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Salem Short Term Rental Regulation: A Guide For Airbnb Hosts

Salem, Oregon

What are short term rental (Airbnb, VRBO) regulations in Salem, Oregon?

In 2018, the Salem City Council introduced new ordinances to regulate short-term rentals in the city. If you intend to list your property on platforms like Airbnb or VRBO, it is crucial to be well-versed in these regulations. To operate a short-term rental in Salem, you must annually register with the city, obtain a Certificate of Fitness, and, if the property is not your primary residence, adhere to additional requirements. Failure to register may result in fines and future registration prohibitions.

The city's zoning code and operational standards, outlined in Chapter 30 of the Salem Revised Code, specify the licensing requirements and operational criteria for short-term rentals. There are two types of licenses available: a short-term rental license and an accessory short-term rental license. It is essential to understand the specific requirements for each type of rental. Additionally, hosts are required to maintain a current liability insurance policy for their short-term rentals.

The city's regulations also prohibit activities other than lodging, such as events and commercial activities, in short-term rental properties. Familiarizing yourself with these regulations and ensuring compliance is vital to operating a successful short-term rental business in Salem.

Starting a Short Term Rental Business in Salem

To start a short-term rental business in Salem, Oregon, it is essential to understand the city's regulations and requirements. In 2018, the Salem City Council adopted new ordinances regulating short-term rentals, which came into effect on April 15, 2019. If you intend to list your property on platforms like Airbnb or VRBO, you must be aware of these regulations1.The city has published a comprehensive guide on its official website, salem.com/str, which provides all the necessary information for offering a short-term rental in Salem.

This includes a "dynamic" FAQ about short-term rentals in the city, which helps determine the specific regulations that apply to your situation1.To operate a short-term rental in Salem, you are required to register your property annually with the city and obtain a Certificate of Fitness. If the property is not your primary residence, additional requirements may apply1.There are two types of short-term rental licenses offered by the city: a short-term rental license and an accessory short-term rental license. The license is valid for one calendar year and must be renewed annually.

The city also requires hosts to maintain a current liability insurance policy for their short-term rental23.It is important to note that non-owner-occupied short-term rentals are not permitted in Salem, except through a special permit process. The city's regulations also include restrictions on the number of unrelated persons in a dwelling unit and the types of information that must be provided in online listings and to tenants4.

In summary, to start a short-term rental business in Salem, you must adhere to the city's regulations, obtain the necessary licenses, and ensure compliance with safety and insurance requirements. Familiarizing yourself with the specific requirements outlined by the city and obtaining the proper documentation are crucial steps in establishing a successful short-term rental business in Salem.

Short Term Rental Licensing Requirement in Salem

To operate a short-term rental in Salem, you must obtain a license from the city. There are two types of short-term rental licenses available:

  • Short-term rental license: This license is for properties where the owner does not live on-site and rents the entire home for periods of time when they are away1.
  • Accessory short-term rental license: This license is for properties where the owner lives on-site and rents out a separate space, such as a guest house or a detached accessory dwelling unit1.

To apply for a short-term rental license, you need to provide the following documents and information:

  • Safety certification and inspections: To ensure compliance with the city's safety requirements, you must complete a safety certification and inspection process1.
  • Proof of liability insurance: You must provide proof of liability insurance to operate a short-term rental in Salem2.
  • Payment of a $180.00 licensing fee: This fee is required to obtain a short-term rental license2.

Once your application is approved, a physical inspection of the rental will be conducted to verify conformance with the applicable regulations1. All licenses are specific to the designated operator and property and cannot be transferred to other individuals or properties1.

Renewing Your Short-Term Rental License

Short-term rental licenses are valid for one calendar year and expire on December 311. To continue operating your short-term rental, you must renew your license annually

Required Documents for Salem Short Term Rentals

To operate a short-term rental (STR) in Salem, Oregon, you must adhere to specific regulations and provide the necessary documentation. The city's ordinances require property owners to register their short-term rentals annually and obtain a Certificate of Fitness. The registration process involves submitting a single application and paying a $50 fee for both the registration and the Certificate of Fitness3.

