Short-term rentals (STRs) in Austin, known locally as STRs, are legal but heavily regulated under city ordinances. The City of Austin requires that all short-term rentals obtain an annual operating license, which applies to various property types, including urban apartments and rural cabins, but is primarily successful in urban areas due to high tourist demand, especially during major events such as SXSW and ACL Fest. The market tends to cater more to tourists than business travelers, although there is demand from both demographics year-round. STRs are categorized into three types: Type 1 (owner-occupied), Type 2 (non-owner occupied), and Type 3 (multifamily units), each with specific rules governing their operation. The Development Services Department of Austin is the main authority regulating these rentals, enforcing compliance with zoning and safety requirements. For detailed information, visit the City of Austin's short-term rental guide at.