NEWBERG, Ore. – Vacation rental home owners in Newberg will soon face stricter rules after the City Council adopted updated regulations earlier this month.
On Aug. 4, the council passed Ordinance 2025-2935, which requires all vacation rentals to be registered with the city by Dec. 2, 2025. The changes take effect Sept. 3.
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The ordinance expands registration requirements, increases penalties for unlicensed operations, and adds new standards for development and tax collection. According to the city, all vacation rentals must now have a land use permit, a business license and a transient lodging tax registration to remain in operation.
Unregistered properties will have 45 days to comply after receiving notice. If operators continue to rent their homes without approval, they will face fines of $2,000 for the first violation and $5,000 for each additional offense.
The city also set a cap on the number of vacation rentals, limiting them to 2 percent of the total number of households. For 2025, that limit is 187 homes. Current data shows about 90 vacation rentals are operating in Newberg.
Other provisions in the ordinance address parking, neighborhood relations, and property management. Larger homes with five to eight bedrooms must provide an additional off-street parking space, while existing rentals and those with fewer bedrooms are required to maintain at least two off-street spaces. Rental operators will also be required to mail annual “Good Neighbor Notices” to nearby properties and designate a local manager within 40 miles of the home.
Permits for vacation rentals will now be tied to property owners rather than properties themselves, meaning the permit will expire if the property changes ownership. Some exceptions apply, including for conditional use permits issued before Sept. 3.
The ordinance also updates transient lodging tax requirements. Platforms such as Airbnb and VRBO must now collect and remit taxes to the city on a quarterly basis. Operators are responsible for taxes not collected through these platforms and must file quarterly reports even if no rentals occur.
City officials said the changes are the result of a two-year public process that included Planning Commission review, council workshops, input from a short-term rental ad hoc committee, and community forums.
More information is available on the city’s website at bit.ly/newbergvrh.
