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

Starting a Short-Term Rental Business in Oklahoma

To start a short-term rental business in Oklahoma, hosts need to be aware of both state-level regulations and local ordinances that govern Airbnb and VRBO-style rentals. While Oklahoma does not have comprehensive statewide laws for short-term rentals, individual cities and municipalities have implemented their own rules and licensing requirements.

In Oklahoma City, for example, hosts are required to obtain a home sharing license for each rental unit at an annual cost of $242. This license must be renewed yearly and displayed prominently in the rental property. Hosts must also ensure their properties comply with building and fire codes, including having smoke detectors, carbon monoxide detectors, and fire extinguishers.

Tulsa has similar requirements, with hosts needing to obtain a short-term rental license from the Tulsa Planning Office at a cost of $375 per year. This license must also be renewed annually, and hosts need to provide various documents, including dwelling unit information, operator information, and written consent from the property owner if applicable.

In smaller cities like Stillwater, the regulations can be even more specific. Stillwater requires a short-term rental license for any rental period up to 30 consecutive days within a 90-day period. The initial application fee is $100, with a $10 renewal fee. Importantly, only property owners can operate short-term rentals in Stillwater, not renters or leaseholders.

When starting a short-term rental business in Oklahoma, it's crucial to research the specific regulations in your chosen location. Some cities may have zoning restrictions that limit where short-term rentals can operate. For instance, Stillwater only allows short-term rentals in three residential zoning districts: single-family small lot residential (RSS), single-family large lot residential (RSL), and two-family residential (RT).

Additionally, aspiring hosts should be prepared to handle tax obligations. In Oklahoma City, for example, short-term rentals are subject to a 5.5% hotel tax on the listing price for the first 29 nights. While platforms like Airbnb often collect and remit these taxes on behalf of hosts, it's important to verify this and ensure compliance with all local tax requirements.

In conclusion, while Oklahoma offers opportunities for short-term rental businesses, prospective hosts must navigate a patchwork of local regulations. Thorough research of local ordinances, obtaining proper licenses, and ensuring compliance with safety and tax requirements are essential steps in starting a successful short-term rental business in Oklahoma.

Short-Term Rental Licensing Requirement in Oklahoma

The licensing requirements for short-term rentals in Oklahoma vary by city and municipality. Here are the details for some major cities:

• In Oklahoma City, hosts must obtain a home sharing license for each rental unit at an annual cost of $24. The license must be renewed yearly and displayed prominently in the rental property. The application process involves submitting various documents, including proof of property ownership, a floor plan of the rental unit, and safety certifications. Properties located in historic preservation districts or owned by hosts with multiple rental units may require a special exception from the Board of Adjustment, which carries an additional $300 fee.
• Tulsa requires hosts to obtain a short-term rental license from the Tulsa Planning Office at a cost of $375 per year. This license must also be renewed annually, and hosts need to provide documents such as dwelling unit information, operator information, written consent from the property owner if applicable, local contact person information, and online listings. Failing to obtain a license can result in fines and penalties.
• In Stillwater, only property owners can operate short-term rentals, not renters or leaseholders. The initial application fee is $100, with a $10 renewal fee before the license expires annually on January 31. Short-term rentals are only allowed in three residential zoning districts: single-family small lot residential (RSS), single-family large lot residential (RSL), and two-family residential (RT).
• Norman charges a license fee of $150 and an annual inspection fee of $50, for a total of $2004. Licenses must be renewed annually to remain in compliance. Violations of the ordinance can result in fines ranging from $50 to $750 or imprisonment up to 60 days.

To apply for a short-term rental license, hosts typically need to submit their application and required documents to the city clerk's office or the relevant planning/zoning department. The processing time can vary but generally takes a few weeks. It's crucial for hosts to obtain the necessary license before advertising or operating their short-term rental, as failure to do so can result in significant fines and legal consequences.

