Overview: Are Short-Term Rentals Allowed in Bend, OR?

Yes, short-term rentals are allowed in Bend, Oregon, but they are subject to one of the most stringent regulatory frameworks in the state. The City of Bend has implemented a comprehensive two-permit system designed to balance neighborhood livability with private property rights and support for the tourism economy. This regulatory environment creates significant barriers to entry for new STR investors, particularly in residential neighborhoods, due to strict density limitations and zoning requirements.

Bend's STR market is characterized by:

• A capped concentration of STR properties through a 500-foot separation requirement
• Distinction between Type I (owner-occupied/infrequent use) and Type II (whole-house) permits
• Higher permit and licensing fees compared to other Oregon cities
• Mandatory land use approval followed by annual operating license renewals
• Strict proof-of-use requirements to prevent permit speculation

While challenging, successful STR operations in Bend can be highly profitable given the city's year-round tourism appeal, outdoor recreation opportunities, and limited accommodation supply. However, investors must be prepared for substantial upfront costs, regulatory compliance, and ongoing administrative requirements.

---

How to Start a Short-Term Rental Business in Bend, OR

Step 1: Pre-Application Research and Eligibility Assessment

Before purchasing or committing to an STR investment property, conduct thorough eligibility screening:

1. Zoning Verification: Confirm the property is located in an area where STRs are permitted
2. 500-Foot Rule Analysis: Use the city's official STR Eligibility Map to verify no other whole-house STR exists within 500 feet of your potential property
3. Property Type Classification: Determine if the property qualifies for Type I or Type II permitting
4. HOA/CC&R Review: Examine any homeowners association restrictions that may prohibit or limit STR operations

Step 2: Obtain Land Use Permit

All STR properties (except specific exempt developments) require a land use permit from the Planning Division:

1. Application Submission: Complete the land use permit application through the city's Online Permit Center
2. Permit Type Selection: Choose between Type I and Type II based on your business model
3. Fee Payment: Submit required application fees
4. Review Process: Allow up to 30 days for administrative review (Type II may involve additional neighborhood notification)

Step 3: Neighbor Notification

Provide 24/7 emergency contact information to all neighbors within 250 feet:

1. Notification Method: Choose between mailed letters, hand-delivered notices, or posted signage
2. Required Information: Include emergency contact details and property STR status
3. Documentation: Photograph envelopes or posted signs as proof of compliance
4. Template Usage: Utilize city-provided letter template for consistency

Step 4: Secure Operating License

Within 60 days of land use permit approval, apply for the mandatory STR Operating License:

1. Application Requirements: Submit comprehensive documentation including safety certifications
2. Fee Structure: Pay initial application fee plus transportation fee supplement
3. Processing Timeline: Allow 3-4 weeks for license processing
4. Documentation Preparation: Gather all required forms and certifications in advance

Step 5: Ongoing Compliance and Operations

Maintain active compliance through regular reporting and renewals:

1. Room Tax Collection: Register for room tax account and submit monthly or quarterly reports
2. Annual License Renewal: Submit renewal applications 60 days before expiration
3. Proof of Use: Document actual STR usage to maintain permit validity
4. Neighbor Relations: Maintain responsive communication with nearby residents

---

Required Documents, Permits, Licenses, and Guidelines

Land Use Permit Requirements

Type I STR Land Use Permit:

• Application Fee: $1,314.53 + 4% Long Range Planning Surcharge
• Eligibility: Owner-occupied (up to 2 rooms) or infrequent use (≤30 days/year, ≤4 rental periods)
• Processing Time: 30 days from complete application
• Exemptions: No 500-foot separation requirement

Type II STR Land Use Permit:

• Application Fee: $3,657.44 + 4% Long Range Planning Surcharge
• Eligibility: Whole-house rentals in residential/mixed-use zones exceeding Type I thresholds
• Processing Time: 30 days from complete application
• Requirements: Must demonstrate 500-foot separation from other whole-house STRs

Operating License Requirements

Initial Application:

