Austin leaders expected to vote on new short-term rental rules Thursday
AUSTIN (KXAN) — On Thursday, Austin city council is expected to work through several proposed changes to how the city regulates short-term rentals (STRs) — think Airbnb or VRBO. The proposed changes include collecting hotel occupancy tax (HOT) and requiring STR companies to provide city permit numbers on public listings.
'For a number of years, we have had short-term rentals that are operating in our city that are unlicensed. We're talking about more than 10,000 STRs running in our city that are not licensed. And so part of this week's action is a huge step forward in getting more of those short-term rentals into compliance, making sure that they are licensed,' Mayor Pro Tem Vanessa Fuentes said.
Council members have already proposed some changes to the ordinances and Austin Mayor Kirk Watson expressed concern about moving forward with several proposed items entirely.
'In my view, we are not ready to make some of the key decisions and won't be by Thursday. For me, I want us to be in consistent dialogue with leaders at the Capitol regarding the best approaches to addressing regulation of STRs. Additionally, I would like to see the City moving on licensing improvements and making the cost more in line with peer cities before instituting a new regulatory scheme. And, there are legal concerns that I would like answered,' Mayor Kirk Watson posted on the message board earlier this week.
During Tuesday's work session, council discussed bills working through the legislature that may impact the city and a recent lawsuit by Airbnb over New Orleans' short-term rental regulations.
'With those two contexts in mind… we want to ensure that we do what we can in a way that that allows us to move forward, to get more short-term rentals into compliance and licensed,' Fuentes said.
There are several short-term rental ordinances city staff are putting before the public and city council Thursday. The city defines a STR as somewhere that is rented out 'for periods of less than 30 consecutive days.'
Those proposed changes include:
To operate a STR on a property that has three or fewer units, the license holder must be an individual ('corporations would not be allowed to purchase a property under another LLC and then operate it as a short-term rental,' Daniel Word, the assistant director of Austin's Development Services Department, further explained)
If that individual wants to operate more than one STR in Austin, those rentals would need to be at least 1,000 feet from each other (in the case of apartments or housing with more than four units, a cap of 25% of the units would be placed)
The changes would require platforms to collect the same tax hotels do, called Hotel Occupancy Tax (HOT)
'One of the elements of the ordinance is that the platforms will require hosts to provide the license number in the advertisement, and will de-list properties that are not licensed upon request from the city,' Word said.
The city said existing STRs will be allowed to continue under the new rules as long as the properties are not a nuisance and ownership remains the same. That only covers STRs that are currently permitted with the city. There are roughly 2,200 of those right now, Word said.
Austin city council members have already proposed amendments to the changes the city initially brought forward and those will be worked through Thursday.
You can read more about those proposed changes here.
Earlier this month, the Planning Commission and Austin City Council members heard from members of the short-term rental community, rental hosts and neighbors plagued by nuisance short-term rentals.
Austin hears feedback on proposed 'overhaul' of short-term rental regulations
'We need the planning commission and the council to understand that these un-staffed hotels are not appropriate for our neighborhoods and that they bring with them a lot of safety concerns and neighborhood compatibility issues,' said Rose Ballard, one of the speakers.
Ballard said there had been several instances of violence, including a shooting, stemming from short-term rentals in her neighborhood.
Meanwhile, hosts of short-term rentals also showed up to ask that the rules not overly restrict them, make hosting more expensive, or in the case of Darrell Gest — who said he has operated a permitted STR with his wife since 2014 — he requested more slight changes to the rules, including maintaining privacy for hosts during the listing process.
'For us and our neighborhood, it's a small neighborhood, I believe we're the only STR in there…but the fact that we live in the home and people are coming into our home and staying with us, it reduces a lot of the other problems and concerns that other people may have,' Gest told KXAN.
Several representatives from Expedia Group, the parent company for VRBO, were also in attendance or spoke at that meeting.