Required Documents for Oklahoma Short-Term Rentals

The specific documents required for short-term rentals in Oklahoma vary by city and municipality. Here are the most common documents needed, along with their purpose and where to obtain them:

Short-Term Rental Application Form

1. Purpose: To provide essential information about the property, host, and local contact person.
2. Where to get it: Download from the city's official website or obtain from the city clerk's office or relevant planning/zoning department.

Proof of Property Ownership or Primary Residence

1. Purpose: To verify that the host owns the property or uses it as their primary residence, depending on local requirements.
2. Where to get it: Provide a recorded deed, homestead exemption, or a screenshot of the ownership record from the county assessor's office.

Floor Plan of the Rental Unit

1. Purpose: To show the layout of the property, including rooms provided for rent, and the location of safety features like smoke detectors, carbon monoxide detectors, and fire extinguishers.
2. Where to get it: Create a detailed floor plan or hire a professional to draft one.

Owner Authorization

1. Purpose: To confirm that the property owner has given permission for the property to be used as a short-term rental, if the host is not the owner.
2. Where to get it: Obtain a signed authorization form from the property owner.

Safety Certification

1. Purpose: To verify that the rental unit has working smoke detectors, carbon monoxide detectors, and a functioning fire extinguisher.
2. Where to get it: Complete a notarized affidavit form or provide proof of inspection from a licensed professional.

Proof of Available Parking Spaces

1. Purpose: To ensure that the rental unit has adequate parking available for guests.
2. Where to get it: Provide a site plan or photographs showing designated parking spaces.

Sales Tax Permit

1. Purpose: To collect and remit required lodging and sales taxes to the state and/or city.
2. Where to get it: Apply for a sales tax permit through the Oklahoma Tax Commission or provide evidence that tax collection is handled by a rental agent.

Neighborhood Notification

1. Purpose: To inform nearby property owners of the short-term rental application, allowing them to file objections if desired.
2. Where to get it: Provide a list of all property owners within a specified distance (e.g., 300 feet) of the rental unit, obtained from the county assessor or a licensed professional.

It's essential for hosts to carefully review the specific requirements for their city and submit all necessary documents to the appropriate office, along with any required fees. Failure to provide complete and accurate information may result in delays or denial of the short-term rental license application.

Oklahoma Short-Term Rental Taxes

Operating a short-term rental business in Oklahoma involves collecting and remitting various taxes. Hosts must be aware of these tax obligations to ensure compliance and avoid penalties. The following taxes apply to short-term rentals in Oklahoma:

State Sales Tax: The State of Oklahoma levies a 4.5% sales tax on short-term rental transactions. This tax is applied to the listing price, including any cleaning fees. Hosts are responsible for collecting and remitting this tax to the Oklahoma Tax Commission.

Local Sales and Use Tax: In addition to the state sales tax, local jurisdictions in Oklahoma may impose their own sales and use taxes. These rates typically range from 1.0% to 5.5% of the listing price, including cleaning fees. Hosts should check with their local tax authority to determine the applicable rates and remittance procedures.

Hotel Tax: Some cities in Oklahoma, such as Oklahoma City, impose a hotel tax on short-term rentals. In Oklahoma City, this tax is 5.5% of the listing price for reservations of 29 nights or shorter. Airbnb collects and remits this tax on behalf of hosts in Oklahoma City.

State-Administered Local Lodging Tax: Some cities and counties in Oklahoma charge a local lodging tax, which is administered by the state. These rates vary but are typically around 5% of the listing price, including cleaning fees. Hosts should consult the Oklahoma Tax Commission for specific rates and requirements in their area.

It is crucial for short-term rental hosts to maintain accurate records of their rental income and tax collections. Failure to comply with tax obligations can result in fines, penalties, and legal consequences.

Tax Deductions for Short-Term Rentals

Federal laws allow short-term rental hosts to deduct certain expenses associated with running their business when filing taxes. To qualify for these deductions, hosts must rent out their property for more than 14 days in a calendar year and use it for personal purposes for no more than 14 days per year.

