Medford Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Medford

The city of Medford, Oregon, allows short-term rentals like Airbnb and VRBO, but hosts must comply with certain regulations. To legally operate a vacation rental, you need to:

• Obtain a business license from the city. The application is available on the City of Medford website.
• Comply with safety requirements, including having working smoke alarms, carbon monoxide detectors, and fire extinguishers on the property. The city provides a "Good Neighbor Guidelines" document that must be posted in the rental unit and provided to guests.
• Limit occupancy to a maximum of 2 guests per bedroom rented plus 2 additional guests total. For example, a 2-bedroom STR could host up to 6 guests.
• Provide one off-street parking space per rented bedroom. Parking cannot obstruct sidewalks or block neighbors' access.
• Share 24/7 contact information with neighbors for the property owner or property manager in case any issues arise.
• Medford charges a 1.5% transient lodging tax on all Airbnb reservations for less than 30 nights. This applies to the total reservation cost, including cleaning fees.

Some Medford residents have expressed concerns about the growth of STRs in their neighborhoods on forums like Reddit. One Redditor noted: "Every week, a new AirBnb house pops up in Hillside. The frequency is increasing because of the new T stop. Code is in place, but enforcement is a mess, so nothing is being done."

As of April 2024, 124 active vacation rental listings were available in Medford on Tripadvisor alone. With strong demand from travelers visiting southern Oregon, starting a compliant short-term rental can be a viable small business opportunity for Medford homeowners. Just be sure to follow the city's rules and be a good neighbor.

Short-Term Rental Licensing Requirement in Medford

Property owners must obtain a vacation rental business license from the city to legally operate a short-term rental in Medford, Oregon. The Building Director issues these licenses only if the owner meets all the required criteria.

When applying for a license, STR operators must:

1. Provide contact information for a qualified person available 24/7 to respond to issues at the rental property. The representative can be changed with 14 days written notice to the city.
2. Certify they have mailed or hand-delivered a flier with their contact details to neighbors within a 250-foot radius, so issues can be reported and resolved.
3. Agree to incorporate the city's "Good Neighbor Guidelines" into the rental contract and post them conspicuously in the unit.
4. Limit occupancy to a maximum of 2 guests per bedroom rented plus 2 additional guests total.
5. Provide one off-street parking space per rented bedroom without obstructing sidewalks or neighbors.
6. Licenses are issued for the fiscal year from July 1 to June 30. A separate license is required for each dwelling unit operating as a STR, even if multiple units are on the same property.
7. The city can deny or revoke a short-term rental license if the owner fails to meet the requirements or the application contains false statements. Decisions can be appealed to the Building Director.

Required Documents for Medford Short-Term Rentals

To apply for a short-term rental license in Medford, property owners must submit the following documents to the Building Department:

1. A completed Vacation/Short-Term Rental License Agreement form. This includes certifying that the rental unit is the operator's primary residence, the owner has notified neighbors within a 250-foot radius, and the "Good Neighbor Guidelines" will be provided to guests.
2. Proof of ownership of the rental property, such as a deed or property tax statement.
3. A floorplan sketch of the rental unit showing room dimensions, exits, smoke/CO detectors, and fire extinguishers.
4. Proof of current registration with the State of Oregon for transient lodging taxes. Short-term rental hosts must collect and remit the 1.8% state lodging tax.
5. Proof of liability insurance coverage of at least $1,000,000 for the short-term rental property.
6. If the rental is in a condominium or homeowners association, a letter from the HOA board approving the short-term rental use.

The annual license fee is $200, and licenses must be renewed each year by July 1. If any of the required information changes during the license period, the owner must notify the city within 14 days.

Failing to obtain a license before operating a short-term rental in Medford can result in fines of $500-$1000 per day. The Building Director may deny or revoke a license if the owner provides false information or fails to meet the city's requirements.

Medford Short-Term Rental Taxes

In addition to obtaining a license, short-term rental operators in Medford must collect and remit transient lodging taxes from their guests. As of July 1, 2020, the state of Oregon charges a 1.5% lodging tax on all short-term rentals.

The city of Medford also imposes its own transient lodging tax, which is currently set at 11% of the total rental price. This tax applies to any rental of 27 days or less in hotels, motels, vacation rentals, and other temporary lodging.

Short-term rental hosts are responsible for collecting both the state and local lodging taxes from their guests and remitting the taxes to the appropriate authorities. The taxes are based on the total retail price of the lodging, including any cleaning fees or other charges.

Hosts must file lodging tax returns on a quarterly basis, even if they did not have any bookings during that period. The quarterly filing deadlines are:

1. April 30 for January-March
2. July 31 for April-June
3. October 31 for July-September
4. January 31 for October-December

Failing to collect and remit the required lodging taxes can result in penalties and interest charges. The city may also revoke a host's short-term rental license for tax violations.

To assist with tax compliance, many short-term rental booking platforms have agreements with the state of Oregon to automatically collect and remit the state lodging tax on behalf of hosts. However, hosts are still responsible for collecting and paying the Medford city tax themselves.

Oregon Wide Short-Term Rental Rules

In addition to local regulations in cities like Medford, short-term rental operators in Oregon must also comply with state-wide rules. These requirements aim to ensure a level playing field for all lodging providers and protect guests.

As of January 1, 2020, all short-term rental operators in Oregon must:

1. Register with the Oregon Department of Revenue for a Transient Lodging Tax Account and collect the 1.5% state lodging tax from guests. This applies to all vacation rentals, home-shares, and other short-term rentals regardless of whether they are also listed on platforms like Airbnb or VRBO.
2. Obtain a Travelers' Accommodation license from the Oregon Health Authority if renting out three or more rooms. This license ensures the property meets health and safety standards, including fire safety, cleanliness, and drinking water quality.
3. Maintain liability insurance coverage of at least $1,000,000 per occurrence for the short-term rental property. Hosts must be able to provide proof of insurance upon request.
4. Install working smoke alarms and carbon monoxide detectors in each rental unit, in compliance with state building codes.
5. Provide guests with a list of emergency contact information, including the host's phone number and local emergency services.

In 2019, the Oregon legislature also passed a law (HB 3158) requiring short-term rental platforms to collect and remit state and local lodging taxes on behalf of their hosts. This has made tax compliance easier for many operators who only list their rentals on sites like Airbnb and VRBO.

However, the law does not override local zoning or licensing requirements. Cities and counties can still impose their own short-term rental regulations, such as caps on the number of licenses issued or limits on rental nights per year.

Does Medford Strictly Enforce STR Rules?

Based on discussions in online real estate investing forums like BiggerPockets and Reddit, it appears that Medford actively enforces its short-term rental regulations, making it a less Airbnb-friendly city compared to some others.

However, others pushed back, stating that the city is cracking down. A Medford city councilor chimed in on Reddit to say the Building Department is actively investigating STR violations after the city passed new regulations in 2022 requiring all short-term rentals to register and pay an annual fee.

The councilor wrote, "The tent situation and many of the other situations mentioned here are violations of the ordinance...Contact Commissioner Forte, wforte@medford-ma.gov, and the code enforcement team and report these issues."

So, while some hosts may still attempt to skirt the rules, Medford appears to be taking STR enforcement seriously now. Fines for operating an unregistered short-term rental can reach $300 per violation.

Medford's STR regulations are fairly typical compared to other major cities, including registration requirements, occupancy limits, safety standards, etc. Nearby Boston has similar rules. However, some towns like Salem have outright banned investor-owned short-term rentals that are not the host's primary residence.

Overall, real estate investors should not count on easily operating STRs in Medford unless they carefully follow the city's ordinance, get proper permits, and avoid the ire of neighbors. The city seems to be heeding residents' concerns about the negative impacts of "mini-hotels" in residential areas. Medford is prioritizing housing for local families over Airbnb profits.

How to Start a Short-Term Rental Business in Medford

If you've weighed the pros and cons and decided to launch a short-term rental business in Medford, here are the key steps to follow:

1. Check your property's eligibility. Your rental unit must be your primary residence in a zone allowing short-term rentals. Consult Medford's zoning map and land use code.
2. Prepare your property for guests. Make any necessary repairs and upgrades to ensure your rental meets safety standards and is attractive to guests. Consider hiring a professional photographer to take high-quality listing photos.
3. Register with the Oregon Department of Revenue for a Transient Lodging Tax Account. You'll need this to collect and remit the required state lodging taxes.
4. Obtain a Travelers' Accommodation license from the Oregon Health Authority if you plan to rent out three or more rooms. This ensures your property meets health and safety requirements.
5. Apply for a Medford Vacation/Short-Term Rental License from the city Building Department. You'll need to provide proof of ownership, a floor plan sketch, neighbor notification, liability insurance, and other required documents. The annual license fee is $200.
6. Create a detailed rental agreement that includes the city's "Good Neighbor Guidelines" and clearly outlines guest rules and expectations. Consider hiring a lawyer to draft or review your rental contract.
7. List your property on popular short-term rental platforms like Airbnb and VRBO. Set competitive nightly rates based on comparable rentals in your area.
8. Implement a system for screening guests, handling bookings and communication, and coordinating cleaning and maintenance between stays. You may want to hire a professional property manager to handle these day-to-day tasks.
9. Ensure you have reliable, responsive 24/7 guest support available to address any issues that may arise during a guest's stay. The city requires you to provide this contact information to guests and neighbors.
10. Stay up to date on your lodging tax filings and license renewals. Keep accurate records of all rental income and expenses for tax purposes. Consider hiring an accountant familiar with short-term rental businesses.

