Clackamas County, Oregon Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Clackamas County, Oregon?

Clackamas County, Oregon has recently implemented new regulations for short-term rentals like Airbnb and VRBO in unincorporated areas of the county. These rules, which were unanimously approved by the Board of County Commissioners back in September 2023, aim to provide oversight and structure to the growing vacation rental market.

Starting a Short-Term Rental Business in Clackamas County

All STRs in unincorporated Clackamas County are required to register with the county. The registration process will be free and will not require an in-home inspection. When registering, property owners and/or property managers will need to certify that the property meets safety standards and agree to abide by the new regulations.

Some key components of the new STR regulations in Clackamas County include:

• All STRs will be subject to the same rules, except properties inside the Portland metro urban growth boundary must be the owner's primary residence
• STRs must register with the county every two years and pay a fee (estimated $800-900) to cover administration and enforcement costs
• Maximum overnight occupancy is limited to 2 people per sleeping area plus 4 additional people, not exceeding 15 total
• One off-street parking spot is required for every two sleeping areas
• Weekly garbage pick-up is mandated, with covered outdoor receptacles
• Quiet hours are set from 10pm-7am
• Building and fire safety requirements related to smoke/CO detectors, escape routes, fire extinguishers, etc. must be met

Failure to comply with the new regulations may result in enforcement consequences ranging from citations and fines up to $7500 to potential revocation of the STR registration. The county plans to revisit and evaluate the cost and efficacy of the STR program after two years to determine if any changes are needed.

It's important for Clackamas County STR owners and hosts to carefully review the full regulations, which can be found on the county's STR webpage. Before the new rules take effect in December, the county will post the registration application for owners/operators on this site as well.

While the STR market remains strong in scenic areas like Mt. Hood, hosts must stay informed of evolving local regulations to ensure legal operation. With proper registration, adherence to safety standards, and being a good neighbor, STRs can continue to thrive in Clackamas County under this new regulatory framework. Prospective hosts are encouraged to review the county's requirements thoroughly when considering starting a short-term rental business.

Short-Term Rental Licensing Requirements in Clackamas County

To legally operate a short-term rental in unincorporated Clackamas County, owners must register their property with the county. The registration process is free and does not require an in-home inspection. However, when registering, the property owner and/or manager must certify that the property meets safety standards and agree to abide by the STR program rules.

The registration requirements, as outlined on the official Clackamas County website, include:

1. Completed STR registration form, which can be downloaded from the county's website
2. Certification that the property meets building and fire safety standards
3. Proof of registration with the county's Transient Lodging Tax (TLT) program and payment of the 6% TLT
4. Agreement to pay the .85% STR user fee on total rental amounts
5. Inclusion of the STR registration identification number on any rental advertisement or platform
6. Posting of contact information for a responsible party, available 24/7 to respond to complaints within 2 hours, visible from the nearest public road
7. Site plan and dwelling unit floor plan
8. Proof of liability insurance

Completed registration forms can be submitted via email to str@clackamas.us, mailed to the Clackamas County Finance Department (2051 Kaen Road, Suite 490, Oregon City, OR 97045), or delivered in person to the finance department by appointment.

Within 30 days of receiving an accurate and complete registration form, county staff will provide registration confirmation. The registration process is free, but STR owners must pay the 6% TLT and .85% user fee on an ongoing basis.

Failure to properly register an STR or operating while registration is suspended may result in penalties. The county will issue up to two written warnings for suspected noncompliance before pursuing enforcement action. Fines for violations start at $250 for the first citation and increase to $500 for subsequent violations, plus a $75/month administrative fee while the case is open. The county also reserves the right to immediately revoke registration if the STR is deemed a fire or life safety risk.

It's crucial for Clackamas County STR owners to carefully review and adhere to all registration requirements and regulations to avoid penalties and ensure the legal operation of their rental property. The county's STR webpage at www.clackamas.us/str provides the most up-to-date information and registration forms.

