5 Ways to Beat Austin’s Short Term Rental Licensing Ordinance During SXSW
If you’ve been following Austin news lately, you may have heard that the city is enforcing new Short Term Rental Licensing Ordinances. Passed last fall, these ordinances require anyone who is leasing their home, apartment, guest bedroom, or couch on sites like airBNB, HomeAway or Craig’s List to register with the city. After you get inspected, you register with the city, show proof of occupancy, prove you’ve paid local hotel occupancy taxes, and if the maximum number of Short Term Rentals in your area hasn’t been exceeded, you pay a $285 fee and get your license. Those who don’t register and get caught have to pay up to a couple thousand dollars per night.
Now normally we don’t advocate breaking the law unless you are throwing a party or trying to run a music venue, but the city is starting to really butter our biscuits. Over the last year, they’ve increased enforcement of antiquated ordinances or passed new ones that seem to favor the rich. This requires more enforcement staff, which means more money is spent on bureaucracy instead of funding public works projects, like getting some real public transit options in Austin or making the streets safer for everyone on the road.
Plus, most of these ordinances seem to stifle the entrepreneurial spirit that is the driving force behind Austin’s creative class. And it’s not just EAST Studio Owners, backyard architects, and music venues, even personal trainers are getting nickeled and dimed.
I understand the desire to ensure that tourists aren’t getting taken advantage of or staying in a crack house, but sites like AirBNB have a community that is built on reviews and references. And something about this Short Term Rental Licensing Ordinance smells a lot like that time the city tried to heavily regulate food trailers at the behest of traditional brick-and-mortar stores (*cough* Amy’s Ice Cream *cough cough*), except this time it’s boutique hotels and BNBs trying to take down the competition (we’re looking at you, Heywood).
Ok. Now that I’ve gotten a year’s worth of rant off my chest, here are our five ways to keep from getting busted by Austin’s new Short Term Rental Licensing Ordinance. So, obviously we aren’t legal consultants–and you follow any of this advice at your own risk.
5 Ways to Beat Austin’s Short Term Rental Licensing Ordinance During SXSW
Don’t post your ad on Craig’s List
Look, posting a short term rental on Craigslist is just asking to be screwed. While that might be fun if you’re planning a gangbang, it’s not so fun when the city comes knocking on your door. Plus, you never know what creepers might show up at your door. With sites like airBNB and HomeAway, you can pre-screen folks before they stay with you. We’ll talk more about that later, for now, just know that Craigslist is for creepers and the popo.
Take advantage of airBNB’s community and social features
As mentioned above, airBNB is a rich community with social features. Folks renting their place out can view profiles of those who want to stay. The profiles include references, reviews, and even links to Facebook and LinkedIn. If something doesn’t smell right, decline the reservation.
Hide your home
On airBNB, you have the option to hide the street view of your listing, making it harder for the City to determine where your home is. You can also hide the listing all together once you’ve filled the reservation.
Be sure to hide Street View!
Work your Personal Network
You can bypass everything by doing things the old fashioned way, via word of mouth. Upload pictures to Facebook, and then update your status asking people if they need a place to stay during SXSW. Ask your friends in other cities to repost the status. And if you get any bites, you’re safe.
Get lost in the crowd
The last time I checked, there were thousands of listings on airBNB. By sheer numbers, you’re probably ok.
How do you get around the Short Term Rental License Ordinance?
Or do you think the ordinance is totally legit?
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Follow your links! Apartments aren’t covered under the city’s STR ordinance; only one- or two-family dwellings. Most condos have some sort of STR clause in their HOA agreements, though.
If we’re being technical, the primary impetus behind the short-term rental laws wasn’t boutique hotels, or even city officials wanting another revenue-generation device, but rather neighborhood organizations concerned that “transients” were staying, unregulated, in houses in their areas. I know first-hand that the Bouldin Creek Neighborhood Association was particularly activist in this regard, since it’s in one of the most popular areas for STRs.
That said, I’m personally opposed to the laws and think this is a great post.
Good article – however, your grammatical errors are rampant… ” making it harder for the City to determine where you are at.” and geez, if you’re going to talk about gang-banging in a tongue-in-cheek manner – at least SPELL it right! “if you’re planning a ganbang.” Witty sarcasm and lack of journalistic standards doesn’t excuse you from proper grammar.
Thanks for the feedback, Anne. I’ve been traveling a lot for work, and this post was written on my phone from a plane. Sorry it didn’t meet your standards, but I’m glad you got the point
Oh, get over yourself, or go start your own dang blog.
Anna: Your comment adds absolutely nothing to the discussion. Thanks for nothing.
Actually, the ordinance only applies to the rental of an entire “dweling unit.” So if you’re just renting a guest room, you don’t have to worry! Source: http://www.austintexas.gov/str
It only applies to the rental of an entire “dwelling unit” because renting a portion of a dwelling unit for < 30 days was already illegal.
Can you direct me to the part of the city code that says renting less than the entire unit (e.g. renting out a guest room) is already illegal? The STR ordinance just seems to define Type 1 as renting the full unit.
Actually, the ordinance applies to anyone charging guests for less than a 30 day stay, ie, short term rental, and prohibits renting less than the entire dwelling unit. Cut to the chase, Airbnb rentals, or the even an individual, who charge rent for a bedroom/guest room, violates the ordinance: not registering (requires $285 fee, proof of insurance, proof of CO) , not paying for hotel tax, renting less than the entire dwelling. Not trying to be a stick in the mud, just letting folks know that you may still need to worry.
Sometimes in life you have to choose between doing what’s right and doing what’s legal.
If you are doing this less than 12 times a year, just make the rental term 30 days.