Short-Term Rental License

Are you interested in earning some extra money by posting your house on a vacation rental website like Airbnb or FlipKey? You will need to get a short-term rental license first.

Types of short-term rentals

Short-term rental is when you rent to overnight guests on a daily or weekly basis for periods of less than 30 days.

Salem offers two types of short-term rental licenses:

• Short-term rental license
• Accessory short-term rental license

Whether a proposed rental is classified as a short-term rental or accessory short-term rental depends on:

• Whether or not you live in the home to be rented
• The number of guest rooms that will be rented
• Whether you will rent the entire home for periods of time when you are away, and for how long
• The zoning of your property

License required

You must have a license to operate a short-term rental or an accessory short-term rental in Salem. A license is valid for one calendar year. All licenses expire on December 31 and must be renewed annually to continue operation (SRC 30.1000 and SRC 30.1100).

Licenses are specific to the designated operator and property and cannot be transferred to other people or properties.

New License Application process

You can use the following table to help determine whether your proposed rental qualifies as a short-term rental or an accessory short-term rental, and to identify the approvals required before you can begin operation:

Applicant lives in the home

Applicant does not live in the home

SRC Chapter 30 outlines the requirements and operational standards for licenses in Salem. You will want to be familiar with the requirements for short-term rentals and accessory short-term rentals included in this chapter. In addition, accessory short-term rentals are also subject to additional standards included under SRC Chapter 700.

Short-Term Rental standards

Definition (SRC Chapter 111)

Short-term rental means short-term commercial lodging where a single family dwelling unit, or guest room(s) within a single family dwelling unit, are rented to overnight guests on a daily or weekly basis for periods of less than 30 consecutive days. For purposes of this definition, a dwelling unit within a condominium is considered a single family dwelling unit.

Allowed structure types

• Single family dwelling unit
• Dwelling unit in condominium.

Conditional use permit (SRC Chapter 240)

• If required by the zone where the rental is located, a conditional use permit must be approved prior to receiving license approval.
• The conditional use permit may establish specific additional requirements the short-term rental must comply with.

Parking requirements (SRC Chapter 806)

Off-street parking: Minimum of one space per guestroom or suite.

License standards (SRC 30.1105)

• A Local representative is required who can respond to issues that may arise during the term of a rental. The representative must be:
• The operator or
• A licensed property management company with a physical office in the Salem/Keizer UGB that is open to the public
• A guest registry is required to be maintained that must be:
• Available for inspection upon request
• Include details about each booking made, such as the dates and total number of days rented, number of guests, etc.
• Transient Occupancy Tax: Payment of Transient Occupancy Tax is required.
• Liability insurance must be maintained covering use of property as a short-term rental.
• Advertisement & Listing of Rental. The city issued license number must be included on any advertisement or listing for the rental.
• Safety requirements. The rental must conform to the safety requirements of the City’s Housing Code (SRC Chapter 59).

Accessory Short-Term Rental standards

Definition (SRC Chapter 111)

Accessory short-term rental means a type of short-term rental which is operated as an accessory use to a household living use where a resident family rents guest rooms within their dwelling unit, or a guest house if applicable, when they are present as hosts, or rents their entire dwelling unit, including a guest house if applicable, during periods of time when they are away, to overnight guests on a daily or weekly basis for periods of less than 30 consecutive days.

Special Use Standards (SRC 700.006)

• Residency requirement. Applicant must live in dwelling unit a minimum of 270 days during the calendar year.
• Allowed structure types:
• Single family dwelling unit
• Two-family dwelling unit
• Dwelling unit in condominium
• Guest house
• Guest rooms rented
• Hosted rental
• Maximum three guest rooms within home/guest house
• The applicant is present as host during the term of the rental
• Non-hosted rental
• Entire home/guest house
• The applicant is not present during the term of the rental
• Number of guests (children under 12 years of age do not count towards the maximum number of guests)
• Hosted rental
• Maximum two guests per guest room (Note: The maximum number of people allowed in the rental must also conform to building code limits)The applicant is present as host during the term of the rental
• The applicant is present as host during the term of the rental
• Non-hosted rental
• Maximum two guests per guest room with no more than 10 guests total (Note: The maximum number of people allowed in the rental must also conform to building code limits)
• The applicant is not present during the term of the rental
• Booking limits
• Hosted rental
• No limit on number of nights that can be booked
• Multiple bookings by more than one group of guests at any given time are allowed
• The applicant is present as host during the term of the rental
• Non-hosted rental
• Maximum 95 days within calendar year can be booked
• Multiple bookings by more than one group of guests at any given time are not allowed
• The applicant is not present during the term of the rental
• Uses not allowed
• Not allowed in conjunction with accessory dwelling units (ADUs) or leasing of rooms.
• Can only be used for lodging. Activities other than lodging (such as events, gatherings, luncheons, banquets, parties, weddings, meetings, or similar activities) are not allowed.

