What Exactly Is Considered a Short-Term Rental in Seattle
The City of Seattle defines Short-term rentals (STR) as a type of lodging sometimes called vacation rentals. A house, condo, or apartment (or a part of one) that is rented for a fee for fewer than 30 consecutive nights is a short-term rental. Examples of short-term rentals are those rented through platforms such as Airbnb and VRBO. You are allowed to possess your own primary unit and one secondary unit. Further breakdown of Seattle STR Ordinance can be found here.
Quick Summary of Seattle Airbnb Rules and Taxation
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- Short-term Vacation rental: 30 consecutive days or less.
- Does not restrict owners to principal dwellings.
- Can operate two full properties as rentals, one being a primary residence and the other being a secondary residence.
- Licence required: Apply online or in person, License number must appear on all ads (Airbnb, Booking.com, Vrbo).
- $75 annual licensing (and reapplication fee) per unit
- Seattle 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 Seattle, Washington is 10.35%. 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 3.85%.
- 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 Seattle Short-term Rental Licence
Step-by-Step application instructions and descriptions (Apply Online Here):
- Submit all necessary information for state and municipal regulatory divisions:
a. Obtain a Seattle Business License Tax Certificate
b. Register for a property inspection prior to applying
2. Complete the application form online or in person.
3. Pay the aforementioned state and federal taxes and licensing fees annually
Seattle Rental Enforcement & Penalties
The city of Seattle 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
Seattle 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 Seattle is a Top Airbnb Destination
Seattle is a major draw for visitors to the Pacific Northwest. It blends the natural beauty of the surrounding areas with a vibrant culture and thriving nightlife and downtown core. Nestled between beautiful Puget Sound and the Cascade mountains the city offers quick and easy access to outdoor adventures like hiking, skiing, fishing and kayaking. You can relax, unwind and explore the city with notable attractions like the Space Needle, Pike Place Market or even catch a baseball game. As the gateway to national parks like Mount Rainier and Olympic Park, Seattle attracts millions of visitors from around the world, making it one of the premier destinations in the United States.
Investors and owners will be benefitting from a strong flow of guests needing both short-term and long term rentals. With major employers like Amazon, Microsoft and Google having large scale business parks in the area there is a consistent stream of young, high income professionals looking for luxurious and well equipped rentals for extended periods of time. Seattle experiences close to 25 million visitors per year fuelling the same need but for shorter term rentals that can cater towards tourists of all backgrounds. Creating profitable opportunities for a wide array of rental strategies.
Demand for Mid-Term Rentals (30+ Days)
Absolutely. Seattle is not just a tourist destination. It boasts a strong and robust economy that is supported by international trade, technology and professional services. A strong job market and beneficial tax structure brings in not just local professionals but there is a diverse mix of prospective renters to fill the need for longer term stays. With major employers like Amazon, Microsoft and Google having large scale business parks in the area there is a consistent stream of international workers coming in and out of the area. With rising remote hybrid work trends, many professionals and visitors are choosing to spend months at a time in their work environments to balance the hybrid models major companies are taking on.
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.
Seattle Airbnb FAQ
Can I run an Airbnb in Seattle?
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 Seattle requires all owners to remit a minimum 10.35% tax on all rental bookings.
Final Word for Potential Hosts
Seattle’s vacation rental market thrives thanks to its stunning natural surroundings and world class cultural attractions. The gateway to the Pacific Northwest attracts millions of visitors per year. Whether that is to the iconic Space Needle, bustling and vibrant Pikes Place Market, nearby Mount Rainier and Puget Sound, and endless outdoor adventures. Business travelers and young professionals alike attracted to the city’s booming tech sector all contribute to a steady bustling rental market. With the right licensing and our professional management, hosts can maximize their returns. Offering up top quality accommodations in one of the most dynamic and sought-after markets in the United States.
If managing licenses, compliance, and day-to-day hosting tasks seems overwhelming, you might consider working with a professional Airbnb management Seattle company. Expert management services help ensure compliance with local laws, optimize your listings, and enhance guest satisfaction, ultimately improving your rental income and peace of mind.