Top TLDR

The Austin STR license application process requires property owners to register online, submit ownership documentation, pass health and safety inspections, and pay fees ranging from $285-$480 depending on license type. Type 1 owner-occupied applications take 4-8 weeks while Type 2 non-owner-occupied permits take 8-16 weeks due to stricter review requirements. Start your application early and gather all required documents before beginning to avoid delays and ensure faster approval.

Securing your Austin short-term rental license marks the critical first step toward legally operating your vacation rental property. The city's application process, while straightforward, demands careful attention to detail and thorough preparation. Missing documents, incomplete forms, or inspection failures can delay approval by weeks or even months, costing you valuable rental income.

This guide walks you through every stage of the Austin STR license application, from initial preparation to final approval. Whether you're pursuing a Type 1 owner-occupied license or a Type 2 investment property permit, following these steps ensures a smooth application experience and positions your property for compliance success.

Understanding Which License Type You Need

Before starting your application, determine whether you need a Type 1 or Type 2 STR license. This classification fundamentally shapes your application requirements, processing timeline, and ongoing obligations.

Type 1: Owner-Occupied Properties

Type 1 licenses apply when you live on the property as your primary residence. This includes situations where you rent out spare bedrooms, a guest house, or separate unit on your property while maintaining your main home there. The city verifies primary residency through driver's license addresses, homestead exemption records, and utility bills.

Type 1 applications face fewer restrictions and shorter processing times. You'll encounter less scrutiny during review and won't face the citywide caps that limit Type 2 availability.

Type 2: Non-Owner-Occupied Properties

Type 2 licenses cover investment properties and second homes where you don't live full-time. These applications undergo more rigorous review, require higher insurance coverage, and must comply with neighborhood density restrictions that limit how many Type 2 STRs can operate near each other.

The city caps total Type 2 licenses citywide, and certain areas have stopped issuing new Type 2 permits entirely. Check current availability for your property's location before investing time in the application process.

Pre-Application Preparation Checklist

Gathering required documents before starting your online application prevents delays and restarts. Create a digital folder containing all necessary paperwork.

Essential Documents for All Applications

Proof of Ownership: Obtain a copy of your property deed showing you as the legal owner. If you recently purchased the property, ensure the deed reflects your name—closing documents alone won't suffice. Property records are available through the Travis County Clerk's office.

Property Tax Information: Collect your most recent property tax statement. Type 1 applicants claiming homestead exemption need documentation proving this status.

Insurance Certificate: Secure liability insurance covering at least $300,000 per occurrence for Type 1 properties or $500,000 for Type 2 properties. Your certificate must specifically list short-term rental use and name the City of Austin as an additional insured party. Standard homeowner's policies typically exclude STR coverage, requiring a separate commercial policy or STR endorsement.

Property Photos: Take current, high-quality photographs of your property's exterior (all sides), each room available for guest use, parking areas, and safety equipment installations. These photos should clearly show smoke detectors, carbon monoxide alarms, fire extinguishers, and egress windows.

Additional Type 1 Requirements

Residency Verification: Compile documents proving the property serves as your primary residence. Acceptable documentation includes your Texas driver's license or state ID showing the property address, vehicle registration, voter registration, and utility bills in your name spanning the past six months.

If you're renting the property, secure a notarized letter from the property owner explicitly authorizing short-term rental use. This letter must include the owner's contact information and acknowledge their awareness of STR operations.

Additional Type 2 Requirements

Designated Local Representative: Identify someone who lives within 30 minutes of the property and can respond to issues 24/7. This person needs authority to address guest complaints, noise violations, and emergency situations. Document their contact information, address, and availability.

Enhanced Property Details: Prepare detailed information about your property including total square footage, number of bedrooms and bathrooms, maximum occupancy calculations, and available parking spaces. Measure dimensions carefully—inaccurate information can delay approval or result in violations later.

Step 1: Create Your Online Account

Navigate to the City of Austin's STR licensing portal through austintexas.gov. Click on "Development Services" and select "Short-Term Rental Licensing" to access the application system.

Register for a new account using a secure email address you check regularly. The city sends important notices, renewal reminders, and compliance communications to this email. Choose a strong password and save your login credentials securely.

