Oregon law, Bend specifics · checked October 24, 2026

Bend’s Best-Kept Legal Secrets: Insider Tips from Local Lawyers

The Oregon and City of Bend rules that catch residents, landlords and business owners off guard, each with the actual number and a link to the law: rent caps, Airbnb permits, LLC renewals, the $1 million estate tax, crash claims and custody.

By All Things Bend · Updated October 24, 2026 · Every rule linked to its statute or agency page

  • 10%max 2027 rent increase in Oregon
  • 500 ftspacing for new whole-house STRs in Bend neighborhoods
  • $1MOregon estate tax exemption
The white Deschutes County Courthouse on NW Bond Street in Bend, with young trees and a flagpole out front
Deschutes County Courthouse, Bend. Photo: Gary Halvorson, Oregon State Archives, CC BY 4.0, via Wikimedia Commons.

What’s your situation?

Pick the closest match for the one rule to know, the deadline that matters and the kind of Bend lawyer to call. Or scroll the full guide below.

Pick a situation above. This is general information about Oregon and City of Bend rules, not legal advice for your case.

Oregon and Bend rules at a glance

The numbers people most often get wrong, checked October 24, 2026. Tap a source to read the rule itself.

RuleThe numberWho it affectsSource
Max rent increase9.5% in 2026; 10% in 2027Most Oregon residential landlords; buildings under 15 years old exemptOregon DAS
Rent increase notice90 days written; none in first year; once per 12 monthsLandlordsORS 90.323
Security deposit return31 days, with written accountingLandlordsORS 90.300
Screening feesActual cost only; one fee per 60 days per applicantLandlords, property managersORS 90.295
Whole-house STR spacing (residential zones)500 feet from an existing permitted STRBend short-term rental ownersCity of Bend 2026 handout
STR city fees$1,314.53 / $3,657.44 land use; $350 license; $255 renewalBend short-term rental ownersCity of Bend 2026 handout
LLC / corporation annual reportEvery year by the anniversary dateOregon business ownersOregon Secretary of State
Minimum wage, Deschutes County$15.55/hr (July 1, 2026–June 30, 2027)EmployersOregon BOLI
Oregon estate taxEstates over $1 million; 10%–16%Estates of Oregon residents and Oregon propertyOregon Dept. of Revenue
Comparative faultRecover only if 50% or less at faultInjury claimsORS 31.600
Injury lawsuit deadline2 years (most claims)Injury claimsORS 12.110
Tort claim notice to a public agency180 daysClaims against a city, county or stateORS 30.275
Joint custodyOnly if both parents agreeDivorcing or separating parentsORS 107.169

Real estate & rental laws: essential insights for Bend residents

Understanding Oregon’s tenant protection laws

Oregon was the first state with statewide rent stabilization, and it applies in Bend whether or not your lease mentions it.

Rent increases

No increase during the first year of a tenancy. After that, one increase per 12 months, with at least 90 days’ written notice stating the amount, the new rent and the date. The cap is 7% plus inflation, never more than 10%: 9.5% for 2026 and 10% for 2027. Buildings whose first certificate of occupancy is less than 15 years old are exempt from the cap but not the notice rules.

Oregon DAS rent stabilization · ORS 90.323

Ending a tenancy

In the first year, a month-to-month tenancy can end with 30 days’ written notice. After the first year, a landlord needs a tenant cause (like nonpayment) or a qualifying landlord reason (such as selling to a buyer who will live there, or major repairs), usually with 90 days’ notice and, for landlords with five or more units, one month’s rent in relocation help.

ORS 90.427

Security deposits

Oregon doesn’t cap the amount, but the landlord must return it, or give a written accounting of what was kept and why, within 31 days after the tenant moves out. Normal wear and tear isn’t deductible.

ORS 90.300

Screening

Landlords must give applicants written screening criteria first, charge only the actual cost of screening, and charge one applicant only one screening fee within 60 days. Renters paying with a Housing Choice Voucher are protected from source-of-income discrimination.

ORS 90.295

Bend tip: the eviction track moves fast. Deschutes County runs same-day phone mediation on first-appearance days, and missing the call-in can mean losing the case. Tenants can call Legal Aid at 541-385-6944. See the deadline list in our lawyers guide.

Inside Bend city limits, almost every rental of less than 30 days needs two things from the City of Bend: a land use permit and an annual operating license.

  • Type I covers infrequent rentals, owner-occupied rentals and whole-house rentals in commercial or mixed-use zones. Land use fee: $1,314.53.
  • Type II covers whole-house rentals in residential zones and is subject to the concentration limit: 500 feet from an existing permitted STR. Land use fee: $3,657.44.
  • Operating license: $350 to apply, $255 to renew each year. You also collect Bend’s room tax and Oregon’s state lodging tax on every stay.
  • HOAs: many Bend CC&Rs restrict or ban short-term rentals regardless of what the city allows. Read them before you buy.
  • Outside city limits (Tumalo, Deschutes River Woods, Sunriver): Deschutes County’s rules apply instead, including registration and its own room tax.

