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

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

Oklahoma County, which includes the major city of Oklahoma City, has seen growth in short-term rentals through booking platforms like Airbnb and VRBO in recent years. Hosts looking to start a vacation rental business need to be aware of the specific regulations that apply in Oklahoma County.

Starting a Short-Term Rental Business in Oklahoma County

To legally operate a short-term rental in Oklahoma County, hosts must obtain a home sharing license from Oklahoma City, which has an annual fee of $24. Properties that are not the host's primary residence require a special exception from the Board of Adjustment, which has an additional $300 application fee.

The application process involves submitting various documents, including:

• Property information and ownership documentation
• Host and local contact information, such as a property manager or co-host
• Number of bedrooms to be rented
• Proof of compliance with building, safety, and health codes
• Proof of primary residence (unless a special exception is obtained)

Properties located in historic preservation districts also require a special exception, even if they are the host's primary residence.

Hosts renting out two or more bedrooms are subject to a 5.5% hotel tax, which Airbnb collects and remits on behalf of hosts. For other platforms, hosts are responsible for collecting and remitting this tax themselves.

According to discussions on the Bigger Pockets real estate investing forum, Oklahoma City's regulations are relatively reasonable compared to some other major cities. One host noted the $24 annual license fee was manageable, though obtaining a special exception for non-primary residences can be more challenging.

Overall, Oklahoma County allows short-term rentals in residential areas as long as hosts obtain the proper licenses and meet safety requirements. By understanding and following these regulations, hosts can operate vacation rentals legally and contribute positively to the local community. However, it's always advisable to check directly with local officials for the most up-to-date and accurate regulatory information before starting a short-term rental business.

Short-Term Rental Licensing Requirements in Oklahoma County

To legally operate a short-term rental in Oklahoma County, particularly in Oklahoma City, hosts must obtain a home sharing license from the Oklahoma City Development Services Department. The licensing process involves submitting various documents and paying an annual fee.

Requirements for obtaining an STR license in Oklahoma County include:

1. Completed home sharing license application
2. Proof of property ownership or primary residence (driver's license, state ID, tax documents, etc.)
3. If the host is not the property owner, a copy of the lease and documented permission from the owner
4. Floor plan of the rental unit
5. Safety certifications (smoke detectors, carbon monoxide detectors, fire extinguisher)

The annual license fee is $24 per residential unit offered for rental. Hosts must submit their application and required documents to the Development Services Department at 420 W. Main Street, 8th Floor, Oklahoma City, OK 73102.

Processing times for STR license applications typically range from 2-4 weeks. Once approved, licenses must be renewed annually, with expiration occurring on January 31st of each year. The renewal fee is approximately $10 per license.

Operating an STR without a valid license in Oklahoma County can result in significant penalties. Fines may be imposed for each day a violation continues, and the exact amount depends on the severity of the infraction. In some cases, legal action may be taken against non-compliant hosts.

To avoid penalties and maintain good standing, hosts should prioritize obtaining the necessary licenses and adhering to all local regulations. This includes ensuring the property meets safety requirements, complying with zoning restrictions, and collecting and remitting applicable taxes.

If a property is located in a historic preservation district or is not the host's primary residence, additional requirements apply. In these cases, hosts must obtain a special exception from the Board of Adjustment, which involves a $300 application fee and further documentation.

By understanding and following the licensing requirements for short-term rentals in Oklahoma County, hosts can operate their businesses legally and contribute positively to the local community. Failure to comply with these regulations can lead to significant financial and legal consequences.

Required Documents for Oklahoma County Short-Term Rentals

To legally operate a short-term rental in Oklahoma County, particularly in Oklahoma City, hosts must submit several documents as part of the licensing process. These documents help verify ownership, ensure safety compliance, and provide necessary information to local authorities. The following list outlines the key documents required:

1. Completed Home Sharing License Application: This form, available from the Oklahoma City Development Services Department, collects essential information about the host, property, and intended use of the short-term rental.
2. Proof of Property Ownership or Primary Residence: Hosts must provide documentation demonstrating they own the property or that it serves as their primary residence. Acceptable forms of proof include a valid Oklahoma driver's license, state-issued ID, tax documents, automobile registration, or voter registration.
3. Lease Agreement and Owner Permission (if applicable): If the host is not the property owner, they must submit a copy of the lease agreement and documented permission from the owner allowing short-term rental use.
4. Floor Plan: A detailed floor plan of the rental unit helps city officials assess the layout and ensure compliance with occupancy limits and safety requirements.
5. Safety Certifications: Hosts must provide proof that the rental unit is equipped with functioning smoke detectors, carbon monoxide detectors, and fire extinguishers, as mandated by city fire codes.

In addition to these documents, hosts may need to submit further information or undergo additional steps depending on their specific circumstances:

1. If the property is located in a Historic Preservation District, hosts must obtain a special exception from the Board of Adjustment, which involves a $300 application fee and additional documentation.
2. Non-primary residence rentals also require a special exception from the Board of Adjustment, along with the standard licensing documents.

