Blog Education Airbnb Dreamers

Airbnb Dreamers

By Bonnie Roseman, December 4, 2018

Short term rental?
Rental: short or long term?

The phone rings. The caller is a renter in a high price tag part of the country – Los Angeles, San Fran, NYC or the like. The dream is to move to Oregon – someday. In the meantime, how about an investment that can be used for short term rentals, and, you know, a second home for testing out the rainy season in Oregon. Other times the query is from a renter hoping to host a short term rental to help save for a down payment on their own place in the future. Then there are the grandparents who want to be close to the kiddos – sometimes – and host a short term rental the rest of the time. The short term rental host dream stories come in many shapes and sizes, but the hurdles are shared by all.

Oy, I hate bursting bubbles, but there are pitfalls with this frequently sought after dream.


First, let’s discuss the financing of your new purchase:

  • If you get an owner-occupied loan, which will typically come with a lower interest rate and a smaller required down payment, then you are required to live in the property for at least the first year, beginning within 60 days after closing.
  • One possibility is to purchase the new place as a second home. This will mean you need to show enough income to qualify for your current rent or house payment as well as the new mortgage, taxes and insurance.
  • If you need to show income from the rental of the new property, you will need to get an investor loan for non-owner occupying buyers. The appraiser will include a rent survey in this case, at an additional cost, for your lender to estimate the rental income potential.

City Rules

Next, let’s discuss the city rules for short term rentals in Portland:

I went into the city offices recently and got updates on the short term rental rules: Portland short term rental info.
Here are the key points for rentals under 30 days long:
  • The unit must be a primary residence (owner’s or long term tenant’s), occupied at least 290 days a year
  • The address must be on the primary occupant’s driver’s license or state issued ID
  • The number of bedrooms used for short term rentals is limited
  • It is OK to use a part of a home or duplex unit (not whole unit), an ADU, or a condo with some constraints and notice provided to neighbors
Here are the FAQ’s: Short term rental FAQ’s

More Rules and Requirements

  • Be sure to familiarize yourself with rules that may be imposed by your landlord if you are renting the place you hope to rent out for short term stays
  • Your mortgage lender may impose limitations
  • Your insurance carrier may as well
  • Condominium associations almost always have rules about this and many strictly prohibit it
  • The agency you are listing your place with will also have requirements

Your neighbors may also be resistant to your short term rental, so make sure you follow all the rules and be sensitive to their feelings to keep things friendly.

So, you may be getting the idea that I am against short term rentals. I am not. I love staying in them when I travel and really appreciate how a short term rental can help make ends meet. My real message is to go into it with your eyes wide open and be fully informed. Ask lots of questions, then dot your I’s and cross your T’s and be careful out there!

Bonnie Roseman

Principal Broker | Earth Advantage | ADU Specialist | OR


Since 1991, she's been delighted to assist clients in navigating the ever changing housing market: whether selling a first home or the family home, looking for a starter pad or a forever habitat, downsizing, resizing or buying and selling investment property. Having a symbiotic connection with your real estate agent is key and will help ensure a great experience. Bonnie enjoys consulting with potential clients to discover their wishes and goals, confirming the right client-agent match. Smooth transactions are the target; however, there can be unexpected bumps getting to the closing table. Bonnie excels at finding creative solutions to any mishegoss that pops up and she takes pride in an extremely low sale fail rate. A little more about Bonnie: born in Philly, raised in Berkeley, mom to an incredible young woman; her home is filled with both furry and scaly creatures, the daily driver is all electric, equality is the only pathway; she's embraced veganism for the earth, the animals and her health. Like credentials? Sweet, here you go:
  • At Home with Diversity Certificate
  • Earth Advantage Broker + ADU Specialist
  • Senior Real Estate Specialist SRES)
  • Certified Residential Specialist (CRS)
  • Five Star Professional Award (9 years)
  • Homelight Top Producer and Top Buyers' Agent
  • Nexdoor Neighborhood Favorite
  • Member of the National Association of Gay and Lesbian Real Estate Professionals (NAGLREP)
Saving the best for last, Bender, her little second chance rescue pup from SoCal is likely to tag along. He’s snuggly, pretty cute and has jumped paws first into the real estate industry. #pet mama, #dog lover, #cat lover, #animal lover, #empty nester, #Leaf driver, #progressive, #SE Portland, #Hawthorne, #97214, #97215, #97202, #97232, #97201,#97206,#97210,#97211, #97212, #97217, #envronmentalist, #local
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  • T: 503-515-5973

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