So, if you plan to start short-term rentals in Seattle, learn the rules first. You must get a business license tax certificate, meet basic housing maintenance requirements, and obtain an operator’s license. Seattle Airbnb regulations also require hosts to operate up to two units, with one being their primary residence.
Read about these and other Seattle short-term rental laws in our guide. We also share step-by-step instructions on starting short-term rentals in Seattle to make things easier.
Is Airbnb legal in Seattle?
Seattle, Washington, is just another US city facing stricter short-term rental regulations. Governments limit rentals through Airbnb, Vrbo, and other STR platforms to protect local residents and regulate the housing market.
Yes, short-term rentals are legal in Seattle despite some limitations. Seattle Airbnb rules just make them more coordinated and transparent. Property owners and managers must get a license, follow operational restrictions, and have decent insurance with sufficient coverage. Other than that, Seattle is not unique in terms of STR laws. Many other cities globally have the same or even stricter restrictions, and hosts still can make money from Airbnb rentals and have high occupancy.
Overview of Seattle short-term rental laws
In Seattle, a short-term rental property is a residential property you rent for up to 30 consecutive days. If you have one, you will need to mind several ordinances and licensing requirements, including:
- Seattle business license tax certificate. Any business operating in Seattle must get it and renew annually online at this web portal for $55. It takes 48 hours to 2 weeks to get it.
- Rental Registration and Inspection Ordinance (RRIO). This ordinance covers secondary homes and vacation homes. It ensures the property is safe and meets basic housing maintenance requirements. So, if you rent a secondary or vacation home, you must register your property for the RRIO program at the website or offline using a mail-in registration form. Registration must be renewed every 2 years.
- Short-term rental operator’s license. Hosts and operators must get a specialized license for their Airbnb units. You must already have a Seattle business license tax certificate number and RRIO registration (if applicable), so apply for a license as your last step. The license costs 75% and is available at Seattle Services Portal. Add the license number and expiration date to your Airbnb listing and renew the STR license annually.
These are the key Seattle Airbnb regulations and permits to follow. You must also meet safety requirements, get insurance, and follow tax rules. We will talk more about these aspects below.
Washington state short-term rental laws
If you have a short-term rental property in Seattle, your primary focus is local laws. Still, you must follow a few Washington state short-term rental laws, including getting a Unified Business Identifier from the State Department of Revenue. There is also an additional 6.5% Washington state sales tax that covers short-term rentals.
Who must follow Seattle short-term rental laws?
Want to be 100% sure Seattle short-term rental laws apply to you? If you rent a unit or a room for up to 30 consecutive days in Seattle, you must comply with the local STR rules. Hotels and bed & breakfasts follow another set of rules and operate using a separate lodging license.
Seattle short-term rental license
Let’s talk about licensing requirements in more detail. In Seattle, hosts must get two key Seattle short-term rental licenses: a Seattle business license tax certificate and a short-term rental operator’s license. Seattle business license tax certificate is a universal license that every company running a business in Seattle must have. You must get it before any other permits.
A short-term rental operator’s license is a specialized permit for vacation rentals. Seattle is one of many US cities where you need such a license. The city requires you to post it on every listing advertising a short-term rental unit, including listings on STR platforms (e.g., Airbnb, VRBO, Expedia, etc.).
Once you have it, you must add the number to the listing in the following format:
STR-OPLI-##-######.
Platforms may remove your listing if you don’t use the proper format. The short-term rental license in Seattle is valid for 12 months, and you will get an automated renewal reminder to your email.
Note. If you run a bed and breakfast and use an STR platform to find guests, you must get a bed and breakfast operator’s license. Use the City of Seattle portal to apply.
Reporting requirements
Hosts are not required to submit specialized reports, but STR platforms such as Airbnb, Vrbo, etc., have some obligations. The city requires them to submit monthly and quarterly reports and pay fees. In particular, they must report all licensed operators, including the listed unit and URL, monthly and the number of STR/B&B operators and nights booked quarterly. How does it affect hosts? If you break the licensing or rental rule, the city will sooner or later know about it.
Tax rules for short-term rentals in Seattle
Hosts renting short-term in Seattle must pay the city’s 10.1% lodging tax and the state’s 6.5% retail sales tax. Register with the Seattle Department of Finance and Administrative Services to inform them that you run rentals and report revenue. You must also have a Seattle business license tax certificate, of course.
Note. If you rent through Airbnb, the platform collects and remits state and local taxes on your behalf. The state and local taxes are covered by guests.
Zoning and property type restrictions
Seattle doesn’t have strict zoning when it comes to short-term rentals. You can launch an Airbnb pretty much everywhere, including single-family homes, apartments, and condominiums. Rentals of units like tents, garages, or boats are prohibited according to Seattle Airbnb rules.
Regarding the property type, rental rules vary:
- If you rent a primary residence (you live there for at least 6 months per year), you can rent a room or an entire unit when you are away. No RRIO is required.
