Is Redmond, Oregon Good for Airbnb Investment?

To start an Airbnb in Redmond, Oregon, begin by researching the city's short-term rental regulations, which typically require a business license and may have zoning restrictions in residential areas - contact Redmond's Community Development Department at 541-923-7721 to understand current requirements and obtain necessary permits, which usually cost between $100-300 annually. Find a suitable property by searching local real estate listings through agents familiar with investment properties, considering locations near Redmond's outdoor attractions like Smith Rock State Park, with average property prices ranging from $400,000-600,000 for single-family homes. Furnish the property with quality, durable furniture focusing on outdoor enthusiasts' needs, including hiking gear storage, comfortable bedding, and a well-equipped kitchen, budgeting approximately $15,000-25,000 for complete furnishing. Create your Airbnb listing with professional photos highlighting the property's proximity to Central Oregon attractions, competitive pricing around $120-180 per night based on local market rates, and detailed descriptions emphasizing outdoor recreation access. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and considering hiring local property management companies like Vacasa or RedAwning if you live remotely, which typically charge 20-35% of rental income but handle day-to-day operations including guest communication, cleaning coordination, and maintenance issues.

To identify profitable short-term rental properties in Redmond, Oregon, focus on locations within 10-15 minutes of Smith Rock State Park, downtown Redmond, and the Cascade Lakes Highway corridor, as these areas attract outdoor enthusiasts and tourists year-round. Target properties with 2-4 bedrooms, outdoor spaces like decks or patios, hot tubs, mountain or high desert views, and amenities that cater to adventure travelers such as gear storage and pet-friendly features. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates between $150-300 depending on size and amenities, with peak seasons during summer months (June-September) and winter ski season commanding premium rates. Research competition by analyzing existing STR listings within a 5-mile radius, identifying gaps in amenities or property types, and studying occupancy rates which typically range 60-75% annually in the Redmond market. Utilize tools like Rabbu, AllTheRooms, and local vacation rental management companies such as Vacasa or RedAwning for market insights, while consulting Deschutes County's STR regulations and permit requirements, and leverage the Redmond Chamber of Commerce and Visit Central Oregon tourism data to understand seasonal demand patterns driven by outdoor recreation, corporate retreats at nearby resorts, and proximity to Bend's overflow tourism market.

To obtain an Airbnb/STR permit in Redmond, Oregon, you must first contact the City of Redmond Planning Department at 411 SW 9th Street or call (541) 504-3000 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, a site plan showing parking areas and property boundaries, proof of liability insurance (minimum $1 million coverage), emergency contact information for a local representative within 60 minutes of the property, and a floor plan indicating maximum occupancy limits. The application fee is approximately $200-300 with an annual renewal fee of around $150-200. You must also obtain a business license from the city (additional $50-75 fee) and register with the Oregon Department of Revenue for transient lodging tax collection. The approval timeline is typically 4-6 weeks from submission of a complete application. Specific Redmond requirements include limiting occupancy to 2 guests 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, posting house rules and emergency contact information prominently, and ensuring compliance with all fire safety codes including smoke and carbon monoxide detectors in each bedroom and common area.

Short-term rentals (STRs) are legal in Redmond, Oregon, but operate under specific regulations established by the city. As of recent years, Redmond requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential zones with certain limitations on the number of guests and parking requirements. The city has implemented noise ordinances and requires operators to provide contact information for a responsible party available 24/7 to address any issues. STRs are generally prohibited in areas zoned exclusively for long-term residential use, and the city has established occupancy limits typically based on bedroom count plus additional guests. Recent legal changes around 2022-2023 included stricter enforcement mechanisms and updated permit requirements, with the city requiring annual renewals and compliance inspections. Property owners must also collect and remit transient lodging taxes, and violations can result in fines or permit revocation, reflecting Redmond's approach to balance tourism revenue with neighborhood livability concerns.

