Short term rental regulations near Austin, TX

[Spencer Cuello]

Hello BiggerPockets community! Where do people go to learn about short term rental regulations? I read online that Austin is banning the use of Type 2 Short term rentals. Also, I heard that San Marcos, TX has pretty strict zoning laws on short term rentals. Does anyone have any experience in those two areas? Thanks! - Spencer

[Eliott Elias]

Quote from @Erika Albert:

I specialize in helping investors purchase STR properties, I've compiled many of the rules and regulations throughout central texas below:

Austin:

• the City of Austin breaks down short term rentals into three types, to learn all about these classifications, check out this previous post
• no permits are being issued for STRs for single family, investor-owned homes EXCEPT in the following zoning districts: Central Business District (CBD), Downtown Mixed Use (DMU), Planned Unit Development (PUD), General-Retail - Mixed Use (GR-MU), Commercial Services - Mixed Use (CS-MU), Commercial Services - Vertical Mixed Use (CS-V), General Retail - Vertical Mixed Use (GR-V)
• STR permits are being issued for Type 3, multifamily properties i.e. condos. There are caps on the number of STRs allowed in each condo building. If the condo is located in a residentially zoned area the maximum number of units that can have a Type 3 permit is 3% of the total units in the condo building. For condos located in commercially zoned areas, the max number of STR permits is 20% of total units.
• STR permits can be issued for single family homes where the owner has a homestead exemption on the subject property. These permits are used when you live in the home, and want to rent out the entire home from time to time, OR if you only want to rent out part of the home ie. a room or guest house on the property.
• Link to more info on COA regulations

Bee Cave:

• no restrictions on STRs

Buda:

• permit required
• must demonstrate to the satisfaction of the Director of Planning that the unit and property do not have any outstanding issues related to taxes or building, electrical, plumbing, fire, health, housing, police, planning, noise, or code enforcement provisions
• must provide proof of insurance and payment of hotel occupancy tax annually

Cedar Park:

• no restrictions on STRs

Dripping Springs:

• no restrictions on STRs

Driftwood:

• driftwood is an unincorporated area, thus there are no restrictions on STRs

Fredericksburg:

• permit required
• STR's permitted in some zoning districts but not all, link to more info
• Click here to view the complete STR ordinance.
• Fredericksburg is in the process of revising their STR ordinance, for more information on proposed changes, click here.

Georgetown:

• no restrictions on STRs

Jonestown:

• ​STRs are only permitted in the STR Overlay District
• events are not permitted on site
• residence may not house more than 15 people at a time
• Link to more details

Kyle:

• no restrictions on STRs

Lago Vista:

• must apply for an STR permit if the property is located in any of the following zoning districts: R-1, R-O, RR-A, R-2
• link to zoning map
• STRs must have two parking spots per dwelling, no street parking
• Link to more details

Lakeway:

• maximum of 25 single family homes can be used as STRs
• currently, there is a 2 year waiting list to get a permit
• there's no limit for permits for condos

Leander:

• Vacation rentals are currently classified as hotels within the City of Leander. You will need to ensure that you have the correct zoning (General Commercial) before operating a vacation rental. Because these are considered a commercial business, the rental would be subject to commercial building standards and permits.
• The City of Leander constitutes a short term rental as anything less than 6 months.
• Leander does not require or provide licensing of short term rentals.

Marble Falls:

• In January of 2021, Marble Falls adopted a short term rental ordinance. This ordinance requires all STR operators to obtain a permit from the city in order to operate as a vacation rental. In order to obtain a permit, owners must demonstrate proof of liability insurance, document payment of hotel occupancy tax, and pass a life safety inspection among other requirements.
• The complete rules can be found on page 50 of the City of Marble Fall's Meeting Agenda Packet.

New Braunfels:

• short term rentals are not allowed in any residential zoning districts
• ​a special use permit must be obtained for all properties located in non-residential zoning districts, except those located in the following zoning districts: C-4, C-4A, and C-4B
• short-term rentals are not allowed in the floodway
• annual life safety inspections are required
• ​maximum occupancy of two adults per sleeping area, plus an additional four adults
• ​a minimum of one off-street parking space, not including the garage, must be provided per sleeping area
• visit the city of New Braunfel’s website for more information

Point Venture:

• permit required
• owners must provide guests with important operation information such as emergency contacts, location of water shut off, parking requirements, trash collection, etc.
• view the complete STR ordinance for Point Venture

Rollingwood:

• STRs prohibited
• no rentals less than 30 days

Round Rock:

• no restrictions on STRs

San Marcos:

• Home Share Rental Registration required
• ​Proof that the premises is the primary residence of the applicant, including at least two of the following: motor vehicle registration, driver's license, Texas State Identification card, voter registration, tax documents, or utility bill
• Only permits one STR/owner in city limits
• Occupancy limits
• Required safety features
• Link to more details

Sunset Valley:

• no restrictions on STRs​​

Spicewood:

• no restrictions on STRs​

The Hills:

• no restrictions on STRs​
• There are extensive HOA rules you must follow. Link to more details

Westlake Hills:

• ​only a homestead owner may apply for a short-term rental special use permit, but may do so for the homestead or another property owned by the homestead owner
• only one permit will be issued per homestead, regardless of whether the permit is for the homestead or another property owned by the homestead owner
• essentially you must own a primary residence in Westlake in order to get an STR permit, but if you own two homes in Westlake, you can get a permit for the one you don't live in
• a guesthouse can not be used as a short term rental
• Link to more details

Wimberly:
To obtain a permit to operate a bed & breakfast or vacation rental, an applicant must go through the Conditional Use Permit (CUP) process and receive an approved permit.
The CUP process includes:

• complete Application
• application Fee (non-refundable)
• the city notifies those within 200’ of your application, publishes in the local newspaper and posts a sign on the subject tract
• Planning & Zoning hearing for recommendation and City Council hearing for ultimate decision

Per state & local statute, if 20% of property owners within 200' oppose the application a super majority vote is required by the Planning & Zoning Commission (6 out of 7) and City Council (4 out of 5) for approval.




​*****I do my best to provide accurate information; however, these rules and regulations are constantly evolving. Make sure to confirm current rules with the local governing bodies. 

 @Matt Loeffl