Short-term rentals in Newport, explained properly.

Section 14.25.020 establishes the VROZ to identify where vacation rentals are compatible uses and, by exclusion, where they are prohibited, to protect the City's supply of needed housing and the character of residential neighborhoods. The overlay is shown on the Zoning Map with the letters VROZ and is described by street boundaries running from NW 12th Street and US 101 to the statutory beach line, south to SW 95th Street, around the Wolf Tree Destination Resort Site, and east along Yaquina Bay to the Urban Growth Boundary. A vacation rental is a short-term rental where the entire dwelling unit is rented (4.25.010). Vacation rentals licensed before the ordinance took effect are handled under 14.25.035. The overlay does not relieve a rental from other Code requirements. The City's code site is current through Ordinance 2025-06 (October 6, 2025). Its list of adopted ordinances not yet codified shows Ordinance 2025-07 (adopted November 17, 2025), which amends 21 sections of various zoning chapters for a City Center form-based code without naming the sections, so we can't tell whether it changes Chapter 14.25. We haven't reviewed the zoning map or the City's short-term rental web pages yet, so confirm an address with the City before you buy.

Section 14.25.030(A) limits the total number of vacation rentals within the overlay to 176 dwelling units and, if that number is reached, requires the City to set up a waiting list for business license endorsements as they become available, first come first served. Existing rentals inside the overlay count toward the cap (14.25.035(A)(1)-(2)). The City's code site is current through Ordinance 2025-06 (October 6, 2025). Its list of adopted ordinances not yet codified shows Ordinance 2025-07 (adopted November 17, 2025), which amends 21 sections of various zoning chapters for a City Center form-based code without naming the sections, so we can't tell whether it changes Chapter 14.25.

Section 14.25.030(B) limits vacation rental use to a single building on a lot, or group of lots, that abut a street segment. All dwelling units in that building are eligible, and on corner lots the standard applies to both street segments. A conditional use permit may authorize more than one vacation rental on street segments in R-1 and R-2 zones where ten or more lots front the street, but no more than one vacation rental for every five lots fronting the street (14.25.010(D)). Owners who cannot meet the spacing standard are told of the conditional use permit route when they reach the front of the waiting list (4.25.045(D)). The City's code site is current through Ordinance 2025-06 (October 6, 2025). Its list of adopted ordinances not yet codified shows Ordinance 2025-07 (adopted November 17, 2025), which amends 21 sections of various zoning chapters for a City Center form-based code without naming the sections, so we can't tell whether it changes Chapter 14.25.

Section 14.25.025(A) permits home share and bed and breakfast facility use in all residential and commercial zone districts. The guestroom limits are a maximum of five bedrooms for vacation rentals and bed and breakfast facilities and two bedrooms for home shares (14.25.030(D)). A home share rents part of the dwelling while the homeowner stays there overnight. The standards in 14.25.030 for occupancy, parking and landscaping also apply, and the business license endorsement is still required. The City's code site is current through Ordinance 2025-06 (October 6, 2025). Its list of adopted ordinances not yet codified shows Ordinance 2025-07 (adopted November 17, 2025), which amends 21 sections of various zoning chapters for a City Center form-based code without naming the sections, so we can't tell whether it changes Chapter 14.25.

Section 14.25.030(D) sets the guestroom limits. A bedroom is a habitable room intended primarily for sleeping, with at least 70 square feet, configured to take the need for a fire exit into account (4.25.010).

Section 14.25.030(C) sets the maximum occupancy for a short-term rental. The occupancy limit and number of bedrooms are stated in the land use authorization, which the endorsement application attaches (4.25.020(A)(6)), and the maximum occupancy is shown on the posted endorsement (4.25.030(D)(3)(e), (D)(8)).

