The State of Vacation Rentals in Lincoln City, OR

Dated: October 13 2023

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As a full time resident and Real Estate Principal Broker, but also an owner of a large vacation rental in Lincoln City, OR, I've tried to keep track of the ongoing discussions surrounding the licensing of these types of investment/2nd home properties.  

Currently, there is a push to eliminate Accessory Use 30 night annual vacation rental licenses in the city.  These licenses have been available in all zones if anyone wanted to offset the cost of owning a 2nd home or if the owners were waiting for one of the coveted 194 Short Term unlimited rental licenses available in the R-1.5 zone.  These licenses cost the same to obtain as the Short Term unlimited licenses and the current transient room tax of 13.5% would still be due on any collected rents, and you would also have to pass all the health & safety and land use requirements, but at least the ability to rent your home for approximately 15 weekends per year, usually in the summer, could offset the taxes and utilities for owning the property.  Or, if you purchased the property using a 1031 tax deferred exchange, it would allow you to obtain the rent needed to fulfill the exchange requirements until an unlimited license became available (which can take more than a year, in some cases).

The city counsel of Lincoln City will be holding a hearing on October 23, 2023 located at City Hall, 801 SW Hwy 101, 3rd floor chambers at 6:00 pm to discuss the elimination of this Accessory Use Limited License.  I would encourage anyone that feels strongly about this issue, on either side, to attend and give their input.  I will be in attendance.  If you would like to comment but can't attend, please call me at 503-544-1190.

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Debra Williams

Principal Broker, CRB, CRS, GRI ABR, RSPS, (42 years of experience) with specialties in Vacation Rentals, Buyer's Agent, Seller’s Agent, Relocation, Commercial R.E., 2nd Homes, Residential Singl....

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