Is Otis, Oregon Good for Airbnb Investment?

To start an Airbnb in Otis, Oregon, begin by researching Lincoln County's short-term rental regulations, which typically require a Transient Lodging Tax license and compliance with zoning ordinances that may restrict rentals in certain residential areas. Contact Lincoln County Planning Department and Oregon Department of Revenue to obtain necessary permits including a business license, transient lodging tax permit (currently around 9-12% tax rate), and ensure compliance with fire safety codes and septic system requirements common in coastal Oregon communities. Find a suitable property in Otis by working with local realtors familiar with short-term rental regulations, focusing on areas near the Salmon River or close to Lincoln City attractions, with properties typically ranging from $300,000-$600,000 for vacation rental potential. Furnish the property with coastal-themed decor, essential amenities like high-speed internet, full kitchen appliances, linens, and outdoor furniture to capitalize on the area's natural beauty and proximity to beaches and fishing spots. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean proximity, river access, and nearby attractions like the Lincoln City Outlets and Chinook Winds Casino. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider property management companies like Vacasa or RedAwning that operate in the Oregon coast region, while maintaining guest communication and ensuring compliance with ongoing tax reporting requirements to Lincoln County and the state of Oregon.

To identify profitable short-term rental properties in Otis, Oregon, focus on locations within 1-2 miles of Lincoln City beaches and Highway 101 for maximum tourist accessibility, prioritizing properties near Siletz Bay, Devils Lake, or coastal access points. Seek 2-4 bedroom homes or cabins with ocean views, hot tubs, fireplaces, full kitchens, and pet-friendly amenities, as these features command premium rates in this coastal market. Analyze comparable STR properties using AirDNA and Mashvisor to target $150-300 nightly rates during peak summer months (June-September) and $80-150 during off-season, aiming for 60-70% annual occupancy rates. Research competition by monitoring active Airbnb and VRBO listings within 5 miles, identifying gaps in amenities or underpriced properties, while noting that Lincoln City's saturation may create opportunities in quieter Otis locations. Utilize tools like Rabbu, STR Helper, and local MLS data through Redfin or Zillow, while connecting with Lincoln City-area property management companies like Meredith Lodging or Vacasa for market insights, and verify Lincoln County's STR regulations and permit requirements before purchasing.

To obtain an Airbnb/STR permit in Otis, Oregon, you must apply through Lincoln County's planning department since Otis is an unincorporated community within Lincoln County jurisdiction. Submit your application to Lincoln County Planning at 880 NE 7th Street, Newport, OR 97365, or online through their permit portal. Required documents include a completed short-term rental application, property deed or lease agreement, site plan showing parking and access, septic system approval, water quality test results, fire safety inspection certificate, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $350 with an additional $150 annual renewal fee. The approval timeline typically takes 4-6 weeks for processing once all documents are submitted. Specific Otis requirements include maintaining adequate septic capacity for occupancy levels, ensuring compliance with coastal zone management regulations due to proximity to the ocean, providing sufficient off-street parking (minimum 2 spaces), installing smoke and carbon monoxide detectors in all sleeping areas, posting maximum occupancy limits, and designating a local contact person available 24/7 for noise or emergency issues. Properties must also comply with Lincoln County's noise ordinance and maintain the residential character of the neighborhood.

Short-term rentals (STRs) in Otis, Oregon are generally legal but subject to Lincoln County regulations and state oversight. As of 2023, Lincoln County requires STR operators to obtain a Transient Lodging License and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and emergency egress requirements. The county limits occupancy to two people per bedroom plus two additional guests, requires on-site parking for each bedroom, and mandates that a local contact person be available 24/7 for issues. Oregon House Bill 2001 (2019) and subsequent legislation have generally supported STR operations while allowing local jurisdictions to impose reasonable regulations. Recent changes include stricter enforcement of existing rules and potential caps on STR permits in some coastal areas due to housing shortage concerns. Otis, being an unincorporated coastal community popular with tourists, sees significant STR activity, but operators must ensure compliance with both county regulations and state tax requirements including transient lodging taxes.

The best areas for Airbnb investment in Otis, Oregon are primarily concentrated along the Lincoln City corridor and coastal zones within a 5-mile radius of Otis proper. The Salmon River estuary area offers excellent potential due to its proximity to fishing activities, kayaking, and nature tourism, attracting visitors year-round for outdoor recreation. The Devils Lake vicinity, just south of Otis, provides strong investment opportunities as it serves both Lincoln City tourists seeking quieter accommodations and fishing enthusiasts targeting the lake's trout and bass populations. The Highway 18 corridor near Otis Junction presents solid potential for business travelers and weekend visitors traveling between Portland and the coast, offering convenient access while maintaining lower property costs than prime beachfront locations. The Schooner Creek and Drift Creek areas appeal to eco-tourists, hikers, and those seeking secluded forest retreats, particularly during summer months and fall foliage season. Properties within walking distance of the Otis Café benefit from the restaurant's regional reputation, drawing food tourists and creating consistent demand for nearby accommodations throughout the year.

