Austin City Counsel approves new short-term rental regulations

The Austin City Council has recently adopted several updates that affect how short-term rentals are licensed, operated, and enforced in the City of Austin. While short-term rentals remain legal, the City is placing greater emphasis on compliance and transparency. For property owners, this means it is more important than ever to understand the current rules and ensure your rental is properly licensed and up to date to avoid penalties or disruptions to your business.

STR Operating License Requirements

All short-term rental operators in Austin must hold a valid STR operating license before advertising or renting a property for stays of less than 30 consecutive days. Licenses are issued by the City’s Development Services Department and are specific to the property being rented. In other words, the license is tied to the address — not just the owner. The purpose of the license is to confirm that you are authorized to operate and that your property meets the City’s requirements for tax reporting, safety information, and neighborhood notification.

As of October 1, 2025, one of the most helpful updates for owners is that STR licenses are now valid for two years instead of one. This reduces the frequency of renewals and administrative paperwork for compliant operators. Owners can apply for or renew a license online through Austin Finance Online (AFO), as well as in person or by mail. If you have questions during the process, the City’s STR Licensing team can be reached at STRLicensing@austintexas.gov or by phone at 512-974-9144.

STR License Number & Upcoming Enforcement Changes

Beginning July 1, 2026, additional enforcement measures will take effect. Booking platforms such as Airbnb and Vrbo will be required to display a valid Austin STR license number on all listings and remove unlicensed properties when directed by the City. This change will make it significantly more difficult to operate without proper authorization. For owners, the takeaway is simple: maintaining an active license and ensuring your license number is correctly displayed on your listings will be essential as enforcement becomes more structured and technology-driven.