Austin is putting a deadline on unlicensed short-term rentals. Starting July 1, 2026, the City will begin requesting that STR platforms remove any property that does not hold an active operating license. For hosts who have been operating without one, or who let a license lapse, the clock is running.
What Changed and When
The Austin City Council adopted a significant rewrite of its STR rules in February 2025, followed by a second round of operational changes that took effect in October 2025. Together, the two rounds touch nearly every part of running a short-term rental in the city, from who is allowed to host to how long a license lasts.
The headline change from February: STRs are now permitted as an accessory use in all residential zoning districts across the city, as long as the operator holds a valid license. That removes a major source of confusion about which neighborhoods were eligible. The catch is that the license requirement is now enforced more aggressively than ever.
The Numbers That Actually Matter
A new STR operating license costs $836.30 (an $789 license fee plus a $47.30 neighbor notification fee). If you are renewing, the fee drops to $385.30 ($338 renewal fee plus the same $47.30 notification fee). Licenses are now valid for two years from the date of issuance, a change from the previous one-year term that took effect in October 2025.
Two requirements that used to trip up applicants are gone. As of October 2025, a Certificate of Occupancy and proof of insurance are no longer required for new applicants or renewals. That should speed up the process for hosts who were stuck waiting on paperwork.
Tenants Can Now Host, With Conditions
One of the more consequential October 2025 changes: tenants may now operate STRs, provided they have their landlord's written permission. That opens the door for renters who want to list a spare room or sublet during travel, but it also means landlords need to be deliberate about what their leases allow.
On single-family sites, an individual may operate up to two STR units on a single site. Additional STRs are allowed elsewhere in the city, but they must be at least 1,000 feet apart. Multi-family and mixed-use properties have their own caps based on the share of units on site.
Taxes, Neighbors, and the Rules You Still Have to Follow
Austin's total short-term rental tax burden sits at 17%. As of April 1, 2025, platforms like Airbnb and VRBO collect and remit Hotel Occupancy Tax on behalf of hosts. But that does not get hosts off the hook entirely: operators must still file a quarterly HOT report with the City, even if there were zero rentals that quarter.
Neighbor notification is required within 100 feet of the property, and it happens at every renewal, not just when you first apply. Inside the rental, hosts must post an information packet in a conspicuous common area covering the local contact's name and phone number, noise restrictions, parking rules, the trash collection schedule, and other STR guidelines.
On noise: the rules prohibit sound exceeding 75 decibels at the property line between 10 a.m. and 10 p.m., and any audible sound beyond the property line between 10 p.m. and 10 a.m. Your local contact must live within the Austin metro area (Travis, Williamson, Hays, Bastrop, or Caldwell County) and be reachable within two hours of an emergency notification.
What Hosts Should Do Right Now
The City has signaled it is not waiting until July 2026 to act. Enforcement has been active, and the trend is increasing. Here is the short list of actions that matter most before the deadline hits:
- Check whether your license is active. If it is not, apply immediately. The City has said it will also be launching a new, easier-to-use application and license management tool, though a launch date has not been announced.
- If you are a tenant who wants to host, get written landlord permission before applying.
- Confirm your quarterly HOT filings are current, including zero-dollar reports for any quarter with no bookings.
- Make sure your in-unit information packet is posted and up to date.
- Remember that STR licenses are non-transferable. If a property changes ownership, the new owner must apply for a fresh license.
The July 1, 2026 platform-removal deadline is the sharpest enforcement tool Austin has deployed yet. A listing that disappears from Airbnb or VRBO is lost revenue that does not come back while paperwork is sorted. Getting licensed now is the only way to avoid that outcome.
For the complete Austin compliance guide including tax calculator, checklist, and daily monitoring, see Austin, TX STR Regulations.
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