- If you rent a secondary unit, you must own the property and get RRIO. Only one secondary unit is allowed for rentals in addition to your primary residence.
Safety standards in Seattle
Follow common sense regarding safety rules. You must install smoke and carbon dioxide detectors, keep the property in good condition, and remove hazards to prevent injuries.
When renting a secondary unit, Rental Registration and Inspection Ordinance with additional requirements applies. Here are some of the specifications listed in the RRIO checklist.
- The roof, foundation, chimney, stairs, and decks must be free of decay, maintained in a safe and sanitary condition, and capable of withstanding normal loads.
- The building and windows must be weather-proof and damp-free.
- Interior elements, including floors, walls, stairs, and other structural components, must be free of decay, maintained in a safe and sanitary condition, and capable of withstanding normal loads. Lighting and ventilation must be adequate and work in each habitable room of the unit.
- Every sleeping room below the 4th floor built or permitted between August 10, 1972, must have an emergency escape window or door opening directly from the room. After November 10, 2004, for a building with a sprinkler system and a valid Certificate of Occupancy, you are not required to have escapement windows.
- All rooms where people live or sleep must have minimum square footage and no dirt floors.
- Every rental unit must have a permanently installed heating system that can maintain the required temperature in all habitable rooms and bathrooms.
STR insurance requirements
To legally run short-term rentals in Washington state, property managers and owners must be able to provide liability insurance coverage of at least $1 million. Or, they must make all short-term rental transactions through a platform that ensures this level of coverage.
To comply with Seattle Airbnb rules, you must ensure your insurance is sufficient. It may be a particular problem for hosts who rent property directly and take care of insurance on their own.
We offer damage protection by Truvi with up to $5,000,000 coverage in damages to help you become regulatory compliant. Besides sufficient coverage, Truvi screens your guests to detect suspicious accounts and prevent them from entering your property. It reduces the risk of accidental or intentional damage and helps keep the property safe. You can choose from three damage protection plans based on your needs: Basic, Plus, and Pro. Book a demo to learn more about Truvi.
Penalties and fines
If a host operates an STR without a short-term rental regulatory license or offers a B&B unit without a bed and breakfast operator license, the fine for the first violation is $500. Second and subsequent violations result in $1,000 penalties according to Seattle short-term rental laws.
Those who run a business in Seattle without a business license tax certificate may face a $513 citation.
How to start a short-term rental in Seattle
Seattle is not the toughest city in which to operate short-term rentals. The licensing process is quick, and you can rent a secondary unit, which is forbidden in many other places. Below are the key steps to follow on your way to short-term rentals in Seattle.
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Detect property type and occupancy
Determine whether you will rent your primary residence or a secondary unit, as it affects Seattle Airbnb rules. In a primary residence, you must live at least half of the year. Such limitations determine occupancy and the number of guests you can host. By knowing this, you can better calculate potential revenue and manage rentals.
2. Meet safety standards
Ensure the property is safe and minimize the risk of injury. It will save you from bad reviews and lawsuits. Compliance with safety requirements if also mandatory for secondary units according to Rental Registration and Inspection Ordinance.
3. Obtain licenses
Once your property is ready for rental, apply for licenses. You must have them before hosting guests and listing your property across STR platforms.
First, get a business license tax certificate. The application takes 48 hours to 2 weeks to process, so we recommend starting the process early. For secondary and vacation units, you must also obtain a Rental Regulation & Inspection Ordinance, but you may skip this step for primary homes. The last license to get is a short-term rental operator’s license or bed & breakfast operator’s license, depending on the type of property you rent. Note that you must already have a business license tax certificate number to get an operator’s license.
4. Prepare property for short-term rentals
Stock amenities, set up a cleaning schedule, find a maintenance company if you need help, and take other steps to start short-term rentals. You must ensure your property has all the necessary furniture and devices for comfortable living. Tenants’ requirements for vacation rentals are often much higher than what they expect from long-term properties.
5. Get STR insurance
Have insurance with at least $1 million in coverage to meet Seattle short-term rental laws and protect your property. Airbnb and similar platforms usually have some insurance options but you should get a stronger one. A damage protection solution like Truvi covers different types of property damage, offers an easy and quick claim resolution, and supports additional features like guest screening. You get reliable damage protection but can also prevent many issues before they happen.
6. List your property online
Now, you are ready to host your first guests. Create listings with a property description and photos on multiple STR platforms to attract more guests. You can go another way and rent your place directly to avoid extra fees. Regardless of what you choose, don’t forget to include a short-term rental operator’s license number in your listing.
Overview of other Airbnb regulations in the US
STR regulations have changed rental approaches in many US cities. Even though Airbnb regulations by city vary, the goal is similar. Most require licensing, city permits, and adherence to safety standards. They also usually limit the number of properties you can rent and рte number of guests.
We have written a series of articles on STR regulations across the US to guide people searching for the best location. Check out our blog for guidelines on: