Understanding the Legal Aspects of Vacation Rental Management in Bend, Oregon
So, you're thinking about jumping into the vacation rental market in beautiful Bend, Oregon? That's fantastic! Bend is a popular destination year-round, and short-term rentals can be a lucrative business. However, before you start dreaming about those five-star guest reviews, it's essential to understand the legal aspects of running a short-term rental. Trust me, doing your homework now will save you from potential headaches down the line.
A Peek into the Short-Term Rental Market in Bend
Bend's short-term rental market is booming, thanks to its stunning landscapes, outdoor activities, and charming downtown. With the rise of platforms like Airbnb and VRBO, more and more travelers are opting for the comfort and convenience of home-like accommodations. That's great news for property owners like you!
However, as with any business venture, there are challenges. In Bend, one of these challenges is navigating the local laws and regulations related to short-term rentals.
The Nitty-Gritty of Legal Aspects and STR Regulations in Bend
Zoning Laws
Zoning laws dictate what you can and cannot do with your property. For example, some areas in Bend are zoned strictly for residential use, meaning short-term rentals may not be allowed. It's crucial to check the zoning laws for your property before listing it as a vacation rental.
Also, some neighborhoods and HOAs may restrict short term rentals.
The two main types of STR Permits in Bend, Oregon
Type II (Whole House Applications)
These are the permits/applications that most people are looking for. Think the person from California who wants to purchase an STR as an investment, but also to use during the summer or ski season. Consequently, as of 2023, these permits are much harder to get. The 2023 regulations put an effective stop on new short term rentals in Bend. Basically, no short term rental can be within 500ft of another short term rental. And you can check a map with an address to verify.
From the City of Bend STR Permit website:
Whole houses, including Accessory Dwelling Units (ADU), used as short term rentals (with no time frame restrictions) within the following zoning districts that have zero whole-house STR properties within 500 ft. of the property:
Residential
Mixed Use Riverfront (outside of the Old Mill District boundaries)
To determine a property's eligibility for this permit please use our Short Term Rental Eligibility Map. If you have further questions after using the map, then please contact the Planning Division at (541) 388-5580 ext. 3 or via email to planning@bendoregon.gov.
That being said, these rules only apply to within the city limits of Bend. You can sometimes find homes that are still eligible on the outskirts of town. Though these often earn less revenue than being on the Westside or closer to downtown.
If you do come across one of these eligible homes - here are the fees associated with the application:
Subject to Land Use Permit application fee of $2,126.80
Subject to Operating License application fee of $280.00
(Annual renewal fee of $205.00)
Subject to Room Tax
Note- both the State of Oregon and the City of Bend charge tax on your GROSS revenue.
Type I STR Applications in Bend
These applications are a bit more flexible and have to do with zoning, amount of use and owner occupied.
Type I (Infrequent STR)
You can rent a whole house up to 4 periods per year and up to a maximum of 30 days a year. These are exempt from the 500ft concentration limits, meaning anyone can do it.
Fees:
One time Land Use Permit application fee of $764.40
Operating License Application fee of $280 and annual renewal of $205.
Who is this permit for? This permit is for someone who primarily lives in Bend, or someone who typically rents furnished medium term, but want’s to capitalize on rents during certain peak seasons or events. It’s not uncommon to book a 7 day 4th of July weekend in Bend for upwards of $400-$1000/night depending on the number of rooms.
Exempt from Room tax.
Type I (Owner Occupied STR)
The essence of how Airbnb started. Anyone can rent up to 2 rooms in their home as a Short Term rental for an unregulated amount of days. Subject to the same fees and room tax if rented for more than 30 days a year.
This is great for someone who wants to house hack, lower their cost of living, and is open to having people in their house. Subject to the same fees.
Type I (Whole House STR in commercial/mixed-use zones)
This permit type is relatviely easy to obtain, if you own a property in a commercial area. They are exempt from the 500ft concentration limit, and these homes have no restricitons on how many days they can be rented. They do fall under the same parking rules and standards as a whole home permit.
They are also subject to a 1 time land use fee of $764 and an annual Operating License fee of $280 (renewal of $205/year).
Trasnferable vs Non-Transferable Vacation Home Permits in Bend
If you are looking to purchase a vaction rental property in Bend, the permits are split into two categories as of 2023.
The basics are- any permit granted before April 15 of 2015 is transferable. This obviously makes those properties more valuable, and there are just over 450ish of them in town. They typcially go extremely fast.
The remaining permits are NOT transferable. And, if there is another property within 500ft, which is very likely, you will not be able to renew this permit. Meaning, you would be stuck with mid term or long term renting.
You can find out more on the Bend STR regulation website.
Disclaimer:
Please visit the Bend STR website for the most up to date information. Please ask an attorney for specifics on how to obtain a Bend STR permit or license as they will be able to verify everything. This information was updated on 10/12/2023 and may not be up to date.