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Clients considering purchasing an investment property to be used as a short-term or vacation style rental need to be aware of laws that don’t apply to long-term rentals? Short-term rentals are defined as those rented for less than 30 consecutive days. These rules vary by state, county and city.
- State law requires the landlord to post information in all short-term rentals, which shall include a floor plan with emergency exits indicated and maximum occupancy limits. Short-term rentals must register with the state Department of Revenue, pay retail sales tax plus applicable local lodging taxes.
- In Pierce County, the owner or representative shall provide notification of the presence of the vacation rental to all adjacent neighboring property owners; file a “Vacation Rental Affidavit” and supply a “Good Neighbor” brochure to all guests.
- In Snohomish County, when the entire dwelling unit is rented, a maximum of five people who are travelling together as a group are allowed.
- In Seattle, the Convention and Trade Center tax on short-term rentals is 7%; elsewhere in King County, it is 2.8%. Seattle short-term rentals also owe a $14 nightly tax.
- Brier and Woodway have recently banned short-term rentals. Other jurisdictions with rules are about short-term rentals include Clyde Hill, Kirkland and Tacoma.
This is not an exhaustive list. An increasing number of communities are moving to regulate the industry and to increase tax revenue.
We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!
Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.
