Is Neskowin, Oregon Good for Airbnb Investment?

To start an Airbnb in Neskowin, Oregon, begin by researching Tillamook County's short-term rental regulations, which typically require a Transient Lodging Tax license and compliance with zoning ordinances that may restrict rentals in residential areas. Contact Tillamook County Planning Department to obtain necessary permits, including a business license and potentially a conditional use permit depending on your property's zoning. Find a suitable property within Neskowin's coastal residential areas, ensuring it meets Oregon's habitability standards and has adequate parking for guests. Furnish the property with coastal-appropriate furniture, linens, kitchen essentials, and amenities like WiFi, considering the area's beach-focused tourism market. Create your Airbnb listing with high-quality photos showcasing ocean views or proximity to Neskowin Beach State Recreation Site, pricing competitively with other Oregon coast rentals (typically $150-300 per night depending on size and location). Register for Oregon's Transient Lodging Tax collection, which ranges from 1-5% depending on local rates, and implement a management system including 24/7 guest communication, professional cleaning between stays, and coordination with local property management companies if needed. Ensure compliance with Oregon's landlord-tenant laws and maintain proper insurance coverage for short-term rentals, while staying updated on any changes to Tillamook County's vacation rental ordinances.

To identify profitable short-term rental properties in Neskowin, Oregon, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along Hawk Creek Avenue and Beach Drive where vacation rental demand peaks during summer months. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these command $200-400 nightly rates compared to $100-200 for basic properties. Analyze pricing using AirDNA and Mashvisor to track seasonal occupancy rates that typically range 60-80% in summer and 30-50% in winter, with average daily rates fluctuating from $150 off-season to $350+ during peak July-August periods. Research competition by monitoring existing Airbnb and VRBO listings within a 2-mile radius, noting that Neskowin's limited inventory of approximately 50-75 active STRs creates opportunities for well-positioned properties. Utilize tools like Rabbu, AllTheRooms, and local property management companies such as Meredith Lodging to understand market dynamics, while consulting Lincoln County's STR regulations and connecting with Neskowin Beach Golf Course and Proposal Rock area businesses to gauge tourism patterns that drive 70% of annual rental income between May and September.

To obtain an Airbnb/STR permit in Neskowin, Oregon, you must apply through Tillamook County's planning department since Neskowin is an unincorporated community within the county. Begin by contacting the Tillamook County Community Development Department at 1510-B Third Street, Tillamook, OR 97141, or call (503) 842-3408 to obtain the short-term rental application packet. Required documents typically include a completed STR application form, proof of property ownership or authorization letter from owner, site plan showing parking areas and emergency access, septic system inspection certificate, water quality test results, proof of liability insurance (minimum $1 million), emergency contact information for a local representative within 30 minutes of the property, and a good neighbor agreement outlining house rules. The application fee is approximately $350-500 with an additional $200-300 for inspections. Neskowin-specific requirements include compliance with the Neskowin Beach Community Plan, adherence to parking restrictions (typically 2 spaces per unit), occupancy limits based on septic capacity (usually 2 people per bedroom plus 2), quiet hours enforcement from 10 PM to 8 AM, and restrictions on events or gatherings exceeding occupancy limits. The approval timeline ranges from 60-120 days depending on application completeness and any required hearings. Once approved, you must renew annually and maintain compliance with all operational requirements including guest registration, tax collection, and regular inspections.

Short-term rentals (STRs) are legal in Neskowin, Oregon, but operate under Tillamook County's regulations since Neskowin is an unincorporated community. As of 2023, Tillamook County allows STRs in residential zones with proper licensing and registration requirements, including obtaining a business license, transient lodging tax registration, and compliance with occupancy limits typically based on bedrooms plus two additional guests. Properties must meet safety standards including smoke and carbon monoxide detectors, and owners are required to provide 24-hour contact information and designate a local responsible party. The county implemented stricter noise ordinances around 2022 following community concerns, and STRs must comply with parking requirements and cannot exceed maximum occupancy during events. While there are no specific prohibited areas within Neskowin itself, some individual HOAs or deed restrictions in certain neighborhoods may limit or prohibit short-term rentals, so property owners should verify with their specific community covenants before operating an STR.

The best areas for Airbnb investment in Neskowin, Oregon are the beachfront corridor along Neskowin Beach Road and the residential neighborhoods within walking distance of Proposal Rock, as these locations offer prime ocean access and proximity to the iconic geological landmark that draws thousands of visitors annually. The Cascade Head area on the southern edge of town is particularly attractive due to its hiking trail access and nature preserve proximity, appealing to eco-tourists and outdoor enthusiasts who visit year-round for hiking, bird watching, and scenic photography. The central village area near the Neskowin Beach Golf Course attracts golf tourists and families seeking vacation rentals with recreational amenities, while properties near the Neskowin Beach State Recreation Site benefit from consistent summer tourism and weekend getaways from Portland metro area residents. The Ghost Forest area, where ancient tree stumps are visible at low tide, has become increasingly popular since 2010 for its unique geological attraction, making nearby rental properties highly desirable for tourists seeking Instagram-worthy natural phenomena and educational experiences about coastal geology and climate change.