• Application Fee: $350 + Transportation Fee Supplement
• Transportation Fee Supplement: $200/year (whole-house) or $108/year (all others)
• Processing Time: 3-4 weeks
• Validity: One year, renewable annually

Annual Renewal:

• Renewal Fee: $255 + Transportation Fee Supplement
• Late Fee: $55 if submitted within 30 days after expiration
• Processing Time: 3-4 weeks from completed application

Required Documentation

For All Applications:

1. Declaration of Notice to Neighbors (with photographic proof)
2. Fire Safety Self-inspection Checklist and Reply Card
3. Short Term Rental Acknowledgment form
4. Parking Diagram for tenant reference
5. Good Neighbor Guidelines posting proof
6. Change of Information/Authorization Form (if using property manager)

For License Renewals:

1. Proof of Use Documentation:
   • Room tax reports (Type II and owner-occupied)
   • Rental receipts/contracts (infrequent use)
   • Long-term lease agreement (exemption option)

Safety and Compliance Guidelines

Fire Safety Requirements:

• Functional smoke detectors in all sleeping areas
• Carbon monoxide detectors (where applicable)
• Fire extinguisher placement
• Clear emergency exit pathways

Property Standards:

• Clean, sanitary conditions meeting housing codes
• Proper waste management protocols
• Parking accommodations meeting city standards
• Adequate occupancy for safety

---

Specific Regulations for Short-Term Rentals in Bend, OR

Zoning and Density Restrictions

500-Foot Separation Rule:

• Applies to all Type II whole-house STR properties
• Measured radially from property boundary
• Includes properties wholly or partially within radius
• Prohibits approval if any existing STR falls within 500 feet

Zoning District Limitations:

• Residential Zones: Type II permits prohibited if density limit exceeded
• Mixed-Use Riverfront: Same restrictions as residential (outside Old Mill District)
• Commercial/Mixed-Use Zones: Exempt from 500-foot rule for whole-house rentals

Property Type Restrictions:

• Only one STR unit permitted per property with multiple dwellings (unless owner-occupied)
• Separate permits required for main house and accessory dwelling unit
• Duplexes/triplexes limited to single STR unit

Operational Requirements

Owner-Occupied STR Provisions:

• Maximum 2 bedrooms rentable while owner present
• No time restrictions on rental frequency
• Subject to room tax if rented >30 days annually
• Must reside in primary structure (not ADU or guest house)

Infrequent Use Limitations:

• Maximum 30 rental days per calendar year
• Maximum 4 separate rental periods
• Exempt from 500-foot separation requirements
• No room tax obligation

Commercial Zone Provisions:

• Whole-house STRs permitted without time restrictions
• Exempt from 500-foot density requirements
• Same parking and operational standards apply
• Standard application and licensing fees apply

Proof of Use Requirements

Active Use Standards:

• Property must be rented at least once every 12 months
• Room tax submission serves as primary proof of use
• Alternative documentation acceptable for infrequent permits

Long-Term Rental Exemption:

• Available for properties under 12+ month residential lease
• Maximum 3 consecutive license renewals
• Must comply with Oregon Residential Landlord and Tenant Act

Transfer and Conveyance Rules

Pre-April 15, 2015 Permits:

• Transferable with property sale
• Run with the land (not owner)
• New owner must obtain operating license within 60 days

Post-April 15, 2015 Permits:

• Non-transferable with property sale
• Terminate upon ownership transfer
• New owner must reapply entirely under current regulations

Tax Obligations

Room Tax Requirements:

• Rate: 10.4% of gross rental revenue
• Exemptions: Infrequent use permits (≤30 days/year)
• Filing Frequency: Monthly or quarterly based on revenue volume
• Platform Collection: Airbnb collects automatically for platform bookings

State Lodging Tax:

• Rate: 1.5% of gross revenue
• Administration: Oregon Department of Revenue
• Filing: Quarterly returns required

Enforcement and Penalties

License Violations:

• Fines for non-compliance
• License suspension or revocation
• Permit voiding for non-use

Tax Non-Compliance:

