Short version: Since 1 July 2026, booking platforms operating in Austin must display a licence field and remove unlicensed listings when the city asks. If you own an Austin short-term rental inside the city limits and do not hold an active licence, your listing can be pulled. Out-of-state owners also need a local contact who lives in the Austin metro and can respond within two hours.

What changed on 1 July 2026?

Enforcement moved from the owner to the platform. Previously an unlicensed listing was a risk you carried privately. Now Airbnb, Vrbo and Booking.com must show a licence field and must remove listings the city flags. That turns a paperwork problem into a revenue problem overnight.

What do you actually need to hold a licence?

  • An operating licence for every short-term rental inside Austin city limits. Licences now run two years rather than one.
  • A local contact who lives in Travis, Williamson, Hays, Bastrop or Caldwell County and can respond within two hours of an emergency.
  • An information packet inside the unit covering the local contact, noise limits, parking and trash.
  • Neighbour notification at every renewal, at the licensee’s expense.

A certificate of occupancy and proof of insurance are no longer required for new applications or renewals.

What are the density limits?

Site type Limit
Single-family site Up to two units per individual; additional STRs elsewhere must be at least 1,000 feet apart
Multi-family site The greater of one unit or 10% of the units

Who files the hotel occupancy tax?

Airbnb, Vrbo and Booking.com collect and remit city HOT on your behalf. You still have to file a quarterly report with the City of Austin showing what each platform remitted – including a zero report for quarters with no bookings. State-level HOT runs through the Texas Comptroller.

The zero report is the one owners miss. A quarter with no bookings still needs a filing.

Can a tenant run an Airbnb in Austin?

Yes. Since October 2025 a tenant may operate a short-term rental with the landlord’s written permission, provided a valid licence is held. Density limits still apply. This reopened the arbitrage path in Austin, but it does not remove the local-contact requirement.

What should an out-of-state owner do this month?

  1. Confirm your licence is active and note the renewal date. This is the item that can zero your revenue.
  2. Confirm who is named as your local contact and that they can actually answer within two hours. Get it in writing from your manager.
  3. Check your last four quarterly HOT filings, including any zero quarters.
  4. Print and place the information packet in the unit if it is not already there.
  5. Diarise the neighbour notification for your next renewal.

Is Austin still worth it?

On the numbers, yes. Median annual revenue for an entire-place Austin listing is about $44,919, up 11.6% year over year, with occupancy up 10.2% to 57.5%. Houses average $52,616 against $31,165 for apartments. Austin is one of the few large Texas markets where revenue is still climbing.

What has changed is that Austin is now a licensed, enforced market, and compliance is part of the operating cost rather than an optional extra. If you manage from out of state, budget for a local contact – either a local operator or a named individual you trust.

Sources: City of Austin short-term rental rules; Texas Comptroller hotel occupancy tax guidance; AirDNA Austin market data, trailing twelve months, pulled August 2026.

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