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Thinking about buying a Short Term Rental in the Austin Area?  Here's Your Complete Breakdown on the Rules and Regulations for Operating a Vacation Rental in Central Texas

7/2/2021

49 Comments

 
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Austin and the surrounding areas are booming right now and more and more people are coming to visit each day to get a little piece of this amazing city. Perhaps you are one of these people and you decided you like Austin so much you want to buy a home here that you can use from time to time and then rent out while you're not here.  That's a great plan, but in order to make your dream a reality, you need a thorough understanding of the rules and regulations regarding short term rentals (STRs).  They vary immensely throughout central Texas, and the success or legality of your investment property rests on understanding these various rules. 

No matter where you are looking to purchase, it's important to understand that STRs are generally classified as rentals less than 30 days.  If you are planning to rent your home out monthly or for even longer durations there are far less rules.  If you are planning to use your property as a vacation rental where guests stay for a few days or weeks, this post is for you!

Texas leaves short term rental oversight to the local government.  Thus, STR rules, regulations or ordinances are predominantly created by local municipalities.  If a property is located in an unincorporated area or an extraterritorial jurisdiction, it's highly unlikely that there will be municipal regulations since there is no city that has the authority to regulate the area.

Within the city limits of Austin, the regulations regarding short term rentals are pretty strict.  They have a comprehensive permitting process and caps on the number of short term rentals allowed.  In fact, in the City of Austin, it's almost impossible to get a permit to operate a short term rental for a single family home if it's not your primary residence.

However, a plethora of nearby Austin suburbs have no STR rules at all, and there are unincorporated areas that aren't subject to any municipal oversight!  Dive into the list below to know what the regulations are like throughout central Texas.

Austin: 
  • the City of Austin breaks down short term rentals into three types, to learn all about these classifications, check out this previous post
  • STR Type 1  permits can be issued for single family homes where the owner has a homestead exemption on the subject property. These permits are used when you live in the home, and want to rent out the entire home from time to time, OR if you only want to rent out part of the home ie. a room or guest house on the property.
  • no permits are being issued for STRs for single family, investor-owned homes (Type 2) EXCEPT in the following zoning districts: Central Business District (CBD), Downtown Mixed Use (DMU), Planned Unit Development (PUD), General-Retail - Mixed Use (GR-MU), Commercial Services - Mixed Use (CS-MU), Commercial Services - Vertical Mixed Use (CS-V), General Retail - Vertical Mixed Use (GR-V) BUT you must be 1,000 feet from another Type 2
  • STR permits are being issued for Type 3, multifamily properties i.e. condos. There are caps on the number of STRs allowed in each condo building. If the condo is located in a residentially zoned area the maximum number of units that can have a Type 3 permit is 3% of the total units in the condo building. For condos located in commercially zoned areas, the max number of STR permits is 25% of total units.
  • ​Link to more info on COA regulations

Bee Cave:
  • no restrictions on STRs

Boerne:
  • Permit required for properties in the city limits and Boerne ETJ
  • Link to full ordinance

Buda:
  • permit required
  • ​must demonstrate to the satisfaction of the Director of Planning that the unit and property do not have any outstanding issues related to taxes or building, electrical, plumbing, fire, health, housing, police, planning, noise, or code enforcement provisions
  • must provide proof of insurance and payment of hotel occupancy tax annually
  • ​Full details on page 51 of Buda’s Unified Development Code

Cedar Park:
  • no restrictions on STRs

Dripping Springs:
  • no restrictions on STRs

Driftwood:
  • Driftwood is an unincorporated area, thus there are no restrictions on STRs

Fredericksburg:
  • permit required
  • STR's allowed in some zoning districts but not all, short term rental use is based on property zoning and type of STR i.e owner occupied, non-owner occupied, accessory building, etc. link to zoning map
  • Properties that received a STR Permit prior to April 1, 2022 are considered “Legal Non-Conforming” uses and allowed to operate conditioned upon conformity with Section 5.401 and Section 6.110, Continuance of a Nonconforming Use
  • Generally, permits may be transfered to new owners, a new owner must submit a transfer of permit application
  • Click here to view the UPDATED complete STR ordinance

Georgetown:
  • no restrictions on STRs

Horseshoe Bay:
  • No regulations yet, but a short term rental ordinance was discussed at the council meeting in November 2022
  • no restrictions on STRs within Horseshoe Bay Property Owners’ Association
  • some properties are in additional HOAs and those may restrict STR use

Johnson City:
  • permits required for properties located in the city limits or ETJ
  • Link to complete ordinance

