Portland puts stricter safety standards in place for some short-term rentals
- Feb 18, 2025 | Jennifer Sokolowsky
Some short-term rentals (STRs) in Portland, Oregon, are now required to follow stricter safety standards under an amendment to city code passed by the City Council.
Under the changes to city code, single-family homes and duplexes in commercial zones near major commercial thoroughfares that are being converted into STRs must apply for a change in occupancy permit. They must also install safety upgrades such as fire wall separations, sprinkler systems, and egress windows, following similar rules for hotels. The new rules went into effect January 1, 2025.
Over the past year, Portland officials have made an effort to crack down on illegal STRs, including creating an online portal to streamline the permit application process. The city has issued 55 citations for STR violations, totaling $240,000, since October 2024.
Portland has also put pressure on STR marketplaces to remove illegal listings from their sites. The law requires STR listings to include city-issued permit numbers, but the Portland Permitting & Development bureau has had difficulty enforcing the rules because it doesn’t have transparent information on listings from major STR marketplaces such as Airbnb. Without this data, it’s harder for investigators to compare existing STR operations to the city’s database of legal STRs. The city is in talks with Airbnb about an agreement to share this data.
“None of us can continue to throw staff at the problem at the scale needed, so we have to have a technology solution. Either Airbnb works with us to actively enforce the codes on the books, or we’ll change our code to make it happen,” said Donnie Oliveira, Deputy City Administrator for the Community and Economic Development service area.
Other rules for STRs to follow
Portland legalized STRs in private homes in 2014, defining Accessory Short-Term Rental Permits (ASTRs) as rentals of less than 30 days. STR operators must apply for a city-issued permit. Type A short-term rental operators are allowed to rent out up to two bedrooms for a maximum of five guests for short terms. These operators may apply via the online portal. Type B operators may rent out between three and five bedrooms, with a maximum of 10 guests and must submit applications for conditional land use permits manually.
Hosts are required to live in STR properties for at least 270 days of the year and can provide overnight rentals for a maximum of 95 days a year. STR operators must also follow safety rules such as installing smoke detectors and carbon monoxide detectors, and must provide notice to neighbors if they intend to operate an STR.
Lodging tax rules also apply to Portland short-term rentals
Portland STRs are subject to city, Multnomah County, and state lodging taxes. According to state law, whoever collects payment for STRs, including operators or marketplaces, is responsible for collecting and remitting lodging tax. Oregon operators who have all their rental fees collected by a marketplace don’t need to file lodging tax returns.
Avalara MyLodgeTax can help short-term rental hosts automate and simplify short-term rental compliance. For more on vacation rental lodging taxes in Oregon, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.