By following these steps and complying with all state and local regulations, you can launch a successful and legal short-term rental business in Medford. Just be prepared to put in the time and effort required to be a responsible host and good neighbor.

Who to Contact in Medford about Short-Term Rental Regulations and Zoning?

If you have questions about Medford's short-term rental regulations or need assistance with the licensing process, there are several city departments and officials you can contact:

1. Medford Building Department: The Building Department is responsible for issuing short-term rental licenses and enforcing the city's vacation rental ordinance. You can reach them at (541) 774-2350 or by email at building@cityofmedford.org.
2. Medford Planning Department: The Planning Department can help you determine if your property is located in a zone that allows short-term rentals and answer any questions about land use requirements. Contact them at (541) 774-2380 or planning@cityofmedford.org.
3. Medford Code Enforcement: If you suspect a short-term rental is operating illegally or violating the city's rules, you can file a complaint with Medford Code Enforcement. They can be reached at (541) 774-2016 or codecompliance@cityofmedford.org.
4. Medford City Council: If you have concerns about the impact of short-term rentals on your neighborhood or want to provide input on the city's policies, you can contact your City Council representative. Find your ward and councilor's contact information on the city website or by calling (541) 774-2000.
5. Medford City Manager: The City Manager's office oversees all city departments and can assist with escalated issues or complaints. Reach them at (541) 774-2000 or citymanager@cityofmedford.org.

For questions about state-level requirements like the Oregon Transient Lodging Tax or Travelers' Accommodation license, contact:

1. Oregon Department of Revenue: (503) 378-4988 or tlt.help@oregon.gov
2. Oregon Health Authority: (971) 673-0185 or traveler.lodging@dhsoha.state.or.us

By working proactively with city officials and staying informed about local regulations, short-term rental operators can help ensure a positive experience for both hosts and guests in Medford. Don't hesitate to reach out if you need clarification or assistance navigating the rules.

What Do Airbnb Hosts in Medford on Reddit and Bigger Pockets Think about Local Regulations?

Discussions on online forums like Reddit and BiggerPockets reveal mixed opinions from Airbnb hosts in Medford about the city's short-term rental regulations:

Reddit user Elliot posted that Medford's new ordinance requiring all STRs to register and pay an annual fee has "opened their eyes" to the proliferation of illegal Airbnbs, especially full homes and unsafe converted units. They estimate that 100 of the 191 STRs operating as of September 2023 are actually illegal.

On the Medford subreddit, a city councilor chimed in to say many STRs mentioned violate the 2022 ordinance. They wrote, "The tent situation and many of the other situations mentioned here are violations of the ordinance...Contact Commissioner Forte, wforte@medford-ma.gov, and the code enforcement team and report these issues."

Another Redditor complained about a neighbor who "put up tents and an outhouse in the backyard of his two-family rental and has it listed on Airbnb." Others suggested reporting it to the Medford Board of Health and Building Department as an illegal campsite.

On BiggerPockets, a Medford landlord asked about renting spare rooms to tenants who were planning to use Airbnb. Respondents warned it could enable the tenants to violate Medford's ban on STRs in non-owner-occupied properties. One replied, "Local people will use your properties as their party dome. It doesn't matter if you live half a block from the property."

However, some hosts on the Airbnb subreddit said they happily accept local guests in Medford and have had no issues. One host said, "I've hosted many locals who needed an Airbnb for a variety of reasons...I have no problem with locals booking with me. They've all been delightful."

Overall, the forums show Medford Airbnb hosts hold differing views on the city's attempt to regulate short-term rentals. Some support the restrictions as necessary to preserve housing and neighborhood character. However, others see them as overly burdensome and find loopholes to keep operating STRs. The debates underscore the challenges Medford faces in balancing the benefits and costs of Airbnb amid an affordable housing crunch.