Whether you plan to turn your primary residence into a rental home, or if you’re interested in buying a home for the sole purpose of renting it out, there are key considerations that should be taken into account prior to listing a house for rent. From federal requirements to local ordinances, landlords must ensure they comply with all applicable laws to avoid potential legal issues. Additionally, understanding the local rental market and setting competitive pricing are crucial steps to attract reliable tenants and maximize your investment.
Austin, the state capital and 4th largest city in Texas, has been consistently named one of the best places to live in America. With rents trending below the national average, Austin is a ripe market for property owners who are looking to enter the rental market. Read on to find out things you should be aware of before entering the world of residential real estate in Austin, TX!
- Requirements for listing your property for rent in Austin
- Requirements to operate rental properties in Austin
- Does Austin, TX have rent control?
- Do you need a license to rent out your house in Austin?
- Is there a security deposit limit in Austin?
- Is your property in line with Austin housing codes?
- Additional factors to consider when listing your house in Austin, TX
- What are key tenant protections landlord should know?
- List your Austin, TX rental for free on Apartments.com
Requirements for Listing Your Property for Rent in Austin
To be in compliance with the requirements for listing a rental, a landlord should be aware of federal, state, and local laws. Legal requirements may affect the design and structure of the home, as well as impact your ability to charge certain fees, and they can play a part in a possible eviction process. Knowing your legal rights and responsibilities in advance can put you in a better position to handle any possible hiccups.
Resources such as Austin’s code of ordinances spell out when or if a rental property needs to be registered with the city. The Texas landlord/tenant laws include comprehensive legal guidelines regarding leases, rent, security deposits, repairs, and more. Additionally, landlords should familiarize themselves with Austin's zoning regulations to ensure their property is eligible for rental use. Staying informed about local noise, parking, and trash disposal ordinances can help prevent tenant-related violations.
If you plan to rent out your property as a short-term rental (STR), it is important to know that a non-transferable license is required to be renewed annually. Among other requirements, Austin’s Department of Code Compliance also mandates that landlords must pay a fee and provide proof of insurance coverage.
Requirements to operate rental properties in Austin
Permits and permissions
If you are transitioning your primary residence into a rental home, don’t simply assume that there are not any special requirements. Also, if the rental property is in a community governed by a homeowner’s association (HOA), you need to find out if there are any restrictions within the bylaws that prevent or limit rental properties within the neighborhood.
The City of Austin has a dedicated staff and online tools for residential property owners to help navigate what could be a complex zoning process. Find out from department resources if there are rules and guidelines for landlords, as well as tenants. Some cities may limit the number of occupants in a home, while others may restrict home businesses. Taking the time to verify zoning and community regulations can save you from potential fines or legal disputes down the line.
Chapter 92 of the Texas Property Code
This code establishes clear legal guidelines that govern tenancy arrangements, ensuring both parties understand their rights and responsibilities. By codifying these expectations, the law not only safeguards tenant rights but also ensures landlords adhere to standards that maintain the quality and safety of rental properties. This framework fosters trust and transparency, making it easier for landlords and tenants to engage in fair, well-defined agreements. A few of the items outlined in the code are:
Implied Warranty of Habitability: Landlords must provide rentals that are safe, sanitary, and have working systems such as plumbing at the time of occupancy. Landlords should comply with regulations to make sure that the rental is ready to be occupied at the start of the lease term.
Security deposit requirements: The code defines security deposits, sets a timeframe as to when deposits must be refunded, and provides an exception to returning a deposit to a tenant. All policies related to the security deposit must be in writing.
Late fees: Landlords are able to set a fee for rent not paid on time; however, such a penalty must be outlined in the lease. In addition to defining late rent, Texas sets limits on how much a landlord can charge a tenant.
Does Austin, TX have rent control?
Austin does not have rent control. In fact, rent control is prohibited statewide under Texas law, meaning no city in the state, including Austin, can enact rent control policies.
Do you need a license to rent out your house in Austin?
For long-term rentals (over 30 days), there is no general requirement for a rental license in Austin. However, landlords must still comply with state and local housing codes, including safety and habitability standards. If you're considering renting out your property, it's important to verify the specific requirements for your situation.
If you plan to establish your property as a short-term rental (STR), which Austin defines as renting for less than 30 consecutive days, you should know there are specific regulations for STRs, including annual licensing through the Development Services Department. There are three types of STR licenses based on the nature of the rental property (owner-occupied, non-owner-occupied, or part of a multi-family unit), and each has its own application process and requirements.
Is there a security deposit limit in Austin?
While there is no legal limit on how much a landlord can charge for a security deposit, there are legal requirements regarding the return of security deposits.
Is your property in line with Austin housing codes?
To ensure that the dwelling meets the necessary building requirements, Austin provides an itemized list of criteria by structure type, including tiny homes and triplexes. Common requirements include:
- Electrical systems must be safe and operational, with no exposed wiring or overload hazards.
- Carbon monoxide detectors are required to be in any property with gas appliances, fireplaces, or an attached garage
- There must be at least one smoke alarm in each bedroom, outside sleeping areas, and on every level of the property.
- All windows are required to have functioning latches.
- All external doors must have keyless deadbolts.
Additional Factors to Consider When Listing Your House in Austin, TX
Landlords who want to operate a rental home in Austin also need to be aware of laws concerning fair housing, eviction, notice to vacate, and other important landlord-tenant regulations. By knowing and following all legal requirements, you can avoid penalties.
Does your Austin listing comply with fair housing laws?
The Federal Fair Housing Act, originally enacted by Congress in 1968, mandates equal housing opportunities for all citizens and provides designated classes protection from discrimination. The City of Austin Fair Housing Ordinance incorporates additional protected groups. When advertising your property, steer clear of any discriminatory language or text that is people-focused. The listing should focus on attributes of the property instead.
Do you know eviction guidelines?
Landlords in Austin must strictly adhere to eviction laws to avoid potential liabilities and ensure a fair process. Locking a tenant out is not a substitution. The eviction process includes providing proper notice, filing an eviction suit, attending a court hearing, and obtaining a writ of possession if necessary. By following these steps and respecting tenant rights, landlords can manage evictions in compliance with Texas and Austin regulations.
What are key tenant protections landlord should know?
Protection from retaliation
Because tenants may fear punishment for raising complaints or concerns about issues with the property, the Texas Property Code provides certain protections to help ensure their right to report problems without the risk of retaliation, such as eviction, rent increases, or withheld repairs.
Right of peaceful enjoyment
Tenants have a right to peaceful and quiet enjoyment of their rental home. This means that tenants are entitled to live in a property without unnecessary disturbances or interruptions that detract from their quality of life. Landlords must ensure the rental unit is safe, well-maintained, and free of disruptions under their control.
Access to utilities
Landlords are not allowed to shut off a tenant's utilities as a way to force them to leave or address disputes. The law protects tenants from utility shutoffs that could disrupt their essential services, such as water, electricity, or gas, regardless of the circumstances. This protection ensures that tenants have access to essential living conditions while disputes or legal matters are resolved.
Advertising a rental property in Austin, TX, requires landlords to stay compliant with local housing laws and regulations. From fair housing policies to occupancy limits, understanding the legal landscape ensures your marketing efforts are both ethical and lawful. By aligning your practices with the Texas Property Code and Austin’s specific regulations, you’ll establish a foundation of trust and credibility among prospective renters.
List your Austin, TX rental for free on Apartments.com
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The information provided in this article is not a substitute for legal advice. Always consult an attorney for questions regarding your specific situation.
