On February 27, 2024, the Austin City Council passed three major changes to short-term rental (STR) regulations. Here’s what you need to know:
STR Licensing Rules Will Be Removed from the Land Development Code (Effective 10/1/25)
The Council approved Item 39, which removes most existing STR licensing rules from Title 25-2 of the land development code (the part of city regulations that governs land use and zoning).
This means STR regulations will no longer be tied to zoning laws, but this change won’t take effect until October 1, 2025.
New STR Business Regulations Are Coming (Effective 10/1/25)
Item 40 was approved, creating a new business permitting process for STRs.
Key restrictions—such as a 1,000-ft distance requirement between STRs and a ban on LLC ownership—were removed before the final vote.
The city may revisit these restrictions after the Texas legislative session, depending on whether the state passes laws that limit Austin’s ability to regulate STRs.
STR Platforms Like Airbnb & Vrbo Will Be Required to Collect Hotel Taxes (Effective 4/1/25)
Item 41 shifts the responsibility for collecting and remitting Hotel Occupancy Taxes (HOT) from individual STR owners to platforms like Airbnb and Vrbo.
This change takes effect on April 1, 2025.
What This Means for Current STR Owners
If you already have an active STR license before these changes take effect, you will be grandfathered in and allowed to continue operating—as long as you maintain your permit and follow the city’s rules. This includes being a “good actor” by complying with regulations and avoiding violations.
These changes mean Austin’s STR regulations will be shifting in the coming years, with a clearer focus on business permitting rather than land-use restrictions. Stay tuned for more updates as the city refines its approach.