City of Bend STR type designation handout, 2026 · Bend Development Code 3.6.500

Business law: critical considerations for Bend business owners

The importance of proper business structuring

LLC protection isn’t automatic

An Oregon LLC shields personal assets only if you treat it as separate: its own bank account, a written operating agreement, signed contracts in the company’s name and no mixing of personal and business money. Courts can disregard the entity when owners don’t.

The annual report

Oregon LLCs and corporations file an annual report and fee with the Secretary of State by the anniversary of formation. Miss it and the state can administratively dissolve the business. Reinstatement is possible but messy.

Oregon Secretary of State: renew a business

City of Bend business license

Most businesses operating inside Bend city limits, including home-based businesses, must register with the City of Bend: $121 to start and $94 a year to renew, per the city’s registration page.

City of Bend business registration

Taxes that surprise new owners

Oregon has no sales tax but does have the Corporate Activity Tax once Oregon commercial activity tops $1 million, plus the statewide transit tax on wages. Ask a CPA or enrolled agent before the first payroll.

Bend tax preparers

Employee classification and compliance

Oregon uses a strict, multi-part test (ORS 670.600) to decide who is an independent contractor. Someone you direct and control, who works only for you and doesn’t run an independent business, is likely an employee. Misclassification can mean back wages, unpaid payroll taxes, workers’ comp exposure and penalties.

  • Minimum wage: Deschutes County is in Oregon’s standard tier, $15.55 an hour from July 1, 2026 to June 30, 2027.
  • Paid Leave Oregon and sick time: most employers withhold and contribute to Paid Leave Oregon, and Oregon requires sick time for employees.
  • Overtime and breaks: Oregon has its own meal and rest break rules on top of federal law.

ORS 670.600 · Oregon BOLI minimum wage · Paid Leave Oregon

Estate planning: key strategies to protect your assets in Bend

Beyond wills: the role of living trusts

Will

Names who gets what and who is in charge, and nominates guardians for minor children. Property passing under a will usually goes through probate in Deschutes County Circuit Court, which is public and often takes months.

Revocable living trust

Holds your property while you’re alive and passes it without probate. It works only if it’s funded: the deed to your Bend house and your accounts must actually be retitled to the trust. Useful if you also own property in another state.

Durable power of attorney

Lets someone you choose handle money if you can’t. Without one, your family may need a court-supervised conservatorship.

Advance directive

Oregon’s form names a health care representative and records your treatment wishes. Give copies to your doctor and family.

Understanding Oregon’s estate tax

Oregon taxes estates over $1 million, at graduated rates from 10% to 16%. The threshold isn’t indexed for inflation, so with Bend home values a house, a retirement account and life insurance can cross it. A 2026 bill to raise it (SB 1511) passed the Senate but was still in a House committee when the session ended, so the $1 million figure still applies as of October 24, 2026. Planning tools include lifetime gifts, charitable giving, credit shelter trusts for married couples, and keeping life insurance outside the taxable estate.

Oregon Department of Revenue: estate transfer tax

Compare Bend estate lawyers, including flat-fee practices, in our estate planning attorneys guide and the lawyers guide.

Personal injury law insights for Bend residents

Dealing with insurance companies

  • Your own PIP pays first. Every Oregon auto policy includes personal injury protection for medical bills and some lost wages, regardless of who caused the crash.
  • Comparative fault: you can recover if you were 50% or less at fault, reduced by your share. Above 50%, you recover nothing (ORS 31.600). That’s why the other insurer may push you to admit fault.
  • Early offers often come before you know the full medical picture. Once you sign a release, the claim is usually over.
  • Contingency fees: most Bend injury lawyers offer free reviews and take a percentage only if you recover. Ask whether costs come out before or after their percentage; our fee calculator shows the difference.

What to do immediately after an accident in Bend

  1. Call 911 if anyone is hurt. Get medical care even if you feel fine; some injuries show up days later.
  2. Photograph the vehicles, the scene, road conditions (ice, snow, gravel) and injuries. Get names, insurance and witness contacts.
  3. File an Oregon DMV crash report within 72 hours if anyone was hurt or killed, or if damage to any vehicle or property is over $2,500. A police report doesn’t replace it.
  4. Don’t argue fault at the scene or give a recorded statement to the other driver’s insurer before getting advice.
  5. If a city, county or state vehicle or road is involved, the 180-day tort claim notice clock starts now.

ORS 31.600 · ORS 12.110 · ORS 30.275 · Oregon DMV accident reporting

Divorce & family law: avoiding costly mistakes in Bend

The reality of child custody in Oregon

Best interests, not gender

Oregon judges weigh the child’s emotional ties, each parent’s interest in and attitude toward the child, the value of continuing existing relationships, any abuse, and each parent’s willingness to support the child’s relationship with the other parent (ORS 107.137). There is no preference for mothers.

Joint custody needs agreement

An Oregon court can’t order joint legal custody unless both parents agree (ORS 107.169). If they don’t, one parent gets sole legal custody, and a parenting plan still sets time with both.

Moving away

If a custody or parenting order is in place, a parent planning to move more than 60 miles farther from the other parent generally must give notice first (ORS 107.159). Bend-to-Portland moves come up often.

