I have had several clients ask me about the process for obtaining a Bend vacation rental permit. In April 2015, the Bend City Council adopted new ways to permit and license short-term rentals, which has inherently affected not only homeowners but buyers interested in purchasing a home then renting it as a short-term rental.
The homeowner of a Bend short-term rental is currently required to have both a land use permit and operating license issued by the City of Bend. The operating license is not transferable. Upon sale or transfer of property, new owners have 60 days to apply for a new license.
Short Term Rental Rules
If a Bend home was an established short-term rental prior to the changes in April 2015 and the homeowner has annually renewed the operating license and used the home as a vacation rental at least once each year, then the land use permit for the property continues to run with land. Properties that fall within this category also make it a more straightforward purchase for a homebuyer. Upon taking ownership, the buyer simply has 60 days from the date of sale to apply for their own operating license. If a Bend home does not currently have the land use permit and operating license, the property must meet requirements to become a short-term rental. For example, one parking space per bedroom is required for all short-term rental applications. Another example is that at least 250 feet of separation must be between the subject property and properties already permitted as short-term rentals. With several homes in the downtown and Old Mill areas already permitted, I have run into several occurrences where homes may not qualify because of the 250 feet density buffer zone. Another caveat for a homebuyer is that even when a property appears to meet all requirements, the permitting and licensing processes can be slow, making the purchase difficult and time consuming.
I have closed and continue to represent clients in the purchase of vacation rentals. But I’m finding that more education is needed for buyers, sellers, and realtors to successfully complete these transactions – especially when the buyer is purchasing the property solely on it continuing as or becoming a vacation rental. For these homebuyers it is important to know the city requirements and the existing vacation rentals in the neighborhood.
Will Florence Real Estate Broker Berkshire Hathaway | Team Dylan Darling 404 SW Columbia St #110 | Bend, OR 97702 541.678.8137 | firstname.lastname@example.org