Item 12 (Short Term Rental Regulation)

[Ryan Alter]

Colleagues,
Tomorrow we are set to consider changes to our short-term rental regulations that we first set in motion earlier this year. I want to thank City Staff for their work on this ordinance as well as fellow members of our sub-quorum, including Mayor Watson, Mayor Pro Tem Fuentes, CM Velasquez and CM Qadri. I plan to bring a few motions that are focused mostly on directing implementation of these regulations.

When initially considering these regulations in February, the Council gave clear direction to “expedite the solicitations needed to purchase one or more software programs that will address (1) licensing processes; and (2) license compliance.” We postponed implementation of updated regulations to October 1, 2025 to allow “the Development Services Department sufficient time to issue the RFP and award contracts, and to collect data to inform future fee schedules.” While the solicitations for those services have been completed, execution of the contracts and their related work are pending the approval of the ordinance tomorrow and our related direction.

I continue to believe that an effective license application portal and low up-front fees are critical to have a short-term rental system that works. Likewise, our ability to enforce our regulations is dependent on having actionable information from a dedicated service to address nuisances and the ability to work with platforms for de-listing violators. After discussion with City staff, I am proposing to delay the implementation of some parts of the regulations by one quarter to allow for the smooth implementation of these services and the education to operators about the new rules. I am also asking for a briefing at work session with a progress update three months after the first of the two vendor contracts is approved.

The motion additionally includes direction to City Staff regarding updates to our fee schedule. We have real costs of administering and enforcing these regulations and a fair claim to recover those costs from STR operators. However, our current application fee of $789 for a license is out of step with peer cities and is a barrier to compliance for many residents who are not operating STRs full-time. Setting up-front fees low and recovering costs from the highest volume operators is an important step towards making STRs an accessible tool for existing residents to afford their home and avoid displacement.

Lastly, I am proposing a change to the language regarding operators within 1000’ of each other to allow for 2 units on a property instead of just one.

Motion 1 (added direction): http://assets.austintexas.gov/austincou ... 173942.pdf
Motion 2 (effective date): http://assets.austintexas.gov/austincou ... 162139.pdf
Motion 3 (1000’ rule): http://assets.austintexas.gov/austincou ... 162154.pdf

Austin’s decade-long experience with regulating short-term-rentals has had many short-comings and many new constraints imposed upon us. I appreciate the willingness to approach this policy with both practicality and creativity and look forward to our ongoing work together.

All the best,
Ryan

[Ryan Alter]

Colleagues,
I would like to offer an amendment to CM Duchen's amendment to Item 12. I am concerned that the current "safe harbor" date of December 10, 2025 is too early as it will likely precede the date on which the license portal will go live. If we want to essentially grandfather existing STRs, that will not be successful if people cannot easily register for such a license. I appreciate CM Duchen bringing forth this amendment to strike a balance between STRs and housing needs.

I have also updated my motion 1 based on continuing work with our staff.

Motion 1 version 2: http://assets.austintexas.gov/austincou ... 110952.pdf
Motion 4: http://assets.austintexas.gov/austincou ... 112229.pdf

Ryan

[Ryan Alter]

Below is an updated version of Alter Motion 4 that makes the dates in the resulting amendment consistent.

Alter Motion 4 V2: http://assets.austintexas.gov/austincou ... 130103.pdf