Parking requirements (SRC Chapter 806)

No additional off-street parking required.

License standards (SRC 30.1005)

• Owner authorization required if the applicant for the license is a tenant of the dwelling unit to be operated as an accessory short-term rental.
• A Local representative is required who can respond to issues that may arise during the term of a rental. The representative must be:
• The operator; or
• A licensed property management company with a physical office in the Salem/Keizer UGB that is open to the public.
• A guest registry is required to be maintained that must be:
• Available for inspection upon request
• Include details about each booking made, such as the dates and total number of days rented, number of guests, etc.
• Transient Occupancy Tax: Payment of Transient Occupancy Tax is required.
• Liability insurance must be maintained covering use of property as an accessory short-term rental.
• Advertisement and Listing of Rental. The city issued license number must be included on any advertisement or listing for the rental.
• Safety requirements. The rental must conform to the safety requirements of the City’s Housing Code (SRC Chapter 59).

You need to apply in person at the Permit Application Center and bring the following:

Short-Term Rental license

• Completed license application form
• Completed transient occupancy tax (TOT) operator registration form
• Copy of approved conditional use permit (if applicable)
• Site plan (SRC 30.050(a)(7)(F))
• Floor plan of dwelling unit (SRC 30.050(a)(7)(H))
• Completed safety certification
• Proof of insurance
• Payment of the license fee

Accessory Short-Term Rental license

• Completed license application form
• Completed transient occupancy tax (TOT) operator registration form
• Floor plan of dwelling unit/guest house (SRC 30.050(a)(2)(I))
• Completed safety certification
• Written authorization from property owner (if applicant is a tenant of the dwelling unit rather than the owner)
• Proof that applicant resides in the dwelling unit to be rented, in the form of two of the following documents:
• Property deed showing the applicant as the owner of the property
• Motor vehicle registration
• Driver’s license
• Voter registration
• Tax documents showing the dwelling unit as the applicant’s primary residence
• Utility bill
• A written lease agreement
• Proof of insurance
• Payment of the license fee

Each application will be reviewed to determine if it meets the license requirements and to verify the application information.

Approval: If the license is approved, you will be notified and the actual license will be issued.

Denial: If the license is denied, you will be notified with the reason(s) for the denial. You can appeal the decision as outlined in SRC Chapter 20J.

Safety certification and inspections

In order to ensure conformance with City regulations, including the safety requirements of the City’s Housing Code (SRC Chapter 59), applicants for short-term rental and accessory short-term rental licenses are required to a complete a safety certification attesting that the rental to be licensed meets the safety requirements. After a license is issued, a physical inspection of the rental will be made to verify conformance with the applicable requirements.

Frequency of Inspections

• Short-term rentals require an inspection every year. 
• Accessory short-term rentals require an inspection at least once every five years.  

Renewals

Short-term rental and accessory short-term rental licenses must be renewed every year. Renewal applications must be submitted within 30 days of the expiration date on your existing license. Your renewed license is effective as of the expiration date of your prior license. If you do not turn in an application to renew your existing license before it expires, you must get a new license.

Renewal Application Process

Short-Term Rental license renewal:

• Completed license application form
• Copy of license proposed to be renewed
• Copy of guest registry (SRC 30.1105(c)) for the prior year
• Proof of insurance
• The following, if changes have been made since the prior license approval:
• Updated transient occupancy tax (TOT) operator registration form (if changes have been made requiring an update to the information provided on your current TOT operator registration form)
• Updated site plan (SRC 30.050(a)(7)(F)) (if changes have been made to the location or number of parking spaces provided for the rental)
• Updated floor plan of dwelling unit (SRC 30.050(a)(7)(H)) (if the guestrooms rooms to be rented will be changing from the prior license approval)
• Updated safety certification form (if changes have been made to the rental requiring an update to the information provided on your current safety certification form)
• Payment of the license renewal fee

Accessory Short-Term Rental license renewal:

• Completed license application form
• Copy of license proposed to be renewed
• Copy of guest registry (SRC 30.1005(d)) for the prior year
• Proof of insurance

The following, if changes have been made since the prior license approval:

• Updated transient occupancy tax (TOT) operator registration form (if changes have been made requiring an update to the information provided on your current TOT operator registration form)
• Updated safety certification form (if changes have been made to the rental requiring an update to the information provided on your current safety certification form)

Each application will be reviewed to determine if it meets the license requirements and to verify the application information.

Approval: If the license renewal is approved, you will be notified and a renewed license will be issued.

Denial: If the license renewal is denied, you will be notified with the reason(s) for denial. You can appeal the decision as outlined in SRC Chapter 20J.

​Local representative contact information

A local representative is required to be identified by the applicant who is available to timely respond to the property to address any issues or complaints that may arise when a short-term rental or accessory short-term rental is being rented. 

Contact information for the local representative can be found online. To look up valid short-term and accessory short-term rental licenses, select “Short-term Rental” from the “License Type” drop-down menu.