Additionally, hosts must comply with safety certification and inspections, as well as provide essential information in online listings and to tenants upon their arrival1. The city offers two types of licenses for STRs: a short-term rental license and an accessory short-term rental license, each with its own set of requirements and operational standards4. It is important to review the city's official short-term rental website and familiarize yourself with the zoning and operational requirements to ensure full compliance with the regulations14.

By following these guidelines and providing the necessary documentation, property owners can ensure that their short-term rentals in Salem are in full compliance with the city's regulations.

Salem Short Term Rental Taxes

In Salem, Oregon, property owners who list a short-term rental must adhere to specific tax requirements. The city mandates a $50 fee for short-term rental registration and a separate $50 fee for the Certificate of Fitness, both of which must be completed annually1.

Additionally, pursuant to state law, all short-term rental providers are required to collect state/local room occupancy excise tax, effective from July 1, 20193. This tax is separate from the city fees and is not collected by the city; instead, it is the responsibility of the short-term rental providers to collect and remit the tax to the appropriate authorities3. Furthermore, unregistered short-term rentals may be subject to fines and penalties, including prohibitions on registering the property in the future3.

It is essential for short-term rental operators to stay informed about these tax requirements and ensure compliance to avoid any potential penalties.By understanding and fulfilling these tax obligations, short-term rental operators in Salem can ensure that they are operating within the legal and regulatory framework, thereby contributing to the responsible and sustainable growth of the local short-term rental market.

Oregon wide Short Term Rental Rules

In Oregon, the regulations for short-term rentals (STRs) vary by city, and it is essential to understand the specific rules that apply to your location. For instance, in Salem, a short-term rental is defined as renting to overnight guests for periods of less than 30 days4. The city offers two types of short-term rental licenses, and the type required depends on factors such as whether the owner lives in the home1. Licenses are valid for one calendar year and must be renewed annually1.

Applicants are also required to complete a safety certification to ensure compliance with city safety regulations, including the Housing Code1.In Portland, accessory short-term rentals are permitted, where the property owner is required to be in residence for a minimum of 270 days a year2. The rental can be within the main residence or a separate unit within the property, and the owner or property manager must apply for a business license and a permit, the type of which depends on the number of bedrooms being rented out2.

State-wide, Oregon charges a Transient Lodging Tax on all Airbnb reservations, which is 1.5% of the total fees4. This tax revenue funds the Oregon tourism industry4. It's important to be aware of these state-wide regulations and any local variations when operating a short-term rental in Oregon.

Does Salem strictly enforce STR rules?

Salem, Oregon has strict regulations for short-term rentals, including Airbnb and VRBO properties. The city's zoning code, planning code, and ordinances outline these rules. According to the city's website, only one owner may be registered as an operator for a residential unit, and it is unlawful for any other person, even if that person is an owner and meets the requirements1.

The use of a residential unit for residential occupancy by a person or persons for a period of fewer than fourteen (14) consecutive calendar days for a fee is considered a short-term rental1. No residential unit shall be offered as a short-term rental except in compliance with the provisions of this section and any regulations that may be promulgated by the Building Inspector to carry out the provisions of this section1.

The city requires a license to operate a short-term rental or an accessory short-term rental, and there are two types of short-term rental licenses offered by the city2. The license is valid for one calendar year, and all licenses expire on December 31 and must be renewed annually to continue operation2. To obtain a short-term rental license, you need to provide safety certification and inspections and comply with city regulations, including the safety requirements of the city's Housing Code2.

