Portland approves new short-term rental rules

Portland city councilors voted unanimously Monday night to approve new regulations governing short-term rentals.

The number of non-owner-occupied rental units in Portland was previously capped at 400. Under the new rules, the city will lower the limit to about 285 units, or about 1.5% of Portland’s long-term housing stock.

Councillor Kate Sykes said the new regulations are intended to prevent investors from taking over homes that could be used as long-term rental properties.

“We hope to build a lot more apartments, and if we can do that, we can offer more short-term rentals,” she said.

Many owners, however, admit that they engage in short-term rentals to supplement their own income and that they rent to tourists who otherwise would not be able to afford a hotel stay in Portland.

Several short-term rental owners, including Portland resident Adam Simon, said the fees they charge tourists and guests allow them to keep rents relatively low for long-term tenants.

“To keep my long-term rentals at a fair and reasonable level, I need some extra income so I can get a little more out of the multiple apartments in each building,” he said.

Current operators will keep their licenses under the new rules. However, the city will not approve new permits until the number of owner-occupied units in Portland falls below the new limit.

Portland city councilors also introduced two changes to the city’s minimum wage Monday night.

One proposal would raise the city’s minimum wage from $15 to $20 an hour over the next four years. Another would eliminate a tip deduction for restaurant workers that Portland residents rejected two years ago.

None of these initiatives will be on the November ballot.

Several restaurant workers have expressed opposition to the tip credit proposal, arguing that individual businesses should decide how best to pay their employees.

But Portlanders will vote in November on a separate measure that would limit the city’s 50% minimum wage increase from applying to non-telecommuter workers in the event of a state of emergency. The referendum would limit the ordinance’s use to circumstances when the City Council declares a state of emergency, not a state.