Section 14.25.030(E) requires one off-street parking space per bedroom dedicated to short-term rental use, unless the dwelling is in a parking district as defined in section 14.14.100, where on-street parking may meet the requirement if allocated under the district's requirements. Spaces must meet the dimensional standards of 14.14.090(A), and driveway space on an underdeveloped right-of-way may count if a stipulation on the endorsement allows revocation when the street is improved. Where units share access and parking, a covenant or other binding instrument must give the unit owner exclusive use of the required spaces (14.25.030(F)). Applicants submit a photo, dated within the last 90 days, and a site plan with a parking diagram (4.25.020(A)(7)), and the approved spaces must be available to tenants at all times the unit is rented (4.25.030(D)(7)). Section 14.14 hasn't been reviewed yet.

Section 14.25.030(G) sets this standard for short-term rentals situated on individual lots or parcels in residential zones. Driveway and parking areas do not count toward the landscaping. The endorsement application includes a calculation of the percentage of front yard and total lot area in landscaping for a dwelling in a residential zone (14.25.015(C)). Required landscaping must be maintained, and changes are allowed as long as 50 percent of the front yard and 40 percent of the total lot area stay landscaped (4.25.030(D)(9)).

Under 14.25.010, the Community Development Director checks a request against 14.25.030 and signs the land use compatibility statement if the standards are met; that action is ministerial, non-discretionary and not subject to appeal. If a standard cannot be met, the owner may seek relief through a conditional use permit under section 14.34.010, reviewed by the Planning Commission under a Type III process and limited to the standards that cannot be satisfied. An approved permit serves as evidence that the standards are satisfied so the Director can sign the statement. Section 14.34.010 and the Type III process in 14.52.010 haven't been reviewed yet.

Section 14.25.035(A) applies Chapter 14.32 to all short-term rentals licensed before the effective date of the ordinance, with three exceptions. Vacation rentals inside the overlay in or next to a commercial or water-related zone count toward the cap, are not subject to the density limit, and may be sold or transferred despite the waiting list. Other vacation rentals inside the overlay count toward the cap and, on sale or transfer, are subject to the density limit and the spacing standard. Vacation rental use of dwelling units outside the overlay ends on sale or transfer of the unit. An owner who can show the rules reduce the property's fair market value may apply for compensation or relief under ORS 195.310 to 195.314 (14.25.035(B)). Chapter 14.32 hasn't been reviewed yet.

Section 4.25.025(B) says the endorsement is issued in the name of the owner(s) and is not transferable. The chapter defines a sale or transfer as any change of ownership while a license is valid, with or without payment, except transfers by right of survivorship under ORS 93.180, transfers to a trust or entity that adds no new individual owner, transfers between titled interest holders, and transfers between or to include spouses, domestic partners or children (4.25.010). Where a property is sold or transferred and is immediately eligible for vacation rental use under 14.25.035(A)(1), the new owner has 30 days to apply for an endorsement, and vacation rental use may occur during those 30 days and while the application is under review (4.25.030(B)(4)). Vacation rental use of a unit outside the overlay ends on sale or transfer (14.25.035(A)(3)). Because this ties to Chapter 14.25, it is marked for review. The City's code site is current through Ordinance 2025-06 (October 6, 2025). Its list of adopted ordinances not yet codified shows Ordinance 2025-07 (adopted November 17, 2025), which amends 21 sections of various zoning chapters for a City Center form-based code without naming the sections, so we can't tell whether it changes Chapter 14.25.

Under 4.25.045 an owner is added to the list on request, with the date and time noted. Once a year, at the close of the annual renewal period, the City counts the vacation rental endorsements available to people on the list and offers them in chronological order, starting with the owner who has waited longest. Owners who meet the 14.25.030 standards are told in writing and have 60 days to apply; owners who cannot meet spacing or other standards are told of the conditional use permit route and given at least 60 days to apply for one, or may stay on the list and be reevaluated the next calendar year. Owners who say they will apply and do not are removed and, if re-added, go to the end of the list. Owners who file by the deadline have until August 15 of the following year to finish the process. Endorsements not acted on carry forward to the list after the next renewal period.

An endorsement is issued for 12 months effective July 1 and may be renewed annually if all standards are still met (4.25.025(A)). On or about July 1 the City mails a renewal notice by first-class mail to the address on file, and an owner who has not renewed by August 15 loses the endorsement, with the ability to operate presumed discontinued without further City action (4.25.030(B)(2)-(3)). A new rental may apply at any time and then renews each July 1. The fee is set by Council resolution; the fee schedule hasn't been reviewed yet.

