Disclaimer
Short-term rental regulations are in a constant state of change. The below resource is updated when possible, but it should not be taken as legal advice. It is critical that you consult with a legal advisor to ensure you are taking the necessary steps to keep your business safe and legal.
Introduction to short-term rental regulations in Oregon
Oregon short-term rental regulations can be hard to find and understand.
Below is a comprehensive look at proposed or legislated Oregon short-term rental laws to help property managers and vacation rental owners better run and ultimately scale their businesses.
Oregon laws related to short-term rentals
The state of Oregon requires short-term rental providers, known as “transient lodging providers” and “transient lodging intermediaries,” to collect and submit lodging taxes by filing revenue returns on a quarterly basis.
The funds collected through the lodging tax are placed towards Oregon tourism programs. Under this tax law, whoever collects payment from lodging customers for fewer than 30 nights, whether it is a whole house or a room, must collect and submit the taxes and is considered a transient lodging provider (owner) or intermediary (owner’s agent).
The
Oregon lodging tax is 1.5% of the rent charged to the customer. Local city and county room taxes may still apply and rates vary by individual cities. (You can find related information on
this page.)
Here are some things to keep in mind when filing state taxes:
- There is no formal registration process—you will automatically be registered for a state lodging tax account when you file your first quarterly lodging tax return.
- Returns must be filed on a quarterly basis and all property information must be completely filled out each quarter.
- Quarterly returns are due on the last day of April, July, October, and January.
- You must submit separate gross receipts for all your properties, as the Oregon Department of Revenue (DOR) tax filing system will automatically calculate if you owe additional local taxes by each property’s address.
It’s important to keep this lodging tax in mind, as these expenses can add up when you have to pay both state and local taxes on top of
short-term rental management fees.
Proposed legislation for short-term rentals in Oregon
Senate Bill 621 was introduced in early 2019, which calls to prohibit local governments from restricting the use of lawful dwellings for vacation occupancy. However, to date, no meetings to call for a vote have been scheduled.
The bill sets out to regulate the industry statewide and calls for registration at the state and local level. Proponents argue that this will fill gaps where some towns have no regulations in place and allow personal property rights of owners who may rely on the additional income to maintain their lifestyle.
But the bill was met with much criticism from local city governments citing careful regulations have been enacted to balance the needs of a growing tourism economy and long-term housing/community needs.
Bend
The city of Bend, Oregon requires any short-term rental operator to apply for an operating license and, in most cases, a land use permit. Where your property is located in Bend determines which short-term rental regulations you are subject to.
Whole home rentals are permitted once the operator obtains the required license and permit and collects and pays transient lodging taxes.
Bend Development Code Standards for Short Term Rentals (Section 3.6.500)
The use of a property for short-term rental occupancy is permitted in all residential, commercial, and mixed-use districts permitting the following operational standards are met:
- Concentration limits – There must be at least 500 feet of separation between properties zoned RL, RS, RM, RH, and MR outside of the Old Mill District boundary with a permitted short-term rental, measured radially from the property boundary.* This concentration limit does not apply to infrequent short-term rentals (rented less than 30 days per year).
- Occupancy – Two persons per bedroom with two additional persons permitted. For example, no more than 8 guests can rent a three-bedroom property. For owner-occupied properties, the occupancy limit is two persons per rented bedroom in addition to the long-term residents.
- Parking – If on-site parking is provided, each space must be a minimum of 20 feet deep by nine feet wide. Parking spaces can be in a garage or in another approved parking space on the property, like a driveway, as long as the parking dimensions for the spaces are met.
- All short-term rental operators must obtain an active operating license and the proper land use permits
Note: If your property is located within Mt. Bachelor Village, The Courtyards at Broken Top (Lots 1-8 and 21-32) or Deschutes Landing, you don’t have to obtain land use approval but still must obtain an operating license.
For more information on approved zoning locations and Bend short-term rental regulations, refer to
Bend Municipal Code 3.6.500.
*See chart below for information regarding residential zone distinctions.
| Residential Zone |
Maximum Rooms per Acre |
| Low Density Residential (RL) |
24 rooms |
| Standard Density Residential (RS) |
43 rooms |
| Medium Density Residential (RM-10) |
45 rooms |
| Medium Density Residential (RM) |
130 rooms |
| High Density Residential (RH) |
258 rooms |
| Commercial and Mixed-Use Zoning Districts and LI and PF Districts |
258 rooms |
Source
STR land use permit
Short-term rental operators in Bend can apply for an STR land use permit as a Type I or Type II property. See this page for more information on the requirements and application fees for each type of permit.
When completing the application for an STR land use permit, you will need to submit the following documentation electronically.
- Site plan showing all structures and existing and proposed parking
- Floor plans
- Proof of Residency (for Type I – Owner Occupied) – you must provide at least two of the following:
- Voter registration
- Oregon driver’s license
- Federal income tax return from the most recent tax year.
