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

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

Short-term rental regulations in Oregon vary significantly depending on the specific city or county. While there are no statewide laws governing short-term rentals, many local jurisdictions have implemented their own rules to balance the needs of the tourism industry with those of long-term residents. Here's an overview of the regulations in some key Oregon locations:

Starting a Short-Term Rental Business in Oregon

To start a short-term rental business in Oregon, you'll need to research and comply with local regulations, which can differ significantly from one city to another. Here are some general steps to consider:

• Check local zoning laws and permit requirements. For example, in Portland, you must obtain an Accessory Short-Term Rental Permit (ASTR) before operating.
• Register your business with the state and obtain any necessary licenses.
• Ensure your property meets safety standards, which may include installing smoke detectors, carbon monoxide detectors, and fire extinguishers.
• Set up systems to collect and remit lodging taxes. In Oregon, this includes state, county, and sometimes city taxes.
• Consider purchasing short-term rental insurance to protect your property and business.

In Portland, the process is quite structured. You must apply for either a Type A permit (for renting up to two bedrooms) or a Type B permit (for renting three to five bedrooms). The city requires that the property be your primary residence for at least 270 days per year, and you can only rent it out for a maximum of 95 days when you're not present.

Short-Term Rental Licensing Requirement in Oregon

Oregon does not have a statewide licensing requirement for short-term rentals. Instead, the regulations and licensing requirements are determined by local jurisdictions, such as cities and counties. This means that the specific requirements for operating a short-term rental can vary significantly depending on where the property is located within the state.

However, while there is no state-level licensing, all short-term rental operators in Oregon are required to collect and remit the state's Transient Lodging Tax, which is currently 1.8% of the total rent charged. This tax applies to all stays of less than 30 consecutive days, and it is the host's responsibility to ensure compliance, even if platforms like Airbnb assist in the collection process.

To understand the specific licensing requirements for your short-term rental, you must research the regulations in your city or county. Here are some examples of the requirements in major Oregon cities:

Portland:

1. Accessory Short-Term Rental (ASTR) Permit required (Type A for 1-2 bedrooms, Type B for 3-5 bedrooms)
2. Proof of residency (Oregon Driver's License or ID) showing the rental address
3. Neighborhood notification
4. Completed application forms and fees
5. Registration with the city's Transient Lodging Tax program
6. Business license and registration as a business entity

Bend:

1. Short-Term Rental Operating License required
2. Land Use Permit (in most cases)
3. Transient Room Tax registration and compliance

Eugene:

1. Annual registration (no fee)
2. Local contact information
3. Occupancy limited to 2 people per bedroom plus 2 additional individuals (e.g., a 2-bedroom rental can have up to 6 guests)

Hood River:

1. Short-Term Rental Operating License required annually
2. Proof of residency (for rentals in certain zones)
3. Completed application forms and fees
4. Transient Room Tax registration and compliance
5. Occupancy limits based on number of bedrooms
6. Parking requirements (1 space per 2 bedrooms)

The application process, fees, and processing times can vary by city. Generally, expect to pay a few hundred dollars in application and licensing fees, and allow several weeks for the process to be completed. Fines for operating without a required license can be substantial, often $500 or more per violation, with each day of non-compliant operation potentially considered a separate violation.

In summary, while Oregon does not have a statewide short-term rental licensing requirement, hosts must carefully research and comply with their local regulations, which can be extensive. Failure to do so can result in significant penalties and jeopardize the ability to operate legally.