• Penalties and interest on unpaid taxes
• License renewal delays or denials
• Legal action for persistent non-payment

---

Contact Information for Local STR Authorities

Planning Division

Primary Contact for Land Use Permits

• Phone: 541-388-5580 ext. 3
• Email: planning@bendoregon.gov
• Address: 710 NW Wall Street, Bend, OR 97703
• Hours: Monday-Friday, 8:00 AM - 5:00 PM
• Services: Permit applications, zoning verification, eligibility questions

Licensing Division

Primary Contact for Operating Licenses

• Phone: 541-388-5580 ext. 8
• Email: licensing@bendoregon.gov
• Address: 710 NW Wall Street, Bend, OR 97703
• Hours: Monday-Friday, 8:00 AM - 5:00 PM (Permit inquiries 9:00 AM - 4:00 PM)
• Services: License applications, renewals, compliance questions

Permit Center

Centralized Application Processing

• Phone: 541-388-5580
• Website: Online Permit Center Portal
• Location: City Hall, 710 NW Wall Street, Bend, OR 97703
• Services: Land use and operating license application submission

Room Tax Administration

Tax Collection and Reporting

• Phone: 541-388-5515
• Email: Contact through city finance department
• Services: Room tax registration, filing assistance, payment processing

---

Links to Source Pages

Official City Resources

1. Bend STR Program Homepage: www.bendoregon.gov/services/business/short-term-rentals
2. STR Eligibility Map: bendoregon.maps.arcgis.com/apps/instant/sidebar/index.html?appid=a8632e3d278d40a0940b08cefc54bff8
3. Land Use Permit Application: cityview.ci.bend.or.us/Portal/Planning/Application
4. Operating License Application: cityview.ci.bend.or.us/Portal/License/Application?licenseType=B
5. License Renewal Portal: cityview.ci.bend.or.us/Portal/User

Regulatory Documents

6. Bend Development Code Chapter 3.6.500: bend.municipal.codes/BDC/3.6.500
7. Bend Code Chapter 7.16: bend.municipal.codes/BC/7.16
8. Transportation Fee Schedule: www.bendoregon.gov/home/showpublisheddocument/62962/638822980166030000
9. STR Type Designations Guide: www.bendoregon.gov/home/showpublisheddocument/54459/638481727312070000

Application Forms and Templates

10. Neighbor Notice Letter Template: www.bendoregon.gov/home/showpublisheddocument/49912/638091148729800000
11. Fire Safety Checklist: www.bendoregon.gov/home/showpublisheddocument/41769/637907030480530000
12. STR Acknowledgment Form: www.bendoregon.gov/home/showpublisheddocument/41771/638115577710270000
13. Good Neighbor Guidelines: www.bendoregon.gov/home/showpublisheddocument/48342/637434754495730000
14. Authorization Form: www.bendoregon.gov/home/showpublisheddocument/46556/638108499540600000

Data and Reference Tools

15. Approved STR Properties Map: data.bendoregon.gov/maps/114f12b55a3242e3ad6e019ed7c98a3b
16. Property Information Tool: dial.deschutes.org/Account/Login
17. Report an Issue Portal: www.bendoregon.gov/services/business/short-term-rentals/report-issues

Permit-Exempt Properties

18. The Courtyards at Broken Top: www.bendoregon.gov/home/showpublisheddocument/55350/638145726285400000
19. Deschutes Landing Subdivision: www.bendoregon.gov/home/showpublisheddocument/55346/638145718050930000
20. Mt. Bachelor Village: www.bendoregon.gov/home/showpublisheddocument/55438/638156852152500000

---

Investment Recommendation: Bend's STR market presents significant regulatory challenges that require careful due diligence and substantial upfront investment. The 500-foot separation rule effectively limits new permits in desirable neighborhoods, making existing permitted properties highly valuable. Investors should budget $5,000-$7,000 for initial permits and fees, plus ongoing annual costs of approximately $600-$800. Success requires meticulous compliance, proactive neighbor relations, and thorough understanding of the complex regulatory framework.