Short-term rental rules start Oct. 1

AUSTIN (KXAN) - With big events like Austin City Limits Music Festival and the U.S. Grand Prix Formula One race right around the corner, some homeowners are using the opportunities to cash in by renting out their homes to out-of-town visitors.

Monday, a new city ordinance passed by City Council in August regarding this long-term issue over short-term rentals took effect.

A short-term rental is defined by the city of Austin's ordinance as those for periods of less than 30 days. Property owners must now obtain a license to operate a residence as a short-term rental.

Owner-occupied rentals are defined as "Type I," while non-owner-occupied short-term rentals are classified as "Type II."

Type I residences must be designated as the owner's homestead and the entire unit must be rented out for the short-term period of time, according to city rules.

Owners of Type II facilities have to show proof of operating it as a rental before June 13, 2011. Those in Type II who did not begin operating a short-term rental until after June 13, 2011, have until January to apply for a license.

Short-term rental owners are asked to call Austin's 3-1-1 to make an appointment to meet with city staff to complete the licensure.

Total cost of getting a license is $476, which includes a charge of $235 for the license fee and $251 for a notification fee. Before meeting with city staff, property owners are advised to review the checklist to see what documents are needed for the short-term rental application.