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
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.
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:
Interested in finding out more information about purchasing a home to use as a short term rental in the Austin area? Contact me for details.
*****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 4/28/2022
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