'We were grateful for the extensive stakeholder engagement the entire [city of Austin] team has done so far throughout this process. VRBO is proud to be headquartered in Austin and along with other Expedia group brands, proud to play a key role in Austin's economy… we encourage responsible short-term rental regulations because a diversity of lodging options is an integral part of any thriving tourism ecosystem,' Jaclyn Terwey, the regional manager of government affairs for Expedia Group, said during Tuesday's meeting.
Terwey said the rules Austin have so far drafted are 'clear and without prohibitive barriers for compliance.' Terwey also said the platform is prepared to start collecting Hotel Occupancy Tax, one of the proposed changes, but that they were working with staff to clarify some language in the proposed ordinance.
According to Airbnb, a survey of hosts in Austin from late 2023 to late 2024 showed more than 70% used the extra income they got from hosting to cover personal living costs. More than 50% surveyed told Airbnb that the extra cash helped them stay in their home.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
2 hours ago
- USA Today
'Wait-and-see': Many Americans are putting off booking summer vacations. Here's why.
'Wait-and-see': Many Americans are putting off booking summer vacations. Here's why. Show Caption Hide Caption Top three travel trends for summer 2025 Airbnb shares data behind the top summer destinations and motivators for 2025. NEW YORK - This year's hottest summer travel trend? Waiting for deals. Americans are scaling back travel plans from flights to drives or waiting to book only if the price is right, a tell-tale sign of an industry slowdown that's got travel companies worried. Hotel summer bookings are either flat or falling from last year, and airline bookings are down even though airfares have also declined, as economic concerns fuel a pullback in spending. Travel companies including Delta Air Lines, Marriott International, and online travel agency Booking Holdings have withdrawn or revised their 2025 annual forecasts as U.S. demand softens. Airbnb flagged shrinking booking windows as consumers take a "wait-and-see" approach and book trips closer to their check-in dates. That has left companies with less visibility into the second half of the year. Delta said in early April it was premature to project the full year given macroeconomic uncertainty. United Airlines said there's a reasonable chance that bookings could weaken. Europe travel deals: United Airlines says now's the time to book cheap flights from Newark Wait and see "It's very clear that consumers are waiting to make decisions, including for the summer," Southwest Airlines CEO Robert Jordan said at the Bernstein Annual Strategic Decisions Conference in late May, adding that demand was stable but lower than expected in January. U.S. summer flight bookings are down 10% year-over-year, according to Flighthub, an online travel agency, even though airfares have dropped. "You can't keep an airline seat on the shelf in a warehouse. If you don't fill that seat tomorrow and the airplane flies, it's gone," Steve Hafner, CEO of Kayak, a Booking Holdings unit, told Reuters. Average summer flight prices declined 7%, with flights to long-haul destinations like Sydney, Australia 23% cheaper year-over-year, according to Kayak. Hotel bookings have "actually fallen off and it gets weaker like a month out," Hyatt Hotels CEO Mark Hoplamazian told an audience at the NYU International Hospitality Investment Forum on Tuesday. "By the time you get to that month, it recovers." Summer bookings in major U.S. cities are flat-to-down year-over-year, according to data from CoStar. Average room rates are expected to rise roughly 1.3% in 2025, down from a 1.8% increase in 2024. "We're not getting that crazy pricing power we got in the early days of the recovery," Marriott CEO Anthony Capuano said, adding that the company was still seeing revenue per available room increase. Weaker dollar Travelers may start to find deals, such as a free third night for staying two nights, as hoteliers look to fill rooms, said Jan Freitag, national director of hospitality analytics at CoStar Group. That's what Jackie Lafferty is hoping for. Her summer plans have shifted from a possible family vacation in Hawaii or Florida to her home state of California instead. "By the time we broke down the cost of the flights, the hotel and the rental car, it looked expensive, it felt unreasonable," said Lafferty, a Los Angeles-based public relations director. The dollar's weakness has driven up the cost of overseas vacations. In March, American travelers surveyed by Deloitte had planned to increase budgets for their longest summer trip by 13%. By April, Deloitte's survey found Americans planned on spending about the same as last year. "The dollar is just not going as far and I think people are starting to realize that," said Chirag Panchal, CEO of the Ensuite Collection, a Dallas luxury travel concierge. The dollar has fallen about 10% since mid-January, when it was its strongest in more than two years. Panchal's clients, who had booked big trips to Europe last year, are either staying domestic or going to closer destinations like Canada or the Caribbean. "We might go international at the end of the summer. If we do, it will be last-minute and spur of the moment based on cheaper flights," said Rachel Cabeza, 28, an actor and fitness instructor based in New Jersey. For now, her only summer plan is a getaway to Martha's Vineyard in nearby Massachusetts.
