Austin requires a short-term rental (STR) license. Type 1 covers your primary residence (renting rooms or the whole home while you live there). Type 2 covers non-owner-occupied whole-home rentals and faces tighter limits in residential areas.
Source: City of Austin short-term rental ordinance.
What to do
Apply for the STR license before listing — operating without one risks fines.
Type 1 (you live there) is the simpler path; Type 2 has caps and spacing rules.
Collect hotel occupancy taxes — the city expects it.
Check your HOA: many ban short-term rentals outright.
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Informational only — not legal advice. Rules change; verify with the City of Austin.