Executive Overview

Short-term rentals ARE ALLOWED in Grants Pass, Oregon. The city explicitly permits Vacation Rental Dwellings (VRDs) through a comprehensive regulatory framework that balances investment opportunities with neighborhood protection. VRDs are treated as a distinct land use category requiring specific permits, compliance with development standards, and ongoing regulatory oversight.

How to Start a Short-Term Rental Business in Grants Pass

Step-by-Step Process

1. Verify Property Eligibility

   • Confirm your property is a single-family dwelling or Accessory Dwelling Unit (ADU)
   • Ensure the structure resembles single-family residential architecture
   • Verify adequate street access and turnaround capacity for additional traffic

2. Obtain Required Permits and Licenses

   • Apply for VRD permit through the Parks & Community Development Department
   • Complete Fire Department safety inspection
   • Register for lodging tax within 15 days of beginning business
   • Obtain business tax certificate as required

3. Meet All Development Standards

   • Comply with maximum occupancy limits
   • Ensure adequate off-street parking
   • Maintain guest register
   • Implement solid waste management plan
   • Meet landscaping requirements

4. Establish Operational Framework

   • Implement occupancy tracking system
   • Establish guest communication protocols
   • Create emergency response procedures
   • Set up tax collection and remittance system

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

Vacation Rental Dwelling (VRD) Permit

• Issuing Authority: Parks & Community Development Department
• Processing: Type IV-A procedure with public hearing
• Prerequisites: All applicable criteria must be met
• Fee: Amount established by city resolution
• Validity: Ongoing with compliance conditions

Lodging Tax Registration

• Requirement: Register within 15 days of beginning business
• Form: Lodging Tax Registration Form (PDF available online)
• Tax Rate: 12% of taxable rents (5% collection allowance for operators)
• Reporting: Quarterly submissions with specific deadlines

Business Tax Certificate

• Authority: Finance Department
• Purpose: General business operation authorization
• Requirements: Separate application process

Safety and Compliance Documentation

Fire Life Safety Compliance

• Fire Department inspection required
• Evidence of compliance with Uniform Building Code
• Compliance with Fire Life Safety Code standards

Health Department Standards

• Evidence of compliance with state and local health department standards
• Required for all VRD operations

Guest Register

• Must be maintained and updated
• Available for review by Finance Director
• Must be accurate and current

Specific Regulations for Short-Term Rentals

Occupancy Limits

Maximum Overnight Occupancy

• Up to 2 persons per sleeping room or guestroom
• Maximum 2 additional persons per property
• Absolute maximum of 12 persons (excluding children under 3)
• Special provisions for homes on conditional or non-standard septic systems
• Capacity limited by septic system design load in those cases

Total Guest and Visitor Limits

• Maximum daytime occupancy: overnight limit plus 6 additional persons
• Absolute daytime maximum of 18 persons (excluding children under 3)
• No daytime visitors during quiet hours (10:00 PM - 7:00 AM)

Length of Stay Restrictions

Stay Limitations

• Maximum stay: 27 days in any 30-day period
• This applies to all individual rental periods
• Designed to maintain transient rather than residency character

Parking Requirements

Required Off-Street Parking

• Standard residential parking for dwelling unit
• Maximum 2 vehicles in driveway
• Maximum 1 vehicle on street
• Recreational vehicles allowed onsite but prohibited on street

Design Guidelines

• On-site turnaround may be waived if public safety not compromised
• Vehicle stacking (end-to-end) permitted
• Semi-circular driveways allowed
• Masonry pavers seeded with grass acceptable
• Parking lot area ratio to front yard area limited to 1:1
• Bedroom reduction required if impacts cannot be mitigated
• No variances from parking standards allowed

Operational Standards

Structure and Appearance Requirements

• Existing structures: only single-family dwellings and ADUs eligible
• New structures must resemble single-family dwellings
• Apartment dwellings and non-residential structures prohibited

Access and Infrastructure

• Streets must have adequate capacity and turnaround for additional traffic
• Compliance with sidewalk and access standards required
• All on-site improvements must meet code standards

Guest Services Limitations

• No dumpsters allowed
• Secure receptacles required for solid waste
• Subscription to solid waste collection service mandatory during all rental months
• Breakfast service limited to Bed and Breakfast operations only

Landscaping Requirements

• All yards must comply with Article 23, Section 23.03 (Type A: Residential Front and Exterior Yards)
• Ongoing maintenance required

Signage Compliance

• Must comply with residential zone sign requirements
• Governed by Title 9, Chapter 9.21 of Municipal Code
• Generally limited in residential areas

Tax and Financial Compliance

Transient Room Tax

• Must comply with Title 4, Chapter 4.05 (Transient Room Tax)
• Separate from lodging tax registration
• Regular remittance required

Property Use Limitations

Eligible Property Types

• Single-family dwellings only
• Accessory Dwelling Units (ADUs)
• Apartment dwellings prohibited
• Non-residential structures (institutional, warehouses, churches) prohibited

Contact Information

Primary Regulatory Authority

Parks & Community Development Department

• Phone: 541-450-6000
• Address: 101 NW A Street, Grants Pass, OR 97526
• Website: www.grantspassoregon.gov
• VRD Permit Applications: Submit to Parks & Community Development Department

Finance Department - Lodging Tax

• Phone: 541-450-6000
• Tax Registration Forms: Available online
• Quarterly Reporting: Deadlines as specified above

Emergency and Safety Contacts

Fire Department

• Safety Inspections: Required for all VRD permits
• Contact through main city number: 541-450-6000

Building and Safety

• Code Compliance: Evidence required for VRD permit
• Contact through main city number: 541-450-6000

State-Level Contacts

Oregon Department of Revenue

• Website: www.oregon.gov/dor
• Lodging Tax Information: Available at state level

Source Pages

1. Grants Pass Development Code Article 14

   • URL: www.grantspassoregon.gov/DocumentCenter/View/1281
   • Contains complete VRD regulations (Section 14.800)

2. City of Grants Pass Lodging Tax Information

   • URL: www.grantspassoregon.gov/190/Lodging-Tax
   • Contains tax registration forms and reporting requirements

Key Investment Considerations

Market Positioning

Grants Pass offers a unique blend of natural attractions and small-town charm, creating a steady tourism market. The city's explicit allowance of VRDs with reasonable regulations provides a predictable investment environment.

Regulatory Compliance Cost Structure

• One-time Costs: VRD permit fees (resolution-established), Fire inspection
• Ongoing Costs: Quarterly tax remittance (12% rate), annual business certificate renewal
• Operational Costs: Enhanced cleaning protocols, guest communication systems, parking management

Risk Factors

• Strict Parking Requirements: No variance allowances may limit property eligibility
• Occupancy Caps: Maximum 12 overnight guests may limit revenue potential
• Neighborhood Integration: Residential character maintenance requirements
• Regulatory Changes: City maintains authority to modify standards

Success Factors

• Property Selection: Focus on single-family homes with adequate parking and street access
• Operational Excellence: Proactive guest management and neighborhood relations
• Tax Compliance: Systematic remittance and documentation
• Safety Standards: Maintaining high Fire Life Safety compliance

This comprehensive regulatory framework provides clear guidelines for STR investment in Grants Pass while ensuring neighborhood compatibility and public safety standards are maintained.