Is Bend, Oregon Good for Airbnb Investment?

To start an Airbnb in Bend, Oregon, begin by researching the city's short term rental regulations, which require a Transient Lodging License from the City of Bend and compliance with zoning restrictions that limit short term rentals in certain residential areas.

Launch checklist

• Obtain necessary permits including the transient lodging license ($200 to 400 annually), register for Oregon state lodging tax collection, and ensure your property meets fire safety requirements with smoke detectors and carbon monoxide alarms.
• Find a suitable property in zones that allow short term rentals, typically in commercial or mixed use areas, or in residential zones where grandfathered permits exist, with purchase prices ranging from $400,000 to 800,000 for suitable properties as of 2023.
• Furnish the space with outdoor recreation gear storage, high quality bedding, full kitchen amenities, and mountain themed decor that appeals to Bend's outdoor tourism market, budgeting $15,000 to 30,000 for complete furnishing.
• List your property on Airbnb and VRBO with professional photography highlighting proximity to Mount Bachelor, Cascade Lakes, and downtown Bend, setting competitive rates of $150 to 400 per night depending on season and property size.
• Manage the rental by implementing a 24/7 guest communication system, partnering with local cleaning services ($80 to 150 per turnover), coordinating with property management companies like Vacasa or RedAwning if desired.

To identify profitable short term rental properties in Bend, Oregon, focus on locations within 10 to 15 minutes of downtown Bend or near outdoor recreation access points like the Deschutes River, Cascade Lakes Highway, or Mount Bachelor ski area.

What to prioritize

• Target properties with 3 to 4 bedrooms, outdoor amenities like hot tubs or fire pits, mountain or river views, and modern furnishings that appeal to outdoor enthusiasts and families, as Bend's STR market thrives on vacation rentals in preference to business travel.
• Conduct pricing analysis using AirDNA or Mashvisor to identify properties where potential STR revenue exceeds long term rental income by 40 to 60%, typically requiring purchase prices under $800,000 to 1,200,000 to maintain profitable cash flow after expenses.
• Research competition by analyzing similar properties within a 2 mile radius using Airbnb and VRBO data, focusing on occupancy rates above 65% annually and average daily rates.
• Utilize tools like Rabbu, AirDNA, and local MLS data through Bend area realtors familiar with STR regulations, while monitoring Deschutes County's STR permit requirements and caps.

To obtain an Airbnb/STR permit in Bend, Oregon, you must apply through the City of Bend's Community Development Department by submitting an application online via their permit portal or in person at City Hall located at 710 NW Wall Street.

Documents and approvals

• Required documents include a completed short term rental application, proof of property ownership or authorization letter from owner, site plan showing parking spaces and emergency exits, floor plan indicating maximum occupancy, proof of liability insurance (minimum $1 million).
• The application fee is approximately $400 to 500 with an annual renewal fee of around $200 to 300.
• The timeline typically takes 4 to 6 weeks for processing once all required documents are submitted.
• Bend specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests (maximum 10 people), providing adequate off street parking (minimum 1 space per bedroom), maintaining quiet hours from 10 PM to 7 AM.

Short term rentals (STRs) are legal in Bend, Oregon, but operate under strict regulations implemented by the city. As of 2023, Bend requires STR operators to obtain a business license and conditional use permit, with properties limited to a maximum of 30 rental days per year for Type 1 STRs (owner occupied) and unlimited days for Type 2 STRs (non owner occupied) which face more stringent requirements.

Core operating requirements

• The city prohibits STRs in certain residential zones and requires operators to maintain liability insurance, provide 24/7 contact information, and comply with occupancy limits typically based on two people per bedroom plus two additional guests.
• Recent changes include increased enforcement measures and potential caps on the total number of STR permits issued, as Bend has been grappling with housing affordability concerns and neighborhood impacts from vacation rentals.

The most attractive Airbnb investment areas in Bend, Oregon include the Old Mill District, which offers proximity to shopping, dining, and the Deschutes River with strong appeal to tourists and business travelers visiting the area's corporate offices and events; the Northwest Crossing neighborhood.