Jonestown:
  • ​STRs are only permitted in the STR Overlay District
  • events are not permitted on site
  • residence may not house more than 15 people at a time
  • Link to more details

Kyle:
  • no restrictions on STRs

Lago Vista:
  • must apply for an STR permit if the property is located in any of the following zoning districts: R-1, R-O, RR-A, R-2
  • link to zoning map
  • STRs must have two parking spots per dwelling, no street parking
  • Link to more details

Lakeway:
  • maximum of 25 single family homes can be used as STRs
  • currently, there is a 2 year waiting list to get a permit
  • there's no limit for permits for condos
  • Link to STR map

Leander:
  • According to city officials, vacation rentals are currently classified as hotels within the City of Leander. You will need to ensure that you have the correct zoning (General Commercial) before operating a vacation rental. Because these are considered a commercial business, the rental would be subject to commercial building standards and permits.
  • The City of Leander constitutes a short term rental as anything less than 6 months.
  • Leander is generally unfriendly towards STRs.

Lockhart:
  • STR registration required for all properties located in a residential zoning district
  • No more than 2 adults per bedroom permitted
  • Link to full Lockhart STR ordinance

Marble Falls:
  • In January of 2021, Marble Falls adopted a short term rental ordinance. This ordinance requires all STR operators to obtain a permit from the city in order to operate as a vacation rental. In order to obtain a permit, owners must demonstrate proof of liability insurance, document payment of hotel occupancy tax, and pass a life safety inspection among other requirements.
  • The complete rules can be found here

New Braunfels:
  • short term rentals are not allowed in any residential zoning districts
  • ​a special use permit must be obtained for all properties located in non-residential zoning districts, except those located in the following zoning districts: C-4, C-4A, and C-4B
  • short-term rentals are not allowed in the floodway
  • annual life safety inspections are required
  • ​maximum occupancy of two adults per sleeping area, plus an additional two occupants
  • ​a minimum of one off-street parking space, not including the garage, must be provided per sleeping area
  • Link to complete ordinance

Pflugerville:
  • no regulations, but lots of HOAS with rules regarding STRs​

Point Venture:
  • STRS permitted in most sections except they're not allowed in Section 3-1
  • permit is required
  • owners must provide guests with important operation information such as emergency contacts, location of water shut off, parking requirements, trash collection, etc.
  • view the complete STR ordinance for Point Venture

Rollingwood:
  • STRs prohibited
  • no rentals less than 30 days

Round Rock:
  • no restrictions on STRs

San Marcos:
  • Home Share Rental Registration required
  • ​Proof that the premises is the primary residence of the applicant, including at least two of the following: motor vehicle registration, driver's license, Texas State Identification card, voter registration, tax documents, or utility bill
  • Only permits one STR/owner in city limits
  • Occupancy limits
  • Required safety features
  • Link to more details

Sunrise Beach:
  • not permitted

Sunset Valley:
  • permit required
  • no limitations based on owner-occupancy
  • Link to full Sunset Valley Short Term Rental Requirements

Spicewood:
  • no restrictions on STRs​

The Hills:
  • no restrictions on STRs​
  • There are extensive HOA rules you must follow.  Link to more details.

Volente:
  • must apply for a short term rental conditional use permit
  • maximum number of guests is 2 people, over the age of 16, per bedroom +3
  • $150 permit fee, permit is non-transferable with a sale
  • Village of Volente short term rental ordinance

Westlake Hills:
  • The following criteria pertains to properties zoned R-1, R-2, and R-3
  • ​only a homestead owner may apply for a short-term rental special use permit, but may do so for the homestead or another property owned by the homestead owner
  • only one permit will be issued per homestead, regardless of whether the permit is for the homestead or another property owned by the homestead owner
  • essentially you must own a primary residence in Westlake in order to get an STR permit, but if you own two homes in Westlake, you can get a permit for the one you don't live in
  • a guesthouse can not be used as a short term rental
  • Link to more details and link to Westlake Hills STR map

Wimberly:
To obtain a permit to operate a bed & breakfast or vacation rental, an applicant must go through the Conditional Use Permit (CUP) process and receive an approved permit.
The CUP process includes:
  • complete Application
  • application Fee (non-refundable)
  • the city notifies those within 200’ of your application, publishes in the local newspaper and posts a sign on the subject tract
  • Planning & Zoning hearing for recommendation and City Council hearing for ultimate decision
Per state & local statute, if 20% of property owners within 200' oppose the application a super majority vote of the City Council (4 out of 5)  is required for CUP approval.