Required Documents for Clackamas County Short-Term Rentals

To register a short-term rental in unincorporated Clackamas County, owners must submit the following documents as part of their registration application, per the county's official STR webpage:

1. Completed STR registration form: This form, available for download on the county's website, collects essential information about the property, owner, and local contact person responsible for the STR.
2. Certification of building and fire safety standards: Owners must certify that their STR meets all applicable building and fire safety requirements, such as smoke and carbon monoxide detectors, emergency escape routes, and fire extinguishers.
3. Proof of Transient Lodging Tax (TLT) registration: STR owners must provide evidence that they have registered with the county's TLT program and agree to pay the 6% tax on all rental income.
4. Agreement to pay STR user fee: Owners must agree to pay the .85% STR user fee on total rental amounts, which helps fund the administration and enforcement of the STR program.
5. Site plan and dwelling unit floor plan: These documents provide the county with a clear understanding of the property layout, parking arrangements, and sleeping areas to ensure compliance with occupancy and parking requirements.
6. Proof of liability insurance: STR owners must submit evidence of liability insurance coverage for their rental property to protect both the owner and guests in case of accidents or damages.

Once all required documents are compiled, owners can submit their complete registration application via email to str@clackamas.us, by mail to the Clackamas County Finance Department, or in person at the finance department by appointment. The registration process is free, but owners must continue to pay the 6% TLT and .85% user fee on an ongoing basis.

Failure to properly register an STR or operating without a valid registration may result in warnings, citations, fines, and potential revocation of the right to operate. Therefore, it is crucial for Clackamas County STR owners to carefully review and comply with all registration requirements to ensure the legal operation of their rental property.

Clackamas County Short-Term Rental Taxes

Short-term rental owners in unincorporated Clackamas County are subject to various taxes and fees, as outlined on the county's official STR webpage. Understanding and complying with these tax obligations is crucial for operating a legal and successful STR business.

1. Transient Lodging Tax (TLT): STR owners must pay a 6% TLT on all rental income. This tax is used to fund tourism promotion and development in the county. Owners must register with the county's TLT program and submit monthly reports and payments using the online portal or by mail.
2. STR User Fee: In addition to the TLT, STR owners are required to pay a .85% user fee on total rental amounts. This fee helps fund the administration and enforcement of the county's STR program. The user fee is submitted alongside the monthly TLT payment.
3. Income Tax: STR income is subject to federal and state income taxes. Owners must report their rental income on their annual tax returns and pay the appropriate taxes based on their tax bracket. The specific tax rate will depend on the owner's overall income and filing status.
4. Self-Employment Tax: If STR owners provide substantial services to their guests and materially participate in the rental activity, they may be considered self-employed. In this case, they will be required to pay self-employment tax, which consists of Social Security and Medicare taxes, on their net rental income.

Deductions and Write-Offs

STR owners can deduct various expenses related to their rental business to reduce their taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Repairs and maintenance
6. Cleaning and supplies
7. Advertising and platform fees
8. Depreciation of the rental property and furnishings

To claim these deductions, owners must keep accurate records of all rental income and expenses. It is highly recommended to consult with a tax professional experienced in short-term rentals to ensure proper reporting and maximization of deductions.

In summary, Clackamas County STR owners are responsible for paying the 6% TLT, .85% user fee, income taxes, and potentially self-employment tax. By understanding these tax obligations, keeping detailed records, and claiming eligible deductions, owners can minimize their tax liability and run a compliant and profitable STR business.

Oregon Wide Short-Term Rental Rules

In addition to the specific regulations set forth by Clackamas County, short-term rental hosts must also comply with state-wide laws and requirements in Oregon. These rules apply uniformly across the state and are designed to ensure a safe, fair, and well-regulated vacation rental market.

One of the most significant state-wide regulations is the Transient Lodging Tax (TLT). As outlined in Oregon Revised Statutes (ORS) 320.300 to 320.500, all STR hosts must collect and remit a 1.5% tax on the total lodging charge for reservations lasting less than 30 consecutive nights. This tax is in addition to any local lodging taxes imposed by cities or counties, which can vary. In most areas of Oregon, including Clackamas County, Airbnb automatically collects and remits the TLT on behalf of hosts, but it's crucial for hosts to verify if this service covers their specific location.

Furthermore, Oregon law (ORS 699) classifies STR hosts as "hotelkeepers" or "innkeepers," subjecting them to certain legal responsibilities and liabilities. This includes maintaining a safe and habitable property, properly handling guest property, and following anti-discrimination laws.

While not a legal requirement, the Oregon Restaurant & Lodging Association (ORLA) recommends that STR hosts obtain appropriate insurance coverage. This may include commercial liability insurance, property insurance, and even specialized vacation rental insurance to protect against potential risks and liabilities associated with renting out a property short-term.

