Understanding Bend's Short-Term Rental Rules & Taxes

Thinking about using a Bend vacation home as a short-term rental? The rules here are specific, and the details affect your purchase, pricing, and resale value. You want clarity on permits, spacing limits, taxes, and what it takes to stay compliant. This guide walks you through the essentials so you can plan with confidence and protect your investment. Let’s dive in.

What counts as a short‑term rental

A short‑term rental in Bend means a stay of fewer than 30 consecutive days per guest. The City regulates STRs through its Development Code and operating license rules. You can review the full definitions and standards in the City’s Short‑Term Rentals code, BDC 3.6.500.

Where STRs are allowed

Bend uses two main categories for STR approvals, tied to zoning and use:

• Type I: Typically owner‑occupied rentals of up to two bedrooms, infrequent whole‑house rentals, and STRs in commercial or mixed‑use zones. Type I approvals are not subject to the 500‑foot spacing rule.
• Type II: Most new whole‑house STRs in residential zones. These are subject to the 500‑foot separation requirement from other approved STRs, which can block permits in saturated areas. See the standards in BDC 3.6.500.

Some resort subdivisions are exempt from the land‑use permit step, though you still need an operating license. To check address‑level eligibility, use the City’s Short‑Term Rentals page.

Permits and licensing: two steps

Most STRs inside Bend city limits require both a land‑use decision and an annual operating license.

• Step 1: Land‑use permit. Apply for Type I or Type II based on your situation. Once your application is complete, reviews typically finish in about 30 days.
• Step 2: Operating license. Apply within 60 days of final land‑use approval. Licenses are required for all STRs. Typical processing time is 3 to 4 weeks when your application is complete.

You can find process overviews, checklists, and timelines on the City’s Short‑Term Rentals page.

Fees to plan for

Plan for both application and ongoing costs. The City lists example fees that can change, so always confirm current amounts before you apply.

• Land‑use permit examples: Type I about $1,314.53 plus a 4% surcharge; Type II about $3,657.44 plus a 4% surcharge.
• Operating license: initial application $350 plus a Transportation Fee supplement; annual renewal $255 plus the supplement. Current examples show Transportation Fee supplements of $200 per year for whole‑house rentals and $108 per year for others. See fee details on the City’s Short‑Term Rentals page.

Operating rules you must follow

Once licensed, you must meet ongoing standards set by City code and your license conditions.

• Occupancy: generally two persons per bedroom plus two additional people. Owner‑occupied rules differ. See BDC 3.6.500.
• Parking: on‑site spaces must typically be at least 20 feet deep by 9 feet wide, located fully on site, and paved if newly created. Provide your parking diagram to guests and keep it in the home. See BDC 3.6.500.
• Neighbor standards: post the City’s Good Neighbor Guidelines, notify neighbors within 250 feet, and maintain a 24/7 local contact who can respond to issues. Find requirements on the City’s Short‑Term Rentals page.
• Safety: complete the fire safety self‑inspection checklist, and provide egress info, smoke and CO detectors, and fire extinguishers as required.
• Advertising: include your STR license information in listings as required by the operating license code.

Taxes on STR income

Most STR activity in Bend is subject to local and state lodging taxes, with filing requirements even when a platform collects on your behalf.

• City room tax: Bend’s rate is 10.4% of gross rental receipts. Filings are due monthly or quarterly based on volume, and zero filings are required for periods with no rentals. Learn how to register and file on the City’s Room Tax page.
• State transient lodging tax: Oregon also imposes a state TLT, commonly listed as 1.5%. Confirm the current rate and filing rules with the Oregon DOR. See this overview of Oregon’s TLT program from a city finance resource here.
• Platforms: Airbnb and similar platforms may collect and remit some taxes in Bend, but you are still responsible for registering and filing with the City and verifying what has been remitted. See Airbnb’s guidance on tax collection in jurisdictions like Bend in its help article.

Buying or selling a Bend vacation home

Permits matter at closing. Most STR permits issued after April 15, 2015 are owner‑specific and typically do not transfer with the sale. Buyers should not assume a permit will remain valid, and sellers should disclose their permit and license status. Review the transfer and eligibility rules in BDC 3.6.500.

If the property sits outside Bend city limits, different rules apply. Deschutes County has been working on its own licensing framework, so confirm county rules for homes in places like Sunriver or Tumalo. See local coverage on the county’s work here.

Due diligence checklist for buyers

• Confirm the address is inside Bend city limits, and check the City’s eligibility map and 500‑foot spacing in your target area.
• Request copies of any STR land‑use permit, the current operating license, and the license number.
• Review room‑tax registration, filings, and payment history.
• Confirm neighbor notices, Good Neighbor posting, parking diagram, and fire safety checklist.
• If counting on an existing approval, verify whether it will survive the sale per BDC 3.6.500.

Due diligence checklist for sellers

• Provide the operating license, license number, and any land‑use permit documents.
• Share room‑tax account status and filing history, plus proof of neighbor notices and safety compliance.
• Disclose that most permits are owner‑specific and may not transfer under BDC 3.6.500.

Compliance and enforcement

Operating without required approvals or violating license conditions can lead to fines, denial of renewals, or revocation. Neighbor complaints can trigger investigations, and repeated verified issues may result in discipline. Review procedures and penalties in the City’s operating license chapter and keep your room‑tax filings current on the City’s Room Tax page.

Quick owner checklist

• Register for Bend room‑tax and file on time, even for zero activity.
• Keep your STR operating license current and renew within deadlines.
• Maintain a 24/7 local contact and post Good Neighbor Guidelines.
• Provide and follow your approved parking diagram and occupancy limits.
• Keep safety equipment and instructions up to date, and retain records.

Ready to move forward?

If you want a vacation home you can enjoy and responsibly rent, the right plan makes all the difference. From evaluating permit pathways to understanding taxes and resale considerations, you deserve clear, local guidance. For a discreet consultation and a strategy tailored to your goals, connect with Lisa Cole.

FAQs

What is Bend’s 500‑foot spacing rule for STRs?

• In most residential zones, new whole‑house STRs approved as Type II must be at least 500 feet from other approved STRs, measured from property boundaries, per BDC 3.6.500.

Do STR permits transfer when a Bend home sells?

• Most permits issued after April 15, 2015 are owner‑specific and typically do not transfer on sale, so buyers and sellers must confirm status with the City and review BDC 3.6.500.

How much is the Bend room tax and who files it?

• The City room tax is 10.4% of gross rental receipts, and hosts must register and file returns as required on the City’s Room Tax page.

What is the difference between Type I and Type II STRs?

• Type I covers owner‑occupied and infrequent whole‑house rentals and some non‑residential zones and is not subject to the spacing rule, while Type II covers most new whole‑house STRs in residential zones and is subject to the 500‑foot rule in BDC 3.6.500.

Do platforms like Airbnb handle my taxes in Bend?

• Platforms may collect and remit some taxes in Bend, but you still must register, file, and verify remittances; see the City’s Room Tax page and Airbnb’s tax collection help article.

What documents are required for an STR operating license?

• Expect neighbor notifications, a 24/7 local contact, Good Neighbor Guidelines, a fire safety checklist, and a parking diagram, as outlined on the City’s Short‑Term Rentals page.