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

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

Short-term rental hosts in Multnomah County, Oregon must navigate a variety of regulations at both the county and city level. The key requirements include obtaining permits, paying transient lodging taxes, and following zoning and safety rules. Here's an overview of the short-term rental landscape in Multnomah County.

Starting a Short-Term Rental Business in Multnomah County

To legally operate a short-term rental (defined as a rental period of 30 nights or fewer per guest) in Multnomah County, hosts must:

• Obtain required permits: In the City of Portland, hosts need an Accessory Short-Term Rental (ASTR) permit. There are two types - a Type A permit allows renting up to 2 bedrooms to a maximum of 5 guests, while a Type B permit is for 3-5 bedrooms. Other cities in the county like Gresham have their own permitting processes.
• Register and pay taxes: Short-term rental operators countywide must collect and remit the Multnomah County Transient Lodging Tax of 11.5%. Within Portland, an additional 6% city tax applies. Hosts must register with the appropriate tax authorities even if hosting through Airbnb, which collects and remits taxes on behalf of hosts.
• Follow zoning and occupancy rules: In Portland, the ASTR program requires hosts to live in the property at least 270 days per year. No more than 5 unrelated guests are allowed per night. Rentals with 6+ bedrooms are subject to additional commercial zoning regulations.
• Meet safety requirements: Bedrooms must be legally recognized as sleeping areas and have smoke and carbon monoxide detectors. The property must pass a city inspection to ensure all requirements are met.

Multnomah County also offers some assistance for tenants and those at risk of homelessness through the Short Term Rent Assistance (STRA) program, which can provide up to 24 months of limited rent support. However, this is separate from the short-term rental regulations.

Hosts on forums like Bigger Pockets and Reddit have mixed views on Portland's strict rules - some appreciate the standards that preserve neighborhood character, while others find them overly burdensome. But all agree that understanding and complying with local regulations is critical for running a successful short-term rental business in Multnomah County.

Short-Term Rental Licensing Requirements in Multnomah County

To legally operate a short-term rental (defined as a rental period of 30 nights or fewer per guest) anywhere in Multnomah County, hosts must obtain the proper permits and licenses. The specific requirements vary based on the jurisdiction.

In the City of Portland, short-term rental operators need an Accessory Short-Term Rental (ASTR) permit:

1. Type A Permit: For renting 1-2 bedrooms to a maximum of 5 guests. The initial application fee is $180 for a single-dwelling unit or $130 for a multi-dwelling unit. Renewal fees are $100 and $70 respectively.
2. Type B Conditional Use Permit: Required for renting 3-5 bedrooms. The permit application fee is $5,800.

Both permit types mandate that the host is the long-term resident, occupying the property for at least 270 days per year. Applications are submitted online through the city's permitting system. The approval process typically takes 3-4 weeks for Type A permits, while Type B permits involve a more extensive land use review.

In addition to the ASTR permit, Portland hosts must:

1. Register their short-term rental business with the City of Portland Revenue Division
2. Obtain a City of Portland business license (no fee for those grossing under $50,000/year)
3. Collect and remit the Multnomah County Transient Lodging Tax (11.5%) and the City of Portland Transient Lodging Tax (6%)
4. Failure to comply with Portland's short-term rental regulations can result in fines of $1,000-$5,000 per offense.

Other cities in Multnomah County have their own permitting processes and requirements. For example, Gresham requires short-term rental operators to obtain a Rental License and a Business License, each with their associated fees.

Regardless of location within the county, all short-term rental hosts are responsible for the Multnomah County Transient Lodging Tax. Even those hosting exclusively through booking platforms like Airbnb that collect and remit taxes on behalf of hosts must register with the county tax authorities.

Meeting these licensing and tax obligations is critical for running a compliant short-term rental business in Multnomah County. Hosts should thoroughly review the requirements for their specific jurisdiction to avoid penalties. Many find the investment of time and fees worthwhile to legally share their home with guests.

