Thinking about buying a Bend home you can rent on Airbnb or VRBO? Short-term rentals can be a smart way to offset costs, but Bend and Deschutes County have rules that directly impact what you can do and when you can do it. You want a clear path to legal operation, realistic cash-flow assumptions, and no surprises after you close. This guide breaks down what to verify, how rules affect underwriting, and the steps to take at each stage so you can buy with confidence. Let’s dive in.
Understand Bend STR basics
Short-term rental rules are local, detailed, and change over time. In many cities like Bend, you should expect a permit or registration, safety and local-contact requirements, and rules that distinguish owner-occupied rentals from non-owner-occupied ones. You may also see caps or spacing limits that restrict where new STRs can operate. Your first job is to verify if a specific property can be permitted and what it costs to maintain compliance.
Permit status and transferability
Before you write an offer, ask the seller for any STR permit or registration number and the related documents. Confirm with the city whether a permit transfers to a new owner or if you need to reapply. A new application can affect your timeline and whether you can legally rent right after closing. Build your plan around the actual process and renewal cadence you confirm with the city.
Hosted vs unhosted rentals
Many places treat owner-occupied or hosted STRs more flexibly than non-owner-occupied units. Hosted setups can have fewer restrictions, but they may earn less if you are living onsite or limiting nights. Unhosted units often face caps, spacing rules, or tighter operating standards. Clarify which category applies to your property and model revenue accordingly.
Caps, spacing, and zoning
Bend may regulate the number and distribution of STRs to manage neighborhood impacts. Common tools include citywide caps, minimum distance between non-owner STRs, and zone-based limits. These rules can make permits scarce in certain areas and add a premium to properties with existing approvals in good standing. If you are considering a residential neighborhood, check both zoning and any distance or density controls that could affect permitability.
ADUs and separate units
Accessory dwelling units can be subject to different rules than a primary home. Do not assume an ADU, guest house, or detached studio can be used as a short-term rental just because the main house can. Ask the city how ADUs and multi-unit lots are treated. Confirm whether separate kitchens or entrances change the rules for your address.
HOA and private restrictions
Even if a city allows STRs, your HOA or recorded covenants can prohibit or limit them. Obtain the full CC&Rs and recent amendments, then read for minimum lease lengths, STR bans, caps, registration needs, and fines. Ask how the HOA enforces rules and whether enforcement is proactive or complaint-driven. Private restrictions can stop an STR faster than any city rule, so prioritize this review.
Taxes and lodging compliance
Short-term rental operators usually must collect and remit transient lodging or occupancy taxes to the city, county, and state. Platforms may collect some taxes for you, but they may not handle every jurisdiction or fee. Registration, filing frequency, and rates vary, so verify what applies in Bend, Deschutes County, and Oregon. Build tax collection and remittance into your pricing and monthly admin routine.
Enforcement, penalties, and grandfathering
Compliance is often monitored through complaint systems, listing audits, and permit number requirements on ads. Noncompliance can lead to fines, takedowns, and permit suspension or revocation. When rules change, some existing STRs are grandfathered, but that protection can be narrow or non-transferable. If the seller claims grandfathered status, confirm it is documented, current, and transferable before you rely on it.
How to underwrite STR cash flow in Bend
Your revenue formula starts simple: ADR x occupancy x available nights. Local rules change every part of that equation. If a new owner must apply for a permit, model a probability that you will receive approval and discount expected revenue accordingly. If caps or spacing create scarcity, consider how that could influence ADR or resale value, but keep assumptions conservative.
Build a conservative pro forma
- Model three scenarios: optimistic, base case, and downside if a permit is delayed or denied.
- Include recurring compliance costs: permit and renewal fees, business licensing, higher insurance, local contact or management, and enhanced utilities.
- Add cleaning per turnover, routine repairs, and platform fees.
- Reflect seasonality: peak summer and winter demand vs shoulder seasons.
- If hosted rules apply, limit available nights and adjust ADR to match the operating reality.
Due diligence checklist
Use this step-by-step plan to avoid surprises.
Before you make an offer
- Confirm permit status, standing, and whether it transfers to you.
- Request 24 months of verified booking data with platform payout statements.
- Obtain HOA CC&Rs, rules, amendments, and recent meeting minutes.
- Contact the city to confirm application steps, inspections, and expected timelines.
- Gather revenue benchmarks from STR data providers and note local seasonality.
- Check for any open code enforcement cases or neighbor complaints.
- Verify lodging tax obligations and whether the seller has been remitting.
During escrow
- Add an STR permit verification contingency if STR use is essential to your purchase.
- Order a title review for recorded restrictions impacting rentals.
- Get insurance quotes that include STR endorsements or specific coverage.
- If financing, confirm your lender allows STR use or select a loan product that fits.
After closing
- Apply for or transfer permits immediately and calendar renewals.
- Register for all required lodging taxes and any business license.
- Publish a 24-7 local contact, adopt guest rules that prevent nuisance, and track complaints.
Common mistakes to avoid
- Assuming you can “just list it” without confirming permit rules or transferability.
- Overlooking HOA or private covenants that prohibit STRs.
- Relying on platform tax collection for all jurisdictions without checking local requirements.
- Underestimating insurance, management, and cleaning costs.
- Using peak-season ADRs for year-round projections without a seasonality plan.
How a local advisor helps you move faster
You will save time and risk by verifying permitability, HOA rules, and lodging tax obligations before you offer. A local buyer’s agent can coordinate seller document requests, connect you with city contacts, and pressure-test revenue assumptions against real operating costs. You get a clearer path to legal operation and an offer strategy that matches the property’s true STR potential. When you are ready, connect with Sierra Holmly to map your plan and move forward confidently.
FAQs
Can I run a short-term rental at a specific Bend address?
- Verify permitability with the city for that exact address, check zoning, and confirm that HOA or recorded covenants do not prohibit STRs before you rely on projected income.
Do STR permits transfer to a new owner in Bend?
- Sometimes permits transfer and sometimes they do not; ask the seller for the permit number and confirm transfer rules and timelines directly with the city before you write your offer.
How do HOA rules interact with city approval in Bend?
- HOA restrictions are private contracts and can prohibit or limit STRs even if the city would allow them, so obtain CC&Rs and enforcement history to avoid conflicts.
What lodging taxes apply to Bend short-term rentals?
- Expect to collect and remit state, county, and city lodging taxes as applicable; platforms may collect some taxes but not all, so verify your full obligations and filing process.
What happens if my STR permit is delayed or denied after closing?
- Use a downside scenario in your pro forma and consider a permit contingency in your offer; if a permit is denied, you may need to convert to long-term rental or adjust your plan.
What documents should I request from a Bend seller with an active STR?
- Request the current permit documents, 24 months of booking and payout statements, lodging tax filings, neighbor complaint history, and any code enforcement correspondence.
How should I account for Bend’s seasonality in my projections?
- Build separate peak, shoulder, and off-season assumptions for ADR, occupancy, and turnover costs, then weight them for a realistic annual revenue model.