It's important to note that cities and counties in Oregon, like Clackamas County, may have their own additional STR regulations that go beyond the state-wide requirements. These can include zoning restrictions, permitting processes, occupancy limits, parking requirements, and more. Clackamas County hosts must ensure compliance with both the state-wide rules and the specific county regulations to operate legally.

As the STR industry continues to evolve, hosts should stay informed about any updates or changes to Oregon's state-wide laws and regulations. Regularly reviewing resources from the Oregon Legislature, Oregon Department of Revenue, and ORLA can help hosts stay current and compliant. By adhering to all applicable state and local requirements, Clackamas County STR hosts can run successful and legally-sound vacation rental businesses.

Does Clackamas County Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on forums like Bigger Pockets and Reddit, it appears that Clackamas County does intend to enforce its STR regulations fairly strictly, especially compared to some other jurisdictions. The county has set clear penalties for non-compliance, including citations, fines up to $500 per violation, and potential revocation of STR registrations.

While some hosts may still attempt to operate "under the radar" without proper registration and adherence to the rules, the risk of enforcement action seems substantial. The county has allocated resources from STR registration fees and taxes to administration and enforcement of the program, signaling they plan to monitor the market and crack down on violations.

Compared to certain cities with very lax STR oversight, Clackamas County appears less Airbnb-friendly overall. The regulations are comprehensive, covering registration, occupancy limits, parking, garbage, quiet hours, safety requirements, and more. For hosts accustomed to operating with little red tape, adjusting to this regulatory framework may prove challenging.

However, the county has tried to strike a balance by legalizing STRs in most unincorporated areas while creating enforceable standards. Hosts who follow the rules and registration process will gain peace of mind in operating compliant rentals. But those who skirt the regulations are likely to face enforcement sooner or later as the county implements its STR program.

In summary, based on the strict rules and enforcement mechanisms, Clackamas County does not appear to be turning a blind eye to STR violations. Hosts are advised to carefully review and abide by all regulations to avoid citations and preserve their ability to operate legally in the county. While the temptation to ignore the rules may exist, the risks likely outweigh any short-term gains in this jurisdiction that has committed to actively regulating its STR market.

How to Start a Short-Term Rental Business in Clackamas County

Starting a short-term rental business in Clackamas County can be a rewarding venture, but it requires careful planning and adherence to local regulations. Follow these steps to successfully launch your STR business:

1. Research local regulations: Familiarize yourself with Clackamas County's specific STR rules, such as registration requirements, occupancy limits, parking, safety standards, and quiet hours. Ensure your property is eligible for STR use and located in an approved zone.
2. Develop a business plan: Create a comprehensive plan that outlines your target market, competitive advantages, pricing strategy, marketing approach, and financial projections. This will serve as a roadmap for your STR business and help you stay organized and focused.
3. Register your business: Choose a business structure (e.g., sole proprietorship, LLC) and register your STR with the county. Obtain any necessary licenses and permits, and register to pay the Transient Lodging Tax (TLT) and STR user fee.
4. Prepare your property: Ensure your rental meets all safety requirements, such as smoke and carbon monoxide detectors, fire extinguishers, and emergency escape routes. Furnish and decorate the space to create an inviting atmosphere for guests. Consider installing smart technology for added security and convenience.
5. Set competitive rates: Research similar STRs in your area to determine a competitive pricing strategy. Consider factors like seasonality, events, and demand when setting your rates. Utilize pricing tools and software to optimize your revenue management.
6. List your property: Create attractive listings on popular STR platforms like Airbnb and VRBO. Use high-quality photos, detailed descriptions, and highlight your property's unique features and amenities. Be responsive to inquiries and maintain a high response rate.
7. Manage your bookings: Use a reliable system to manage reservations, guest communication, and cleaning schedules. Consider hiring a professional cleaning service to ensure consistent quality and quick turnovers between guests.
8. Provide excellent guest experiences: Go above and beyond to create memorable stays for your guests. Offer local recommendations, thoughtful amenities, and prompt assistance when needed. Encourage guests to leave reviews, as positive ratings are crucial for attracting future bookings.
9. Monitor your performance: Regularly review your occupancy rates, revenue, and expenses to ensure your STR business remains profitable. Adapt your strategies as needed based on market trends and guest feedback.
10. Stay compliant: Keep accurate records of all STR income and expenses for tax purposes. Stay current with any changes to local regulations and renew your registration every two years as required by Clackamas County.

By following these steps and providing exceptional service, you can build a thriving STR business in Clackamas County. Remember to stay informed, adaptable, and guest-focused to succeed in this competitive industry.

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

If you have questions or need assistance regarding short-term rental (STR) regulations and zoning in Clackamas County, there are several key contacts and resources available:

1. Clackamas County Planning and Zoning Division: For general zoning questions and information about STR land use regulations, contact the Planning and Zoning Division at 503-742-4500 or email zoninginfo@clackamas.us. Their office is located at 150 Beavercreek Road, Room #225, Oregon City, OR 97045, and is open Monday to Thursday from 8 a.m. to 4 p.m.
2. Clackamas County Finance Department: For questions specifically related to STR registration, the transient lodging tax, and the STR user fee, email the Finance Department at str@clackamas.us.
3. Senior Planner Martha Fritzie: If you have detailed questions about the STR regulations or want to provide input, contact Senior Planner Martha Fritzie directly at mfritzie@clackamas.us or 503-742-4529.

In addition to these official county contacts, connecting with other STR hosts and engaging in local communities can provide valuable insights and support:

1. Clackamas County STR Forum on Airbnb Community Center: Join the discussion with fellow hosts about the county's STR regulations and share experiences navigating the rules. You can find the forum thread at https://community.withairbnb.com/t5/Hosting/Clackamas-County-Proposed-STR-Regulations-SCARY/m-p/1191361.
2. Clackamas County Short-Term Rental Alliance (CCSTRA): This local host organization advocates for fair and reasonable STR regulations in the county. They provide updates, resources, and opportunities for hosts to get involved. Visit their website at https://ccstra.org/ or join their Facebook group.
3. Bigger Pockets Oregon Real Estate Investing Forum: While not specific to Clackamas County, this forum is a great place to connect with other Oregon real estate investors and STR operators to discuss local regulations, strategies, and market trends. Check it out at https://www.biggerpockets.com/forums/741-oregon-real-estate-investing.

By utilizing these official county contacts and engaging with the local host community, you can stay informed about Clackamas County's STR regulations, get your questions answered, and ensure compliance with all zoning and registration requirements. Building relationships with other hosts can also lead to valuable partnerships and shared resources as you navigate the evolving regulatory landscape together.

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

To gauge the sentiment of short-term rental hosts in Clackamas County regarding local regulations, we searched through relevant threads and forums on platforms like Reddit, Bigger Pockets, and Airbnb. Here are some notable insights from verified hosts:

Bigger Pockets Forum - "NEED ADVICE! Extended 5 month stay at STR.": In this thread, a Clackamas County host seeks advice on handling an extended 5-month booking request due to the guest's home being damaged by winter storms. While not directly discussing regulations, it highlights the unique situations hosts face and the need for clarity on long-term stays and rental rights.

r/AirBnB - "All of you Airbnb hosts... How in the world do you think people are...": Although not specific to Clackamas County, this thread provides a general pulse on host experiences. Many hosts express frustration with the perception that all hosts are "insane" or provide subpar experiences, emphasizing that the vast majority of hosts are responsible and offer great stays. They point to a vocal minority of bad actors skewing the narrative.

r/airbnb_hosts - "Texas: I just got a horrible review...": In this post, a host vents about an unfair review after going above and beyond to clean the rental and save the guest money on cleaning fees. While not directly related to Clackamas County regulations, it underscores the challenges hosts face in meeting guest expectations and protecting their reputations, even when acting in good faith.

While these examples don't comprehensively represent the opinions of all Clackamas County hosts, they offer a glimpse into the broader conversations happening in STR communities. Hosts are grappling with evolving regulations, guest expectations, and the need to balance running a successful business with being responsible community members.

As Clackamas County's STR program takes effect, it will be crucial for hosts to stay engaged with local officials, industry groups like the Clackamas County Short-Term Rental Alliance, and online forums to navigate the regulatory landscape and advocate for their interests. By sharing experiences, best practices, and concerns, hosts can help shape policies that promote a fair and sustainable STR market in the county.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.