Complete your user profile with accurate contact information including your name, phone number, mailing address, and backup email if available. This profile information should match your legal documents to avoid verification issues.

Step 2: Complete the Online Application

Log into the STR portal and select "New Application." The system guides you through multiple sections requiring different information categories.

Property Information Section

Enter your property's complete street address including unit numbers if applicable. The system validates this address against city records, so use the exact format from your deed or tax statement.

Provide property details including year built, total livable square footage, number of bedrooms and bathrooms, and property type (single-family home, condo, townhouse, etc.). Calculate and enter maximum occupancy using the formula: two persons per bedroom plus two additional guests, not exceeding one person per 200 square feet.

Describe available parking spaces with specific locations (driveway, garage, designated parking pad). Remember that Austin requires one space per bedroom plus one additional space—a three-bedroom property needs four off-street parking spots.

Ownership Documentation Section

Upload your deed or title documentation proving ownership. Acceptable formats include PDF or high-resolution image files under 10MB. Ensure documents are legible and show complete information including legal descriptions and recording information.

For Type 1 applications, upload residency verification documents. Include copies of your driver's license, utility bills, and homestead exemption certificate. The city compares these documents to confirm consistent address information.

Type 2 applicants upload additional property details and designated representative information. Include the representative's signed acknowledgment form confirming their 24/7 availability and authority to act on your behalf.

Insurance Documentation Section

Upload your current insurance certificate or declaration page showing adequate liability coverage. The certificate must clearly state coverage amounts, policy effective dates, and short-term rental use authorization.

If your insurance company issues separate STR endorsements, upload both the base policy declaration and the endorsement. Policies expiring within 60 days of application may be rejected, requiring renewal before proceeding.

Photo Documentation Section

Upload clear photos of required property features. The portal typically allows 15-20 photos, so choose images that best demonstrate compliance:

• Exterior photos showing all building sides and street-facing views
• Each bedroom available for guest use
• Living areas, kitchens, and bathrooms
• All smoke detectors (close-up showing installation and model numbers)
• Carbon monoxide alarms (similarly detailed)
• Fire extinguishers mounted in accessible locations
• Egress windows in sleeping rooms with measurements visible
• Off-street parking areas with capacity clearly shown

Photos should be well-lit, in focus, and taken recently. Avoid using listing photos with staged furniture or heavy editing that obscures compliance features.

Step 3: Schedule and Pass Your Inspection

After submitting your application, schedule a health and safety inspection through an approved inspector from the city's official list. Don't delay this step—inspection availability can book out several weeks during busy seasons.

Inspection Preparation

Review the city's inspection checklist and personally verify each requirement before the inspector arrives. Common inspection points include:

Smoke Detector Compliance: Install hardwired smoke detectors with battery backup in every bedroom and on each floor level. Detectors should be mounted on ceilings or high on walls, tested recently, and show current manufacturing dates (not expired).

Carbon Monoxide Alarms: Place CO detectors within 10 feet of each bedroom if your property contains fuel-burning appliances, attached garages, or fireplaces. Battery-powered models are acceptable but must show current replacement dates.

Fire Extinguishers: Mount at least one ABC-rated fire extinguisher on each floor, easily accessible and properly charged. Extinguishers need current inspection tags showing they've been serviced within the past year.

Egress Windows: Verify that all sleeping rooms contain windows or doors meeting minimum size requirements (typically 5.7 square feet of opening with minimum dimensions of 24 inches high and 20 inches wide). Sills must be no more than 44 inches above the floor. Security bars or grates must have quick-release mechanisms operable without keys or tools.

Exterior Doors: Ensure all exterior doors have functioning deadbolt locks in addition to standard locksets. Doors should close and latch properly with no gaps that compromise security.

Address Display: Post your property address in clearly visible numbers at least 4 inches tall, contrasting with their background, and visible from the street.

During the Inspection

Be present for your inspection or ensure a knowledgeable representative attends. The inspector documents compliance and identifies deficiencies requiring correction. Ask questions about any unclear items and take notes on required fixes.

If your property fails inspection, address deficiencies immediately and schedule a re-inspection. Most inspectors provide specific guidance on corrections. Re-inspection fees typically match original inspection costs ($150-300 depending on the inspector).

Once you pass, the inspector submits your report directly to the city. This report remains valid for two years, covering your initial license and first renewal.