Airbnb properties in Neskowin, Oregon are subject to multiple lodging taxes including Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, Tillamook County's transient lodging tax of approximately 7%, and potentially local municipal taxes if applicable within Neskowin's jurisdiction. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Oregon Department of Revenue and Tillamook County on behalf of hosts for most bookings made through major platforms like Airbnb, VRBO, and Expedia since around 2018-2019. Hosts are still required to register with the Oregon Department of Revenue and Tillamook County, file periodic returns (usually monthly or quarterly), and may need to collect and remit taxes directly for bookings made outside of platforms that don't automatically collect these taxes. Exemptions typically include stays of 30 days or longer which are considered long-term rentals rather than transient lodging, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

Starting an Airbnb in Neskowin, Oregon requires significant upfront investment with property purchase being the largest expense at approximately $650,000 for a median oceanfront or near-ocean home suitable for vacation rental. Furnishing costs typically range $25,000-35,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies total around $3,000-5,000. Permits and fees vary but expect $500-1,500 for business licenses, vacation rental permits, and potential homeowner association approvals. Insurance costs approximately $2,500-4,000 annually for short-term rental coverage beyond standard homeowner's insurance. Monthly utilities including electricity, water, sewer, garbage, internet, and cable average $300-450 per month. First six months operating costs encompass utilities ($1,800-2,700), cleaning services ($3,600-6,000 assuming $150-250 per turnover), maintenance and supplies ($2,000-3,000), platform fees to Airbnb and VRBO ($2,400-4,800 based on estimated bookings), and marketing expenses ($1,000-2,000). The total estimated startup cost ranges from $692,800 to $713,000, making Neskowin a premium market entry point due to its desirable coastal location and limited housing inventory.

Airbnb properties in Neskowin, Oregon typically generate annual revenues between $35,000-$65,000 for oceanfront properties and $20,000-$40,000 for inland properties, with peak summer months (June-September) accounting for 60-70% of annual bookings at average daily rates of $180-$350 for beachfront units and $120-$220 for standard properties. Operating expenses generally range from 40-55% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance reserves (5-8% of revenue), resulting in net profit margins of 25-40% for well-managed properties. Success factors in this coastal market include proximity to the beach (properties within 200 yards command 40-60% premium rates), professional photography showcasing ocean views, responsive guest communication, and strategic pricing during events like the Lincoln City Summer Festival and Chinook Winds Casino promotions. A typical 3-bedroom oceanfront property purchased for $650,000 in 2022 generated approximately $52,000 in gross rental income with $22,000 in operating expenses, yielding a 4.6% cash-on-cash return, while properties further from the beach averaging $450,000 achieved 3.8-4.2% returns, with seasonal occupancy rates ranging from 65-80% for premium locations to 45-60% for standard properties.

Airbnb investments in Neskowin, Oregon typically generate annual ROI of 12-18% based on the area's strong vacation rental demand driven by its pristine beach location and proximity to Lincoln City. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $180-280 per night during peak summer months (June-September) and $120-180 during shoulder seasons. Most investors achieve profitability within 18-24 months, with oceanfront or ocean-view properties commanding premium rates up to $350 per night and generating the highest returns at 15-20% ROI. The market benefits from consistent demand from Portland-area visitors (90 minutes drive), limited hotel inventory in the immediate area, and Neskowin's reputation as a quieter alternative to busier coastal destinations, though investors should expect seasonal fluctuations with winter occupancy rates dropping to 40-50% compared to 80-90% summer occupancy.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in coastal Oregon markets like Neskowin. Local real estate agents serving the Neskowin area include Windermere Realty Group, Coldwell Banker Coast Real Estate, and RE/MAX Coast and Country, many of whom have experience with vacation rental properties along the Oregon coast. National services that help investors find Airbnb properties include AirDNA for market analysis, Mashvisor for investment property analytics, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and deal sourcing. Regional companies like Oregon Coast Vacation Rentals and Meredith Lodging provide property management services that can assist investors in understanding the local short-term rental market dynamics. Additional national platforms include Awning for Airbnb investment analysis, RedfinNow for quick property purchases, and LoopNet for commercial and investment properties, while local mortgage brokers and property management companies in Lincoln County can provide specialized knowledge of Neskowin's vacation rental regulations and market conditions.