Airbnb Laws and Regulations in Austin: What Every Host Needs to Know

June 3, 2025

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Thinking about listing your property on Airbnb in Austin? Before you welcome your first guest, it's crucial to understand the city's evolving rules around short-term rentals. From licensing and zoning to occupancy limits and enforcement, the landscape can be tricky to navigate—especially if you're managing your listing alone.

As a full-service Airbnb property manager in Austin, we’ve helped countless property owners stay compliant, profitable, and stress-free. Here’s what you need to know to stay on the right side of the law—and how a trusted Austin Airbnb cohost can make hosting easier and more secure.

🏡 What Counts as a Short-Term Rental in Austin?

According to the City of Austin, a short-term rental (STR) is any residential property rented for less than 30 consecutive days. These are most often listed on platforms like Airbnb, Vrbo, and Booking.com.

📋 Austin’s Three STR License Types

If you're operating an Airbnb in Austin, you’re legally required to obtain a short-term rental license. There are three main types:

Type 1 (Owner-Occupied):
You live in the property and rent out a room or your entire home occasionally.
✅ Allowed in most residential zones.
Type 2 (Non-Owner-Occupied):
Investment property not used as a primary residence.
❌ Heavily restricted—banned in most single-family zones.
✅ Only allowed in commercial and multifamily zones with limited permits.
Type 3 (Multifamily):
Units in apartment buildings, often capped by building management.
✅ Requires property owner or manager approval.

If you’re unsure where your property falls, a local Airbnb cohost in Austin can help you identify your category and guide you through the licensing process.

🛑 What Happens If You Operate Without a License?

Operating an Airbnb in Austin without the proper license is a violation of city code. You could face:

Fines of up to $2,000 per day
Listing takedowns from platforms like Airbnb and Vrbo
Difficulty applying for a license later if caught operating illegally

At Sora Stays, we work with owners to ensure full compliance from day one—so you never risk fines or disruptions to your booking calendar.

📑 How to Get Your Short-Term Rental License in Austin

The City of Austin requires:

A completed STR application
Proof of property ownership or authorization to rent
Floor plan and site plan
$500 application fee (valid for one year)
Evidence of current liability insurance
Inspection by city staff (for certain property types)

This process can be time-consuming and confusing. A seasoned Airbnb property management company in Austin can handle this paperwork and ensure nothing gets missed.

👥 Occupancy Limits and Safety Rules

Austin enforces the following guest limits for STRs:

No more than 6 unrelated adults in a single-family dwelling
No more than 4 adults in two-bedroom units
Smoke detectors and fire extinguishers are mandatory
Quiet hours must be observed: typically 10 p.m. to 7 a.m.

Failure to follow these regulations can result in code enforcement visits and even revocation of your license. As your local Austin Airbnb cohost, we handle guest communication, enforce house rules, and prevent problem bookings before they happen.

🔄 Renewing Your STR License Annually

Licenses must be renewed every 12 months, and Austin does not send reminders. If you let it lapse, your listing can be removed—and it may be difficult to get back on track.

We track renewal deadlines for all the properties we manage, so our clients never lose a night of revenue due to paperwork delays.

🧠 Confused by Austin’s Airbnb Laws? We Can Help.

At Sora Stays, we specialize in managing short-term rentals for busy homeowners and investors across Austin. Our team provides end-to-end Airbnb cohosting services that include:

✅ STR license application support
✅ 24/7 guest communication
✅ Professional cleaning and maintenance coordination
✅ Dynamic pricing and calendar management
✅ Airbnb listing optimization and review management

Whether you’re just getting started or trying to bring your listing into compliance, we’re here to simplify your hosting journey and maximize your Airbnb income in Austin—without the legal headaches.