Question about ADUs in Austin-Short term rentals okay?? (Portland: leasing, house)

[BlueMare1967]

I am considering moving back to my home state of Texas and was curious how things go there for folks with ADUs? I know some cities have very complicated rules and high permit fees, etc. And some frown on the whole short-term rental route too (like Airbnb, for instance). If I lived there and went that route, I would likely rent mine to a retired family member part of the year and then rent it as an airbnb rental for maybe three months out of the year, when they travel elsewhere.

Generally speaking, is Austin fairly ADU-friendly or do they make it complicated, like some areas here in the Portland, Oregon area? (For example, one county here in the area does not allow short-term rentals at all. Must be more than 30 days.)

I know this is a bit of a broad question but just starting to gather some prelim info. In Austin, are there restrictions regarding using an ADU as a short-term rental? I have friends doing it here in PDX and they just have a small studio, which they rent only in summer and some weekends...but the rules here seem to change by the hour and it's almost becoming impossible or not even worth trying it here.

I would greatly appreciate any info about this!

[austin-steve]

I would not make any decisions for which being allowed to have STR with an ADU is a deal breaker. Those laws are in flux.

[A-Tex]

Originally Posted by austin-steve

I would not make any decisions for which being allowed to have STR with an ADU is a deal breaker. Those laws are in flux.

Agree.

[10scoachrick]

Had to look up ADU...the blissful ignorance of living in a master-planned community.

[verybadgnome]

STRS are up for changes, but ADU regs were just changed for the first time in a long while.
I bought my current property knowing I can build an ADU, a great way to offset increasing property taxes (yes rents are that high around here to have positive cash flow).

[A-Tex]

Originally Posted by verybadgnome

STRS are up for changes, but ADU regs were just changed for the first time in a long while.
I bought my current property knowing I can build an ADU, a great way to offset increasing property taxes (yes rents are that high around here to have positive cash flow).

Yes, but the STR use of an ADU -- which the OP was inquiring about -- was tightened up at the same time. The scenario the OP is describing would not be allowed.

[Novacek]

Originally Posted by A-Tex

Yes, but the STR use of an ADU -- which the OP was inquiring about -- was tightened up at the same time. The scenario the OP is describing would not be allowed.

Yes it would.

The changes were to prohibit ADUs as a Type 2 short term rental.

Accessory Dwelling Units | Development Services | AustinTexas.gov - The Official Website of the City of Austin

Type 2 is where the owner doesn't live on-premises. If you live in the main house and rent out the ADU, that's a type 1 rental (which is actually encouraged).
https://www.austintexas.gov/page/sho...m-rental-types


The only real limit then is the 30 days. But if that's weekends for 3 months, it'd be under that limit.

[austin-steve]

Originally Posted by Novacek

Yes it would.

The changes were to prohibit ADUs as a Type 2 short term rental.

Accessory Dwelling Units | Development Services | AustinTexas.gov - The Official Website of the City of Austin

Type 2 is where the owner doesn't live on-premises. If you live in the main house and rent out the ADU, that's a type 1 rental (which is actually encouraged).
https://www.austintexas.gov/page/sho...m-rental-types


The only real limit then is the 30 days. But if that's weekends for 3 months, it'd be under that limit.

I own property that I could convert to STRs, but I ran the numbers a couple of years ago and decided it's not worth it. Too many external variables and uncontrollables compared to simply leasing the units to regular long term renters.

Even an allowable ADU behind an owner occupied home is subject to the cap restrictions per census tract. All of the desirable areas are already capped.

Then you also have the whole issue of getting the stink eye from neighbors.

But the biggie is that these places literally live and die by online reviews. Which means you have to be a brown-noser else you'll fail. You have to have a real cordial hospitality minded personality with a friendly sing-songy voice and the ability to suffer kindly even the greatest of fools and idiots when they can't figure out the thermostat or the internet or how to change channels on the TV, etc. Go read some reviews on HomeAway. If you can't maintain a 4-5 star rank, nobody will rent your place, so you have to strategicially plan your first few guests to have a great experience else you'll crash and burn out of the gate. I have friends who have done just that, to whom I said "I told you so".

NO THANKS!!! I like being impatient and mean to stupid people. I could NEVER own/operate an STR and be a fake smiley friendly glad hander. Uggghhh!

[A-Tex]

Originally Posted by Novacek

Yes it would.

The changes were to prohibit ADUs as a Type 2 short term rental.

Accessory Dwelling Units | Development Services | AustinTexas.gov - The Official Website of the City of Austin

Type 2 is where the owner doesn't live on-premises. If you live in the main house and rent out the ADU, that's a type 1 rental (which is actually encouraged).
https://www.austintexas.gov/page/sho...m-rental-types


The only real limit then is the 30 days. But if that's weekends for 3 months, it'd be under that limit.

I am very much aware of the law. That thirty days is precisely what I'm talking about. "Weekends only" is not what the OP suggested and is not a realistic parameter for an STR. They said three months.

Additionally, I think it's a rather murky legal area the way the law is written whether or not this theoretical unit would be considered a straight STR. You would be renting it to multiple people each year --- just one of those people would be staying for nine of those months.

[centralaustinite]

True but STR permits do not transfer, so every time one is sold, the permit comes up to the next in line. So there is a wait in the census tracts where they have met the cap but there is still movement.

Steve, we have neighbors who tried to go the STR route. Technically a type 1 but they moved out completely and had it fully rented, week-to-week. They didn't even last 4 months. So many renters lie about the number of guest, bring pets when not allowed and damaged so much -- floors, furniture. The last straw was when renters moved a full-length mirror to get access to a walk in attic, PICKED the lock, and then apparently partied in the attic, leaving lights on, and beer cans and cigarette butts behind.

People are not their best selves when they visit Austin, too often they are coming to drink and party and they can do a lot of damage in a short time. Neighbors found that the ones who sounded best before arrival were usually the worst offenders. They went ahead and put the house on the market and now a nice family bought it who plans to live there full time. Woot!