Yachats clarifies its vacation rental rules to allow licenses to be transferred to owners’ heirs

By GARRET JAROS/Lincoln Chronicle

YACHATS – Months of efforts to clarify, amend and reach consensus on the city of Yachats vacation rental license code came to fruition last week when the city council voted unanimously to approve the updated policy.

The decision Wednesday came at the close of a third public hearing and after a council work session with community members in February. The main sticking point had been the city’s clarification that the licenses do not automatically stay with a home if it is sold or the owner dies and the home is passed to heirs.

That issue was resolved in a work-around that allows a “future planning” pathway that works with the code.

The intended heir of a property can be added to a property’s deed or as the beneficiary of a trust. A new joint vacation rental license can be applied for that includes both names on the license, which would require waiting for an opening on the license wait list – which city staff says is currently very short. Once a new license with both names is obtained, the old license must be forfeited. When the new joint license is secured, it will ensure the license remains with the survivor even though the code does not provide for automatic transfers.

The key changes in the code amendment include:

• The license holder must be an owner of the dwelling. Two people can be on the license provided both are on the deed;
• A clarification that licenses are not transferable upon sale or death of license holder;
• Added clarity that license holders are expected to follow-up in a timely manner regarding re-inspections, which are required every five years;
• Extended timeline for addressing issues found during inspections from five days to 20 days;
• A license holder who does not report transient lodging taxes within two calendar years is subject to losing their license;
• Newly established commercial water rates are applied to vacation rentals; and
• People on the license waitlist who are notified of availability must respond in 10 days.

The original vacation license ordinance was passed in 2017 after several years of debate around balancing and achieving two primary goals – economic vitality in supporting tourism as an economic driver and limiting rental density to preserve the quiet, residential feel of Yachats.

The city has a limit of 125 vacation rental licenses and collects a 9 percent transient lodging tax on rents. In 2024 the finance committee noted that some licenses were being held but not used and that it was costing the city revenue.

Transient lodging taxes paid by motels or vacation rentals are the city’s main source of income and the city considers licenses an asset.

“Since the last hearing we also added vacation rental licenses must be connected to city water and sewer,” said Mayor Craig Berdie. “If you’re on septic you cannot have a license.”

He then asked whether there was any further council discussion before the vote and when there was not said he was not surprised given the time spent debating the issue.

In other business:

• City manager Bobbi Price is negotiating a sale price for a previously logged property in the city’s main watershed above Salmon and Reedy creeks, informally called the Riggs property. The city has applied for a grant to cover the cost of a timber cruise, property value assessment and any previous environmental impacts to the property.
• Structural plans for the estuary walkway/boardwalk have been accepted by the Lincoln County Planning Department allowing construction to begin when the city is ready.
• Viki West and Anthony Muirhead were appointed to the budget committee.
• The city has started negotiations with the American Federation of State, County and Municipal Employees union, which represents city employees. Price and the city’s attorney presented the economic impacts to the city council during an executive (closed) session Monday.
• A public arts ordinance has been created by council and the city manager has begun work on forming a committee.
• Karlie Wharton of Yachats has been hired as a new librarian to enhance youth programming and the children’s section of the Yachats Public Library.

• Garret Jaros covers the communities of Yachats, Waldport, south Lincoln County and natural resources issues for Lincoln Chronicle and can be reached at [email protected]