3.6.500 Short-Term Rentals.
The purpose of this section is to protect the character of the City’s residential neighborhoods by limiting and regulating short-term rental of dwelling units.
The following provisions apply to all short-term rentals (STRs) after April 15, 2015.
A. Applicability.
1. No person can occupy, use, operate or manage, nor offer or negotiate to use, lease or rent, a dwelling unit for short-term rental occupancy unless issued a short-term rental (STR) permit or exempted under this chapter.
2. A permit is required for each dwelling unit that is allowed to be a short-term rental even if located on the same legal lot. Applications submitted after November 4, 2021, located in the RL, RS, RM, RH, and MR outside of the Old Mill District boundary (noted as Type II in Figure 3.6.500.C) that include more than one dwelling unit on a property (e.g., ADUs, duplexes, triplexes, quadplexes, multi-unit, cottages, etc.) can only have one unit permitted as a short-term rental.
The standards of this section supersede the standards elsewhere in the Development Code, unless otherwise stated.
B. Application Submittal Requirements. The following information must be submitted to the City along with a form approved by the City in order to apply for a STR permit:
1. The name, address, email address and telephone number of the owner of the short-term rental for which the permit is to be issued, and the same for the authorized representative if different than the owner. An application may be submitted by an owner with the buyer as the applicant and upon written request, the approval will be granted to both the owner and the buyer.
2. A floor plan identifying the number of bedrooms proposed for use.
3. A diagram and/or photograph of the premises showing and indicating the number, location and dimensions of designated on-site and abutting on-street parking spaces.
4. Acknowledgment by signature that the owner and authorized representative have read all the regulations relating to the operation of a short-term rental under BC Chapter 7.16.
5. Certification of the accuracy of the information submitted and agreement to comply with the conditions of the permit.
6. Consent to inspection to ensure compliance with this section.
C. Review Type. Short-term rentals are permitted subject to the following permit processes, provided all other requirements of this section are met:
1. Other than as provided in subsection (C)(2) of this section, short-term rentals within Commercial Zoning Districts (CL, CG, CC, CB, CN), the Mixed Employment Zone (ME), the Mixed-
Use Urban Zone (MU), the Mixed-Use Neighborhood Zone (MN), and the Mixed-Use Riverfront Zone (MR) within the Old Mill District boundary (noted as Type I in Figure 3.6.500.C) are:
a. Processed as a Type I application.
b. Exempt from the concentration limits in subsection (E) of this section.
2. Short-term rentals within Mount Bachelor Village, Deschutes Landing subdivision, and Courtyards at Broken Top Lots 1 through 8 and Lots 21 through 32, are:
a. Exempt from obtaining a STR permit (an annual STR operating license will still be required).
b. Exempt from the concentration limits for short-term rentals in subsection (E) of this section.
3. Infrequent short-term rentals that are available for rent fewer than 30 days total per calendar year are:
a. Processed as a Type I application.
b. Exempt from the concentration limits for short-term rentals in subsection (E) of this section.
c. Limited to no more than four rental periods per calendar year.
4. Other than as provided in subsections (C)(2) and (3) of this section, in residential zones (SR2-1/2, RL, RS, RM, RM-10, RH) and in the MR Zone outside of the Old Mill District boundary (noted as Type II in Figure 3.6.500.C), STRs are permitted subject to a Type II permit process provided all requirements of this section are met.
5. Owner-occupied short-term rentals are:
a. Processed as a Type I application.
b. Exempt from the concentration limits for short-term rentals in subsection (E) of this section.
c. Limited to renting up to two rooms to overnight guests for a period fewer than 30 consecutive days. The owner must occupy the dwelling unit during the overnight rental period. Only part of the dwelling unit is used for rental purposes. The room(s) for rent cannot include rooms within a detached or attached accessory dwelling unit or accessory structure where there is no internal access to the dwelling unit.
d. Not permitted to have a kitchen or a wet bar in the room for rent.
e. Subject to all other standards within this section for short-term rentals unless otherwise specified.
6. Modification of an approval for a short-term rental shall be:
a. Processed as a Type I application and exempt from the concentration limits in subsection (E) of this section if the expansion includes an increase in the number of bedrooms approved under the initial STR approval. If the expansion does not increase the number of bedrooms, no modification of approval is required.
b. Required to obtain a revised annual operating license to reflect the modification of approval.
c. Prior existing uses as defined in subsection (M) of this section are subject to the provisions of BDC 5.2.100.
