Oklahoma City strengthens short-term rental rules

Short-term rental (STR) operators in Oklahoma City, Oklahoma, face stricter rules under updates to the city’s home-sharing ordinance approved by the City Council. The regulations include limits on the number of guests per stay and the number of nights per month an STR can be rented. 

The ordinance is a response to resident concerns about affordable housing and neighborhood disruption. In creating the measure, the city worked with stakeholder focus groups for 18 months and solicited community feedback. The changes went into effect February 16, 2025.

In Oklahoma City, home sharing is defined as the temporary rental of a dwelling (or rooms in a dwelling), often using a home-sharing marketplace such as Airbnb or Vrbo. STR operators are required to obtain a city-issued license annually. Operators renting a property that isn’t their primary residence or a property located in a Historic Preservation district must apply to the Board of Adjustment for a special exception permit. STRs must also have safety equipment including carbon monoxide detectors, smoke detectors, and fire extinguishers.

Under the new rules:

• Home shares can be rented a maximum of 10 nights per month unless the operator obtains a special exception permit
• No more than 16 people are allowed to occupy an STR at a time
• STRs that require special exception permits may not make up more than 10% of homes per block
• STRs must provide at least one parking spot on the property for every four guests
• In evaluating special exception applications, the Board of Adjustment may take into consideration neighborhood covenants that ban STR operation as well as traffic impacts
• The city may deny permits for one year to STR operators that have violated STR rules

Oklahoma City is working on strengthening enforcement of STR regulations by hiring a consultant who will identify illegal home shares, work with operators to get licenses, document violations for legal action, and connect with the city’s enforcement database. The consultant will also be tasked with creating a 24-hour complaint platform.

Oklahoma City STR operators are also required to comply with lodging tax rules. If you rent two or more bedrooms in your home for home sharing, you must register with the city for hotel/motel tax and file monthly tax reports. The city has agreements with Airbnb and Vrbo to collect and remit hotel taxes and file monthly tax reports on behalf of their hosts. Residents who use other marketplaces to rent out their home are responsible for their own hotel tax payments and reports.

All Oklahoma STR operators must also collect state lodging taxes. As an STR operator, you’re required to register with the Oklahoma Tax Commission and obtain a Sales and Use Tax Certificate of Registration. In Oklahoma, “marketplace facilitators” such as Airbnb and Vrbo are required to collect state lodging taxes from guests when an STR stay is paid for OR notify purchasers that lodging tax is due on the rental. If taxes aren’t being collected for you, you’re responsible for collecting and remitting them to state tax authorities. 

Avalara MyLodgeTax can help short-term rental hosts automate and simplify short-term rental compliance at the state and local levels. For more on lodging taxes in Oklahoma, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.