Short-term rental rules, recently passed by the Austin City Council, took effect Monday October 1st, just in time for the Austin City Limits Music Festival and the U.S. Grand Prix Formula One Race, KXAN.com reports. Short-term rentals allow homeowners to rent their homes to tourists, often for a super-sized profit.
The city's ordinance gives the short-term rental moniker to rentals of less than 30 days. Under the new rules, property owners are required to get a license from the city to rent out their residence as a short-term rental.
Type 1 rentals are required to be owner-occupied or associated with an owner-occupied principal residential unit at least 51% of the time, have to be a designated homestead, and must include the rental of an entire dwelling unit. Type 2 rentals are not owner-occupied or associated with an owner-occupied principal residential unit, also include the rental of an entire dwelling unit and have to show proof of existence prior to June 13, 2011. If the Type 2 rental is new, it must fall below the 3% cap with-in census tracts identified by the city and register beginning January 1, 2013. Both types are only for rentals of less than 30 consecutive days.
Rental owners interested in getting their license need to call 3-1-1 to schedule an appointment with city staff. The licensing fee is $476, $235 of that is the annual licensing fee and $241 is a notification fee. Requirements include a Short-Term Rental Application form, the fee, Proof of Property Insurance, Proof of Payment of Hotel Occupancy Taxes, and a Certificate of Occupancy or Certified Inspection. For more information, see the city's checklist.