Figure 3.6.500.C. Mixed Riverfront Zone and Old Mill District
D. Short-Term Rental Development Designation Process. The purpose of this subsection is to provide a process to allow properties to be designated as short-term rental developments that, once approved, would allow dwelling units within the designated STR development to be used as short-term rentals without being subject to the concentration limits in subsection (E) of this section.
1. Designation Process. The City may approve by a Type III process designation of a property or group of adjacent properties as a short-term rental development. The Planning Commission shall be the decision-making body for a STR development designation application.
a. Submittal Requirements. An application for a short-term rental development designation must include:
i. An application, on a City form. All owners of all property within the area proposed for short-term rental development designation must sign either the application or a consent to submit the application.
ii. A map showing the area to be included in the short-term rental development, and properties within one-quarter mile. All existing and approved short-term rentals within the one-quarter-mile area shall be shown on the map.
iii. An application fee in an amount established by Council resolution.
iv. A narrative explaining how all applicable criteria are met.
b. Designation Criteria.
i. The property must be in an RS, RM or MR Zone and be an entire subdivision or subdivision phase, including a minimum of one acre.
ii. The short-term rental development must be compatible with the surrounding neighborhood.
iii. Any negative impacts of the proposed use on adjacent properties and on the public can be mitigated through application of other code standards, or other reasonable conditions of approval.
c. Review Process. Short-term rentals within STR development shall be:
i. Processed as a Type I application to ensure adequate parking is provided and occupancy limits are established.
ii. Exempt from the concentration limits for short-term rentals in subsection (E) of this section.
E. Concentration Limits. There must be at least 500 feet of separation between properties zoned RL, RS, RM, RH, and MR outside of the Old Mill District boundary (noted as Type II in Figure 3.6.500.C) measured radially from the property boundary of the subject property as determined by the City of Bend Community and Economic Development Director or designee, which have a valid Type II short-term rental application or permit or an active vacation home rental approved prior to April 15, 2015.
F. Limits on Permit Transfer. Notwithstanding BDC 4.1.1330, any short-term rental application submitted after April 15, 2015, is specific to the owner of the dwelling unit or owner-authorized buyer for which the permit is issued. This means that the short-term rental permit shall not run with the land, but shall terminate and be void with no further proceedings on sale or transfer of the real property which was rented pursuant to the short-term rental permit.
Sale or transfer means any change of ownership during the lifetime of the permit holder, whether or not there is consideration, or after the death of the permit holder, except a change in ownership where title is held in survivorship with a spouse or domestic partner, or a transfer on the owner’s death to a trust which benefits only a spouse, child(ren) or domestic partner for the lifetime of the spouse, child(ren) or domestic partner. The survivor may not sell or transfer title, except that title may transfer among the survivors. A sale or transfer also does not mean (1) the transfer of ownership from the owner(s) of the real property to or between the members of a limited liability company or partnership when the transfer involves the same owners, or (2) the transfer to a trustee, a corporation, a partnership, a limited partnership, a limited liability partnership, or other similar entity, if at least one owner is living at the time of transfer so long as that owner retains at least a 25 percent interest in the entity. The permit or nonconforming right shall terminate if the original owner ceases to own at least 25 percent interest in the entity. If the owner is a corporation, the shareholders of the corporation shall be considered the owners for purposes of this section.
G. Occupancy. The maximum occupancy for the dwelling shall be two persons per bedroom plus two additional persons. For example, a two-bedroom dwelling would have a maximum occupancy of six persons. For owner-occupied short-term rentals, the occupancy shall be two persons per rented bedroom, in addition to the long-term residents of the dwelling.
H. Parking. The following parking standard is required, in accordance with BDC Chapter 3.3:
1. If on-site parking is provided, each on-site space must be a minimum of 20 feet deep by nine feet wide. Parking spaces may be in a garage or in an otherwise approved parking space on the property, such as a driveway, provided the parking dimensions for the spaces are met. New parking spaces are required to be paved and cannot be gravel. The entirety of the parking space must be accommodated on site such that the space does not cross over the property line. Tandem parking is allowed.
I. Prohibited Use. No recreational vehicle, travel trailer, or tent or other temporary shelter shall be used in conjunction with the short-term rental.
J. Short-Term Rental Operating License. In addition to obtaining a STR permit under this section, persons operating short-term rentals must obtain a short-term rental operating license under BC Chapter 7.16.
1. For existing permits submitted prior to the effective date of this code, and permits obtained prior to September 1, 2015, and uses that now require a permit under this chapter, an operating license must be obtained by September 1, 2015.