Step 4: Pay Application Fees

After passing inspection, return to the STR portal and pay your application fee. Payment amounts vary by license type:

• Type 1 STR License: $285
• Type 2 STR License: $480

The portal accepts credit cards, debit cards, and electronic checks. Save your payment confirmation—this serves as proof of submission if processing issues arise.

These fees are non-refundable regardless of application outcome. Even if the city denies your application, you won't receive a refund. This underscores the importance of thorough preparation and compliance verification before applying.

Step 5: Application Review and Approval

After fee payment, the Development Services Department reviews your complete application. Processing timelines vary based on application volume, completeness, and license type.

Type 1 Review Process

Type 1 applications typically process within 4-8 weeks. The city verifies ownership documentation, confirms primary residency, reviews inspection reports, and checks zoning compliance. Staff may contact you requesting additional documentation or clarification.

Respond promptly to any city requests—failure to provide requested information within specified timeframes can result in application denial. Monitor your email daily and check the portal for status updates.

Type 2 Review Process

Type 2 applications face more extensive review taking 8-16 weeks. Beyond standard verification, the city examines neighborhood STR density, evaluates parking adequacy, and may contact neighbors for input.

The city notifies neighbors within 200 feet of Type 2 applications, opening a comment period. While neighbor opposition alone doesn't guarantee denial, significant concerns about parking, noise, or property management can influence decisions.

Handling Incomplete Applications

If your application is incomplete, the city returns it with specific requests for additional information. Your application essentially restarts upon resubmission, resetting processing timelines.

Common incompleteness issues include:

• Expired or insufficient insurance coverage
• Missing residency documentation for Type 1 applications
• Unclear property photos that don't show required safety features
• Ownership documents not matching application information
• Failed or expired inspection reports

Address flagged issues thoroughly before resubmitting. Consider consulting with professional STR management services if you encounter repeated application problems.

Step 6: Receiving Your License

Upon approval, the city issues your official STR license number and certificate. You'll receive notification through the portal and email with instructions for downloading your license documents.

Print your license certificate and post it visibly at the property. Austin requires STR operators to display their license number in all marketing materials, online listings, and guest communications.

Updating Your Listings

Add your STR license number to your Airbnb, VRBO, and other platform listings immediately. Include the number in your listing description and, if possible, in the listing name or house rules section.

This visibility demonstrates compliance to potential guests and protects you during any enforcement investigations. Guests can verify your license legitimacy through the city's public STR database.

Setting Up Tax Collection

Register for Hotel Occupancy Tax accounts with both the Texas Comptroller and City of Austin using your new STR license number. While platforms like Airbnb often collect and remit these taxes, you remain ultimately responsible for ensuring proper payment.

Link your STR license to your tax accounts and begin collecting the combined 21% Hotel Occupancy Tax rate on all bookings. File monthly returns by the 20th of each month following guest stays.

Common Application Mistakes to Avoid

Learning from others' errors saves time and money. These common mistakes delay or derail applications:

Starting Too Late: Begin your application at least 8-12 weeks before your planned launch date. Processing delays, inspection scheduling, and documentation issues often extend timelines beyond official estimates.

Insufficient Insurance: Standard homeowner's policies don't cover short-term rentals. Secure proper commercial coverage before applying—insurance gaps force application restarts.

Inaccurate Residency Claims: Type 1 applicants must genuinely live at the property as their primary residence. The city cross-references multiple data sources and investigates suspicious claims. Fraudulent residency claims can result in permanent license revocation and criminal charges.

Ignoring HOA Restrictions: Verify your homeowners association permits short-term rentals before applying. City approval doesn't override HOA rules, and violating HOA restrictions jeopardizes both your license and property ownership.

Poor Photo Documentation: Blurry, dark, or incomplete photos delay approval as staff request replacements. Invest time in quality photography showing all required features clearly.

Incomplete Inspection Preparation: Failing inspection extends your timeline by weeks while you correct issues and reschedule. Pre-inspect your property against the city's checklist before bringing in the official inspector.

After Approval: Maintaining Your License

Receiving your license marks the beginning of ongoing compliance obligations. Successful STR operators implement systems ensuring continued adherence to regulations.

