What to Know About Short-Term Rentals in Central Oregon

Central Oregon has become a popular destination for tourists seeking outdoor adventure, stunning landscapes, and vibrant local culture. With an influx of visitors year-round, short-term rental properties have become a lucrative investment for homeowners in cities like Bend, Sunriver, and Sisters. However, owning a short-term rental comes with its own set of challenges and regulations that potential investors should be aware of before diving into the market.

In this blog post, we’ll explore the key things you need to know about short-term rentals in Central Oregon, from the benefits of owning one to understanding local regulations and maximizing your property’s rental potential.

1. High Demand for Vacation Rentals

Central Oregon’s tourism industry is booming, attracting visitors from all over the world to experience activities like skiing at Mt. Bachelor, hiking in Smith Rock State Park, and kayaking on the Deschutes River. This makes the region an ideal place to own a short-term rental, as there is a constant demand for vacation properties year-round.

Whether you’re interested in renting out your property in the winter to snow sport enthusiasts or in the summer to outdoor adventurers, Central Oregon’s diverse range of activities ensures a steady stream of potential renters. Additionally, the rise in popularity of platforms like Airbnb and VRBO has made it easier than ever for homeowners to market their properties to tourists.

2. Navigating Local Regulations

One of the most important things to consider when investing in a short-term rental in Central Oregon is understanding the local regulations. Many cities in the region, particularly Bend, have implemented strict rules to manage the growth of short-term rentals and protect residential neighborhoods.

In Bend, for example, short-term rental permits are required, and there are limits on the number of rental properties allowed within certain areas to prevent oversaturation. Homeowners must also adhere to specific regulations regarding occupancy limits, noise restrictions, and parking requirements. Failure to comply with these rules can result in hefty fines and the potential loss of your short-term rental permit.

Key Regulations to Keep in Mind:

  • Obtain a short-term rental permit from the city or county.
  • Follow occupancy and parking restrictions.
  • Pay required lodging taxes to the city, county, and state.
  • Ensure the property complies with safety standards such as smoke detectors, carbon monoxide detectors, and fire extinguishers.

It’s essential to work with a knowledgeable real estate agent and property manager who can help you navigate these regulations and ensure your short-term rental remains compliant.

3. The Benefits of Hiring a Property Manager

While owning a short-term rental can be highly profitable, managing it can be time-consuming. From handling bookings and guest communication to cleaning and maintenance, there’s a lot of work that goes into successfully running a vacation rental property.

Hiring a professional property manager can relieve you of these responsibilities and help maximize your rental’s income potential. A good property manager will handle everything from marketing the property on multiple platforms to managing guest check-ins, cleaning, and addressing any issues that arise during a stay. They can also ensure that your property remains compliant with local regulations and help with necessary permits and tax filings.

Although property management services come with a fee (usually a percentage of your rental income), many owners find that the convenience and increased booking rates make it well worth the investment.

4. Maximizing Your Rental’s Appeal

With Central Oregon being such a popular vacation destination, standing out in the crowded short-term rental market is crucial. One of the best ways to do this is by creating a rental that offers a unique experience or exceptional amenities that set it apart from other listings.

Consider enhancing your property’s appeal by adding features like:

  • Outdoor Spaces: Decks, hot tubs, and fire pits are popular with vacationers looking to relax and enjoy the Central Oregon scenery.
  • Pet-Friendly Accommodations: Many travelers prefer to bring their pets along, and offering a pet-friendly rental can expand your pool of potential guests.
  • Proximity to Attractions: Highlight your property’s proximity to local attractions such as ski resorts, hiking trails, or downtown shopping areas.
  • Luxury Amenities: Invest in high-quality furnishings, modern appliances, and thoughtful touches like smart home technology or complimentary bikes for guests to use.

Additionally, professional photography can make a huge difference in attracting guests. Ensure that your rental’s online listing showcases its best features with high-quality photos that emphasize its unique charm.

5. Financial Considerations and Tax Implications

Owning a short-term rental in Central Oregon can be a lucrative investment, but it’s important to understand the financial and tax implications involved. As a short-term rental owner, you’ll be responsible for collecting and remitting lodging taxes to the city, county, and state. These taxes are typically passed on to your guests, but it’s important to ensure you’re compliant with local tax laws.

Additionally, you may be eligible for certain tax deductions related to your rental property, including mortgage interest, property management fees, maintenance costs, and depreciation. Be sure to work with a tax professional who can help you navigate these deductions and ensure you’re maximizing your financial benefits.

6. Balancing Rental Income with Personal Use

One of the great benefits of owning a short-term rental in Central Oregon is the ability to use the property for your own vacations when it’s not rented out. However, it’s important to strike a balance between personal use and rental income. The more often you make the property available to guests, the higher your potential earnings.

If you plan to use the property frequently, keep in mind that your ability to claim certain tax deductions may be impacted. The IRS has specific rules regarding personal use versus rental use, so it’s important to understand how your time at the property could affect your tax situation.

Is a Short-Term Rental in Central Oregon Right for You?

Investing in a short-term rental property in Central Oregon can be an excellent way to generate income while enjoying all the region has to offer. However, it’s essential to do your homework, understand local regulations, and be prepared for the responsibilities of managing a vacation rental.

If you’re considering purchasing a short-term rental in Central Oregon, Strategic Realty can help. Our team of experienced real estate professionals is well-versed in the local market and regulations and can assist you in finding the perfect property to meet your investment goals.


Central Oregon’s natural beauty and year-round recreation make it an ideal location for short-term rentals. Contact Strategic Realty today to start exploring your investment options and make the most of this lucrative market!