Overview: Are Short-Term Rentals Allowed on Bainbridge Island?

Yes. Short-term rentals are explicitly allowed on Bainbridge Island, but only under a structured regulatory framework that became effective September 30, 2024. All short-term rentals (STRs)—defined as residential rental agreements lasting fewer than 31 days—must be registered with the City, meet stringent operational requirements, and comply with state and city tax obligations. The City’s regulatory purpose is straightforward: track the number of STR units, ensure owners pay applicable taxes and fees, and establish common-sense quality-of-life protections for residents and operators.

How to Start a Short-Term Rental Business in Bainbridge Island

To launch and operate a compliant STR in Bainbridge Island, follow this sequential roadmap:

1. Confirm Eligibility and Zoning

   • Validate that your property is a legally permitted residential dwelling under local zoning (BIMC 18.36.030).
   • If your property is a bed-and-breakfast (B&B), you are exempt from STR registration under the Bainbridge Island Municipal Code (BIMC 5.38).
   • If you are the owner and will reside on the property while renting (home-sharing), you remain obligated to register but are exempt from 300-foot neighbor notices and exterior sign posting requirements.

2. Register for the Short-Term Rental Certificate

   • Submit an application via the City’s Online Short-Term Rental Registration Portal. The registration is mandatory for every unit offered as a short-term rental.
   • Certificates are valid for one year and must be renewed annually.

3. Obtain Business Licenses (State and City)

   • Secure a Washington State Business License and a Unified Business Identifier (UBI) number via the Washington Department of Revenue (WA-DOR).
   • Add the Bainbridge Island City endorsement to your Washington State Business License.
   • Use NAICS Code 721199 (All Other Traveler Accommodation) for both state and city licensing.

4. Comply with Tax Obligations

   • File Business & Occupation (B&O) Tax Returns with both the State and the City annually. If gross revenue exceeds $150,000, the City B&O tax rate is 0.1% (1/10th of 1%); if revenue is below the threshold, you must file a return but owe no tax.
   • Collect and remit monthly Washington Lodging Taxes for stays under 30 days (4% on Bainbridge Island). The City uses the Lodging Tax Advisory Committee (LTAC) to award contracts promoting tourism, and funds may also support affordable housing bonds.

5. Maintain Liability Insurance

   • Maintain primary liability insurance with a minimum coverage of $1,000,000 per the requirements of Washington State (RCW 64.37.050).

6. Operational Setup and Compliance

   • Designate a local contact person who is available 24/7 and able to respond to complaints within 60 minutes.
   • Post required notices and abide by occupancy limits, parking, noise, and trash/refuse regulations.
   • Ensure advertising (all online listings) includes your STR certificate number. Display the certificate interiorly within six feet of the main entry door. Exterior notices with key occupancy and contact details are required (exempt for owner-occupied/home-share).

7. Renewal and Ongoing Compliance

   • Renew your STR Certificate annually. Keep tax filings current, maintain insurance, and respond promptly to verified complaints.
   • If ownership changes, file a new STR application within 14 days.

Required Documents, Permits, Licenses, and Guidelines

• Short-Term Rental Certificate (City of Bainbridge Island, via the Online STR Registration Portal).
• Washington State Business License and UBI number (WA-DOR).
• City of Bainbridge Island Business License endorsement (via WA-DOR).
• NAICS Code 721199 (All Other Traveler Accommodation).
• Business & Occupation (B&O) Tax filings for State and City.
• Lodging Tax reporting to the State of Washington (monthly/quarterly per State assignment).
• Primary liability insurance certificate (minimum $1,000,000 coverage).
• Written consent from any applicable homeowners’ or condominium owners’ association (if applicable).
• Interior display of STR certificate (within six feet of the main entry door).
• Exterior posting (unless exempt for owner-occupied/home-share): standardized notice (minimum 4" x 6"), readily visible, detailing local contact, bedrooms, max occupants, max vehicles.
• Advertising compliance: include STR certificate number in all listings.

Note: Bed & Breakfasts are exempt from the STR registration requirement.

City-Specific Regulations (Bainbridge Island)

Bainbridge Island codified its STR framework in BIMC Chapter 5.38 (effective September 30, 2024). The rules are granular and emphasize accountability.

• Certificate Required

  • Unlawful to rent or offer for rent an STR without a City STR Certificate. A separate certificate is required for each STR unit.

• Application Details and Notices

  • The application requires ownership and agent information, local contact details, listing platforms, occupancy and parking, and homeowner association consent (if applicable).
  • The City mails notice of applications or renewals to residents and owners within 300 feet. Owner-occupied units that remain occupied during STR operation are exempt from this notification requirement.

• Occupancy and Parking

  • Occupancy limit is two persons per room plus one additional person per unit (excluding bathrooms, storage rooms, mud rooms, hallways).
  • Parking, trash/refuse, and public nuisance regulations apply (see BIMC Chapters 8.16, 9.70, and 10.08).
  • Disposable Food Service Ware and Waste Reduction rules apply to lodging establishments (BIMC 8.24).