Some of the tax deductions available to short-term rental hosts include:

• Mortgage interest
• insurance premium
• Depreciation
• Property and other taxes
• Maintenance and repairs
• Utilities
• Supplies
• Cleaning, accounting, legal, and other business fees
• Travel costs
• Home office expenses

By taking advantage of these tax deductions, short-term rental hosts can optimize their cash flow and profitability. It is advisable to consult with a tax professional to ensure compliance and maximize the benefits of these deductions.

Does Oklahoma Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on Reddit and Bigger Pockets forums, Oklahoma appears to be relatively Airbnb-friendly compared to some other cities, with moderate enforcement of short-term rental regulations. While the state has implemented rules such as licensing requirements and zoning restrictions, many hosts report operating in Oklahoma without major issues, as long as they make an effort to comply with local ordinances.

One host on the Bigger Pockets forum noted that Oklahoma City's $24 annual license fee and safety requirements were reasonable, though the special exception process for non-primary residences could be more challenging. Similarly, on the Reddit r/Airbnb subreddit, an Oklahoma City host mentioned that the city's regulations were generally manageable, emphasizing the importance of understanding zoning requirements and obtaining necessary licenses and permits.

The overall sentiment from Airbnb hosts in Oklahoma suggests that the state's approach to short-term rental regulations is relatively host-friendly, especially when compared to more restrictive environments in other major markets5. While there are certainly requirements and responsibilities hosts must fulfill, the general consensus is that Oklahoma's regulations are reasonable and manageable, allowing for a more welcoming environment for short-term rental operators.

This relatively permissive attitude has led to many hosts operating short-term rentals in Oklahoma despite the existence of rules and regulations. According to discussions on Bigger Pockets, numerous hosts run Airbnb properties in Oklahoma City without strictly adhering to all the requirements, with one noting that while the city requires a short-term rental permit, "enforcement is lax.”

In conclusion, while Oklahoma has established short-term rental regulations, the state appears to be more Airbnb-friendly than many other cities, with moderate enforcement that allows hosts to operate with relative ease. As a result, many Airbnb hosts continue to run short-term rentals in Oklahoma, even if they do not fully comply with all the rules, taking advantage of the somewhat permissive environment to grow their businesses.

How to Start a Short-Term Rental Business in Oklahoma

Here's a comprehensive guide to starting a short-term rental business in Oklahoma:

Research Local Regulations

• Investigate your city's specific short-term rental ordinances, zoning laws, and licensing requirements.
• Check with your local planning department or city clerk's office for the most up-to-date information.
• Tip: Join local real estate investment groups or online forums to connect with experienced hosts in your area.

Choose a Suitable Property

• Select a property in a desirable location that complies with local zoning laws for short-term rentals.
• Consider factors like proximity to attractions, amenities, and transportation.
• Tip: Analyze comparable rentals in the area to gauge potential profitability and competition.

Obtain Necessary Licenses and Permits

• Apply for a short-term rental license from your local government.
• Secure any additional permits required, such as a business license or sales tax permit.
• Tip: Create a checklist of all required documents to ensure a smooth application process.

Prepare Your Property

• Ensure your property meets all safety requirements, including smoke detectors, carbon monoxide detectors, and fire extinguishers.
• Furnish and decorate the space to appeal to your target guests.
• Tip: Consider hiring a professional interior designer to create an attractive and functional space.

Set Up Your Business Structure

• Decide on a business structure (e.g., LLC, sole proprietorship) and register your business with the Oklahoma Secretary of State.
• Open a separate bank account for your rental business.
• Tip: Consult with a tax professional or attorney to determine the best structure for your situation.

Obtain Proper Insurance

• Secure short-term rental insurance to protect your property and business.
• Consider additional liability insurance for added protection.
• Tip: Shop around for insurance policies specifically designed for short-term rentals.

Create Listings on Booking Platforms

• Set up profiles on popular platforms like Airbnb, VRBO, and Booking.com.
• Take high-quality photos and write compelling descriptions of your property.
• Tip: Highlight unique features and local attractions to make your listing stand out.