The most promising Airbnb investment areas in Redmond, Oregon include the downtown core near Centennial Park and the Deschutes River, which attracts tourists visiting the High Desert Museum and attending events at the Deschutes County Fair & Expo Center. The Dry Canyon area offers scenic views and proximity to hiking trails, appealing to outdoor enthusiasts exploring Smith Rock State Park just 20 minutes away. Neighborhoods near Eagle Crest Resort benefit from golf tourism and conference attendees, while areas close to the Redmond Airport capture business travelers and those using it as a gateway to Central Oregon destinations. The Cascade Village and Quail Run neighborhoods provide family-friendly accommodations for visitors attending youth sports tournaments at the Redmond Sports Complex, and properties near Highway 97 offer convenient access for travelers heading to Bend, Sisters, or Mount Bachelor, making them attractive for extended stays during ski season and summer recreation periods.

Airbnb properties in Redmond, Oregon are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Deschutes County's transient room tax of 7%, and the City of Redmond's transient lodging tax of 8%, totaling approximately 16.8% in combined taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for most Oregon jurisdictions. Airbnb remits the state portion to the Oregon Department of Revenue monthly, while county and city portions are remitted to their respective tax authorities on a monthly or quarterly basis depending on local requirements. Property owners who collect taxes independently must register with each jurisdiction, file returns monthly or quarterly, and remit payments by the 15th of the following month. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with local tax authorities.

To start an Airbnb in Redmond, Oregon, the total costs would be approximately $520,000-$580,000. Property purchase represents the largest expense at $450,000-$500,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and basic supplies total around $2,000-$3,000. Permits and fees in Deschutes County include business license ($100), short-term rental permit ($200-$500), and potential HOA fees if applicable. Insurance for short-term rentals runs $2,000-$4,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable total approximately $1,500-$2,500. First six months of operating costs including utilities ($800/month), cleaning services ($150 per turnover), supplies and maintenance ($300/month), property management if used (25-30% of revenue), and marketing expenses total approximately $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Redmond, Oregon show moderate profitability with average daily rates ranging from $85-150 depending on property type and season, generating annual revenues of $15,000-35,000 for typical 2-3 bedroom homes with 40-60% occupancy rates. Operating expenses typically consume 35-50% of gross revenue, including cleaning fees ($50-80 per turnover), property management (10-20%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally range from 15-35% after expenses, with properties near Smith Rock State Park and downtown Redmond commanding premium rates during peak outdoor recreation seasons (May-October). Success factors include proximity to outdoor attractions, professional photography, responsive hosting, and amenities like hot tubs or fire pits, with top-performing properties achieving 70%+ occupancy and $40,000+ annual revenue. Properties purchased around $350,000-500,000 in recent years typically achieve 8-15% annual returns on investment, though rising property values since 2020 and increased competition from new STR listings have compressed margins compared to earlier entrants in the market.

Airbnb investments in Redmond, Oregon typically generate annual ROI of 12-18% based on the area's growing tourism market driven by outdoor recreation and proximity to Bend. Cash-on-cash returns generally range from 8-14% annually, with properties near Smith Rock State Park and downtown areas performing at the higher end due to consistent demand from climbers, hikers, and business travelers. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties averaging $400,000-$600,000, with average daily rates of $120-$180 depending on property size and amenities. The market benefits from year-round demand with peak seasons during summer months and winter ski season spillover from nearby resorts, while lower competition compared to Bend creates opportunities for higher occupancy rates of 65-75% annually for well-managed properties.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance across Redmond, Oregon. Local real estate agents specializing in investment properties include Coldwell Banker Bain, RE/MAX Key Properties, and Windermere Real Estate, with agents like those at Central Oregon Premier Properties focusing specifically on vacation rental investments since 2018. National services include AirDNA for market analytics, Mashvisor for property analysis, and BiggerPockets for investor networking and deal sourcing. Redmond-specific services include High Desert Realty Group and Century 21 Cascade Realty, both offering investment property expertise in the Central Oregon market. Additional national platforms like Roofstock, Awning, and RedfinNow provide turnkey investment opportunities, while local property management companies such as Vacasa and RedAwning offer full-service Airbnb management to maximize rental income for investors purchasing in the Redmond area.