Section 4.25.030(C)(7), Proof of Use, applies to vacation rental renewals. The City Manager may reduce the required number of rental days, or set the provision aside entirely, where a vacation rental or group of rentals cannot be rented for reasons beyond the control of the owner.

Applicants give a letter of intent to insure (new applications) or a certificate of insurance (renewals), and a certificate must reach the City before a new unit is used as a short-term rental (4.25.020(A)(4)). The coverage is a continuing operating requirement (4.25.030(D)(11)).

Section 4.25.020(C) says the fee for the application, and any components needing City action, is set by Council resolution. If an application is incomplete, the City notifies the applicant in writing, and if the missing items arrive within 30 calendar days the application is reviewed; otherwise it is deemed withdrawn and the City refunds the fee (4.25.020(B)). Check the City's current fee schedule for the amount and its effective date.

Section 4.25.020(A) lists the items: owner information (with ownership interest holders if the owner is an entity); an authorized agent; a local representative; liability insurance; a land use compatibility statement signed by the Community Development Director and current within 90 days; occupancy and bedroom count; a parking statement with photos dated within the last 90 days and a site plan; proof of primary residence for home shares and bed and breakfasts; written acknowledgement that the good neighbor guidelines were reviewed and relayed to renters; listing numbers or website addresses for renewals; fire safety and structural safety checklists; proof of garbage service; and other information the City Manager reasonably needs.

The application names a local representative, meaning one with an address within 30 minutes travel time of the property (4.25.020(A)(3)). The qualified person can be changed during the term by revising the license information with the City at least 14 days before the change takes effect, unless the failure is beyond the owner's or agent's control; in an emergency or absence, contact forwarding information to a qualified person should be provided (4.25.030(C)(2)). The owner or representative must respond to neighborhood complaints within one hour (4.25.030(D)(1)).

The owner or representative must respond within one hour and keep a written record of complaints, the dates received and efforts to resolve them, and provide the record to the City on request (4.25.030(D)(1)). Failure to respond is counted if City staff cannot reach the owner or designated representative after three attempts within 48 hours using the information on file (4.25.050(E)).

The register shows the primary tenant's name, home address and phone number, the total number of occupants, the license plate numbers of all vehicles used by the tenants, and the date of the rental period. The City treats the information as confidential to the extent allowed by law (4.25.030(D)(2)).

The posted endorsement shows a unique identifying number and expiration date, the owner's and authorized agent's names and telephone number, the property address, the number of approved parking spaces, the maximum occupancy, any conditions of the license, and the City of Newport logo (4.25.030(D)(3)). If the City sets up a 24/7 hotline for dispatching calls to short-term rental operators, the sign shows the dispatch firm's contact information. For condominium vacation rentals, the City specifies the number and placement of signs (4.25.030(C)(3)). A parking diagram must be given to tenants and kept in a prominent place in the unit (4.25.030(D)(7)).

New endorsements need verification by the Newport Fire Marshal, and renewals may need it at the City Manager's discretion (4.25.030(C)(5)). The structural checklist covers escape windows, handrails, guardrails, safety glazing, decks, electrical faceplates and breaker labels, GFCI protection, smoke and carbon monoxide alarms, strapped water heaters, a 2A10BC fire extinguisher on each floor and posted address numbers (4.25.030(C)(6)). Units are subject to initial and periodic re-inspection, timed at the City's discretion and available resources (4.25.035).

Section 4.25.030(D)(4) requires the information inside the dwelling unit to help renters in a natural disaster, power outage or other emergency.

Sections 4.25.030(D)(5) and (6) tie short-term rentals to the City's noise and nuisance chapters. We haven't reviewed Chapters 8.15 or 8.10, so quiet hours and nuisance standards aren't stated here.

The owner or authorized agent must provide regular garbage removal, and trash receptacles must be stored or screened out of plain view of the street. The City may require valet service (the driver retrieves the cart, rolls it out and returns it) after verified complaints (4.25.030(D)(10)). Applicants show proof of garbage service (4.25.020(A)(13)).