Yahoo
9 hours ago
- Yahoo
Holiday let owners face tax ‘triple whammy'
Airbnb owners are set to face a triple whammy of taxes as the Government increasingly treats them as 'walking ATMs,' a senior Tory MP has warned. Kevin Hollinrake, the shadow housing minister, criticised ministers for hitting short-term let owners with little-known licensing fees when they are already paying double council tax. From April 1, all English councils were given the powers to charge a 100pc council tax premium on second home owners. More than 230 chose to implement the charge – which The Telegraph is campaigning to be cut or abolished. But the new legislation included scope for the Government to introduce a registration scheme to regulate holiday lets and ensure they are recorded with councils. This is expected to involve a licensing charge, which experts estimated would be around £100 per year. Labour has failed to provide a timeframe for when this will be introduced. The result could be that short-term let owners are saddled with paying double council tax bills, plus an annual licensing fee. Mr Hollinrake has argued that the double council tax bill should cover the cost of an owner registering a short-term let. In a written parliamentary question, he asked the Government whether it 'will ensure that homes subject to a second homes council tax premium by local authorities are not charged additional registration fees'. But Chris Bryant, the culture minister, refused to confirm the exemption in his response. He added that the 'scope of the scheme is still being determined'. A loophole in the business rates system means some households could avoid the double tax altogether. Mr Hollinrake told The Telegraph: 'Labour's thirst for tax cannot be quenched, and people may now be hit by a triple whammy of council charges – two lots of council tax, and a licensing fee on top if they ever want to rent it out. 'Such licensing charges are especially pointless, as councils already know the property is being used as a second home by virtue of the council tax surcharge. 'Local taxpayers deserve better than being treated like walking ATMs by this punishing Labour government.' Andy Fenner, head of the Short Term Accommodation Association (STAA), said: 'This appears to be purely a revenue-generating exercise rather than a genuine policy need. Short-term rental tourism provides vital investment and supports thousands of jobs and businesses throughout our communities. Alistair Handyside, of the Professional Association of Self-Caterers UK, said it was supportive of the scheme but concerned about 'the amount of other interventions such as the council tax premiums, the abolition of the furnished holiday lets tax regime and the new EPC standards, these are closing businesses at a very fast rate'. The second home council tax premium was originally brought in by the Tories. However, Labour has come under criticism for refusing to monitor the impact of the policy on housing, tourism and local economies. Ministers said it was up to individual councils to decide if the double tax is 'effective'. But The Telegraph revealed earlier this month that eight in 10 local authorities who charge the premium failed to carry out impact assessments before introducing it. If a property is let out for 70 nights a year, it qualifies for business rates and is therefore exempt from council tax. Many second home owners will qualify for small business rates relief, which offers up to 100pc relief, if the property is the only one they let. This loophole will cost local authorities £334m this year in missed revenue, a figure which politicians said proved the premium was backfiring. If a property is not let for 70 days, however, it will still be on the hook for all three charges. A government spokesman said: 'A registration scheme will help local authorities across England identify the short-term lets in their area so they can address any community impacts. We will set out more details on how the scheme will work in due course.' AirBnb was also approached for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Travel Weekly
19 hours ago
- Travel Weekly
Four islands, four approaches to Airbnb