Required Documents for Multnomah County Short-Term Rentals

To operate a short-term rental legally in Multnomah County hosts must submit several required documents as part of the permit application process. These documents ensure compliance with local regulations and confirm the host's eligibility. The key required documents include:

1. Accessory Short-Term Rental (ASTR) Permit Application: This is the primary permit required for short-term rentals in Portland. Hosts must complete and submit the appropriate application form (Type A for 1-2 bedrooms, Type B for 3-5 bedrooms) along with the necessary fees.
2. Proof of Residency: Hosts must provide a copy of their Oregon Driver's License or Oregon Identification Card to confirm they reside at the short-term rental property for at least 270 days per year, a key requirement of the ASTR program.
3. Neighborhood Notification: Hosts are required to send a notification letter to neighboring properties and neighborhood associations informing them about the short-term rental. A copy of this notification and a list of notified addresses must be included in the permit application.
4. Proof of Insurance: While not explicitly mentioned in the City of Portland's requirements, many sources recommend that hosts provide proof of appropriate insurance coverage for their short-term rental.
5. Transient Lodging Tax Registration: Short-term rental operators must register their business with the City of Portland Revenue Division and obtain a Transient Lodging Tax Registration Number. Proof of this registration is required.
6. Business License (if applicable): Hosts earning over $50,000 per year from their short-term rental must obtain a City of Portland Business License and provide proof of this license during the permit application.

These documents, along with a completed application form and payment of fees, make up the core requirements for short-term rental permits in Portland and Multnomah County. The ASTR permit application, proof of residency, and neighborhood notification are submitted through the City of Portland's online permitting system.

Hosts should carefully review the requirements and gather all necessary documents before beginning the permit application process to ensure a smooth and successful submission. Failure to provide the required documentation can result in delays or denial of the short-term rental permit.

Multnomah County Short-Term Rental Taxes

Short-term rental operators in Multnomah County are subject to two main taxes - the Multnomah County Transient Lodging Tax and, for those within Portland city limits, the City of Portland Transient Lodging Tax.

The Multnomah County Transient Lodging Tax is an 11.5% tax on all short-term rental occupancies in the county. This is comprised of:

1. 5% base rate
2. 1% surcharge
3. 3% surcharge for Visitor Facilities and Excise Tax Fund Intergovernmental Agreements
4. 2.5% surcharge for Visitor Facilities and Excise Tax Fund Intergovernmental Agreements

Rentals located within the City of Portland are subject to an additional City of Portland Transient Lodging Tax of 6%, for a total tax rate of 17.5%. The city collects both the county and city taxes for Portland rentals.

Short-term rentals in other cities like Gresham may have their own additional city taxes. For example, Gresham imposes an 8% transient lodging tax on top of the county tax.

These taxes apply to all rentals of less than 30 consecutive days. Exemptions include:

1. Rentals of 30+ consecutive days
2. Rentals paid on a monthly basis
3. Rentals under $2 per day
4. Rentals to federal government employees on official business

Tax Deductions and Write-Offs

While short-term rental taxes can seem daunting, hosts can offset some of these costs by claiming eligible deductions on their income taxes. Common deductions include:

1. Depreciation of the rental property and furnishings over time
2. Property taxes
3. Mortgage interest
4. Cleaning fees and supplies
5. Repairs and maintenance costs
6. Utilities
7. Insurance premiums
8. Host service fees from platforms like Airbnb
9. Advertising and marketing expenses

Keep in mind that if you also use the rental for personal purposes for more than 14 days or 10% of the total rental days, you'll need to divide the expenses between rental and personal use.

Meticulous record-keeping is essential to claim these deductions. Short-term rental hosts should maintain detailed records of income and expenses, and consult with a tax professional to ensure they are following all applicable tax laws and maximizing their deductions.

By understanding the tax obligations and strategically utilizing deductions, short-term rental operators in Multnomah County can run a compliant and profitable business. The added work of proper tax compliance is a small price to pay for the opportunity to earn income sharing your home with guests.

Oregon Wide Short-Term Rental Rules

In addition to Multnomah County and Portland-specific regulations, short-term rental hosts must also comply with statewide laws and requirements. These rules ensure a consistent framework for the vacation rental industry across Oregon.

One key statewide regulation is the Oregon Transient Lodging Tax. This is a 1.5% tax on all short-term rental occupancies, defined as stays of less than 30 consecutive days. The tax is collected by the host or the rental platform (like Airbnb) and remitted to the Oregon Department of Revenue. This is in addition to any local transient lodging taxes imposed by cities or counties.

