Austin City Council members will continue to sift through possible changes to city code regarding short-term rentals during its Oct. 8 meeting.

Over four hours of public testimony and council discussion occurred Sept. 17 followed by about two hours of discussion on Sept. 22. Council is now set for a vote on the resolution during its Oct. 8 meeting.

A final ordinance on short-term rentals, or STRs, could come back for a vote from Austin City Council in mid-December. However, it is more likely the vote will occur in January, Mayor Pro Tem Kathie Tovo of District 9.

Most of the discussion on Sept. 22 revolved around amendments Mayor Steve Adler and Tovo proposed to the resolution brought forth by District 10 Council Member Sheri Gallo, who has worked with stakeholders on the issue since May.

During the Oct. 8 meeting, council will consider two more amendments from Tovo to phase out Type 2 STRs from residential areas into only commercially zoned areas. A Type 2 STR is when the property owner does not use the property as his or her main residence and rents it out, sometimes through services such as Airbnb or HomeAway.

Council will also consider lowering the cap for STRs in a multifamily property, such as a condo or apartment complex, from 25% to 3% during its Oct. 8 meeting. Tovo said she proposed this change because she is concerned many apartments which could help housing stock issues are instead being used as STRs.

The council agreed Sept. 22 to require STRs to comply with the following provisions:

  • no more than six unrelated persons may occupy an STR
  • no more than 10 persons may occupy an STR, regardless of relation
  • no more than two adults per bedroom plus two, regardless of relation, and all STRs are assumed to have two bedrooms until an inspection is complete
  • no gathering of more than six outside on the property and no gatherings allowed after 10 p.m.
  • allow Code Department officers to enforce noise regulations and write citations when necessary
  • allow evidence from neighbors, such as photographs, videos or testimony, to be submissible as evidence in administrative hearings
  • direct staff to find ways to collect hotel and motel taxes from STR properties
Council members directed staff to bring back ordinance language for a moratorium on all new Type 2 STR licenses as soon as possible in hopes it could be put in place by October or November. Council members agreed Sept. 17 to suspend new licenses for Type 2 STRs and ban gatherings such as concerts, weddings or corporate events. They also agreed to require an inspection or certificate of occupancy issued within a reasonable time as well as a septic system evaluation. Any resolution the council passes will have to go through the Planning Commission as well as the commission’s Code and Ordinances subcommittee.