Annual Renewal Requirements

Licenses expire one year after issuance and require renewal regardless of how actively you hosted. Set calendar reminders 60 days before expiration to begin the renewal process.

Renewal applications need updated insurance certificates, confirmation of current property information, and payment of renewal fees ($285 Type 1, $480 Type 2). Type 1 licenses require new inspection reports every two years.

Missing renewal deadlines subjects you to late fees and potential license lapse. Operating with an expired license carries the same penalties as operating without a license—up to $2,000 per day.

Updating License Information

Notify the city within 10 business days of any changes affecting your license:

• Changes in ownership or property management companies
• Updated contact information or local representative for Type 2 licenses
• Property modifications affecting occupancy calculations or parking
• Insurance policy changes or cancellations

Failure to report changes can result in compliance violations and potential license suspension. Use the STR portal to submit updates with supporting documentation.

Record Keeping Best Practices

Maintain organized records of all license-related documents, guest bookings, tax collections, and property maintenance. Digital cloud storage ensures accessibility during audits or enforcement investigations.

Keep copies of your current license, insurance policies, inspection reports, tax returns, booking confirmations, and all city correspondence. These records protect you if disputes arise and support renewal applications.

Getting Help with Your Application

While the DIY approach works for many hosts, professional assistance can prevent costly mistakes and accelerate approval.

When to Consider Professional Help

Complex situations benefit from expert guidance:

• Properties with prior code violations or compliance issues
• Type 2 applications in areas with limited license availability
• Properties in HOAs with restrictive or unclear rules
• Multi-unit properties or commercial building conversions
• When you lack time to manage the application process personally

Professional Resources

Property management companies specializing in STR licensing handle applications from start to finish, including document gathering, inspection coordination, and city communication. Fees typically range from $500-1,500 depending on application complexity.

STR licensing consultants offer more limited services like application review, document preparation assistance, or inspection preparation without ongoing management. This middle-ground option suits owners planning to self-manage post-approval.

Attorneys specializing in short-term rentals help with complicated ownership structures, HOA disputes, or applications following previous denials. Legal consultation makes sense when significant investment hangs on license approval.

Understanding Approval Timelines

Realistic timeline expectations prevent frustration and help you plan your launch appropriately.

Type 1 Typical Timeline

• Application completion: 1-3 days with prepared documents
• Inspection scheduling and completion: 1-3 weeks
• Application review: 4-8 weeks after submission
• Total time: 6-12 weeks from start to approval

Type 2 Typical Timeline

• Application completion: 1-3 days with prepared documents
• Inspection scheduling and completion: 1-3 weeks
• Application review and neighbor notification: 8-16 weeks
• Total time: 10-20 weeks from start to approval

These timelines assume complete, accurate applications submitted during normal processing periods. Holiday seasons, city staff vacancies, or high application volumes can extend timelines significantly. Applications requiring multiple resubmissions or corrections add weeks or months to the process.

Plan conservatively and avoid making financial commitments dependent on specific approval dates. Don't promise guests booking dates, sign property management contracts, or schedule major property investments until you hold an approved license.

Conclusion

Successfully navigating the Austin STR license application process requires thorough preparation, attention to detail, and patience throughout the review period. Starting early, gathering complete documentation, and ensuring property compliance before applying positions you for smooth approval and rapid launch once licensed.

The application represents your entry point into Austin's regulated short-term rental market. Taking time to do it correctly establishes a foundation for ongoing compliance and successful property operations. Whether you choose to manage the process yourself or engage professional assistance, understanding each step empowers you to make informed decisions and avoid common pitfalls that derail applications.

Your approved license isn't just a regulatory requirement—it's your ticket to participating in Austin's thriving visitor economy while protecting yourself legally and financially. Invest the necessary effort upfront, and you'll reap the rewards of a properly licensed, compliant short-term rental operation that generates income for years to come.

Bottom TLDR

Completing your Austin STR license application successfully requires preparing ownership documents, securing proper insurance, passing safety inspections, and submitting accurate online applications through the city portal. Type 1 owner-occupied licenses process in 4-8 weeks while Type 2 investment properties take 8-16 weeks, with fees ranging from $285-$480. Start gathering documents at least 12 weeks before your planned launch date to account for inspection scheduling, processing delays, and potential documentation requests from the city.

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