In Bend, Oregon, Airbnb hosts must collect and remit several lodging taxes including the Oregon state transient lodging tax of 1.8%, Deschutes County's transient room tax of 7%, and the City of Bend's transient lodging tax of 9.7%, totaling approximately 18.5% in combined lodging taxes as of 2023. These taxes are collected from guests at the time of booking and must be remitted monthly to the respective jurisdictions, with the state tax due by the 15th of the following month, county tax due by the last day of the following month, and city tax due by the 15th of the following month.

Taxes and filing responsibilities

• Airbnb may collect and remit these taxes automatically for hosts through their platform in some cases, but hosts remain ultimately responsible for compliance and should verify collection and remittance.
• Registration is required with each taxing authority before beginning operations, and stays of 30 days or longer are typically exempt from these transient lodging taxes, though hosts should verify current exemption criteria as regulations can change.

Starting an Airbnb in Bend, Oregon requires approximately $850,000 to $950,000 in total initial investment.

Cost breakdown

• Property purchase represents the largest expense at $750,000 to $800,000 based on median home prices in Bend as of 2023 to 2024.
• Furnishing costs typically range $25,000 to $35,000 for a complete setup including furniture, appliances, linens, and décor to create an attractive rental space.
• Initial setup costs including professional photography, listing creation, and marketing materials add approximately $2,000 to $3,000.
• Permits and fees vary but generally cost $500 to $1,500 depending on city requirements and short term rental licensing.
• Insurance specifically for short term rentals runs $2,000 to $4,000 annually, with the first year paid upfront.
• Utility deposits and initial connections for electricity, water, gas, internet, and cable total approximately $1,000 to $2,000.
• First six months of operating costs including utilities ($300 to $500 monthly), cleaning services ($100 to $150 per turnover), maintenance reserves ($200 to $400 monthly), property management if outsourced (20 to 30% of revenue).

Airbnb properties in Bend, Oregon demonstrate strong profitability potential with average daily rates ranging from $150 to 300 depending on property type and season, generating annual revenues of $35,000 to 75,000 for well positioned properties.

Profitability indicators

• A typical 3 bedroom vacation rental near downtown Bend can achieve 65 to 75% occupancy rates, with peak winter ski season (December February) and summer outdoor recreation months (June September) commanding premium rates of $250 to 400 per night.
• Operating expenses typically include 25 to 30% for cleaning and maintenance, 10 to 15% for property management fees, 8 to 12% for utilities and insurance, and 3% Airbnb service fees, resulting in net profit margins of 35 to 45% for owner operated properties.
• Success factors include proximity to Mount Bachelor ski resort, downtown Bend attractions, and outdoor recreation access, with properties featuring hot tubs, mountain views, and modern amenities achieving 15 to 25% higher rates.
• Case studies from 2022 to 2023 show that investors purchasing $600,000 to 800,000 properties in desirable neighborhoods like Northwest Crossing or near the Deschutes River achieved 8 to 12% annual returns after mortgage payments.

Airbnb investments in Bend, Oregon typically generate annual ROI of 12 to 18% due to the city's strong tourism market driven by outdoor recreation activities like skiing at Mount Bachelor and summer hiking. Cash on cash returns generally range from 8 to 14% annually, with properties near downtown or recreational areas performing at the higher end of this range.

Return planning figures

• Most investors achieve profitability within 18 to 24 months, with peak earning potential during ski season (December March) and summer months (June September) when nightly rates can reach $200 to 400 for well positioned properties.
• The market benefits from Bend's growing population, limited hotel inventory, and year round tourist appeal, though investors should factor in seasonal occupancy fluctuations of 60 to 85% and higher property acquisition costs averaging $600,000 to 900,000 for suitable investment properties as of 2023 to 2024.

STRSearch leads the market in Airbnb investment property analysis nationwide including Bend, Oregon, providing comprehensive data on rental performance and market trends.

Companies and resources

• In Bend specifically, Windermere Real Estate and Coldwell Banker Bain have agents experienced in short term rental investments, while Century 21 Cascade Realty offers local market expertise for vacation rental properties.
• Vacasa, founded in 2009, provides property management services and investment guidance for Bend Airbnb properties.
• National services include BiggerPockets for investor networking, Mashvisor for rental property analytics since 2014, and AirDNA for short term rental market data analysis.
• Local Bend specialists include High Desert Realty Group and Stellar Realty Northwest, both focusing on investment properties in Central Oregon's vacation rental market.
• Additional services include RedAwning for property management consultation, AvantStay for luxury short term rental investments.