Short Term Rentals
Short Term Rentals in Austin often operate illegally. For about a decade, Austin has tried to regulate STRs without much success. Of the estimated 11,000 STRs in the city, less than 2,000 operate with a license. A few years ago, they tried to eliminate STRs that are rented and the owners don’t live at the property. That was found unconstitutional by the courts, but the city has yet to issue any new STRs licenses for these class 2 properties. It currently cost a non-refundable $734 to apply for a license. It then needs to be renewed each year at a current cost of $412. Plus, owners are required to collect and pay hotel taxes of 9% to the city. The big companies like airBnB and Vrbo do not require proof of license for owners to list a property. While there are certainly arguments on both sides as to whether STRs should be permitted, it is a contentious issue in Austin and I expect no resolution any time soon.