Develop House Rules and Policies

• Create clear guidelines for guests, including check-in/out procedures, noise restrictions, and pet policies.
• Establish a pricing strategy, including seasonal adjustments and minimum stay requirements.
• Tip: Review successful listings in your area for ideas on effective house rules and policies.

Set Up a Management System

• Implement a system for managing bookings, communications, and cleaning schedules.
• Consider using property management software to streamline operations.
• Tip: Automate as many processes as possible to save time and reduce errors.

Prepare for Tax Obligations

1. Set up a system to track income and expenses for tax purposes.
2. Familiarize yourself with local and state tax requirements for short-term rentals.
3. Tip: Consider working with an accountant experienced in short-term rental businesses.

Market Your Property

1. Develop a marketing strategy to promote your rental across various channels.
2. Consider creating a website or social media presence for your property.
3. Tip: Encourage guests to leave reviews and offer incentives for referrals.

Continuously Improve and Adapt

1. Regularly review guest feedback and make improvements to your property and services.
2. Stay informed about changes in local regulations and market trends.
3. Tip: Join local host associations or attend industry events to network and stay updated on best practices.

By following these steps and implementing the provided tips, you'll be well-positioned to start and operate a successful short-term rental business in Oklahoma. Remember to always prioritize compliance with local regulations and focus on providing an exceptional guest experience to build a positive reputation in the market.

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

For hosts seeking information about short-term rental regulations and zoning in Oklahoma, the following contacts and resources can be helpful:

Oklahoma City:

1. Development Services Department
2. Phone: (405) 297-2623
3. Email: developmentcenter@okc.gov
4. Website: https://www.okc.gov/departments/development-services/licenses-and-permits/home-sharing-license

Tulsa:

1. Planning Office
2. Phone: (918) 596-9456
3. Email: planning@cityoftulsa.org
4. Website: https://www.cityoftulsa.org/government/departments/planning-and-development/

Oklahoma Tax Commission:

1. Phone: (405) 521-3160
2. Website: https://www.ok.gov/tax/

For hosts looking to connect with other short-term rental operators and stay informed about local regulations, the following communities and resources may be useful:

BiggerPockets Oklahoma City Short-Term Rental Forum:

1. https://www.biggerpockets.com/forums/530/topics/945910-short-term-rentals-oklahoma-city-area
2. This forum thread is a great place to connect with other hosts, ask questions, and learn about strategies and returns in the Oklahoma City market.

Airbnb Community Center:

1. https://community.withairbnb.com/
2. The Airbnb Community Center is a global platform where hosts can discuss a wide range of topics, including local regulations, best practices, and troubleshooting issues.

By reaching out to these contacts and engaging with the short-term rental community, hosts in Oklahoma can ensure they are operating legally and successfully in this growing market.

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

Airbnb hosts in Oklahoma have shared their experiences and thoughts about local regulations on various online forums, including Reddit and Bigger Pockets. Here are some real-life stories and discussions from verified Oklahoma threads:

Reddit - r/airbnb_hosts: "New host in OKC, just got my license!"

In this thread, a new host in Oklahoma City shares their experience obtaining a short-term rental license. They mention that the process was relatively straightforward, and the city's requirements were not overly burdensome. Other hosts chimed in, agreeing that Oklahoma City's regulations are manageable compared to some other cities.

BiggerPockets Forum - "Short Term Rentals - Oklahoma City Area"

This thread on the Bigger Pockets forum features a discussion among Oklahoma City hosts about their experiences with local regulations. One host noted that the $24 annual license fee and safety requirements were reasonable, though the special exception process for non-primary residences could be more challenging. Another host mentioned that while the city requires a permit, enforcement seems to be somewhat lax.

Overall, the sentiment among Airbnb hosts in Oklahoma seems to be that while there are certainly regulations to navigate, the cities' approaches are generally more accommodating than some other major markets. Hosts emphasize the importance of understanding and complying with local rules, but many have found the process manageable and the market favorable for short-term rental operations.

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 area 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.