​*****We do our best to provide accurate information; however, these rules and regulations are constantly evolving.  Make sure to confirm current rules with the local governing bodies. This post was last updated on 12/5/2022



Interested in purchasing a property to use as a short term rental in the Austin area?

We can help you navigate the various rules and regulations, identify options that will make the most sense for your unique situation and guide you in determining which properties will yield the highest returns. 

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49 Comments
Deepak Sridhar
1/16/2022 08:45:35 pm

How about Del Valle? Does it have the same rules as Austin?

Reply
Erika Rae Albert
1/17/2022 11:42:29 am

Hi Deepak,

Del Valle doesn't have any rules, just make sure it's not in the City of Austin as some areas that most consider Del Valle are technically in the city limits of Austin.

Reply
James K
1/21/2022 01:19:15 am

Great summary. Any info on dripping springs?

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Erika Rae Albert
1/21/2022 09:41:09 am

Dripping Springs is STR friendly! Feel free to reach out to me if you'd like some good options that are available for sale.

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Tom
11/13/2022 03:42:03 am

I’d be interested in good options in dripping springs available for sale.

Erika Rae Albert
11/13/2022 10:42:26 am

Hey Tom, I know of lots of great options feel free to send me an email and we can chat more. erika@shesellsaustin.com

Deepak Sridhar
1/21/2022 10:23:31 am

I echo James. Great resource Erika! Thanks much for compiling this

Reply
Erika Rae Albert
1/21/2022 10:29:55 am

You're welcome!

Reply
Renee Bennette link
2/1/2022 04:38:13 pm

They have a comprehensive permitting process and caps on the number of short term rentals allowed. Thank you for making this such an awesome post!

Reply
Erika Rae Albert
2/1/2022 05:24:41 pm

Happy to be of assistance!

Reply
Van Hanson link
2/14/2022 12:27:09 pm

If you are planning to rent your home out monthly or for even longer durations there are far less municipal rules. Thank you, amazing post!

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Landon Jensen link
3/4/2022 09:46:51 am

If you are planning to rent your home out monthly or for even longer durations there are far less rules. Thank you for the beautiful post!

Reply
Delores Adams link
3/8/2022 02:50:59 pm

In order to obtain a permit, owners must demonstrate proof of liability insurance, document payment of hotel occupancy tax, Thank you for making this such an awesome post!

Reply
Jeremy Azancot
3/12/2022 09:12:45 am

Incredibly useful! For type 3 permits in the city of Austin, are there only caps per condo building or do they also limit the number of permits they give out per zip code as well?

Reply
José Becerra
3/24/2022 02:31:52 pm

Very informative post. Our son attends UT. My wife and I go often to Austin (along with our daughters) and we were contacting different properties for lease asking if they would allow the property to be placed on Airbnb on the days we weren’t in town. Now I know why all said they couldn’t get approved. I appreciate the information.

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Emily Santana
4/1/2022 04:10:57 am

Is there a way to see what municipality a specific address is located within?

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Victoria Addington link
4/6/2022 03:04:01 am

I was captivated when you discussed the importance of knowing the rules and regulations concerning short-term rentals. My friend is looking for retail spaces for rent. He is planning to open a retail store, so he wants a good space with many prospective buyers.

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Ian
5/3/2022 10:14:59 am

How about Pflugerville

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Erika Rae Albert
5/3/2022 02:59:52 pm

No regulations, but a lot of Pfluggerville is in HOA which have rules prohibiting STRS

Reply
Chris
6/5/2022 03:35:22 pm

I’ve read that you don’t need short term rental permits in areas designated as Austin ETJ, do you know if this is true? Also, any idea if they are needed in Austin LTD areas?

Reply
Erika Rae Albert
6/5/2022 07:31:11 pm

Permits are required for those in the Austin LTD, the ETJ does not require a permit. Reach out if you'd like some recommendations for some good options in the ETJ

Reply
Austin Parker
10/11/2022 12:58:51 pm

Curious on the regulations for Austin ETJ. Looking for a property for STR in/near Austin dntwn.

AJ
6/7/2022 06:16:57 am

Hi there!
Amazing post!
What about Manor?
Also, where are the unincorporated areas or ETJs inside austin?
Thank you!
AJ

Reply
Erika
6/7/2022 08:12:20 am

Hi AJ,

I don't think Manor has any but I'd like to confirm that. Happy to share more details on unincorporated areas/ETJ just call/text 512-779-7597

Reply
Leigh Hearn
7/22/2022 07:06:03 pm

Hi Erica. Great article. Our investment property is in Manchaca but in Travis county. Would we need any permits . Also it is a .5 acre lot so could we build more units on the property. It’s in Onion Creek Meadows. It’s a ETJ area

Reply
Erika Rae Albert
7/23/2022 09:19:58 am

Hi Leigh,

Email me your address and I'll dig into it for you.