Oregon also has statewide building and fire safety codes that apply to short-term rentals. Hosts must ensure their property meets these standards, which include requirements for smoke detectors, carbon monoxide detectors, and fire extinguishers. Some cities, like Portland, require a fire safety self-inspection as part of the permitting process.

While not a statewide law, many Oregon cities and counties require short-term rental hosts to obtain a business license in addition to any specific short-term rental permits. This is the case in Multnomah County, where Portland hosts earning over $50,000 per year must have a City of Portland Business License.

Oregon's land use planning system also impacts short-term rentals. Cities and counties must align their zoning and development regulations with statewide planning goals. This can affect where short-term rentals are allowed and any density or spacing requirements. For example, Portland's requirement that hosts live on-site at least 270 days per year aligns with the statewide goal of preserving housing stock.

Statewide, there is a push for greater enforcement and oversight of illegal or unpermitted short-term rentals. Cities like Portland are cracking down, requiring rental platforms to remove listings without valid permit numbers. Hosts who operate without the proper permits and licenses can face significant fines at both the local and state level.

Overall, while many of the day-to-day requirements for short-term rentals fall under local jurisdiction, Oregon's statewide rules provide an important foundation. From taxes to safety to land use, hosts in Multnomah County and throughout the state must navigate this multi-layered regulatory landscape to operate legally and successfully.

Does Multnomah County Strictly Enforce STR Rules? Is Multnomah County Airbnb Friendly?

Multnomah County, particularly the City of Portland, has earned a reputation for its strict enforcement of short-term rental regulations. The city has demonstrated a strong commitment to ensuring compliance, actively cracking down on illegal rentals, and pressuring platforms like Airbnb to remove listings without valid permit numbers.

While some Airbnb hosts in Portland appreciate the city's efforts to regulate the industry, viewing them as necessary for maintaining the quality of neighborhoods and ensuring a level playing field, others find the rules overly burdensome. On the real estate forum Bigger Pockets, user STRInvestorPDX acknowledged the strictness of Portland's regulations but emphasized the importance of understanding and adhering to them to operate a successful and sustainable short-term rental business in the city.

Similarly, on Reddit, user u/PortlandHost123 expressed support for the city's regulatory approach, believing that it helps preserve the character of residential areas and benefits both hosts and the local community. However, not all hosts share this sentiment, with some expressing frustration and feeling that the regulations hinder their ability to run a profitable short-term rental business.

Despite the mixed opinions, it is clear that Multnomah County, and Portland in particular, is less Airbnb-friendly compared to other cities with more relaxed regulations. The strict enforcement and comprehensive permitting process can be seen as deterrents for some hosts.

However, the presence of ongoing debates and the existence of a robust short-term rental market suggest that many hosts continue to operate in Multnomah County despite the rules. The allure of potential profits seems to outweigh the risks of non-compliance for some, leading them to navigate the complex regulatory landscape to run their short-term rental businesses.

In conclusion, while Multnomah County's strict enforcement of short-term rental regulations may not make it the most Airbnb-friendly destination, the market remains active, with hosts operating despite the rules. The county's commitment to regulation is likely to continue shaping the local short-term rental industry, even as hosts adapt and find ways to comply with the evolving legal framework.

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

Starting a short-term rental business in Multnomah County requires careful planning and adherence to local regulations. Follow these steps to successfully launch your venture:

Confirm Zoning Compliance:

1. Ensure your property is located in a zone that allows short-term rentals.
2. Check the Portland Bureau of Development Services website and consult the zoning code for specific area regulations.
3. Use resources like the Portland Zoning Map to verify zoning compatibility.
4. Thoroughly research zoning laws to avoid potential legal issues down the line.

Obtain Accessory Short-Term Rental (ASTR) Permit:

1. Determine if you need a Type A permit (1-2 bedrooms, up to 5 guests) or a Type B permit (3-5 bedrooms, up to 10 guests).
2. Fill out the appropriate application through the Portland permitting system.
3. Include all required documents, such as proof of residency and neighborhood notification letters.
4. Start the permitting process early, as it can take several weeks to complete.

Register for Taxes:

• Register your property with the City of Portland and Multnomah County for the Transient Lodging Tax.
• Obtain all necessary tax identification numbers.
• Consult with a tax professional to ensure compliance with local and state tax laws.
• Keep detailed records of all income and expenses related to your short-term rental.