Hosts should submit all required documents, along with the $24 annual license fee per rental unit, to the Development Services Department at 420 W. Main Street, 8th Floor, Oklahoma City, OK 73102.

By carefully compiling and submitting these documents, hosts can ensure they are operating their short-term rentals in compliance with Oklahoma County regulations, avoiding potential fines and legal issues.

Oklahoma County Short-Term Rental Taxes

Operating a short-term rental business in Oklahoma County 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 County:

Hotel Tax: Oklahoma City imposes a 5.5% hotel tax on short-term rentals offering two or more bedrooms. This tax is calculated based on the listing price, including any cleaning fees, for reservations of 29 nights or shorter. Airbnb collects and remits this tax on behalf of hosts in Oklahoma City.

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 County 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.

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 and Write-Offs for Short-Term Rentals

Hosts can take advantage of various tax deductions to offset their rental income and reduce their overall tax liability. Some common deductions for short-term rental businesses include:

1. Mortgage interest
2. Property taxes
3. Rental property depreciation
4. Utilities (electricity, water, gas, internet)
5. Cleaning and maintenance expenses
6. Repairs and replacements
7. Insurance premiums
8. Advertising and marketing costs
9. Supplies and amenities provided to guests
10. Business-related travel expenses

To qualify for these deductions, hosts must keep detailed records of their expenses and consult with a tax professional to ensure they are claiming deductions correctly.

By understanding and complying with the tax requirements for short-term rentals in Oklahoma County, hosts can operate their businesses legally and take advantage of available deductions to optimize their profitability.

Oklahoma Wide Short-Term Rental Rules

While many short-term rental regulations are determined at the city or county level in Oklahoma, there are a few state-wide rules and considerations that affect hosts in Oklahoma County and throughout the state.

Hotel and Lodging Tax

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

In addition, some cities and counties charge a local lodging tax administered by the state. These rates vary but are typically around 5% of the listing price. Hosts should consult the Oklahoma Tax Commission for specific rates and requirements in their area.

Homeowners Associations and Covenants

Even if a short-term rental is allowed by city and county zoning regulations, homeowners associations (HOAs) and neighborhood covenants may have their own restrictions. These private agreements can prohibit or limit short-term rentals in certain communities.

Hosts should carefully review any HOA rules or covenants that apply to their property. Violations of these agreements can result in fines or legal action by the HOA, even if the rental is in compliance with all local government regulations.

Statewide Taxation and Business Licensing

Like all businesses in Oklahoma, short-term rental hosts must register with the Oklahoma Tax Commission and obtain a sales tax permit. Hosts are responsible for collecting and remitting all applicable state lodging and sales taxes on their rental income.

Depending on their total rental revenue, hosts may also need to obtain a state business license. Oklahoma requires businesses with gross receipts over $10,000 per year to have a state business license in addition to any local permits.

While Oklahoma does not have a statewide short-term rental law, hosts in Oklahoma County and throughout the state need to be aware of these taxation and licensing requirements that apply everywhere in Oklahoma. By complying with state and local regulations, hosts can operate legally and successfully in the growing Oklahoma short-term rental market.

Does Oklahoma County Strictly Enforce STR Rules?

While Oklahoma County, particularly Oklahoma City, has established regulations for short-term rentals, the general consensus among hosts is that enforcement is relatively lax compared to other major cities. This has led to a somewhat Airbnb-friendly environment, despite the existence of licensing requirements and zoning restrictions.

According to discussions on the BiggerPockets real estate investing forum, many hosts operate short-term rentals in Oklahoma City without strictly adhering to all the rules. One host noted that while the city requires a short-term rental permit, "enforcement is lax." This sentiment is echoed by others, suggesting that the city's approach to short-term rentals is not as stringent as it may appear on paper.

The relatively permissive attitude towards short-term rentals in Oklahoma County can be attributed to several factors. First, the city's regulations are not as extensive or complex as those found in some other major metropolitan areas, making compliance less burdensome for hosts. Second, the enforcement mechanisms in place are not as robust, leading to a lower risk of penalties for those who do not fully comply.

However, this does not mean that hosts can operate with complete impunity. The city does have the authority to issue fines and take legal action against non-compliant short-term rentals, particularly those that generate complaints from neighbors or violate safety standards. As such, hosts who choose to operate outside the rules still face some level of risk.

Overall, while Oklahoma County has established rules for short-term rentals, the on-the-ground reality is that many hosts are able to operate with a degree of flexibility. The city's approach can be characterized as more Airbnb-friendly than some other markets, but hosts should still be aware of the potential consequences of non-compliance. By understanding and following the most critical aspects of the local regulations, hosts can minimize their risk while capitalizing on the growing demand for short-term rentals in Oklahoma County.