Texts and posts are evidence

Messages, emails and social media posts can be used in custody disputes. Assume anything you write could be read by a judge.

How prenups can protect you in Oregon

Oregon follows the Uniform Premarital Agreement Act (ORS 108.700 to 108.740). A prenup must be in writing and signed by both, and it can be set aside if one person didn’t sign voluntarily or didn’t get fair and reasonable disclosure of the other’s property and debts. Prenups are common in Bend for family businesses, ranch or vacation property and second marriages. Sign well before the wedding, with each person represented by their own lawyer.

ORS 107.137 · ORS 107.169 · ORS 107.159 · ORS 108.700

Most Bend firms don’t post prices. These are published figures we found, with dates.

WhatFigureSource and date
Average lawyer hourly rate, Eastern Oregon (includes Deschutes County)$288OSB 2022 Economic Survey, 2021 rates
Family law, Eastern Oregon$280 averageOSB 2022 Economic Survey
Real estate / land use, Eastern Oregon$295 averageOSB 2022 Economic Survey
Bar referral first consultUp to 30 min for $50 maxOregon State Bar, Oct. 2026
Bend family law example$250 first consult; $360/hrNon Hostile Family Law, Oct. 24, 2026
Bend STR permits (city fees, not legal fees)$1,314.53–$3,657.44 + $350 licenseCity of Bend, 2026
Free help$0Legal Aid (income-qualified), Lawyer in the Library, Family Law Facilitator

What moves the price

  • Flat fee. Common for wills, trusts, LLC formation and uncontested divorces. Ask what’s included.
  • Hourly. Family, business disputes and litigation. Ask for a written estimate and monthly bills.
  • Contingency. Injury cases. Must be in writing in Oregon.

Questions to ask a Bend lawyer

Bring these to a first consult. The answers tell you as much about fit as about price.

About your issue

  • Which Oregon or City of Bend rule applies here, and has it changed recently?
  • What deadline am I up against?
  • Could mediation, a demand letter or small claims solve this for less?
  • What would you do first, and what will it cost?

About the lawyer

  • What’s your Oregon State Bar number? (Check it at osbar.org.)
  • How much of your practice is this kind of matter?
  • Hourly, flat fee or contingency, in writing?
  • Who else will work on it, and at what rates?

Bend legal questions people ask

How much can a landlord raise rent in Oregon?

For 2026 the cap is 9.5%, and for 2027 it is 10%, set each year by the Oregon Department of Administrative Services. No increase is allowed in the first year of a tenancy, only one increase is allowed per 12 months, and the tenant needs 90 days’ written notice. Buildings whose first certificate of occupancy is less than 15 years old are exempt from the cap.

Do I need a permit to run an Airbnb in Bend?

Yes. Inside Bend city limits, a short-term rental needs a land use permit (Type I or Type II) and an annual operating license. Whole-house rentals in residential zones (Type II) can’t be within 500 feet of an existing permitted short-term rental. City of Bend 2026 fees: $1,314.53 (Type I) or $3,657.44 (Type II) for the land use application, plus a $350 operating license and $255 yearly renewal. HOA rules can be stricter.

How long does an Oregon landlord have to return a security deposit?

31 days after the tenancy ends, with a written accounting of anything kept and why. Normal wear and tear can’t be deducted (ORS 90.300).

Does Oregon have an estate tax?

Yes. Oregon taxes estates over $1 million, at rates from 10% to 16%, and the exemption isn’t indexed for inflation. That is far lower than the federal exemption, so a Bend house plus retirement accounts can be enough to owe Oregon tax.

Can I collect damages if I was partly at fault for a crash in Oregon?

Yes, as long as you were not more than 50% at fault. Your recovery is reduced by your share of fault (ORS 31.600). Most Oregon injury lawsuits must be filed within two years, and claims against a public agency need a tort claim notice within 180 days.

Do Oregon courts award joint custody?

Only if both parents agree. Oregon courts can’t order joint legal custody over one parent’s objection (ORS 107.169), and decisions follow the child’s best interests (ORS 107.137). Parenting time is a separate question, and plans often give both parents substantial time.

Do I have to renew my Oregon LLC every year?

Yes. Oregon LLCs and corporations file an annual report and fee with the Secretary of State by the anniversary date. Missing it can lead to administrative dissolution, which can put your liability protection at risk.

What is the minimum wage in Bend?

Deschutes County is in Oregon’s standard tier: $15.55 an hour from July 1, 2026 through June 30, 2027, per the Oregon Bureau of Labor and Industries.

Where can I get free legal advice in Bend?

Legal Aid Services of Oregon (541-385-6944) helps low-income residents with civil cases, Deschutes Public Library runs free 30-minute Lawyer in the Library consults on the first and third Wednesdays, and the Oregon State Bar’s referral service sets up a 30-minute consult for no more than $50.

Sources

Every rule on this page links to the statute or agency page it came from, checked October 24, 2026. This is general information, not legal advice; talk to an Oregon lawyer about your situation.

Photos

  • Deschutes County Courthouse: Gary Halvorson, Oregon State Archives, CC BY 4.0 (source)
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