Rental decision: long-term, mid-term, or short-term

The three paths

1. Long-term lease (≥30 days). No special permit required. Ordinary residential lease. Subject to Oregon and Portland tenant-protection laws, which are notably renter-favorable — read up on them or hire a property manager.

2. Mid-term rental (30-180 days, often furnished). Same legal status as long-term. Marketed to traveling nurses, relocating professionals, insurance-displaced households. Usually furnished, utilities included. Higher rate per month than long-term, less management than short-term.

3. Short-term rental (<30 days). Heavily regulated in Portland. Two types:

• Type A (owner-occupied): You live in the primary house on the same lot. Permitted with a Type A short-term rental permit. Annual renewal. ~$120 permit fee + 11.5% lodging tax + 6% Multnomah County tax.
• Type B (not owner-occupied): You don't live on the lot. Type B is restricted to specific zones (mostly commercial and limited multifamily) and isn't permitted in standard residential zones for a DADU. Operating a Type B in an R zone is a code violation.

How to pick

• Building the DADU as long-term housing (or for family)? Path 1 is the simplest.
• Building it as an income property and you'll live in the primary house? Path 3, Type A.
• Building it as an income property and you won't live on site? Type B isn't viable in most R zones. Long-term rental is your only legal path.

What HomePlan doesn't do

We don't give legal advice on landlord-tenant law, tax structuring, or whether a specific lease clause is enforceable. For any of those, talk to a landlord-tenant attorney.