Arnie Weissmann Of all the disrupters that have entered the travel industry so far in the 21st century, none has been as disruptive -- and ubiquitous -- as Airbnb. Hospitality companies that must adhere to strict local development guidelines and pay bed taxes have begged regulating jurisdictions to level the playing field by addressing unregulated vacation rentals. Communities that lost housing stock to Airbnb conversions have seen rents increase and the fabric of their neighborhoods thin. The residents of some cities blame the company for contributing to overtourism. Municipalities, even countries, have responded. This year Spain will implement regulations that include requiring that a permit be obtained before a property can become a vacation home. Oahu and New York have banned stays of less than 30 days. Amsterdam capped the number of nights a host can rent to 30 per year. Airbnb issues become more complicated for countries whose economies are tourism-dependent. This week was Caribbean Week, when tourism ministers and the heads of destination promotion bureaus descend on New York to raise awareness of their islands. In a series of back-to-back-to-back-to-back interviews with representatives of Caribbean islands, I found that they each looked at Airbnb's presence differently. Antigua and Barbuda was the most supportive of vacation rentals. "They are good for us," said the country's tourism minister, Max Fernandez. "We have seen a plethora of interest, and that means that a lot of people are getting involved in the industry. If you don't have people from all strata involved in tourism, especially in terms of ownership, then it's not sustainable, and sustainability is the key." To keep housing affordable as more properties convert to vacation rentals, Fernandez said the government is supporting a large-scale home-building initiative. "It's about creating a balance," he added. Airbnb serves another supportive role, Fernandez believes. "In economic downturns, the high-end is less likely to be affected. But at the same time, we believe that short-term rental properties like Airbnb can offer the kind of mix to make it balance out," he said. "That's the way we are looking at it." On Anguilla, vacation rentals are regulated for two reasons, tourism minister Cardigan Connor said. First, they are monitored to see if they meet required standards, and second, guest information is gathered to help keep track of where visitors are staying in case of a hurricane. "Anything that happens on the island is a responsibility of government," Connor said. "And as long as proprietors of the Airbnb properties understand that, then they know we're protecting each other as well as guests." St. Martin -- the French side of the island -- creates its balance by actively looking for unregistered vacation rentals but in some instances allowing them to operate in neighborhoods where they're not supposed to be. "We need 3,500 rooms," said St. Martin tourism minister Valerie Damaseau. "We see that there's a lot of purchasing of villas and vacation rental homes. They're listed [on Airbnb's platform] but are registered to us as their personal home. We know that some are not fully paying their taxes. "So we have several teams that visit these sites; they're just going to show up," she continued. "The situation exists, and we want to structure it. We don't want visitors who stay in these properties to say that they're not good, so we can assist the homeowner to make sure that the product is as renovated as possible and that it has the amenities that everyone is seeking." Many of the St. Martin vacation rentals are in areas where they're forbidden to be, but Damaseau is not shutting them down. "We're working on some text to try to regulate them," she said. "We need those rooms to bring [the island inventory] up to 3,500. We shut our eyes because those extra rooms have saved us over the years. We'll tighten the screws a little, but we need to find the right balance." "Villas are a tricky one," said Turks and Caicos tourism minister Zhavargo Jolly. "It's a catch-22. We're a high-end luxury destination, but we get six or seven people staying in a villa because it's less expensive than six or seven hotel rooms. But then they can't afford the amenities that generate the [per person] revenue we expect. And they complain about the affordability of the island." Paul Pennicook, CEO of Experience Turks & Caicos, added that it's one reason they are focusing on the travel trade, which doesn't typically attract the same clients as Airbnb. "Also, with the Airbnb scenario, we're not ever sure that everyone is paying their fair share of taxes. But I had a discussion with Airbnb and got a commitment that they were willing to collect taxes for us," he said. "But they're not prepared to give us the details about who they collected the taxes from; they'll just send a lump sum. My attitude is: just take the money."
