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HOME OCCUPATIONS
WHAT IS A HOME OCCUPATION?
A home occupation is a business conducted in or on the premises of a dwelling located in a residential
zone; a home occupation is always secondary to the use of the dwelling as a residence, and must be
operated by a resident of the dwelling.
HELPING SMALL BUSINESSES
The City of Lake Oswego recognizes the needs and desires of many people to engage in small-scale
business ventures which would not be possible if it were necessary to obtain commercial space. At the
same time, the City understands that business uses, if not carefully regulated, may be incompatible with
the purposes of residential zones. Zoning regulations may allow a person to operate a business out of
his or her home, depending on the type of business activity and how the business is operated.
WHAT TYPES OF BUSINESSES ARE ALLOWED AS HOME OCCUPATIONS?
The City Code does not specifically identify the types of businesses allowed or prohibited as home
occupations. However, a home occupation may be conducted only if the following conditions are
continuously complied with [LOC 50.03.003.4.b.ii]. There are three types of Home Occupations, with the
following rules.
Generally Applicable Rules for all Home Occupation Types:
La current and valid business license is maintained.
(2) No persons other than family members who reside at the dwelling may be employed or otherwise
work in the home occupation, except persons performing housekeeping, yard maintenance, or other
domestic services for the dwelling where the business occurs.
(3) No outdoor storage of goods or materials.
(4) The City's public nuisance rules (LOC Art. 34.08, LOC Art. 34.10) apply to home occupations, and any
complaints of a public nuisance related to a home occupation shall be treated the same as any other
public nuisance.
(5) No more than 25% of the aggregate floor area on the lot is devoted to nonresidential use, except
that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory
structure may be used, provided the provisions of this subsection are met.
(6) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited.
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Home Occupations Types [LOC 50.03.004.1.b.ii]
Type A Type B Type C
A home occupation where a A home occupation where a portion A short-term rental, as defined in
portion of the home is used to of the home is used to operate a LOC 50.10.003.2. (below)
operate a business but no business and customers may come
customers come to the to the site. Short-Term Rental Lodging: The
site. A Type A home offering of one or more
occupation may also involve a bedrooms(and use of any
home that is used as a common area) on a lot
business address, but is not containing a single-family
used for business operations. detached dwelling for transient
residential purposes to serve
paying guests for periods of 30
days or less.
Generally Applicable Rules Generally Applicable Rules, and: Generally Applicable Rules, and:
(a) The home occupation shall not (a) A person who owns a lot
create a pattern of parking or containing a short-term rental
queuing that is visibly inconsistent (primary or secondary dwelling
with surrounding residential uses. unit) must maintain their primary
(b) Outdoor activities involving residence on the lot. The owner
clients or customers are not is not required to be on the lot
permitted, except limited outdoor when the dwelling is rented.
activity as provided below: (b) No other commercial uses are
(i) Instructional or demonstration allowed in conjunction with or
uses directly led by the home accessory to a short-term rental.
occupation operator such as art, The short-term rental shall not
gardening, or yoga classes, limited be marketed or used for group
to five clients or participants at one events such as weddings,
time are permitted. No more than classes, or similar events, for
two outdoor sessions are permitted example.
per day, and no more than six
outdoor sessions are permitted per
week. Outdoor business activities
may only occur between 9:00 am
and 7:00 pm. No outdoor business
activity is permitted on Sundays or
public holidays.
(ii) Use of outdoor space for
events, rentals, parties, weddings,
performances, markets, or other
commercial gatherings is
prohibited.
(iii) Use of devices that amplify
noise, including but not limited to a
speaker of any kind, is prohibited.
A Business License can be revoked if the permit holder does not comply with the home occupation
conditions listed.
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Last updated: 04/15/2026
DO I NEED A PERMIT FOR A HOME OCCUPATION?
There is no permit required for a home occupation; however, the City Code requires that any person
doing business within Lake Oswego obtain a valid City business license. Business License applications
can be obtained from the City Finance Department or online at www.ci.oswego.or.us. As part of the
review of the Business License application, City staff will verify that the home occupation is located in a
residential district. Additionally, the resident business owner must sign a statement agreeing to abide by
the home occupation conditions listed above.
APPLICATION PROCEDURE
The resident business owner planning to conduct the home occupation applies for the Business License
using the forms provided by the Finance Department. Staff reviews the application for compliance with
zoning regulations; review typically takes a week. Business licenses must be renewed every year.
WHAT TYPES OF SIGNS MAY I HAVE?
Signage is regulated under the Sign Code (Article 47). The following signs are allowed without permit or
fee on a developed residential lot [LOC 47.06.205]:
• Sign Attached to the Building: One sign not exceeding one square foot in area.
• Free-Standing Sign: One non-illuminated sign not exceeding two square feet in area.
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Last updated: 04/15/2026