Prepare Your Property:

• Make necessary renovations or adjustments to meet safety and occupancy standards mandated by local codes.
• Install required safety features such as smoke detectors, carbon monoxide detectors, and fire extinguishers.
• Consider hiring a professional inspector to ensure compliance.
• Create a welcoming and well-maintained space to attract positive reviews and repeat guests.

List and Market Your Rental:

• Create listings on popular platforms such as Airbnb or VRBO.
• Highlight unique features, amenities, and local attractions in your listing description.
• Invest in high-quality photography to make your listing stand out.
• Offer competitive pricing and exceptional customer service to build a strong reputation.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Multnomah County. Remember to prioritize compliance, guest satisfaction, and effective marketing to ensure the long-term success of your venture.

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

For questions about short-term rental regulations and zoning in Multnomah County, here are the key contacts and resources:

Multnomah County Land Use Planning Office

• Address: 1600 SE 190th Avenue, Portland, OR 97233
• Phone: 503-988-3043
• Email: land.use.planning@multco.us
• Website: https://www.multco.us/landuse

Contact the Land Use Planning Office to inquire about zoning for your property and determine if short-term rentals are allowed. They can provide information on the Multnomah County Zoning Ordinance and assist with the permitting process for unincorporated areas of the county.

City of Portland Bureau of Development Services

• Phone: 503-823-7300
• Email: BDSCustomerService@portlandoregon.gov
• Website: https://www.portland.gov/bds

For properties within Portland city limits, the Bureau of Development Services handles short-term rental permits and enforcement. Visit their website for detailed information on the Accessory Short-Term Rental (ASTR) permitting process, application forms, fees, and inspection requirements.

Short-Term Rental Host Forums and Communities

• Airbnb Community Center - Portland Hosts Forum: https://community.withairbnb.com/t5/Portland/bd-p/Portland
• BiggerPockets Portland Real Estate Investing Forum: https://www.biggerpockets.com/forums/99/topics/tagged/portland
• Reddit /r/AirBnB_Hosts: https://www.reddit.com/r/AirBnB_Hosts/

These online forums and communities provide a platform for short-term rental hosts in Portland and Multnomah County to connect, share experiences, and seek advice from fellow hosts. While not official sources, these groups can offer valuable insights and support for navigating local regulations.

By contacting the appropriate government offices and engaging with local host communities, short-term rental operators in Multnomah County can ensure they are following all necessary rules and regulations. Staying informed and connected is key to running a successful and compliant short-term rental business in the Portland area.

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

Multnomah County Airbnb hosts have mixed feelings about local short-term rental regulations, according to discussions on Reddit and Bigger Pockets forums. Some appreciate the standards that preserve neighborhood character, while others find the rules overly burdensome. Here are some key takeaways from these online communities:

On the Bigger Pockets forum, user Amanda Coleman shared insights on zoning for short-term rentals in Portland. She noted that nightly rentals are allowed in commercial zones with an occupancy change, which can be a lengthier process than the standard accessory short-term rental (ASTR) permits. However, she emphasized that it can be rewarding for the right property.

Reddit users have expressed frustration with the lack of enforcement of short-term rental rules in Portland. In a thread titled "Portland's Short-Term Rental Rules Are Such a Joke," commenters discussed the prevalence of unpermitted rentals and the city's apparent inability to crack down on violators. One user pointed out the irony of an Airbnb lobbyist operating an illegal rental herself.

Some Redditors have sought advice on reporting neighbors operating unpermitted Airbnbs. In the r/askportland subreddit, a user detailed their experience living next to an illegal rental that caused noise and parking issues. Commenters provided guidance on filing official zoning violation reports with the city, citing specific code sections that apply to short-term rentals.

The sentiment that the city needs to improve its enforcement efforts is echoed in another Reddit thread discussing a recent Oregonian article on the topic. Users criticized the city's reliance on Airbnb to police its own platform and called for stronger consequences for companies that knowingly violate local regulations.

Overall, while some Multnomah County hosts appreciate the intent behind the regulations, there is a prevailing sense that the rules are not being effectively enforced. Many feel that the city needs to take a more proactive approach in identifying and penalizing illegal operators to level the playing field for compliant hosts and protect the local housing market.

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.