The most important design decision for a Central Oregon investment property happens before anyone draws a floor plan: confirming what the rules allow on your specific lot. Short-term rental limits inside Bend and ADU rental restrictions in rural Deschutes County can change what you should build. Once the rules are clear, design for durability, low operating cost, and flexibility, the parts you control.

Here’s what to check first, and the design choices that matter most for a rental home, ADU, or multi-unit property.

Start with the rules, not the floor plan

Two properties with identical floor plans can have very different uses depending on where they sit. Check these before you buy land or finalize a design.

Short-term rentals inside Bend. Whole-house short-term rentals in Bend’s residential zones (outside the Old Mill District) fall under what the city calls a Type II permit. Under the City of Bend’s short-term rental rules, if a property has more than one dwelling, such as a house and an ADU, or a duplex, only one unit can be permitted as a short-term rental. New Type II rentals also need at least 500 feet of separation from other Type II rentals, under Bend Development Code 3.6.500. And permits issued since April 2015 belong to the owner, not the property, so they end when the property is sold.

ADUs in rural Deschutes County. Deschutes County allows accessory dwelling units (ADUs) in rural residential areas, but the rules are specific. According to Deschutes County’s ADU guidance:

• An ADU can be rented long term.
• Once an ADU is established, neither the ADU nor the main house on that property can be used as a vacation rental.
• Rural ADUs are allowed only in rural residential exception areas, not in farm or forest zones, and not in unincorporated communities such as Tumalo, Terrebonne, or Sunriver.
• The county limits a rural ADU to 900 square feet of usable floor area (an attached garage doesn’t count toward that limit).

HOAs and CC&Rs. Many Central Oregon neighborhoods and resort communities have their own rental rules on top of city and county code. Read them before you design around a rental plan.

Rules change, and eligibility depends on the exact address. Confirm with the City of Bend Planning Division or Deschutes County Community Development before you commit.

Decide how the property will be used

How you plan to use the property changes the design, so settle it early:

• Long-term rental: prioritize storage, in-unit laundry, durable flooring, and easy-to-maintain systems.
• Short-term rental, where allowed: plan for a locked owner’s storage closet, durable finishes that clean quickly, and extra parking if the site allows.
• Hold now, use later: a layout that works as a rental today and as your own home or a family member’s home later keeps options open.
• Build to sell: a plan that shows well to a broad market usually beats a highly personal one.

If you’re not sure yet, design for the most restrictive use you might choose. It’s easier to relax a durable, flexible design than to retrofit a delicate one.

Design choices that affect operating cost

Rent is only part of the picture. Maintenance, utilities, and turnover costs add up over the years you own the property. Design decisions that tend to keep those costs manageable include:

• Durable, easy-to-replace finishes: flooring that handles wear and moisture, standard-size fixtures, and hardware you can source again in five years.
• Simple rooflines and exteriors: fewer valleys and complicated details mean fewer places for snow, ice, and water to cause problems. In Central Oregon, fire-resistant exterior materials are worth considering too.
• An efficient envelope and right-sized systems: insulation, air sealing, windows, and heating and cooling sized for the home keep utility costs lower for whoever pays them.
• Accessible mechanicals: water heaters, shutoffs, and HVAC equipment placed where a technician can reach them without moving a tenant’s belongings.
• Separate utilities for separate units: on a multi-unit property, ask early whether separate meters are practical, since it’s far easier to plan than to add later.

Layout choices that keep the property flexible

Flexible layouts serve more people over the life of the property:

• A sensible bedroom-to-bathroom ratio
• A primary suite on the main floor, which suits a wide range of households
• Private, separate entries for an ADU or second unit
• Sound separation between units (insulated shared walls and floors)
• A flexible room that works as an office, guest room, or bedroom

ADU size and placement

Our ADU plans range from 400 to 792 square feet: The Nyla at 400, The Alate and The Eleanora at 600, and The Amara, The Indah, and The Lysander at 792. All of them fall under Deschutes County’s 900-square-foot limit for rural ADUs, though size is only one of the county’s requirements. Placement near the main house, wildfire standards, septic capacity, and access all matter too. Inside Bend, ADU standards are set by the City’s development code and differ from the county’s.

Separate what you know from what you’re estimating

A builder can give you a realistic range for what it costs to build on your lot. Rent, occupancy, and future value are projections, and they depend on the market, the location, and how the property is managed. Treat them as your assumptions, not as part of the construction budget, and test them with a qualified advisor or property manager before you build. A design that works under conservative assumptions is a safer design.

Questions to ask before you design

• What does the city, county, and any HOA allow on this exact lot?
• Will this be a long-term rental, a short-term rental, a future residence, or a sale?
• If there’s more than one unit, which one would be the short-term rental, if any?
• How much of the budget goes to site work, septic, well, or utilities?
• Which finishes and systems will I want to replace least often?
• Who will maintain the property, and what do they need access to?

How Select works with investors

Select designs investment properties the same way we design custom homes on clients’ own land: we start from a proven floor plan, then adapt it through one of our three plan design tiers to make the most of usable space and fit your lot. Our purchasing team prices materials and trades with the buying scale of the Pahlisch Homes family of brands, and our construction management team provides budget tracking, a clear change-order process, and regular progress reports and photos, which matters if you’re managing the project from a distance.

What to do next

1. Look up your lot’s short-term rental eligibility with the City of Bend, or its ADU eligibility with Deschutes County.
2. Decide on the primary use and the most restrictive use you might choose later.
3. Gather site details: parcel number, septic and well status, access, and any HOA rules.

Then request a complimentary design consultation. We’ll look at your lot, the plan options that fit it, and realistic ranges for cost and timeline.

Frequently asked questions

Can I use an ADU as a short-term rental in Bend?

Possibly, but with limits. Inside Bend’s residential zones outside the Old Mill District, a property with more than one dwelling can have only one unit permitted as a whole-house short-term rental, and new permits require 500 feet of separation from other permitted rentals. Check the City of Bend’s eligibility map for your address.

Can I rent out a rural ADU in Deschutes County?

Yes, on a long-term basis. Deschutes County allows long-term rental of a rural ADU, but once an ADU is established, neither the ADU nor the main house on that property can be used as a vacation rental.

How big can a rural ADU be in Deschutes County?

Deschutes County limits a rural ADU to 900 square feet of usable floor area, and an attached garage doesn’t count toward that limit. Rural ADUs are allowed only in rural residential exception areas, not in farm or forest zones or in communities like Tumalo, Terrebonne, or Sunriver.

This article is general information, not financial, legal, or tax advice. Costs and requirements vary by lot, jurisdiction, and project; talk with the appropriate professional and confirm current rules with your local building department.

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