Reply
Joe
3/1/2023 12:46:28 am

I'm in the exact same situation (same neighborhood and everything). Would you mind sharing with me what you found?

Erika Rae Albert
3/1/2023 08:21:18 am

Hey Joe, shoot me an e-mail erika@shesellsaustin.com

Jackie Moses
7/24/2022 05:15:53 pm

I'm getting mixed information for Leander. Is a permit required for homesharing & is there a minimum or maximum amout of time that is allowed to stay? Thanks

Reply
Erika
7/24/2022 06:30:36 pm

Hi Jackie,

I understand your frustration. Leander City staff told me that STRS are not allowed unless a property is zoned commercial. In fact they said rentals less than 6 months are considered short term. However, no one could show me where this is stated in the city code of ordinances.

Reply
Jackie
7/26/2022 03:21:25 pm

That's good to know. They told me the same thing and yet there a several Airbnb or STRs that are up and running without any problems. My HOA shows STRs for 6 months but nothing states about homesharing so i will let that lie right there. Thanks for great information!

Greg
7/26/2022 01:56:50 pm

Hi Erika,

Wow. What a great site. Thank you so much for all the information. Any light you could shed on 13201 Brahmin Drive Austin, TX 78724. After all of the reading - I’m still not sure if an STR license is required? In Travis Co. - but outside the Austin City Limits. Any thoughts welcomed when you have time. Thank you so much!!!

Reply
Erika Rae Albert
7/26/2022 02:06:57 pm

Hi Greg,

That one in the ETJ so you don't need to worry about municipal regulations. Make sure to check the HOA rules.

Reply
Sam
8/1/2022 03:55:13 pm

Hi Erika,

I recently purchased a property as an STR in the Austin 5 Mile ETJ. Is this one of the jurisdictions that does not require an STR permit from the City of Austin that you've described above?

Reply
Erika Albert, Broker E-Rae Realty
8/1/2022 05:22:54 pm

Hi Sam, you're in luck. Homes in the ETJ do NOT require City of Austin permits.

Reply
Sam
8/1/2022 06:30:11 pm

Great to hear! Are there any other permits that might be required by Travis County or the State of Texas for STR in Austin?

Raj
8/22/2022 08:21:40 pm

Erika,
Thank you great info.
My property is in LTD zoning, if I rent out using Airbnb for more than 30 days do I need any permits? Thank you.

Reply
Erika
8/22/2022 08:44:54 pm

Homes in the LTD do require a permit from the City of Austin.

Reply
Raj
8/22/2022 10:15:47 pm

Even if you do long term rentals ( 30 days or more) using Airbnb. City website say long term rental doesn’t require permits. I’m so confused. Thank you for all your help.

Erika Rae Albert
8/23/2022 10:12:47 am

Anything over 30 days is not considered a STR so you would not need a permit.

Theresa Bunnz
9/17/2022 07:05:17 pm

How can you find out if a short term rental is licensed in Austin?

Reply
Erika Rae Albert
9/19/2022 08:17:51 am

Hi Theresa,

You can use the city of Austin's permit search tool to look this up by entering the address of the property.

Reply
Ryan
11/27/2022 03:23:46 pm

Hey Erika! Great post and thank you for putting this together. Where can I find where in austin is the EJT area? I can’t seem to find this.

Reply
Erika Rae Albert
11/28/2022 10:00:21 am

Hey Ryan, send me an email or give me a call and I'll show you how! erika@shesellsaustin.com or 512-779-7597

Reply
Greg
2/7/2023 03:41:23 pm

Hi Erika,

Thank you so much for all the information. I have asked you questions before and greatly appreciate your replies. Any light you could shed on 11519 Fast Horse Drive Austin, TX 78759? Still not sure - is this in the ETJ? Any thoughts welcomed when you have time. Thank you so much!!!

Reply
Erika Rae Albert
2/7/2023 08:18:14 pm

This one is in full purpose City of Austin. Let me know if you need help finding one in the ETJ

Reply
Greg
2/7/2023 09:02:25 pm

Thanks Erika. Do you know - is Austin currently enforcing its short term rental regulations?

Erika Rae Albert
2/8/2023 08:07:28 am

Give me a ring to discuss more 512-779-7597

Leland Worley link
2/24/2023 12:56:59 pm

They vary immensely throughout central Texas, and the success or legality of your investment property rests on understanding these various rules. Thank you for the beautiful post!

Reply



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