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, considering proximity to the beach and local attractions while ensuring the property meets Oregon's habitability standards and fire safety codes. Furnish the space with coastal-themed, durable furniture and amenities like high-speed internet, full kitchen appliances, linens, and beach equipment to attract visitors to this small oceanfront community. List your property on Airbnb and other platforms like VRBO, highlighting Neskowin's unique features such as the ghost forest, Proposal Rock, and beach access, with competitive pricing around $150-300 per night depending on size and season. Manage your rental by establishing relationships with local cleaning services in nearby Lincoln City or Pacific City, creating a guidebook featuring Neskowin's limited dining options and nearby attractions, implementing self-check-in systems due to the remote location, and maintaining compliance with Oregon's 1% transient lodging tax and any additional Tillamook County requirements while monitoring occupancy limits and noise ordinances in this quiet residential beach community.

To identify profitable short-term rental properties in Neskowin, Oregon, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly properties near Proposal Rock and the central village area where vacation rental demand peaks during summer months and holiday weekends. Target 2-4 bedroom homes or condos built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these command premium rates of $200-400 per night during peak season compared to $100-200 in off-season. Analyze comparable properties on Airbnb and VRBO within a 2-mile radius to establish competitive pricing, noting that beachfront properties typically achieve 60-75% occupancy rates annually while inland properties see 40-55%. Research the limited competition by monitoring approximately 50-80 active STR listings in the area, focusing on properties that consistently maintain high ratings and booking frequency. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, and Mashvisor for investment analysis, while checking Lincoln County's vacation rental regulations and ensuring properties comply with local STR permit requirements, as Neskowin's small market size means new quality listings can quickly capture significant market share given the area's popularity among Portland and Seattle visitors seeking coastal retreats.

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. Submit your application to the Tillamook County Planning Department at 1510-B Third Street, Tillamook, OR 97141, or online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, septic system inspection (if applicable), parking plan showing required spaces, emergency contact information, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $350-500 with an annual renewal fee of $200-300. You must also obtain a Transient Lodging Tax license from Tillamook County and register for Oregon state lodging taxes. The approval timeline is typically 4-8 weeks depending on completeness of application and any required inspections. Specific Neskowin requirements include maximum occupancy limits based on bedrooms and septic capacity, mandatory quiet hours from 10 PM to 8 AM, adequate off-street parking (typically 2 spaces minimum), compliance with fire safety codes including smoke and carbon monoxide detectors, and adherence to the Neskowin Beach Community Plan guidelines which may restrict certain types of short-term rentals in residential zones.

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 septic system capacity. Properties must meet safety standards including smoke and carbon monoxide detectors, and hosts are required to provide local contact information for guests. The county implemented stricter noise ordinances around 2022 following resident complaints, and STRs are prohibited from operating as event venues or hosting large gatherings that exceed the approved occupancy. Parking restrictions require adequate off-street parking for guests, and violations can result in license suspension or revocation. Recent changes include enhanced enforcement mechanisms and increased penalties for non-compliance, particularly regarding noise violations and unpermitted expansions of rental capacity.

The best areas for Airbnb investment in Neskowin, Oregon are primarily concentrated along the beachfront corridor near Proposal Rock and the Neskowin Beach State Recreation Site, where properties command premium rates due to direct ocean access and proximity to the iconic haystack rock formation that draws photographers and nature enthusiasts year-round. The residential neighborhoods immediately east of Highway 101, particularly around Hawk Creek and near the Neskowin Beach Golf Course, offer excellent investment potential due to their proximity to both beach activities and the 18-hole golf course that attracts visitors during spring through fall seasons. Properties near the Cascade Head Scenic Research Area and Nature Conservancy trails are increasingly popular with eco-tourists and hiking enthusiasts, especially during wildflower season from April to July when the headland offers spectacular Pacific views. The southern end of Neskowin near the Nestucca River mouth provides opportunities for properties that can attract both beach lovers and fishing enthusiasts, as the area offers surf fishing, crabbing, and seasonal salmon runs that draw visitors from Portland and Salem metropolitan areas, typically generating strong occupancy rates during summer months and holiday weekends throughout the year.

Airbnb properties in Neskowin, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8% on gross rental receipts, Tillamook County's transient lodging tax of approximately 7%, and potentially local municipal taxes that can range from 1-3%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts may need to register directly with Tillamook County and remit taxes quarterly or monthly depending on rental volume. The Oregon Department of Revenue requires hosts to obtain a transient lodging license and file returns even when using Airbnb's collection service, with remittance due by the 15th of the month following the reporting period. Exemptions generally apply to stays exceeding 30 consecutive days, rentals to permanent residents, and properties rented fewer than 3 days per year, though hosts should verify current exemption criteria with local tax authorities as regulations frequently change and enforcement has increased significantly since 2019.

The total cost to start an Airbnb in Neskowin, Oregon would be approximately $650,000-$750,000. Property purchase represents the largest expense at around $550,000-$650,000 for a median-priced coastal home suitable for vacation rental. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, transient lodging taxes registration, and any local vacation rental permits required by Lincoln County. Insurance costs approximately $2,000-$3,000 annually for vacation rental coverage. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable total around $1,000-$1,500. First six months of operating costs including utilities ($600/month), cleaning services ($150 per turnover), property management if used (20-30% of revenue), maintenance reserves, and supplies typically run $8,000-$12,000, assuming moderate occupancy rates during the startup period.

Airbnb properties in Neskowin, Oregon typically generate annual revenues of $35,000-$55,000 for oceanfront properties and $20,000-$35,000 for inland properties, with peak summer months (June-September) accounting for 60-70% of total bookings at average daily rates of $180-$280 for beachfront units and $120-$180 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 30-50% premium rates), professional photography showcasing ocean views, responsive guest communication, and strategic pricing during events like the Lincoln City Summer Festival and storm-watching season (November-February). A typical 3-bedroom oceanfront property purchased for $650,000 in 2022 generated approximately $48,000 in rental income with $28,000 in expenses, yielding a 3.1% cash-on-cash return, while a 2-bedroom inland property bought for $425,000 produced $28,000 revenue with $16,000 expenses for a 2.8% return, demonstrating that Neskowin's limited inventory and strong vacation rental demand create sustainable profitability despite high acquisition costs.

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 dropping to 40-50% compared to 80-90% summer occupancy rates.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Neskowin, Oregon, providing comprehensive market analysis and investment metrics. Local real estate agents specializing in Airbnb investments in the area include Windermere Pacific Realty and Century 21 Agate Realty, both with offices serving the Lincoln County coastal region since the 1980s. Vacasa, founded in 2009, offers property management services and investment guidance for Neskowin vacation rentals, while AirDNA provides detailed market data and revenue projections for the area. RedAwning and AvantStay focus on identifying high-performing vacation rental properties along the Oregon coast, including Neskowin. Local services include Pacific Coast Property Management and Oregon Coast Vacation Rentals, which have been operating since the early 2000s and offer both property management and investment consultation. National platforms like Mashvisor and BiggerPockets also provide investment analysis tools and connect investors with local professionals familiar with Neskowin's seasonal rental market, while Roofstock and Awning offer turnkey vacation rental investment opportunities in coastal Oregon markets.