Federal judge rules in favor of non-owner occupied short term rentals in Austin

[Neil Narayan]

A federal judge ruled Aug. 2 that people who own an investment home in Austin but don't live there can rent it out on Airbnb, Vrbo or other short-term rental websites.

The city of Austin was sued by Houston residents after municipal rules passed in 2016 prohibited them from renting out their house on Lake Austin on the popular travel websites. Such investment properties had to survive on long-term leases; those who own homes in Austin and designate it their primary residence have still been allowed to rent short-term.

“The City is disappointed with the ruling but hopes that the owners and guests of short-term rental properties will be respectful and considerate of the neighborhoods in which they are located. The City is committed to enforcing its nuisance regulations to short-term rental properties as needed,” a City of Austin spokesperson said.