Local Guide: Understanding Short-term Rental Laws in the Lake Travis-Westlake Area

Overview of Short-Term Rental Regulations in Texas

In the Lake Travis-Westlake area, vacation rentals have been thriving due to the scenic beauty and tourist attractions. With the advent of rental apps like Airbnb and Vrbo, short-term rentals (STRs) are in demand. Nevertheless, these services are coming under the radar of local authorities because of their implications for the communities and neighborhoods. It is important to note that Texas does not impose a state-level permit for short-term rentals. Instead, they are regulated at the city or county level, making policies differ vastly across regions.

Bee Cave’s STR Policies and Updates

The city of Bee Cave currently does not define short-term rentals in its city’s code. As a result, it adopts no specific policy regarding STRs, nor are there any listed violations related to operating an STR in Bee Cave. According to a city spokesperson, there are no plans as of now to update the city’s code concerning short-term rentals.

Lakeway’s STR Policy and Latest Updates

Lakeway defines a short-term rental as the non-owner occupancy of residential property for a period of one to 27 consecutive days against some form of compensation. Lakeway’s city code of ordinances only permits 25 STRs to single-family residential properties placed over 1,000 feet from each other. The city issues an unlimited number of condo permits. STRs in Lakeway must abide by the city noise, trash, and parking regulations, and the minimum stay is two nights. Any code violations can be reported to the nonemergency police at night and code compliance during the day.

Rollingwood STR Policies and Violations

In Rollingwood, short-term rentals are described as the rental of any residential property for less than 30 days. Rollingwood’s current policy stands in stark contrast to that of Lakeway – short-term rentals are deemed unlawful and prohibited. Anyone in violation of this law can face a criminal penalty of up to $2,000 per day. Residents can report suspected code transgressions to the city administrator.

West Lake Hills: STRs and their Management

In West Lake Hills, short-term rentals are defined as the renting or leasing of a dwelling or partial dwelling owned by a resident of the city to a guest for 30 consecutive days or less. The city’s code of ordinances outlines prerequisites that short-term rentals must meet to be approved for a permit by the city administrator. Additionally, the city is required to notify other property owners within a 300-feet radius of permitted property. The minimum rental period for an STR is two consecutive nights, and they must not pose traffic hazards, noise nuisance, or impede the development of a neighboring property. Properties with three complaints in a one-year period can lose their permit.

Future STR Policies

Given the varying dynamics of STR regulations and the growing vacation rental market, STR laws might witness changes in the future. Austin, in 2012, was among the first cities in Texas to regulate STRs but a federal court case recently declared its ordinance unconstitutional. State lawmakers, in recent years, have also considered restricting a city’s ability to prohibit STRs, although no such laws have passed yet.

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