By Living Room Realty, May 17, 2018
Like many other Portland home buyers, after my husband and I sold our first home, we wanted our second home to have an ADU (Accessory Dwelling Unit). It would allow us to host visitors in a city we’re proud to call home, make some extra income, and house visiting friends and family when their stays extended past the two-day threshold (just joking, Mom).
What is an ADU?
You’ll see it a lot on listings as a marketing tool. Often times as “ADU potential.” And, as you can imagine, “potential” is subjective.
According to the City of Portland, “an Accessory Dwelling Unit is defined as a smaller, auxiliary dwelling unit on the same lot or within a house, attached house or manufactured home. The unit includes its own independent living facilities with provisions for sleeping cooking, and sanitation, designed for residential occupancy independent of the primary dwelling unit. The unit may have a separate exterior entrance or an entrance to an internal common area accessible to the outside.”
Simply put, it’s a mother-in-law apartment, finished basement with separate entrance, granny-flat, or studio apartment.
We were lucky enough to find a property that had an ADU (a former music studio) in a great area. As soon as we closed escrow, we began the process to make it Airbnb-able (inventing words here).
What is the process to legally advertise a short-term rental on Airbnb?
Permit Requirement: Residents must apply for an accessory short-term rental permit to rent to guests for fewer than 30 consecutive days. Apply for the permit type that applies to your situation. They can be found here.
Neighbor Notification: Use the form and instructions provided by Airbnb to notify neighbors.
Inspection: The City will contact you after you submit your application to schedule an inspection. Each bedroom must have a smoke detector and may also require a carbon monoxide detector.
Occupancy Requirement: Hosts with an accessory short-term rental permit have to occupy the residence for at least 270 days during each calendar year.
Permit Posting: Post your permit number on your Airbnb listing and in the unit you’re renting short-term.
Lodging Taxes and Tax Registration: Submit a Transient Lodging Registration form to the City of Portland Revenue Division.
Since posting our listing to Airbnb, we’ve consistently maintained an 80-90% occupancy rate. More importantly, we’ve also had a lot of fun doing it!
Want to find a new home with an ADU? Or just want to hear some fun Airbnb host stories? Reach out.
Not looking for a permanent Portland abode? Come crash with us! Shameless plug here.
And as always, rules and regulations are constantly changing so be sure to do some research.