|| Print ||
|Wednesday, April 23, 2014|
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
Eric was in a bind. The rent on his Southeast Portland studio had increased for the third year in a row. His salary as a paralegal at a downtown law firm wasn’t enough to cover the rent increases. Then one of his coworkers mentioned he could subsidize his rent with short term vacation rentals through Airbnb. His coworker did warn Eric about the city’s new Airbnb tax and said permitting procedures adding red tape to the process. Nevertheless, Eric created a profile and put his apartment up for rent for $100 a night. Soon he had two reservations and was expecting to earn $200.
Eric had turned his apartment into a money maker, but there were some larger issues Eric had overlooked. With cities and landlords catching up to the Airbnb craze, the laws and policies Eric’s coworker warned him about doomed Eric’s new operation.
Eric is a composite figure. But the problems I've described above challenge plenty of real world Airbnb landlords. After months of city hall battles March 2014 brought with it Portland’s new attitude towards Airbnb. Mayor Charlie Hales struck a deal with the online lodging coordinator, which uses a network of members throughout the world to offer their homes to travelers for a fee. The agreement called for Airbnb operators to pay an 11.5% tax, to cover the city’s 6% lodging tax and the 5.5% county tax.
Airbnb is a wildly popular concept that nevertheless violates many standard leases and zoning codes while angering a hotel industry that pays heavy tourism taxes. That combination, along with a new Airbnb headquarters scheduled to open in Portland this summer, forced officials to address the illegal short-term rental issue. A solution could come with the proposed revisions of Chapter 33.207 of the Regulatory Improvement Code Amendment Package 6 (RICAP 6), which introduced the accessory short-term rental.
The accessory short term rental language creates a new property classification which reads as follows:
An accessory short term rental is one where an individual resides in a house, attached house, duplex, or manufactured home and rents bedrooms to overnight guests. There are two types of short-term rentals
Type A: accessory short term rental where the operator is renting no more than 2 bedrooms to overnight guests
Type B: accessory short term rental where the operator is renting between 3 and 5 bedrooms to overnight guests.
The tax and the proposed laws would allow Airbnb to operate legally in Portland. Operators would need to apply for a permit from the Building Development Services. The application to acquire a permit for both Type A and B rentals includes:
These proposed laws don’t bode well for current Airbnb renters, especially those in rented properties. My daughter Ellen, a New York renter who agreed to speak on the issue, sub-rents her apartment through Airbnb, says these new proposals would dissuade her if New York were to adopt them. “I use Airbnb because it’s simple and allows me to subsidize my rent. It provides people a home when they’re traveling and assures me that someone is staying in my apartment overnight when I’m away.” Ellen’s lease, similar to most apartment leases, does not allow for any short term rentals. The recently updated rental agreement we use at Bluestone & Hockley says “tenants shall not advertise available occupancy of their unit if that available occupancy is in exchange for any sort of compensation." Language like this is assures liability and resident safety are respected in addition to making sure the lease agreement is upheld and that the Tenant / Landlord relationship stays intact.
With these new laws, to be voted on at the April 22nd 2014, Portland city hall meeting, operators like Eric and Ellen may have to reevaluate their commitment to Airbnb. These regulations protect Portland’s strict zoning codes and hotel operators, but they may have an adverse effect on Airbnb’s business. The popularity of the concept Airbnb could inspire renters to ignore both Airbnb and the law. Existing operators of cheap short term vacation rentals will could bypass these new laws and find alternatives ways to rent. Other on-line companies could use this business model more creatively to capitalize and help operators fill their empty pocket books.
Cliff Hockley is the president of Bluestone & Hockley Real Estate Services
Wednesday, May 27, 2015
PHOTOS BY JASON E. KAPLAN
Oregon Business celebrated the 100 Best Green Workplaces with an awards luncheon yesterday at the Nines Hotel in downtown Portland.
Friday, May 22, 2015
BY JACOB PALMER
Mike Morrow and Mike Delos-Reyes first came up with the idea of an ocean power device 23 years ago, when they were students at Oregon State University. They realized a long-held vision last summer, when their startup, M3 Wave, successfully launched the first ocean power device that works underwater.
Friday, May 22, 2015
BY ANNIE ELLISON
Portland tech veteran Ben Berry is leaving his post as Portland’s chief technology officer for a full-time role producing unmanned aerial vehicles (UAVs) aimed at first responders and the military. Berry’s AirShip Technologies Group is poised to be on the ground floor of an industry that will supply drones to as many as 100,000 police, fire and emergency agencies nationwide. He reveals the plan for takeoff.
Friday, May 22, 2015
BY AMY MILSHTEIN
Floor plans embrace the great wide open.
Friday, May 22, 2015
BY CHRIS NOBLE
The right sunglasses can protect your eyes and look cool at the same time. This being the 21st century, select shades are socially conscious, too. Portland brand Shwood uses wood and other natural materials and manufactures locally. Founded by Ann Sacks, the brand Fetch dedicates a portion of its profits to animal welfare. But whether you choose classic tortiseshell or aviator chic, please, shed the sunglasses when you walk in the door — and, of course, at night.
Friday, June 05, 2015
As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.
Tuesday, May 26, 2015
BY KIM MOORE
A conversation with Gene Pelham, CEO of Rogue Credit Union.
|100 Best Green Workplaces in Oregon|
|The Green Paradox|
|Up in the Air|
|Credit Unions Perspective|
|Queen of Resilience|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
3 Degrees Event Celebrates 5th Year Bringing Nonprofit and Business Professionals Together to Benefit Portland.
Bend energy leader brings passion for efficiency and renewable energy to the nonprofit.
Event in Forest Grove marks recognition of Global Food Safety Initiative Certification.