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

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

1. Research local regulations: Familiarize yourself with Oklahoma County's short-term rental laws, particularly those in Oklahoma City. Understand zoning restrictions, licensing requirements, and any special exceptions that may apply to your property.
2. Determine if your property qualifies: Assess whether your property meets the criteria for a short-term rental in Oklahoma County. In Oklahoma City, the rental must be your primary residence, unless you obtain a special exception from the Board of Adjustment. Properties in Historic Preservation Districts also require a special exception.
3. Prepare your property: Ensure your rental meets all safety and habitability standards, including working smoke detectors, carbon monoxide detectors, and fire extinguishers. Make any necessary repairs or upgrades to create an inviting space for guests.
4. Obtain necessary licenses and permits: Apply for a home sharing license from the Oklahoma City Development Services Department. Gather required documents, such as proof of ownership or primary residence, a floor plan, and safety certifications. Pay the $24 annual license fee per rental unit.
5. Register with tax authorities: Register your business with the Oklahoma Tax Commission and obtain a sales tax permit. Familiarize yourself with state and local lodging and sales tax rates, and set up a system to collect and remit these taxes.
6. Create a compelling listing: Craft an attractive and informative listing on platforms like Airbnb or Vrbo. Highlight your property's unique features, amenities, and location. Use high-quality photos and provide detailed descriptions to set your rental apart from the competition.
7. Set competitive rates: Research similar properties in your area to determine a competitive nightly rate. Consider factors like seasonality, events, and demand when adjusting your prices.
8. Establish house rules and policies: Develop clear house rules and policies for your guests, including check-in/check-out times, occupancy limits, noise restrictions, and pet policies. Communicate these rules clearly in your listing and any guest communications.
9. Manage bookings and guest communication: Respond promptly to guest inquiries and booking requests. Provide clear instructions for check-in and check-out, and be available to answer questions or address concerns throughout their stay.
10. Maintain the property: Regularly clean and maintain your rental to ensure a positive guest experience. Address any repairs or issues promptly, and consider hiring a professional cleaning service between guest stays.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Oklahoma County. Remember to prioritize guest satisfaction, maintain accurate records, and comply with all legal requirements to ensure the long-term success of your venture.

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

When starting a short-term rental business in Oklahoma County, it's essential to understand and comply with local regulations. If you have questions or need assistance, contact the following departments and resources:

Oklahoma City Development Services Department

1. Address: 420 W. Main Street, 8th Floor, Oklahoma City, OK 73102
2. Phone: (405) 297-2972
3. Email: developmentservices@okc.gov
4. Website: https://www.okc.gov/departments/development-services

The Development Services Department is responsible for issuing home sharing licenses and ensuring compliance with city regulations. They can provide information on zoning restrictions, licensing requirements, and the application process.

Development Center Administration

1. Phone: (405) 297-3835
2. Email: developmentservices@okc.gov
3. Website: https://www.okc.gov/Home/Components/ServiceDirectory/ServiceDirectory/77/3009

The Development Center Administration is a division within the Development Services Department that can assist with questions related to permits, inspections, and licensing for short-term rentals.

Oklahoma Tax Commission

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

Contact the Oklahoma Tax Commission for information on registering your business, obtaining a sales tax permit, and understanding your tax obligations as a short-term rental host.

In addition to these official resources, connecting with other short-term rental hosts in Oklahoma County can provide valuable insights and support. Consider joining online communities and forums, such as:

BiggerPockets Oklahoma City Short-Term Rental Forum: https://www.biggerpockets.com/forums/530/topics/945910-short-term-rentals-oklahoma-city-area

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: https://community.withairbnb.com/

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 County can ensure they are operating legally and successfully in this growing market.

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

While there are limited discussions specifically about Oklahoma County short-term rental regulations on Reddit and Bigger Pockets, some hosts have shared their experiences and thoughts on the topic:

BiggerPockets Forum - Oklahoma City Air BnB and STR's: In this thread, a user inquires about the viability of short-term rental strategies in Oklahoma City. While no specific responses about regulations are provided, the post indicates an interest in understanding the local market and potential challenges.

Reddit - r/Airbnb_Hosts: In a post titled "Is this the largest sub Reddit for short term rental host/owners?", a user mentions being part of several large Facebook groups dedicated to short-term rental hosts, suggesting these platforms may have more discussions about local regulations.

Reddit - r/oklahoma: While not directly related to short-term rentals, a post titled "Restricted ownership in Oklahoma" discusses a proposed bill to regulate corporate ownership of single-family homes and limit out-of-state ownership. Some comments express concerns about the potential impact on vacation homes and rental properties.

Although these discussions do not provide specific insights into Oklahoma County hosts' experiences with local regulations, they demonstrate an awareness of the potential challenges and an interest in understanding the regulatory landscape. Hosts appear to be seeking information and guidance on navigating local rules and restrictions.

To gain more targeted insights, it may be beneficial to explore Oklahoma City-specific forums, Facebook groups, or local real estate investor meetups where hosts can connect and share their experiences directly. Additionally, monitoring any proposed changes to short-term rental regulations in Oklahoma County and participating in public hearings or comment periods can help hosts stay informed and advocate for their interests.

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.