Blog Stories Portland waives fees for ADUs but the window for short-term rentals is closing soon!

Portland waives fees for ADUs but the window for short-term rentals is closing soon!

By Living Room Realty, June 9, 2018

Thinking of having an ADU installed on your property? If you have been hoping for a short-term rental unit, this info is for you!

In early May, the Portland City Council provided another boost to homeowners seeking to derive income from their residential properties by permanently waiving development fees on new accessory dwelling units (ADUs) serving as long-term rental units. The temporary waiver of system development charges (SDCs), the fees charged on all new development to pay for the cost of improvements to sewers, streets and parks as a result of new development, dramatically lowered the cost of new ADUs by roughly $15,000 per unit and has encouraged the development of thousands of new housing units.

To be eligible for the waiver, homeowners must commit to not using the ADU as a short-term rental for 10 years. For homeowners seeking additional space for a relative or long-term rental income from their property, the permanent waiver is a significant benefit that ensures that new ADUs will remain accessible even for those with limited budgets.

However, homeowners seeking the flexibility of utilizing the ADU as a short-term rental without paying the additional $15,000 in fees have a short window to apply under the current policy. All complete permit applications submitted by July 31, 2018 are eligible for the SDC waiver regardless of the intended use of the ADU. Beginning August 1st, property owners who take advantage of the waiver and then rent their ADUs on a short-term rental platform must repay the required SDCs plus a 50% penalty.

If you wish to maintain the flexibility of renting your ADU on either the short or long-term rental market, Dweller is uniquely positioned to help you meet the July 31st deadline. Dweller’s standard unit is pre-approved by the State of Oregon and has been successfully permitted by the City of Portland on multiple occasions.  Even if you aren’t ready to start site work immediately, a permit application allows for up to 11 months to complete construction.

The clock is ticking so please don’t wait! We can help you determine if your property is suited for a Dweller ADU and ensure that you have the flexibility to use the ADU to meet your needs.

Feel free to reach out to 1-800-Dweller or for more info.

Living Room Realty

Living Room Realty is a full-service real estate brokerage with four offices in Portland, one at the coast in Manzanita, and one in Vancouver, WA. At Living Room Realty, we listen and ask the right questions. We’re committed to being your most effective advisor and advocate. Our goal is your success.
Read More
  • T: 503-719-5588

You might also enjoy

Baltimoreons Turn Portlanders

Jon Lawson

From East Coast to West Coast, my clients were ready to become Portlanders! Their love of...

I love it Baby, how do we get this house?!

Yonette Fine

When Maria raised her arms in the air and let out, “ I love it Baby,...

Happy Key Day!

Kate Smith

Meet Jen and Nat! They were referred to me by past clients and had such a...


Drew Burchette

Cully Oasis! Everything about this house is unique! Mediterranean-style kitchen with bathroom to match. Large master...