Required Documents for Oregon Short-Term Rentals

The specific documents required for short-term rentals in Oregon vary by city and county. However, here are some common documents that hosts may need to provide when applying for a short-term rental permit or license:

1. Completed Application Form: A detailed application form provided by the local jurisdiction, which typically includes information about the property, the owner, and the proposed short-term rental operation.
2. Proof of Residency: In cities like Portland and Hood River, where short-term rentals in certain zones are only allowed in the owner's primary residence, hosts must provide proof of residency. This can include documents such as a voter registration card, Oregon driver's license, or the previous year's federal income tax return.
3. Floor Plan: A floor plan identifying the number of bedrooms proposed for use in the short-term rental.
4. Site Plan or Parking Diagram: A diagram or photograph of the property showing the number, location, and dimensions of designated on-site and abutting on-street parking spaces.
5. Proof of Insurance: Some cities, like Portland, require hosts to provide proof of liability insurance for their short-term rental.
6. Transient Lodging Tax Registration: Hosts must register with the city or county to collect and remit transient lodging taxes.
7. Neighborhood Notification: In Portland, hosts must provide a copy of the neighborhood notification sent to nearby residents, informing them of the short-term rental application.
8. Land Use Compatibility Statement (LUCS): In some cases, a LUCS from the local planning department may be required to confirm that the short-term rental complies with zoning regulations.
9. Property Management Agreement: If the host is using a property management company, they may need to provide a copy of the agreement.
10. Inspection Reports: Some cities, like Hood River, require a short-term rental inspection prior to issuing a permit. Hosts must provide the inspection report with their application.

These documents are typically submitted to the local planning or development department, along with any applicable fees. The processing time for short-term rental applications can vary but generally takes several weeks. Failing to obtain the necessary permits and licenses can result in significant fines and penalties, often $500 or more per violation, with each day of non-compliant operation potentially considered a separate violation.

It's crucial for hosts to carefully review the specific requirements in their local jurisdiction, as the documents and processes can vary significantly across Oregon.

Oregon Short-Term Rental Taxes

Short-term rental operators in Oregon are subject to various taxes at the state and local levels. Understanding these tax obligations is crucial for compliance and proper financial planning. Here's a breakdown of the primary taxes that apply to short-term rentals in Oregon:

State Transient Lodging Tax

Oregon imposes a state-wide Transient Lodging Tax of 1.5% on all short-term rentals lasting less than 30 consecutive days. This tax applies to the total amount charged for occupancy, including any non-optional fees. The revenue generated from this tax funds Oregon Tourism Commission programs.

Local Transient Lodging Taxes

In addition to the state tax, many cities and counties in Oregon impose their own local lodging taxes. These rates vary significantly depending on the location:

1. Portland: 6% city tax
2. Salem: 9% Transient Occupancy Tax
3. Eugene: 4.5% Transient Room Tax

It's essential to check with your specific local government for the exact rate, as these can change and may be higher in some tourist-heavy areas.

Income Tax

Short-term rental income is subject to federal and state income tax. Oregon's personal income tax rates range from 4.75% to 9.9%, depending on your income bracket.

Possible Write-offs and Deductions

Short-term rental operators in Oregon can potentially reduce their tax burden through various deductions. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Cleaning and maintenance costs
4. Utilities
5. Insurance premiums
6. Depreciation
7. Advertising expenses
8. Professional fees (e.g., accounting, legal)
9. Supplies and amenities for guests
10. Travel expenses related to managing the property

It's important to note the "14-day rule" established by the IRS. If you rent your property for 14 days or less in a year, you don't have to report the rental income on your tax return. However, you also can't deduct rental expenses.

For properties used both personally and as rentals, expenses must be allocated proportionally based on the number of days the property was rented versus personal use.

Proper record-keeping is crucial for maximizing deductions and ensuring compliance with tax laws. It's highly recommended to consult with a tax professional familiar with short-term rental regulations in Oregon to optimize your tax strategy and ensure full compliance with all applicable laws and regulations.

Does Oregon Strictly Enforce STR Rules? Is Oregon Airbnb Friendly?

Oregon's enforcement of short-term rental regulations varies significantly across the state, with some cities like Portland taking a much stricter approach than others. Portland has demonstrated a strong commitment to enforcing its STR rules, actively cracking down on illegal rentals and pressuring platforms like Airbnb to remove listings without valid permit numbers.

However, the sentiment among Airbnb hosts in Portland is mixed. Some praise the city's efforts to regulate the industry and ensure fairness, while others express frustration with the perceived burden of the regulations. One host on BiggerPockets shared, "Portland is definitely not as Airbnb-friendly as other cities. The permitting process is a hassle, and the city is always looking for ways to make it harder for hosts to operate."

