Austin requires every short-term rental to hold a current operating license under City Code Chapter 25-2 Subchapter E. Applications go through Development Services, require proof of insurance, HOT tax account, and neighbor notification, with annual renewal and posted license number on every listing.
To register an STR in Austin, an operator must: (1) obtain a Certificate of Occupancy or prove existing residential use, (2) secure $1M liability insurance with STR endorsement, (3) register for Hotel Occupancy Tax with the Texas Comptroller and the City of Austin Financial Services, (4) submit floor plan and parking diagram, (5) notify all property owners within 200 feet by mail, and (6) pay the annual license fee (approximately $744 for 2026). Licenses are issued by type: Type 1 (owner-occupied), Type 2 (non-owner-occupied, limited zones), and Type 3 (multifamily/commercial). License numbers must appear in every listing on Airbnb, Vrbo, Booking.com, and others — platforms can remove non-compliant listings. Renewals require re-verification of insurance and HOT status. Operating without a license is a Class C misdemeanor with fines up to $2,000 per day and can trigger a two-year ban. Code Department cross-references platform listings against the license database to identify unlicensed operators.
Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact Austin code enforcement directly for current fines, enforcement procedures, and hearing options.
Austin, TX
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Austin, TX
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Austin, TX
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Austin, TX
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Austin, TX
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