What Exactly Is Considered a Short-Term Rental in Kirkland
The City of Kirkland defines short-term rentals as a rental lasting for less than thirty days, as opposed to long-term rentals, which are defined as those lasting 30 days or more. Residents should be aware that the City of Kirkland requires business licenses for any commercial transaction, including all short-term and long-term rentals (including multifamily residences). You are allowed to possess your own primary unit and one secondary unit. Further breakdown of Kirkland’s STR Ordinance can be found here.
- If the property has an Accessory Dwelling Unit, that too can be rented out separately after obtaining State of Washington and City of Kirkland business licenses.
Quick Summary of Kirkland Airbnb Rules and Taxation
-
- Short-term Vacation rental: 30 consecutive days or less.
- Kirkland operates with the principal residence rule in place.
- The property owner, or an authorized agent, must occupy the property as a primary residence at least 245 days per year to enter into short-term rentals there.
- When the unit is unoccupied/rented out A property manager living within 15 miles of the residence must be identified for those days when neither the owner nor an authorized agent are occupying the property.
- Licence required: Apply online or in person, License number must appear on all ads (Airbnb, Booking.com, Vrbo).
- For many short-term rentals, a $230 annual fee would be charged.
- Base fee of $100 and a revenue generating regulatory license (RGRL) of $130 per employee (always a minimum of one employee).
- If the annual gross receipts of your rental are less than $20,000.00, you are eligible to pay the registration fee of $50.00,
- Kirkland does apply two separate municipal rental taxes as well as the state income tax.
- Retail Sales Tax: The minimum combined 2025 sales tax rate for Bellevue, Washington is 10.3%. This is the total of state, county, and city sales tax rates. The Washington sales tax rate is currently 6.5%. The Seattle sales tax rate is 3.8%.
- Transient Occupancy Tax: a sales tax whose rates are dependent upon which region of Washington State the property is located.
- Business & Occupation Tax: The Retailing B&O tax rate is 0.471 percent (.00471) of your gross sales receipts.
How to Apply for a Kirkland Short-term Rental Licence
Step-by-Step application instructions and descriptions (Apply Online Here):
- To operate a Short-term rental in Kirkland you will first need to register the property with the Washington Department of Revenue to obtain a state business tax license.
a. The city of Kirkland partners with Washington State for all licensing renewals and applications. Further information is available here.
2. Complete the application form online or in person.
3. Pay the aforementioned state and federal taxes and licensing fees annually
Kirkland Rental Enforcement & Penalties
The city of Kirkland will enforce regulatory compliance through one of if not all avenues described here:
- Fines under both state and county guidelines.
- Unpaid penalties can be added to your property tax bill.
- Inspections may occur without prior notice
Kirkland Short-term Rental Market Potential
- Average Nightly Rate: $190–$400
- Premium Properties: $750+ during peak summer months
- Occupancy: ~70% average, up to 90% in peak seasons
- Average Monthly Revenue: $3250-$4000 for typical listings, $6000+ for premium properties
Why Kikrland is a Top Airbnb Destination
Kirkland is a highly desirable destination in the Pacific Northwest! Known for its lakeside charm, vibrant downtown core, and easy access to outdoor sports and recreation. Loathed on the easternmost shore of Lake Washington, the city offers beautiful waterfront parks, beaches and a walkable downtown that is full of art galleries, boutique shops and acclaimed local restaurants. The city’s cultural appeal is enhanced by local (and annual) food and wine festivals that attract visitors from all over the PNW. Its convenient proximity to both Bellevue and Seattle make it an easy base for both business and leisure travelers. All the while nearby mountain ranges provide opportunities for year-round outdoor recreation including hiking, biking, skiing/snowboarding and boating. This blend of natural beauty, vibrant culture and accessibility position Kirkland as an attractive destination for all visitors.
Kirkland’s rental market benefits from its location within Seattle’s eastside tech corridor. With Microsoft’s global headquarters nearby and Amazon, Google and Meta maintaining major offices in the area. This creates a steady demand for corporate housing and short-term rentals catering directly to relocating professionals, visiting employees and business travelers. In relation to leisure, the city continues to attract affluent tourists looking for upscale accommodations in close proximity to the outdoor recreation that Kirkland offers while still being minutes away from Seattle’s major tourist attractions. With a limited hotel supply and a competitive housing market, well maintained and managed rentals see strong occupancy and healthy nightly rates across the year. For new hosts, Kirkland offers the opportunity to tap into both consistent business and tourism demands, making it both a sustainable and lucrative market.
What is the Demand for Mid-Term Rentals (30+ Days)?
Absolutely. Kirkland has strong demand for mid-term rentals due to its prime location with the eastside tech corridor and proximity to major tech employers like Microsoft, Google, Amazon and Meta all operating major international offices in the area. The city’s job market thrives while combined with a high concentration of well-paid professionals, fuels consistent needs for executive housing and corporate stays that will last over several months at a time. In addition, the rise of hybrid and remote work has made Kirkland an especially attractive option for digital professionals and families who want to enjoy the waterfront lifestyle, outdoor recreation and cultural amenities while maintaining work access to neighboring Seattle and Bellevue. With limited housing supply and high property values, mid-term rentals provide an ideal solution for both visitors and hosts, creating a stable and profitable opportunity.
Why Choose Guestable for Your Seattle Airbnb
- Best Revenue Optimization Strategies: Data-driven pricing to maximize earnings.
- Tailored Management Solutions: Customized plans to fit your goals.
- Client-Focused Communication: 24/7 availability, transparent updates.
- Dynamic Rental Approach: Expertise in both short- and mid-term markets, adjusting to seasonal trends.
- Guest Experience & Ground Support: Local presence across Broward County and across Southern Florida, hands-on guest service.
Kirkland Airbnb FAQ
Can I operate a vacation rental without a licence?
Yes, as long as the documentation is accurately provided, displayed and approved
How long does the licence process take?
The application takes minutes, but full approval depends on inspections and document submission. The municipal code officer will contact the applicant within 3 business days of the inspection being completed.
Do I need to collect any tax from guests?
Yes, the City of Kirkland requires all owners to remit a minimum 10.35% tax on all rental bookings.
Airbnb collects and sends lodging taxes on behalf of the property owner. Other short-term rental sites may not provide this service, however, which would require the owners to submit the payments themselves.
Final Word for Potential Hosts
For hosts and investors, Kirkland is a prime market where hosts can tap into strong demand from both leisure and business travelers. With its calm, picturesque waterfront, walkable downtown and proximity to major tech giants like Google, Microsoft and Amazon located throughout the area. The city continues to drive round bookings for short and mid-term stays. With the limited hotel options available in the region the rentals stay in consistent and high demand, whether it is for a family coming to enjoy the coastal lifestyle or a travelling professional looking for a furnished homebase. For hosts and investors, Kirkland offers up a perfect blend of tourism, professional travel and mid-term stays. Making the city a high performing market perfect for maximizing returns and building long-term rental success.