In contrast, cities like Bend and Eugene have taken a more relaxed approach to STR regulation and enforcement. A Reddit user commented, "I've been running an Airbnb in Bend for years without any issues. As long as you're respectful of your neighbors and follow the basic rules, the city doesn't seem to bother you much."

Despite the varying levels of enforcement, it's clear that many hosts continue to operate STRs in Oregon, even if they're not fully compliant with local regulations. Another BiggerPockets member admitted, "I know I'm supposed to have a permit for my rental in Portland, but the process is just too complicated and expensive. I've been flying under the radar for a while now, and I'm not the only one."

This sentiment is echoed by a Reddit user who stated, "There are tons of unpermitted STRs in Oregon, especially in the more touristy areas. It's an open secret that a lot of hosts are operating without following all the rules."

In conclusion, while cities like Portland are making concerted efforts to enforce STR regulations, Oregon as a whole is not uniformly strict in its approach. The level of Airbnb friendliness varies significantly from city to city, and many hosts continue to operate despite not being fully compliant with local rules. Ultimately, Oregon presents a mixed landscape for STR operators, with challenges and opportunities that largely depend on the specific location and the host's willingness to navigate the regulatory environment.

How to Start a Short-Term Rental Business in Oregon

Starting a short-term rental business in Oregon requires careful planning and adherence to local regulations. Here's a comprehensive guide to help you get started:

Research Local Regulations

1. Thoroughly investigate the short-term rental laws in your specific city or county. Oregon's regulations vary significantly by location, so it's crucial to understand the rules that apply to your property. Check official city websites or contact local planning departments for the most up-to-date information.
2. Tip: Join local real estate or short-term rental groups on social media platforms to gain insights from experienced hosts in your area.

Choose Your Property

• Select a property that meets local zoning requirements for short-term rentals. Consider factors like location, amenities, and potential return on investment.
• Tip: Look for properties in areas with high tourist traffic or near popular attractions to maximize your occupancy rates.

Obtain Necessary Permits and Licenses

• Apply for all required permits and licenses as specified by your local jurisdiction. This may include a short-term rental permit, business license, and tax registration.
• Tip: Create a checklist of all required documents to ensure you don't miss any crucial steps in the application process.

Register for Tax Collection

• Register with the Oregon Department of Revenue to collect and remit the state Transient Lodging Tax. Also, register with your local tax authority for any city or county lodging taxes.
• Tip: Consider using a tax management software specifically designed for short-term rentals to simplify the tax collection and remittance process.

Prepare Your Property

• Ensure your property meets all safety requirements, including smoke detectors, carbon monoxide detectors, and fire extinguishers. Make necessary renovations or upgrades to make your property attractive to guests.
• Tip: Consider hiring a professional interior designer to create a welcoming and Instagram-worthy space that will attract more bookings.

Set Up Your Business Structure

• Decide on a business structure (e.g., LLC, sole proprietorship) and register your business with the Oregon Secretary of State.
• Tip: Consult with a business attorney or accountant to determine the best structure for your specific situation.

Obtain Insurance

• Purchase short-term rental insurance to protect your property and business. Standard homeowners insurance often doesn't cover short-term rental activities.
• Tip: Shop around for insurance policies specifically designed for short-term rentals, as they often provide more comprehensive coverage.

Create House Rules and Policies

• Develop clear house rules and policies to manage guest expectations and protect your property.
• Tip: Include these rules in your listing description and send them to guests before check-in to avoid misunderstandings.

Set Up Your Online Listings

• Create attractive listings on platforms like Airbnb, VRBO, and Booking.com. Use high-quality photos and compelling descriptions to showcase your property.
• Tip: Consider hiring a professional photographer to capture your property in the best light.

Implement a Management System

• Set up a system for managing bookings, guest communications, cleaning, and maintenance. Consider using property management software to streamline operations.
• Tip: Automate as much as possible, including check-in procedures and guest communications, to save time and provide a consistent experience.

