A Guide to Investing in Short Term Rentals in Central Oregon

Tisha Kelly • February 25, 2025

Central Oregon Vacation Rental Investing


Investing in a short-term rental property in Central Oregon can be a lucrative opportunity, but it requires careful planning and adherence to local regulations. Whether you're looking at a vacation home in Bend or a rental property in Deschutes County, here are two key components you need to consider when looking to invest in a piece of property for the purpose of being a STR.


1. Understanding Local Regulations

Before purchasing a property, it's essential to understand the short-term rental regulations in Bend and Deschutes County.


 **City of Bend**

- The City of Bend has strict regulations for short-term rentals (STRs).

- STRs must be at least **500 feet apart** in residential zones.

- Owners must obtain an **annual short-term rental operating license**.

- Off-street parking and adherence to noise and occupancy limits are required.

- Visit the [City of Bend STR Guidelines](https://www.bendoregon.gov) for the most current rules and application process.

-Understanding the neighborhood dynamic prior to purchasing is important, possibly meeting some of the neighbors and hearing their concerns.

- Local transient taxes and state taxes must be reported monthly.


 **Deschutes County**

- STRs in unincorporated Deschutes County also require a permit, although this permit is quick and free at the current time.

- Certain rural and resort communities have different zoning requirements.

- Some areas may have HOA restrictions, so always check before purchasing.

- Local transient taxes and state taxes must be reported monthly.


2. Choosing the Right Location

The success of your short-term rental depends largely on its location. Consider these top areas for STR investment:

- **Downtown Bend & Old Mill District** – High demand for walkability to shops, restaurants, and entertainment. Typically smaller lots, older homes and you would be looking for a transferrable STR license. Higher utilities, property taxes and most homes need yard care.

- **Sunriver** – A vacation destination with high occupancy rates year-round. Inside of Sunriver proper, the HOA's can be quite high, also be sure to check SHARC payments. Outside of Sunriver HOA's tend to be lower, much larger lots and you get more your for money. Utilities are much lower in the Sunriver area than Bend, insurance can be higher. Snow removal costs can be high. This area is great for pet friendly homes.

- **Mt. Bachelor Village** – Ideal for winter sports and summer outdoor enthusiasts. This community is ideal for the investor that wants an HOA that does it all for them. Located on the Deschutes River Trail and a super easy drive to Mt. Bachelor and the Cascade Lakes it makes it and a great spot for adventurers. The HOA costs are higher.

- **Central and East Bend** – A charming, small-town feel with great rental potential. Typically larger lots with homes that have character and large trees. Great for pet friendly homes.

- **Eagle Crest** - A fantastic golf community with family at the forefront, ideal for summer occupancy. HOA's are the game in Eagle Crest, we highly suggest speaking with the ownership office prior to purchasing. With miles of walking trails, pools and athletic facilities there is much to do for you and guests. This area is also a great for pet friendly homes.


Ready to Invest?

If you're considering purchasing a short-term rental in Bend or Deschutes County, make sure to research properties thoroughly, understand local laws, and create a plan for management and guest services.


Need help managing your rental? Contact us here at Central Oregon Vacation Homes. https://www.centraloregonvacationhomes.com to learn how we can help you maximize your investment!



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By Tisha Kelly June 21, 2025
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