🎯 STRisker: Bulletin - Austin, TX
City Council Approves Tough New Rules Targeting Austin’s Illegal Short-Term Rentals
Austin Cracks Down on Rogue STRs: New Rules, Big Changes
Austin is drawing a line in the sand when it comes to short-term rentals — and this time, it’s serious. On September 12, the City Council approved a sweeping update to its short-term rental (STR) ordinance aimed squarely at unlicensed operators. After years of lawsuits, delays, and frustration, Austin officials say this new approach will finally give them the teeth to enforce licensing rules and rein in problem properties.
The biggest headline? Platforms like Airbnb and Vrbo will now be on the hook to police their own listings. Every Austin STR listing must display a valid city-issued license number, and the platforms must remove unlicensed properties if the city asks. Daniel Word from Austin’s Development Services Department says this move should help “bring platforms into the process” so the city can focus less on chasing illegal rentals and more on handling nuisance complaints like noise and parking.
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It’s a major shift from the city’s previous stance — and it’s badly needed. Austin currently has just over 2,400 licensed STRs, but AirDNA estimates nearly 15,000 listings in the metro area. Council Member Ryan Alter says part of the problem is the city’s $800 licensing fee and a slow application process. The council has now directed staff to come back with a simpler, cheaper licensing plan later this year.
The changes also loosen restrictions for homeowners with multiple units on one property. Starting October 1, owners of three homes on a single lot can rent out two as STRs, while properties with more than four units are capped at 25% STR usage. Renters can also now apply for licenses with landlord approval — a big win for Austinites trying to make ends meet.
For owners currently operating without a license, the clock is ticking: they have until July 2026 to get legal or risk removal from major booking sites. Austin also continues to collect its hotel occupancy tax directly from platforms, ensuring more revenue flows to city coffers.
In short, Austin’s new STR rules aim to close loopholes while still giving locals a shot at supplemental income. As Council Member Alter put it,
“It’s important we recognize that a lot of people use short-term rentals as supplemental income so they can afford to stay here.”
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