K. Abandonment of Use.
1. Notwithstanding BDC Chapter 5.2, Nonconforming Uses and Developments, if the short-term rental ceases for a period of more than 12 months, the short-term rental permit shall be void with no further proceedings.
a. For existing permits submitted prior to the effective date of this code, the period of use shall be measured from the 12 months prior to the due date for the operating license (September 1, 2015). For permits obtained after September 1, 2014, and before September 1, 2015, and uses that now require a permit under this chapter, the 12-month duration shall be measured from one year beginning September 1, 2015. The period of use shall then be measured annually thereafter.
2. Failure to maintain the STR operating annual license as provided in that chapter shall be considered abandonment of use.
3. Temporary Hardship Exemption.
a. A temporary hardship exemption from this section may be granted by the Community and Economic Development Director or designee. The following hardships, including a submission of proof, may be acceptable to the City:
i. Medical condition of the owner, spouse, domestic partner or immediate family member that jeopardizes the ability of the owner to operate the short-term rental;
ii. Death of a spouse, domestic partner or immediate family member that jeopardizes the ability of the owner to operate the short-term rental; or
iii. Structural integrity of the short-term rental that deems it uninhabitable for tenants and is not self-imposed.
b. A time limit may be set by the Community and Economic Development Director or designee, but shall not exceed six months. A one-time extension may be approved upon request if one of the conditions of subsection (K)(3)(a) of this section still applies.
4. Long-Term Rental Exemption. A long-term rental exemption from this section maybe granted by the Community and Economic Development Director or designee if the property owner provides proof of a long-term lease of 12 months or longer in compliance with BC 7.16.070, Criteria for Approval of an Operating License and Operating License Renewal.
L. Expiration of Approval and Initiation of Use. Notwithstanding BDC 4.1.1310 and 4.1.1315, Expiration of Approval and Initiation of Use, if the short-term rental does not initiate the use by renting the short-term rental at least one night within the first 12 months of obtaining a short-term rental permit, the short-term rental permit shall be void with no further proceedings.
1. For existing permits submitted prior to the effective date of this code, and permit applications submitted after April 15, 2015, and prior to September 1, 2015, the 12-month initiation of use period shall begin September 1, 2015. For all permits submitted after that date, the initiation of use period begins upon final land use permit approval.
M. Prior Existing Use.
1. Existing Type I Permits. Any short-term rental approved and legally permitted under the former 2006 BDC 3.6.200(L) may continue as a legal nonconforming use provided:
a. That the use is not abandoned under subsection (K) of this section; and
b. That the owner obtains and renews the annual license as required by this section and BC Chapter 7.16. The owner of the dwelling has the burden of establishing a valid prior approval when applying for a short-term rental license or license renewal.
2. Legal Nonconforming Uses. Any short-term rental that began operating prior to August 2006, when the initial short-term rental regulations were adopted, and has been lawfully and continually conducted since that time, may continue as a legal nonconforming use provided:
a. That the use is not abandoned under subsection (K) of this section; and
b. The owner obtains and renews the annual license required under this chapter and BC Chapter 7.16. The owner of the dwelling has the burden of establishing a prior legal use when applying for a short-term rental license or license renewal.
3. Short-Term Room Rentals. Any short-term room rental that began operating prior to the effective date of the ordinance codified in this section (April 15, 2015), and submitted documentation to the City that only a single room in a dwelling was rented, may continue as a legal nonconforming use provided:
a. That the use is not abandoned under subsection (K) of this section; and
b. That the owner obtains and renews the annual license as required by this section and BC Chapter 7.16. The owner of the dwelling has the burden of establishing a prior legal use when applying for a short-term rental license or license renewal.
N. Inspection. Any short-term rental applications submitted after April 15, 2015, are subject to inspection prior to commencement of the use by the City for compliance with this section.
1. The Community and Economic Development Director or designee may visit and inspect the site of a short-term rental on a prescribed schedule to ensure compliance with all applicable regulations, during normal business hours, and with reasonable notice and other procedural safeguards as necessary. Code violations are processed in accordance with BDC Chapter 1.3, Enforcement. [Ord. NS-2463, 2023; Ord. NS-2462, 2023; Ord. NS-2456, 2022; Ord. NS-2445, 2022; Ord. NS-2423, 2021; Ord. NS-2314, 2018; Ord. NS-2303, 2018; Ord. NS-2297, 2017; Ord. NS-2258, 2015; Ord. NS-2251, 2015; Ord. NS-2240, 2015]