be visible on rental platforms.

The city has also decided to push the full implementation of the new rules to October 1, 2025, allowing time for software development and legislative adjustments. Until then, the city will continue to monitor the impact of these changes on both neighborhoods and businesses.

Read more about the proposed changes here.