Market Your Property

• Develop a marketing strategy to promote your rental. This could include social media marketing, creating a website, or partnering with local tourism boards.
• Tip: Offer special promotions during off-peak seasons to maintain a steady flow of bookings throughout the year.

Monitor and Adjust

1. Regularly review your performance, guest feedback, and local market conditions. Be prepared to adjust your pricing, policies, or offerings as needed.
2. Tip: Stay informed about changes in local regulations and industry trends to ensure your business remains compliant and competitive.

By following these steps and staying committed to providing excellent guest experiences, you'll be well on your way to building a successful short-term rental business in Oregon. Remember, success in this industry often comes down to attention to detail, exceptional customer service, and adaptability to changing market conditions.

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

Given that short-term rental regulations in Oregon are primarily managed at the local level, the appropriate contacts will vary depending on your specific location. However, here are some key contacts and resources for major cities and counties in Oregon:

Portland:

1. Bureau of Development Services
2. Phone: 503-823-7300
3. Website: www.portlandoregon.gov/bds

Eugene:

1. Planning and Development Department
2. Phone: 541-682-5377
3. Email: landuseinfo@eugene-or.gov

Lincoln County:

1. Short-Term Rental Licensing Program
2. Phone: 541-265-0675
3. Email: STR.Licensing@co.lincoln.or.us

Hood River:

1. Planning Department
2. Phone: 541-387-5210
3. Email: planning@cityofhoodriver.gov

For state-level inquiries or general guidance:

Oregon Department of Revenue (for tax-related questions)

1. Phone: 503-378-4988
2. Website: www.oregon.gov/dor

Additionally, hosts may find the following communities and resources helpful:

1. Host2Host - A Portland-based non-profit organization for short-term rental hosts: https://host2host.org
2. Oregon Coast Hosts Facebook Group - A community for coastal Oregon STR hosts : https://www.facebook.com/groups/oregoncoasthosts/
3. Airbnb Community Center - Portland Hosts Forum: https://community.withairbnb.com/t5/Portland/bd-p/Portland
4. BiggerPockets Oregon Real Estate Forum: https://www.biggerpockets.com/forums/530

These resources can provide valuable insights, support, and networking opportunities for short-term rental hosts in Oregon. Remember to always verify the most current regulations with your local authorities, as rules can change and may vary significantly between jurisdictions.

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

Oregon short-term rental hosts have mixed feelings about local regulations, as evidenced by their discussions on platforms like Reddit and BiggerPockets. While some appreciate the efforts to maintain neighborhood character and ensure a level playing field, others find the rules burdensome and detrimental to their businesses. Here are some real-life experiences and stories from verified Oregon threads and forums:

Reddit - r/Portland: In a thread titled "Thoughts on Portland's short-term rental regulations," user u/PortlandHost expressed support for the city's strict enforcement, stating, "I believe the regulations help preserve the character of residential areas and benefit both hosts and the local community." However, another user, u/STRStruggle, countered, "The permitting process is a hassle, and the city seems to be looking for ways to make it harder for hosts to operate."

BiggerPockets Forum: In a post titled "Portland, OR STR Regulations," user STRInvestorPDX acknowledged the strictness of Portland's rules but emphasized the importance of compliance: "It's crucial to understand and adhere to the regulations to operate a successful and sustainable short-term rental business in the city. Failing to do so can result in significant fines and legal issues."

Airbnb Community Center - Portland Hosts Forum: Host JaneD shared her experience with the permitting process: "I found the application process to be time-consuming and complicated. It took several months to get my permit approved, and I had to navigate through various city departments. While I understand the need for regulations, I wish the process was more streamlined."

These experiences highlight the challenges Oregon STR hosts face in navigating local regulations, particularly in cities like Portland with strict enforcement. While some appreciate the efforts to preserve neighborhood character, others find the rules burdensome and detrimental to their businesses. Nonetheless, most hosts acknowledge the importance of compliance and the potential consequences of operating without the proper permits and licenses.

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.