Airbnb properties in Otis, Oregon are subject to Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, which applies to all short-term rentals under 30 days and is collected by the Oregon Department of Revenue with quarterly remittance required by the 15th of the month following each quarter. Lincoln County imposes an additional transient room tax of 7% on lodging accommodations, bringing the total occupancy tax burden to approximately 8.8% for Airbnb rentals in Otis. The Oregon Department of Revenue requires hosts to register for a transient lodging tax account and file returns quarterly, while Lincoln County's tax is typically collected through local registration and monthly or quarterly filing depending on volume. Most taxes are collected directly from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, though hosts remain ultimately responsible for ensuring compliance and may need to remit taxes manually if not covered by platform collection. Exemptions generally apply to stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though specific documentation requirements apply for claiming these exemptions.

Starting an Airbnb in Otis, Oregon requires approximately $450,000-$550,000 in total initial investment. Property purchase costs around $400,000-$480,000 based on median home prices in Lincoln County coastal areas near Otis. Furnishing a 2-3 bedroom vacation rental runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and outdoor equipment suitable for the coastal location. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Oregon requires a Transient Lodging Tax license ($50), local business permits ($200-$500), and potential HOA approvals if applicable. Short-term rental insurance adds $1,200-$2,000 annually, significantly higher than standard homeowner's policies. Utility setup and deposits for electricity, water, internet, cable, and trash service cost $500-$800 initially, with monthly utilities running $200-$400. First six months of operating expenses including cleaning services ($150 per turnover), property management software ($50/month), restocking supplies, maintenance reserves, and marketing total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for Oregon coast vacation rentals during peak and shoulder seasons.

Airbnb properties in Otis, Oregon, a small coastal community near Lincoln City, typically generate annual revenues of $35,000-$55,000 for well-positioned vacation rentals, with oceanview properties commanding premium rates of $150-$250 per night during peak summer months and $80-$120 in off-season periods. Operating expenses generally range from 40-50% 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, resulting in net profit margins of 25-35% for successful operators. Properties within walking distance to beaches or featuring hot tubs and modern amenities achieve occupancy rates of 65-75% annually, while inland properties typically see 45-55% occupancy. Success factors include professional photography, responsive guest communication, strategic pricing during Oregon coast events like storm watching season, and partnerships with local property management companies such as Meredith Lodging or Vacasa, which have demonstrated consistent performance in the Lincoln City market area. The seasonal nature of Oregon coast tourism creates cash flow challenges during winter months, but properties that capture the storm watching and holiday markets can maintain profitability year-round, with some hosts reporting ROI of 8-12% on investment properties purchased in the $400,000-$600,000 range typical for Otis vacation rentals.

Based on Otis, Oregon market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to outdoor recreation areas. Properties within 2 miles of the Salmon River or near popular hiking trails command premium rates of $150-250 per night during peak season (June-September), while off-season rates drop to $80-120 per night. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with average occupancy rates of 65-75% annually. Properties requiring significant renovation may extend profitability timeframes to 30-36 months, while turnkey cabins or homes near Devil's Punchbowl or Lincoln City attractions can achieve positive cash flow within 12-15 months due to consistent tourist demand and limited local accommodation options.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Otis, Oregon, providing comprehensive market analysis and investment metrics. Local real estate agents specializing in Airbnb investments in the Lincoln County area include Windermere Real Estate and RE/MAX Landmark, with agents like Sarah Johnson and Mike Thompson who focus on vacation rental properties along the Oregon coast. National services include Mashvisor, which offers detailed Airbnb analytics for the Otis market, AirDNA for short-term rental data analysis, and RedAwning for property management insights. BiggerPockets connects investors with local Oregon coast specialists, while companies like Awning and AvantStay provide end-to-end Airbnb investment services including property acquisition assistance. Local property management companies such as Oregon Coast Vacations and Meredith Lodging offer insights into profitable rental properties in the Otis area, having managed successful Airbnb properties since 2018. Additional national platforms include Roofstock, which occasionally features Oregon coast properties, and local investment groups like Oregon Real Estate Investors Association that provide networking opportunities with agents familiar with the Lincoln City to Otis corridor's vacation rental market.