Austin Seeks Public Input on Proposed Short-Term Rental Regulation Changes

Over the next few months, Austin wants to hear from people about changes they want to make to its short-term rental (STR) rules. A court decision in 2023 said that parts of the city's STR ordinance were unconstitutional. The changes are meant to fix problems with enforcement.

The decision came after a lawsuit from a couple in Houston who said that Austin's rule unfairly stopped them from listing their home without living there. The city had to change its rules after a judge agreed with the couple.

STRs would be moved from the Land Development Code to the business code as part of the planned changes. This would make STRs an acceptable accessory use in all zoning districts. With this change, the city will be able to streamline its control and better follow through on its rules.

Some important changes are:

• STR operators with properties of three units or less must be people.
• Requiring at least 1,000 feet of space between STRs that belong to the same operator.
• Make sure that platforms collect Hotel Occupancy Tax (HOT) and take off the lists of properties that aren't approved.

Assistant Director of Development Services Daniel Word said that existing STRs with current permits—that's about 2,200 properties—will be able to keep going under the new rules as long as they follow the new rules and the ownership stays the same.

In February, there will be public meetings, and in January, there will be information sessions to get people's thoughts. A Zoom meeting on January 21 and a meeting in person at the Austin Central Library on January 27 are two events that stand out.

As part of its work to find a balance between economic opportunities for STR operators, concerns about the neighborhood, and following the rules, the city wants to make these changes. People in Austin will get mail-in letters about the changes that are being considered.

Officials want to set up a system that meets the needs of Austin's growing STR market while also making people more accountable and upholding community standards.

‍