Considering Opening an Air B&B in Southern Oregon?

Many tourists flock to Southern Oregon every year.  Our region is filled with outdoor activities to fulfill many interests, from hiking to skiing and whitewater rafting.  With nearly 200 days of sunshine each year, there’s plenty of time for visitors to spend their days enjoying nature.  For those preferring something a bit more relaxed, our region is filled with wineries, breweries, museums, theaters, and other unique venues.  For these reasons, homeowners with extra space often consider setting up short-term rentals as an additional income stream.  Two popular options are bed and breakfast facilities and Air B&B arrangements.  There are points to consider to determine which route to go for opening a bed and breakfast or Air B&B in Southern Oregon.

What is the difference between a bed and breakfast and an Air B&B?

At the outset, many of the differences between the two are stylistic.  In many ways, the lines between the two may be blurred for visitors.   

Bed and breakfast locations are typically hosted venues with on-site staff available 24 hours a day.  As the name implies, breakfast is included in the price of the stay, and it’s common for the host to visit with the guests during meals.  The host may have other on-site activities available for guests or not.  

Air B&B is a software application to access short-term rentals that has since become a name people use when discussing these types of accommodations.  An Air B&B could be a single room within an otherwise occupied house or an entire home.  Owners may or may not be present–it’s not uncommon for someone who rents an Air B&B to have no contact with the host at all.  Guests may have access to a kitchen and cooking facilities; however, they are usually not provided with food other than basics like coffee and tea.  

To make matters confusing for guests, bed and breakfast locations, short-term rentals, and hotels may all be accessed using the Air B&B software.

From a legal perspective, there are also similarities and differences.  Laws and procedures are set by local city and county authorities and can vary from one region to another.  

Bed and breakfast businesses have been subject to zoning regulations for decades.  For example, some municipalities require prospective bed and breakfast businesses to obtain an exception within a residential zone by completing a neighborhood approval process–in essence allowing nearby residents to examine and protest the exception if they feel it will be a nuisance to the neighborhood.  These businesses must be licensed and are often subject to on-site inspections similar to those of hotels.  Commercial building codes such as ADA accessibility and other safety standards may apply in some areas.  

Air B&B arrangements are a bit more complicated from a legal standpoint.  Depending on the municipality, there could be restrictions on hosting an Air B&B with generic laws for short-term rentals.  Short-term rentals are often defined as those lasting for less than 30 days.  Local authorities may mandate that short-term rentals obtain business licenses and follow specific protocols for notices and handling nuisance problems.  Some cities have limited short-term rentals to those with owners who live on-site or nearby so that guests are supervised during their stay.  

Both types of accommodations are generally subject to taxes.  You will be required to pay income taxes on your revenue, and you’re also responsible for collecting and submitting hotel and tourism-related taxes.

What regulations apply to a Bed and Breakfast or Air B&B in Southern Oregon?

Zoning laws, building codes, and other local business regulations will vary from one municipality to the next.  For example, Medford, Oregon requires all bed and breakfast and short-term rentals to have a business license.  Some of the rules this city requires include:

1. The owner must provide information sufficient to verify a qualified person will be available for contact regarding the use of the short-term rental during and after business hours. The owner or representative must be available to be contacted by telephone to ensure a response to the short-term rental address at all hours (seven days a week, 24 hours a day, including holidays) while the property is occupied for rent. The designated representative may be changed upon fourteen (14) days prior written notice to the City. In an emergency or absence, contact information for a second qualified person may be provided. 
2. Certification that the owner has (a) provided an annual mailing or otherwise distributed by hand, a flier to neighbors within a 250-foot radius of the short-term rental property address. Notice shall include contact information for the owner and/or representative. The purpose of this notice is to inform adjacent property owners and residents of contact information to report and/or request the resolution of problems associated with the operation of the subject short-term rental. If the permanent contact information changes during the license period, the new information must be mailed or distributed again. 
3. Certification that the Good Neighbor Guidelines will be effectively relayed to short-term rental tenants by incorporating the guidelines into the rental contract, including them in the rental booklet, posting them in a conspicuous place in the short-term rental, or a similar method. 
4. Signage shall not exceed six (6) square feet in area and an overall height of six (6) feet in the Single-Family Residential Zoning Districts. (SFR 2, 4, 6, 10) and the Multiple-Family Residential Districts – (MFR 15, MFR 20, MFR 30), shall not exceed two (2) signs per parcel. (See MMC 10.1022 (5)).

The City of Jacksonville, on the other hand, lists these requirements within its zoning code:

• 17.92.120 BED AND BREAKFAST FACILITIES. A bed and breakfast facility is any establishment in a residential district having rooms or apartments rented, or kept for rent, to travelers or transients, charging those individuals a fee for rental or use of such facility. All residences proposed for bed and breakfast accommodations shall be owner-occupied and shall provide one off-street parking space per rental unit in addition to two (2) spaces for 136 the owner. In terms of eligibility and acceptability, only residences which are on the Jacksonville Contributing Historic Landmark List shall be accepted as bed and breakfast accommodations. 

The best way to figure out what laws and restrictions will apply to you is to consult with land use planning professionals.  They will know all the rules from the state to city level that impact your prospective business or construction plans.

If you’re considering opening a bed and breakfast or starting up an Air B&B in your home, contact the professionals at Richard Stevens & Associates to learn what regulations will apply to your new business.

At Richard Stevens & Associates, we specialize in assisting our clients to obtain rural and urban land use permits.  We understand the building codes and zoning regulations of all counties and cities in Southern Oregon and beyond.  We can help you understand how local zoning codes and specialty designations impact your current or potential property.  Contact us today for more information.