Overview: Are Short-Term Rentals Allowed in Broken Bow, OK?

Yes, short-term rentals (STRs) are explicitly allowed in Broken Bow, Oklahoma. The regulatory environment is notably investor-friendly, especially in the unincorporated Hochatown area, where most luxury cabins operate. However, requirements differ between the City of Broken Bow and the neighboring Town of Hochatown:

• City of Broken Bow: Does not have its own specific STR licensing or permitting requirements. Operations are governed primarily by Oklahoma state laws and standard business regulations.
• Town of Hochatown (Unincorporated Area): Requires a straightforward STR license, issued through the Town government. As of October 1, 2024, the licensing and tax remittance process has been managed through a new platform powered by Granicus, with an enhanced portal planned for the future.

Key Takeaways for Investors:

• No Permit Caps: Unlike many regulated markets, there are no limits on the number of STR permits issued.
• Non-Owner Occupied Allowed: Investors can operate properties they do not reside in.
• Minimal Zoning Restrictions: STRs are generally permitted in residential areas without needing special use permits.
• Business-Friendly: The overall approach focuses on tax compliance and basic safety rather than restrictive bureaucratic processes.

How to Start a Short-Term Rental Business in Broken Bow, OK

1. Market Research and Property Selection:

   • Analyze proximity to key attractions like Beavers Bend State Park, Broken Bow Lake, and the Mountain Fork River.
   • Decide between properties in the City of Broken Bow limits or the Town of Hochatown jurisdiction, as licensing requirements differ.
   • Assess the local competition to identify market gaps and unique amenity opportunities (e.g., hot tubs, fire pits, game rooms).

2. Regulatory Compliance Setup:

   • Register for State Taxes: Obtain an Oklahoma Sales and Use Tax Certificate from the Oklahoma Tax Commission. This is required for collecting and remitting sales and lodging taxes.
   • Obtain STR License (If in Hochatown): If your property is within the Town of Hochatown, apply for a Short-Term Rental License using the official application form. The process is streamlined and can be completed online.
   • Business Entity Formation: Consider forming an LLC or other business entity for legal protection and tax benefits.
   • Secure Insurance: Obtain comprehensive liability and property insurance for your STR.

3. Property Preparation and Management:

   • Ensure the property meets basic safety standards (smoke detectors, carbon monoxide detectors, fire extinguishers).
   • Furnish and prepare the property to a high standard, reflecting the market's demand for luxury cabin experiences.
   • Decide on a management strategy: self-management or hiring a local professional property management company. The market is remote, so reliable local contacts for cleaning and maintenance are crucial.

4. Tax Collection and Remittance:

   • Set up a system to collect all applicable taxes from guests at the time of booking.
   • Remit taxes monthly using the appropriate forms provided by the Town of Hochatown or the Oklahoma Tax Commission.

Required Documents, Permits, Licenses, and Guidelines

• For All Properties in Oklahoma:

  • Oklahoma Sales and Use Tax Certificate: Mandatory for collecting state sales tax and lodging tax. (Source: The Offer Sheet)
  • Business Registration: Basic registration for tax purposes.

• For Properties within the Town of Hochatown:

  • Hochatown STR License: A specific license is required to operate an STR. Applications are submitted online via the Town's portal.
  • STR License Renewal: Annual renewals are required, facilitated through the same online platform.
  • Lodging Tax Remittance: Monthly remittance of collected lodging taxes using the provided online forms (Bulk, Single with Exemptions, Single without Exemptions).

• Recommended Documentation:

  • Proof of Property Insurance
  • Local Emergency Contact Information
  • Safety Equipment Records (Smoke/CO detectors, fire extinguisher)
  • Property Management Agreements (if applicable)
  • Septic System Maintenance Records (as most properties are on septic)

• Guidelines:

  • While formal inspections are not typically required by the city, investors are responsible for ensuring the property meets basic health and safety standards. (Source: GoSummer)
  • The regulatory framework emphasizes compliance with tax laws and basic safety, rather than strict operational guidelines. (Source: The Offer Sheet)

Specific Regulations for Short-Term Rentals: City, County, and State

City of Broken Bow

• Permitting: No specific city-level STR permits or licenses are required.
• Zoning: STRs are generally allowed in residential areas without special use permits.
• Taxes: Operators must collect and remit state sales tax and any applicable local lodging taxes. (The 4.5% state sales tax applies). (Source: GoSummer)

Town of Hochatown

• Permitting: A specific STR License is required. The application process is designed to be efficient and user-friendly.
• Taxes: In addition to state taxes, operators must collect and remit municipal lodging taxes through the town's online portal. (Source: Hochatown.gov - STR)
• Complaints: A 24-hour live hotline is available for reporting issues related to STRs (580-896-5242).

McCurtain County

• Lodging Tax: A 2% lodging tax is imposed by the McCurtain County Tourism Authority on all short-term rentals. This is in addition to state and local taxes. (Source: GoSummer)

State of Oklahoma

• Sales Tax: A 4.5% state sales tax applies to all STR bookings.
• Lodging Tax: A 5% state lodging tax applies to properties with five or more rooms. Properties with fewer than five rooms are generally exempt from this specific tax.
• Remittance: Both sales and lodging taxes must be collected and remitted monthly to the Oklahoma Tax Commission. (Source: The Offer Sheet)

Contact Information for Local Authorities

• Town of Hochatown (STR Licensing & Municipal Taxes):

  • Phone: 580-494-7390
  • Email: Tax@Hochatown.gov
  • Website: Town of Hochatown - Short-Term Rentals (Includes links to all application forms, tax remittance portals, and regulations).

• Oklahoma Tax Commission (State Taxes):

  • Website: Oklahoma Tax Commission

• McCurtain County Tourism Authority (County Lodging Tax):

  • Website: Visit McCurtain County (For information on the 2% county lodging tax).

• 24-Hour STR Complaint Hotline (Hochatown):

  • Phone: 580-896-5242

Important Links to Source Pages

1. Town of Hochatown STR Licensing Portal: Short-Term Rentals | Town of Hochatown
2. Hochatown STR First-Time License Application: STR First-Time License Application
3. Hochatown STR License Renewal Application: STR License Renewal Application
4. Hochatown Lodging Tax Remittance (Bulk): Bulk Remittance Form
5. Hochatown Lodging Tax Remittance (Single):
   • Single Remittance - No Exemptions
   • Single Remittance - With Exemptions
6. Hochatown STR Complaint Reporting: Report an STR Issue | Town of Hochatown
7. Oklahoma Tax Commission: Oklahoma Tax Commission
8. GoSummer's STR Guide for Broken Bow: Vacation Rental Management in Broken Bow, Oklahoma | GoSummer
9. The Offer Sheet's Investor Guide: Broken Bow OK Short Term Rental Regulations: The Investor's Paradise Guide | The Offer Sheet