Section 4.25.030(D)(12) permits these gatherings on the premises of a short-term rental during periods of transient use as long as the occupancy limit is not exceeded at any time in the rental period.

Section 4.25.050 lists the violations: advertising or renting without a valid endorsement or in a way that does not follow the endorsement requirements, failing to meet the endorsement standards and operating requirements, failing to pay the transient room tax, failing to respond to complaints or inquiries, and civil infractions on the property under Chapter 2.15. Section 4.25.055 sets the steps and refers to violations of subsections 4.25.045(B-E), which is the waiting list section, while the violations are listed in 4.25.050, so confirm with the City which subsections the steps cover. A third violation in 12 months also starts revocation of any conditional use permit under 14.52.150. The fine amounts in Chapter 2.15 haven't been reviewed yet.

Section 4.25.030(C)(9) applies the bar. A revoked endorsement may be appealed as described in 4.25.040.

Section 4.25.040 sends endorsement decisions to the appeal procedure in 4.05.075, which hasn't been reviewed yet. The land use compatibility statement step is ministerial and not subject to appeal (14.25.010(A)).

Section 320.305 of the Oregon Revised Statutes (the edition read) imposes a tax of 1.5 percent on any consideration charged for the sale, service or furnishing of transient lodging, computed on the total retail price including all charges other than taxes; the tax becomes due when the occupancy ends, and the collector may withhold a collection reimbursement charge of five percent of the amount collected. The Department of Revenue says the rate is 1.5 percent for stays ending on or before December 31, 2026 and 2.75 percent for consideration charged on or after January 1, 2027, and that receipts and invoices must label the new 1.25 percent as a "nature conservation fee" (Chapter 140, Oregon Laws 2026); the Legislature's overview of House Bill 4134 (2026) says the Act increases the state transient lodging tax and applies the increase to charges occurring on or after January 1, 2027. We haven't reviewed the enrolled text of House Bill 4134, so the 2.75% figure rests on the Department of Revenue page. Transient lodging includes houses, cabins, condominiums, apartment units and other dwelling units used for temporary human occupancy. A dwelling unit used by the general public for fewer than 30 days a year is exempt, but that exemption does not apply to a unit rented out through a platform provided by a transient lodging intermediary; a stay of 30 days or more by the same person is also exempt. Returns and payments for the state are due by the last day of the month after each calendar quarter. Local city and county lodging taxes are shown on each place's page.

Under ORS 320.305, the tax is collected by the transient lodging provider or the transient lodging intermediary that collects the consideration charged for occupancy, or by an intermediary that requires the provider to use a specified third-party entity to collect it (ORS 320.300(12)(c)). A transient lodging intermediary is a person other than the provider that facilitates the retail sale of transient lodging and charges for or collects the consideration, or receives a fee or commission and requires the provider to use a specified third party to collect it. The Department of Revenue says whoever collects payment for the occupancy is responsible for collecting and remitting the tax, and that a host whose bookings are all handled through an intermediary, and will not be handled by the host in the foreseeable future, does not need to complete a return. A collector must give the guest an invoice or receipt that shows the sum of all transient lodging taxes charged (ORS 320.303). For local lodging taxes, ORS 320.360 puts the duty to collect and file on the same provider or intermediary that collects the payment, unless a local charter, ordinance or agreement provides otherwise. The sources read do not name particular platforms; check with the platform and the Department of Revenue.

We reviewed ORS chapter 320 (the transient lodging tax sections, 320.300 to 320.365), the Department of Revenue's Transient Lodging Tax page and the Legislature's overview of 2026 House Bill 4134 (an increase in the state lodging tax). These set a tax and who collects it. They do not license short-term rentals, set zoning, or limit what cities and counties may require; ORS 320.305 says the state tax is in addition to any local transient lodging tax, and the Department of Revenue says cities and counties set their own lodging tax rate. We haven't reviewed Oregon's land-use, landlord-tenant or other chapters, or other 2025 and 2026 bills, so this is a statement about the sources reviewed, not about all Oregon law. A similar bill could be filed in a later session.