An accessory dwelling unit can provide a separate home for relatives or a tenant. Before treating an ADU as an investment, confirm what the property allows and what the intended use requires.
Start with the property, not a standard plan
The standard Bend ADU provisions limit a first ADU to 800 square feet and a second to 500 square feet, with exceptions and additional rules for particular development types. Review the current Bend Development Code with Planning for the actual parcel. Do not apply one setback or height rule to every site.
Review zoning, existing dwellings, easements, lot coverage, access and utility service. Obtain applicable HOA and CC&R documents separately. A listing’s “ADU potential” description is not a permit approval.
Build a site-specific budget
Ask designers and licensed contractors for written estimates tied to a defined scope. Include design, permits, applicable charges, utility connections, excavation, construction, financing, insurance and a contingency. A garage conversion and a detached new build can involve very different work.
A general guide is not a current construction quote or income forecast. Use estimates and rental comparisons specific to the proposed unit.
Separate housing approval from rental eligibility
A lawful ADU does not automatically qualify for short-term rental use. Check the intended rental arrangement and jurisdiction before counting income. Review our ADU rental due-diligence guide and confirm the parcel with the relevant authority.
Evaluate the financial result conservatively
Compare current, genuinely comparable rentals and include vacancy, management, upkeep and other ownership costs. Ask the assessor about the project’s property-tax effect. No fixed percentage increase in resale value is promised; the result depends on the completed property and market.
For a purchase-focused checklist, see evaluating a Bend property for ADU potential. Bend Relo can help organize real-estate questions while designers, contractors and public agencies confirm feasibility.
Talk with David & the Bend Relo team
Buying, selling, relocating, or evaluating a specific property? Tell us what you are working through. We are happy to help.
