Airbnb Rules in Portland: Airbnb Laws, Taxes, and Regulations

Craving a taste of the Pacific Northwest? Portland, Oregon, beckons with its vibrant art scene, unparalleled coffee culture and a foodie paradise. Don't forget the iconic Saturday Market, a perfect example of the city's unique spirit.

But what if we told you Portland is more than just a tourist haven? In 2022, it attracted a staggering 11.8 million visitors and Airbnb hosts are reaping the benefits. With an average daily rental rate of $160.6 and a strong occupancy rate of 64%, Portland offers fertile ground for Airbnb hosts aiming to either kickstart or expand their vacation rental business.

What Qualifies as a Short-Term Rental in Portland?

A short-term rental in Portland is classified as any lodging option with guest stays of 30 days or fewer. Hosts looking to dive into this market must:

• Obtain an accessory short-term rental permit (ASTR)
• Register with the transient lodging tax program (TLT)
• Register their short-term rental as a business

Understanding Portland’s Airbnb Laws and Regulations

Accessory short-term rental permit

To list on platforms like Airbnb, hosts must obtain an ASTR permit, which is then displayed on their listing. There are two types of permits, each with its requirements:

• Type A: Allows renting up to two bedrooms for a maximum of five guests. Hosts must notify neighbors and confirm residency with an Oregon ID or Driver’s License.

Permit Fee: $65 for single dwellings and $105 for multi-dwelling units.

• Type B: For renting three to five bedrooms, with guest limits determined during a Conditional Use Review.

Permit Fee: $5800

Residents of short-term rentals must reside in the dwelling unit for a minimum of 270 days per calendar year, which equates to approximately nine months.

While there are no restrictions on the number of nights you can host short-term rentals, the maximum duration you can be away from home and rent to overnight guests is 95 days, roughly equivalent to three months

Short-term rental permit requirements

Short-term rental permits are given when the residential dwelling unit is used for long-term occupancy or part of the dwelling unit within the property such as guest houses. This also includes individuals or families residing on the property and renting out bedrooms to guests for less than 30 days. To learn more, check out Portland Zoning Code Section 33.207.

Lodging tax program

Hosting exclusively with Airbnb requires hosts to submit a Transient Lodging Registration form to the City of Portland Revenue Division.

Within the first 15 days of the start of the business: short-term rental operators, motels, hotels, B&B’s and vacation rentals providing space on a transient basis for 8 days or more in a year and/or advertise or market space for rent to the general public are obliged to register for a Revenue Division tax account.

After registering, a Certificate of Authority will be issued that should be visible in your short-term rental seen by guests. Doing so guarantees guests that you are lawful by law to collect taxes and fees.

Airbnb collects and remits these taxes in Portland. More information can be found under Portland’s Transient Lodging Tax portal.

Business license

Running a short-term rental in Portland is considered a business and is required to be registered online or either by mail or fax the PDF form to the City of Portland.

Businesses with earnings of less than $50,000 per year before expenses are exempted from paying the Business License Tax and no payment is due with the registration form.

If exempted, a yearly filing of business tax form will be required with the supporting exemption request.

Occupancy, safety and noise regulations

Hosts must adhere to city-imposed occupancy limits, ensure their properties meet safety standards (including fire safety and the provision of smoke and carbon monoxide detectors) and follow local noise regulations.

Additional considerations

Be mindful of other contracts or rules that bind you such as leases, condo board, co-op rules, HOA rules to determine if short-term rentals are permitted and rules established by tenant organizations. Read and understand the lease agreement or check with the landlord or appropriate parties if applicable.

Portland Taxes and Fees

Airbnb reservations in Portland incur several taxes and fees, enhancing the city's lodging and tourism sectors. These include:

• Transient lodging tax: 6% of the listing price for stays under 30 nights
• Tourism improvement district fee: 3% of the listing price
• Nightly fee on short-term rentals: $4 per night for each night a guest rents a room (this fee is separate from the Transient Lodgings Tax that is also being collected)

How Vacation Rental Software can help your Airbnb?

Imagine managing your Airbnb without the hassle! All-in-one vacation rental software like Hostaway takes care of the time-consuming tasks: scheduling cleaning, communicating with guests, booking management and even tracking your finances.

This frees you up to focus on what truly matters - creating a welcoming experience for your guests and enjoying the fun parts of being an Airbnb host.

Is Portland your Next Airbnb Venture?

Portland's vacation rental scene beckons with exciting possibilities! While regulations are there to ensure a smooth experience for everyone, navigating them doesn't have to be a hurdle.

With thorough research, incorporating vacation rental software to streamline operations and a commitment to following the city's guidelines will pave the way for a thriving Airbnb business in this vibrant city.