The city of Salem requires you to hold and maintain a current liability insurance policy for your short-term rental3. Additionally, you may be subject to transient room taxes, which are on top of the state transient lodging tax4. Oregon has state-wide regulations for short-term rentals, which may apply in Salem as well.Salem's enforcement of short-term rental rules can vary, but it is generally considered to be strict compared to other cities. Some hosts on Bigger Pockets and Reddit have reported issues with enforcement, but others have successfully operated their short-term rentals in Salem5. It is essential to research and understand the regulations before starting a short-term rental business in Salem.

To start a short-term rental business in Salem, you need to familiarize yourself with the city's regulations and requirements, obtain the necessary licenses and permits, ensure compliance with safety and insurance requirements, register your short-term rental with the City of Salem, and adhere to any state-wide regulations2.

How to Start a Short Term Rental Business in Salem?

Starting a short-term rental business in Salem requires compliance with the city's regulations and requirements. The Salem City Council adopted new ordinances regulating short-term rentals in 2018, which went into effect on April 15, 201923. If you list your property on a short-term rental homesharing platform like Airbnb, VRBO, or similar websites, you should be aware of these new regulations.

Here are the steps to start a short-term rental business in Salem:

  • Familiarize yourself with the city's regulations and requirements. The city has published a "dynamic" FAQ about short-term rentals in Salem, which provides all the information you need to know about offering a short-term rental in Salem23.
  • Obtain the necessary licenses and permits. You must have a license to operate a short-term rental or an accessory short-term rental in Salem. There are two types of short-term rental licenses offered by the city: short-term rental license and accessory short-term rental license. The license is valid for one calendar year, and all licenses expire on December 31 and must be renewed annually to continue operation2.
  • Ensure compliance with safety and insurance requirements. To obtain a short-term rental license, you need to provide safety certification and inspections and comply with City regulations, including the safety requirements of the City’s Housing Code12.
  • Register your short-term rental with the City of Salem. There is a $50 annual registration fee, and unregistered short-term rentals may be subject to fines and penalties, including prohibitions on registering the property in the future3.
  • Adhere to any state-wide regulations. Oregon has state-wide regulations for short-term rentals, which may apply in Salem as well. It is essential to research and understand these rules to ensure compliance.

It is recommended that property owners making short-term rentals available in Salem familiarize themselves with the city's regulations and requirements, as well as the state-wide regulations, to avoid any issues with enforcement5.

Who to contact in Salem about Short Term Rental Regulations and Zoning?

Contact the Permit Application Center at 503-588-6213 or planning@cityofsalem.net 1.

What do Airbnb hosts in Salem on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Salem have mixed opinions about the local regulations. Some hosts on Bigger Pockets and Reddit have reported issues with enforcement, while others have successfully operated their short-term rentals in Salem. According to the Salem Revised Code, hosts must obtain a license to offer a short-term rental to guests in Salem1.

There are two types of short-term rental licenses that the city of Salem offers: a short-term rental license and an accessory short-term rental license. The type of license required depends on several factors, including whether the owner lives in the home, the number of guest rooms that will be rented, and the zoning of the property1.Some hosts have reported that the regulations are strict compared to other cities in Oregon5.

However, others have found the regulations to be reasonable and have had no issues with enforcement. Hosts who have successfully operated their short-term rentals in Salem have emphasized the importance of complying with the city's regulations and obtaining the necessary licenses and permits5.It is essential to research and understand the regulations before starting a short-term rental business in Salem. Hosts should also be aware of any state-wide regulations that may apply.

Conclusion

In conclusion, Salem, Oregon, has specific regulations for short-term rentals, including Airbnb and VRBO properties. Hosts must obtain a license to operate a short-term rental or an accessory short-term rental in Salem. The city requires hosts to comply with safety and insurance requirements and may be subject to transient room taxes. While enforcement of short-term rental rules can vary, Salem is generally considered to be strict compared to other cities in Oregon. Hosts should research and understand the regulations before starting a short-term rental business in Salem and comply with the city's requirements to avoid any issues with enforcement.

⚡️
Reveal your property’s rental profitability

Buy this property and list it on Airbnb.