Bend’s Short-Term Rental Policy Change: New Revenue from Updated Licensing Requirements
Bend City Council Terminates Long-Standing Rental Agreement with Property Manager
In a quick but significant decision at the conclusion of a marathon council meeting last week, Bend City Council unanimously approved an ordinance that clarifies requirements for short-term rentals throughout the city. The vote effectively ended a nine-year informal agreement with Meredith Lodging, a decision projected to generate an additional $40,000 annually for city coffers.
The issue surfaced during routine administrative work related to the city’s annual transportation fee. As the Utilities Department prepared for a scheduled increase from $100 to $200 for short-term rental units starting July 1, staff discovered concerning inconsistencies in their records.
“While reviewing our billing data, we noticed several short-term rental properties operating without individual licenses on file,” explained Ariel Vee, Bend’s licensing program manager. “The utilities team contacted me asking why these accounts weren’t properly licensed in our system.”
Uncovering a Legacy Agreement
Vee, who previously worked as a financial fraud attorney with the Oregon Department of Justice, launched an investigation that revealed a 2015 arrangement between the city and Meredith Lodging. This informal agreement had allowed the property management company to operate under a single umbrella license covering approximately 114 different short-term rental properties throughout Bend.
When contacted about the upcoming changes, Meredith Lodging responded cooperatively. “They indicated they would handle the application process for individual properties and pass the associated costs to the property owners,” Vee noted.
The transition hasn’t been entirely seamless, however. Vee mentioned that properties with multiple owners presented unique challenges, requiring additional guidance through the licensing process.
Clarifying Permit vs. License Requirements
The ordinance approved by councilors primarily focuses on cleaning up language to establish clearer distinctions between two essential requirements for short-term rental operators in Bend:
- A land-use permit allowing specific property usage
- A short-term rental operating license ensuring accountability to the city and neighboring residents
Vee emphasized that this clarification doesn’t represent a fundamental policy shift regarding short-term rentals in the city. “We’re not changing any rules about creating new short-term rentals,” she stated. “This is simply about ensuring every property has its own proper documentation.”
The decision came at the end of an extended council meeting that lasted more than five hours, with councilors quickly reading and approving the ordinance without debate or dissent.
Financial Impact for the City
By ending the informal arrangement and requiring individual licenses for each property, Bend anticipates collecting an additional $40,000 in annual revenue moving forward. This comes as the city also implements the scheduled transportation fee increase for short-term rentals, doubling from $100 to $200 per unit.
The ordinance represents part of Bend’s ongoing efforts to properly regulate its growing short-term rental market, which has expanded significantly over the past decade as tourism continues to drive the local economy. For a city that has experienced dramatic growth and housing challenges, proper oversight of vacation rentals remains a priority for both revenue generation and neighborhood stability.
As Central Oregon’s population continues expanding and housing pressures mount, communities throughout the region are reassessing their approach to short-term rental management. Bend’s clarification of licensing requirements demonstrates the city’s commitment to proper regulatory oversight while ensuring property owners and management companies operate within clearly defined parameters.