With the rise of popular sites such as Airbnb and Homeaway, a growing number of Austin residents are considering renting their properties out as short term rentals. Renting your home out during events like SXSW and the Austin City Limits fest can easily provide you with enough money to go on vacation yourself and pocket some extra cash. However, there are a plethora of regulations one must be aware of in order to earn extra money hosting out of town guests.
First, if your property is in the city of Austin limits, you must have a permit to operate. Obtaining a Short Term Rental (STR) permit is not particularly challenging; however, you must understand the types of permits.
Type 1 refers to owner-occupied residences. A Type 1 STR means that this must be the primary residence as shown in tax records. A few examples of Type 1 STRs are: you go on vacation and rent your home while you are away, you rent out 1 room in your home and stay there too, you rent out your guest house while you stay in your main house.
Type 2 refers to a non-owner occupied STR that is either a single family home or a duplex, NOT a condo. A Type 2 STR is an investment property that you rent out for short term rentals. The number of Type 2 units per geographic area is limited by the City of Austin. At this time, they are not issuing any more permits for Type 2 STRs. Also, it is important to note, the STR permit does NOT convey with the sale of a property.
Type 3 refers to multi-family short term rentals that are not owner occupied. The number of non-primary residence condos that can be used as STRs is also regulated by the city based on geographic regions. You must check with the city to see if your condo could be used as an STR.
However, you will first want to check with your condo association to see if they allow you to rent out your condo as a STR. Similarly, many HOAs will prohibit the use of residences as STRs.
If you’re thinking of purchasing a property, and would like to use it as an STR, give me acalltoday! I can help guide you in the right direction.
Author:Erika Albert Phone: 512-779-7597 Dated: March 22nd 2017 Views: 24 About Erika: ...
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"My family and I recently moved out of Austin and Jason Palos was our realtor who helped us sell our Austin home. Initially, we got in touch with him to help us put the home on lease and manage it while we are away. Soon, we decided to sell it instead of leasing it out and Jason made the whole process absolutely seamless. He prepared the home for sale and had open house over the weekends. He promptly updated me on how the response was during the open house and thereafter. Not being locally in Austin, I was kind of concerned how things would work. Jason made it very easy. He was always responsive to phone calls and emails and would take the time to explain things in detail so that I understood what was happening. We were able to enter into a contract within 2 weeks of putting the home on sale.
During our move, I accidentally packed some of the critical documents like the survey that ended up in storage, where I didn’t have any access. Jason was kind enough to contact the title company that I used when I bought the home to arrange for a copy of the survey to keep the process going. He did a fantastic job of constantly updating where we are in the contract and what to expect next. There were no surprises at any point!
In a nutshell – Jason is very easy to work with – responsive and detailed. He will be the go to person if we ever decide to buy/sell a home in Austin. I would gladly refer him to my friends and family as well.""