Navigating Seattle’s Short-term Rental Laws

Seattle, renowned for its vibrant culture, stunning landscapes, and bustling tech industry, attracts thousands of visitors every year. As a result, short-term rentals (STRs) have become a popular option for homeowners and investors alike. However, Seattle’s STR market is governed by specific laws and regulations designed to balance the interests of property owners, renters, and the local community. This guide provides a comprehensive overview of Seattle’s short-term rental laws and offers tips for navigating them effectively.

Understanding Seattle’s Short-Term Rental Regulations

If you’re interested in starting a short-term rental in Seattle’s King County it is important to understand the short-term rental regulations to protect your business and investment. Here are the key points you need to know:

1. Definition of Short-Term Rentals

In Seattle, a short-term rental is defined as any property rented out for less than 30 consecutive nights. This includes entire homes, apartments, and individual rooms. An “Operator” is defined as an owner of the property, and cannot be obtained by a tenant or manager of the property.

2. Licensing Requirements

To legally operate a short-term rental in Seattle, you must obtain two types of licenses:

• Short-Term Rental Operator’s License: Required for all STR operators, this license ensures compliance with city regulations.
• Business License Tax Certificate: All businesses in Seattle, including STRs, must have this certificate.

3.  Limit on Listings

Operators are legally allowed to list:

• Primary residence: Seattle mandates that short-term rental operators can list their primary residence for short-term rentals. This means that you must live in the property for at least 6 months of the year or have a space within your primary residence you are renting (i.e., mother-in-law apartment or ADU)
• One unit in addition to their primary residence: This can be any property that is not your primary residence which is operated as a short-term rental.

4. Zoning and Safety Standards

Short-term rentals must comply with all local zoning laws and safety standards. This includes:

• Smoke and carbon monoxide detectors: Proper installation and maintenance are required.
• Emergency exits: Clear, accessible exits must be available in case of an emergency.

Understanding Seattle’s Lodging Tax

In addition to licensing and safety regulations, short-term rental operators in Seattle must also comply with lodging tax requirements. Here’s what you need to know:

1. State and Local Lodging Taxes

Short-term rentals in Seattle are subject to both state and local lodging taxes. The combined tax rate is typically around 15.7%, which includes:

• Washington State Sales Tax: 6.5%
• Seattle Sales Tax: Approximately 4.0%
• King County Sales Tax: Approximately 2.7%
• Additional Local Taxes: Approximately 2.5%

2. Collection and Remittance

Online platforms such as Airbnb and VRBO often collect and remit lodging taxes on behalf of hosts. However, if your property is professionally managed by Stay Modern Properties or another management company, VRBO will no longer collect taxes on your behalf, and the owner is responsible to remit taxes. If you manage bookings independently, you are responsible for collecting the appropriate lodging taxes from your guests and remitting them to the Washington State Department of Revenue and the City of Seattle.

3. Lodging Tax Registration

Registering for lodging tax is part of obtaining your Business License Tax Certificate. When you apply for your business license, you will also register for lodging tax collection and remittance. This process ensures you are compliant with state and local tax regulations.

Steps to Comply with Seattle’s Short-Term Rental Laws

To ensure compliance with Seattle’s short-term rental regulations, follow these steps:

Step 1: Verify Eligibility

Confirm that your property meets the listing number requirements and complies with local zoning laws.

Step 2: Obtain Necessary Licenses

First, apply for the Business License Tax Certificate through FileLocal. Once you receive your Business License Tax ID, you can then apply for the Short-Term Rental Operator’s License through the Seattle Services Portal. You will need to apply for your Business License Tax Certificate first, prior to applying for the Short-Term Rental Operator’s License. Be prepared to provide documentation proving your primary residence status and compliance with safety standards.

Step 3: Register for Lodging Tax

Ensure you are registered for lodging tax collection and remittance when obtaining your Business License Tax Certificate. Verify whether your booking platform handles this on your behalf.

Step 4: Prepare Your Property

Ensure your property meets all safety requirements, including installing smoke and carbon monoxide detectors and providing clear emergency exit routes.

Step 5: Stay Informed

Keep up-to-date with any changes in Seattle’s short-term rental regulations. The city may periodically update laws to address new challenges or community concerns.

Conclusion

Navigating Seattle’s short-term rental laws and regulations may seem daunting, but with careful planning and adherence to the rules, you can successfully operate a short-term rental in this beautiful city. By staying informed and prioritizing safety and community engagement, you can enjoy the benefits of the thriving short-term rental market in Seattle.

If you have any questions or need assistance, the City of Seattle’s Office of Short-Term Rentals is a valuable resource for guidance and support. We have helped many owners navigate the regulation and are happy to help you as well.