Compliance · 2026
Bend's permit rules, fees and the resale trap
The thing most Bend buyers learn too late is that a short-term-rental permit here is attached to a person, not a house. For any land-use application filed after April 15, 2015, the permit is issued to you as the owner, and when the property sells the land-use approval is voided — the buyer starts over with a brand-new application, and there's no guarantee the 500-foot density map still allows one on that lot. The narrow exception is the older Vacation Home Rental permits approved before that 2015 date, which run with the land and give a new owner about 60 days from closing to file for their own operating license. So a listing that advertises “STR permit in place” is telling you what the seller has, not what you'll inherit. Before you write an offer, confirm the permit's exact status and type with the City of Bend in writing.
Two permit types, and which one the buffer bites
Bend sorts rentals by how often the home rents. A Type I covers the light-touch cases — renting up to two bedrooms while you live there, renting the whole house no more than 29 nights a year or across four separate stays, or a whole home in a commercial or mixed-use zone. None of those trip the density rule. A Type II is the whole-house, nobody-lives-here rental in a residential zone, and that's the one governed by the 500-foot separation: the city won't approve a new one within 500 feet of an existing Type II, measured as a radius from your property line. Before you fall for a house, run its address through the city's online Short-Term Rental Eligibility Tool, which maps whether a new Type II is even possible there. The commercial and mixed-use angle is the quiet workaround — whole-home renting in those zones skips the buffer entirely.
The fees, the inspection, and the use-it-or-lose-it clause
Two approvals stack. The land-use permit is the big one — recent city fee schedules put a Type I in the neighborhood of $1,380 and a Type II around $3,840, each plus a long-range-planning surcharge — and on top of it every active rental holds an annual operating license, recently about $360 to start and $260 to renew, plus a transportation-fee supplement. Treat those figures as a starting point and confirm the current numbers with the city, because they're adjusted regularly. Every applicant completes a fire-safety self-inspection — smoke and carbon-monoxide alarms, an extinguisher, proper egress — at both application and renewal. And here's the trap that catches absentee owners: to renew, the home has to have been rented at least one night in the licensed year. Skip a season and you can lose the license, with only a short grace period and a late fee standing between you and a lapse.
The taxes, and who actually files them
Bend lodging carries the city's transient room tax of 10.4%, and Oregon adds a 1.5% state lodging tax, for about 11.9% all in — and because Oregon has no general sales tax, that's the whole guest-facing picture. You register with the city's tax division, collect the room tax on every stay, and remit it on the city's schedule, which for most operators means monthly. Airbnb and Vrbo hand over some of this automatically on the bookings they process, but the responsibility to register and file stays with you, and it matters most on the direct bookings your own website earns, where no platform is collecting anything. None of this is advice for your particular situation, so sit down with an accountant who files Deschutes County rental returns before you launch, and let them set your remittance calendar.