The Bend Planning Commission could change how the City of Bend regulates short-term housing rentals like Airbnb and VRBO. In March, Bend City Councilors directed staff to implement changes in the Bend Development Code with the intention of securing more options for affordable long-term rentals. Some Bendites expressed concern that short-term rentals could strain an already tight housing market, and that it attracts noisy tenants unsuitable for quiet neighborhoods.
Over 330 short-term rental owners in Bend participated in a survey, with many respondents indicating support for incentives to rent longer. One proposed change would repeal the proof of use requirement, which revokes short term rental operating licenses if a property is not rented as a short-term rental for over a year. The change would allow short-term rental permit holders to rent properties as long-term rentals without losing their licenses.
The City currently doesn’t allow new short-term rentals within 250 of an existing one, but another proposed amendment could double the distance to 500 feet. Neighbors within 500 feet are notified a short-term rental is setting up shop through mailed notices of public hearings.
Short-term rental licenses currently are only available after a landowner obtains a land-use permit and an STR operating license, pays $280 application fee and then annually renews their application for a $205 fee. A report on short-term rentals by the City from March shows the market for short-term rentals didn’t increase much over the past few years. Between 2018 and 2020 the number of whole-house short-term rentals rose slightly from 803 to 835 while the number of housing units rose from 42,630 to 44,152.
“A report on short-term rentals by the City from March shows the market for short-term rentals didn’t increase much over the past few years. Between 2018 and 2020 the number of whole-house short-term rentals rose slightly from 803 to 835 while the number of housing units rose from 42,630 to 44,152.”
In the survey, owners cited personal use of the property, cost and tenant relations as barriers to renting long-term. Forty-one percent of the respondents lived at the rental property, 32% live in Central Oregon, 25% live out of state and 2% live outside of the country. Only 15% owned more than one short-term rental.
The City last amended its short-term rental code in 2015 with the intention to “balance the interests of Bend’s tourist economy and neighborhood livability.” The planning commission is scheduled to meet twice to work on code changes; first with a work session at 5:30 pm on Aug. 22 and again for a public hearing, where the community can give feedback on proposed changes, on Sept. 12.
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Short-term rentals are a big component of the perceived lack of housing. There is less a lack of housing than a lack of available long term rentals. Building more houses that are unaffordable for most (why rental market is high) does nothing to solve housing issues.
Short-term rentals are the biggest incentive to keep building when there are vacant houses available but only as vacation rentals. Hood River has stopped accepting VRBO applications… Maybe Bend should take a hint.
The number of unpermitted short term rentals is far greater than the city wants to acknowledge. They have little incentive to police them — after all, Airbnb and VRBO automatically sends 10% of the booking directly to the city! These illegal STR’s should be the first thing the city cracks down on. If you suspect you have an unpermitted STR operating near you, email the city licensing@bendoregon.gov and ask if there is a permit for that address. It takes 2 minutes and can be done anonymously.
Tourism is absolutely part of why this town ‘punches above its weight’, but it needs to be balanced and regulated. As a guiding rule of good governance: Instead of passing more laws, start by enforcing the ones that exist.
I would agree with Mudslide. In addition, as a board member of Summit West Neighborhood Association, we get land use notices of STR applications and approval of permits. In many instances people from out of state are purchasing homes and then applying for permits and profiting from our community without even living here by listing an entire home on Airbnb. I would implore the city council to immediately put a stop to any new STR permitting as the 500Ft barrier is not going to help. It also makes the value of the house more expensive, which eliminates many local buyers and first time buyers thus creating more unaffordable housing. And continuing to build is not helping our city either as most new home building is equally unaffordable to most.
I would agree with Mudslide and add that as a board member of Summit West Neighborhood Association, we get to see the land use notices of STR permit requests and approvals. The city continues to issue these permits. Many of these permits are to people whom don’t even live in Oregon. They are investors and profiting from our community. I would implore the city to stop issuing any new STR’s as it is causing the issue of unaffordable housing. Airbnb is ruining cities and communities all over the nation and many cities are starting to ban Airbnb. It creates community disconnect in neighborhoods and drives up the housing prices. Also one with an STR permit can sell their home for significantly more because of that permit, thus making it more difficult for first time home buyers or just buyers in general. And building more housing in Bend is not helping, especially on the west side because it’s not affordable to most people and just creating more gentrified neighborhoods.