Short-term rental operating license
Once you obtain your land use permit, you must apply for a short-term rental operating license.
- The initial application fee is $280 with annual renewals costing $205. Expect a 3-4 week approval process for first-time applications.
- New short-term rental permit holders have 60 days after their permit is issued to apply for the STR operating license, and there are late fees involved if you do not meet this deadline.
- Operating licenses are only granted to property owners – existing licenses can’t be passed to new property owners, so new owners must submit an initial application within 60 days of the sale of the property.
Visit
this page for more information regarding the Bend short-term rental operating license requirements and instructions.
Eugene
The city of Eugene Oregon allows short-term rentals (with a rental period of 30 nights or fewer per guest) by adhering to the following regulations:
- Annual registration – all short-term rentals in the city of Eugene must register annually, which is an easy process with no registration fee.
- Transient Room Tax – on top of the state transient lodging tax, you must also collect and remit 4.5% transient room tax, which helps fund Eugene’s Cultural Services programs and promote tourism in the city.
- Occupancy Limits – a family of any number or up to 5 unrelated guests are permitted per property.
- Overnight camping is permitted on residential properties in a camper, tent, trailer, or vehicle so long as it is parked in the driveway, and only one shelter is allowed per property.
- You cannot collect rent on overnight stays that are considered camping dwellings, so you can not rent vehicles or structures that fall into this category on your property.
Portland
Portland, Oregon short-term rental regulations only permit “Accessory Short-Term Rentals”. The term accessory emphasizes that the primary use of the property (or rental) is a long-term occupancy, and that only part of the property is used for renting.
Portland short-term rental rules allow for partial home rentals lasting fewer than 30 days, or in other buildings on the land where the long-term occupant resides.
Whole home rentals are not permitted in Portland, nor are rentals of six or more bedrooms at one time.
The owner must reside permanently on the property for at least 270 days of the year and the maximum number of days an owner can be away from their property while renting to overnight guests is 95. Owners are also allowed to rent through an agent or
vacation rental management company if they would like.
Accessory Short-Term Rental Permits (ASTR)
You must apply for an accessory short-term rental permit (ASTR) to operate a vacation rental in Portland. There are differing permitting processes based on the number of bedrooms for rent:
- Type A permits: For when the owner/resident rents no more than 2 bedrooms to 5 overnight guests. See here for more information on Type A permits.
- Type B permits: For when the owner/resident rents between 3 and 5 bedrooms to overnight guests. See here for more information on Type B permits.
All short-term rental operators in Portland must register as a business with the city, as well as send out a notice to their neighbors informing them of the short-term rental (the format of the letter differs slightly depending on whether you have a Type A or Type B permit).
It’s also important to keep the proper records as a short-term rental operator in Portland, as well as display your permit within your short-term rental so it can be seen by all guests.
Salem
Salem, Oregon Airbnb laws require vacation rental operators to acquire a short-term rental license. Running a short-term rental in Salem is defined as renting to overnight guests for periods of less than 30 days.
There are two types of licenses in Salem: The short-term rental license and the accessory short-term rental license. The type of license you have to apply for depends on whether or not you reside in the property you are renting, whether you will rent out rooms for periods of time when you’re away (and how long), the number of rooms you’ll be renting out, and the zoning of your property.
You can consult
this page for more information on the type of license you need to apply for. To apply for a license, here are some of the documents you’ll have to submit:
- A license application form
- A transient occupancy tax (TOT) operator registration form
- Site plan and floor plan
- Safety certification
- Proof of insurance
- In the case of an accessory short-term rental license, proof of residence in the dwelling unit
Both types of short-term rental licenses cost $275 for the initial application. Short-term rental licenses in Salem must be renewed each year with a renewal fee of $161.
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Frequently asked questions about the short-term rental regulations in Oregon
Do you need a license to Airbnb in Oregon?
Oregon Airbnb laws don’t require you to obtain a license to operate a short-term rental on a state level. However, certain cities do require you to obtain a license, which is why you need to do your research before you start renting out rooms or an entire property.
What is considered a short-term rental in Oregon?
On a state level, Oregon short-term rental laws define short-term rentals as entire dwellings or individual rooms rented out to guests for a consecutive period of 30 days or fewer per guest.
Is there a moratorium on short-term rentals in Oregon?
There is not currently a moratorium on short-term rentals in Oregon.
However, certain cities have their own regulations when it comes to operating an Airbnb or short-term rental, so it’s important to research local laws when you decide to operate a vacation rental in Oregon.
Is Airbnb legal in Portland, Oregon?
It is legal to run an Airbnb in Portland, Oregon, but the city only permits accessory short-term rentals, meaning that you can only rent out parts of properties that are used for long-term occupancy, and whole-home rentals are not permitted.
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