• Advertising and Posting

  • All advertisements and online listings must display the STR certificate number.
  • Interior certificate display is required. Exterior notices (with specified dimensions and content) must be posted unless exempt.

• Special Events

  • Weddings and commercial functions are allowed; however, events causing impacts beyond those associated with residential use (e.g., excessive traffic, noise, disorderly conduct) are prohibited on the STR property.

• Complaint, Verification, and Hearing Process

  • A citizen complaint system is provided. Complaints must be supported by evidentiary material (time-stamped photos, recordings, statements) and are verified by the City Manager or designee.
  • Denial, suspension, or revocation grounds include verified violations, material misrepresentations, noncompliance with laws, repeated violations, and delinquency in city fees, assessments, or taxes.

• Enforcement and Penalties

  • Violations are civil infractions. Each day or portion of a day in violation constitutes a separate infraction. Grounds for suspension or revocation consider severity, intent, impacts, and prior offenses.
  • Appeals are filed with the City Clerk within 20 calendar days, accompanied by a nonrefundable appeal fee. The City Council hears appeals and issues written decisions, which are final absent a writ of certiorari to Kitsap County Superior Court.

• Transfers and Renewals

  • Certificates are non-transferable. A new application must be filed within 14 days of any ownership change. Certificates must be renewed annually.

County and State-Level Regulations

• County

  • Bainbridge Island is within Kitsap County. The provided materials do not indicate Kitsap County-specific STR regulations beyond City ordinances. Investors should verify any county overlays directly with Kitsap County if relevant (e.g., health, fire, building standards).

• State of Washington

  • State regulations focus on liability and lodging taxes:
    • Primary liability insurance minimum $1,000,000 (RCW 64.37.050).
    • State lodging excise taxes apply to stays under 30 days, filed monthly/quarterly/annually depending on assignment.
    • WA-DOR governs business licensing and B&O tax administration.

• Lodging Tax Details

  • Bainbridge Island’s lodging tax is 4% of the total lodging bill for stays under 30 days. Funds are collected by the State and distributed to the City; they are used for tourism promotion via the Lodging Tax Advisory Committee and may support bonds for affordable housing.

Contact Information

• City of Bainbridge Island (primary authority)

  • Address: 280 Madison Avenue North, Bainbridge Island, WA 98110
  • City Hall Phone: 206-842-7633
  • Hours: Monday–Friday, 8:00 a.m.–4:00 p.m.
  • City Website: See sources (below)
  • Complaint Portal: City STR Complaints Portal (see sources)
  • Short-Term Rental Registration Portal: See sources
  • Short-Term Rental Public Portal (view registered STRs and local contacts): See sources

• Washington State Department of Revenue

  • Phone: 360-705-6741
  • Website: See sources

Links to Source Pages

• Bainbridge Island STR Program (Overview and Registration)
  • www.bainbridgewa.gov/964/Short-Term-Vacation-Rentals
• Bainbridge Island Municipal Code Chapter 5.38 (Short-Term Rentals)
  • www.codepublishing.com/WA/BainbridgeIsland/html/BainbridgeIsland05/BainbridgeIsland0538.html
• Bainbridge Island Online Short-Term Rental Registration Portal
  • portal.deckard.com/wa-kitsap-city_of_bainbridge_island-str-portal/
• Bainbridge Island STR Public Portal (View Registered STRs and Contacts)
  • str-public-portal.deckard.com/bi
• Bainbridge Island STR Complaints Portal
  • complaints-str.deckard.com/bainbridgeisland-wa-str-complaints/
• Washington State Department of Revenue (Business Licensing)
  • dor.wa.gov/
• Bainbridge Island Business & Occupation (B&O) Tax
  • www.bainbridgewa.gov/1135/Business-Occupation-Tax
• Washington State RCW 64.37 (Short-Term Rental Provisions)
  • app.leg.wa.gov/RCW/default.aspx?cite=64.37
• Bainbridge Island Municipal Code Chapter 3.65 (Lodging Tax)
  • www.codepublishing.com/WA/BainbridgeIsland/#!/BainbridgeIsland03/BainbridgeIsland0365.html
• Airbnb Help: Bainbridge Island, WA (Registration and Fees Summary)
  • www.airbnb.com/help/article/3913
• Washington Hosts Collaborative Alliance: Washington STR Regulations (State-level context)
  • washingtonhosts.org/regulations/

Investor Notes and Strategic Considerations

• Bainbridge Island’s STR regime is comprehensive and oriented toward neighborhood harmony and tax compliance. Investor success hinges on meticulous adherence to the certificate, licensing, insurance, posting, and operational rules.
• The City’s public complaint portal, verification procedures, and appeals process demand a disciplined approach to guest management and property maintenance.
• Maintain careful records of tax filings, insurance renewals, and notice postings to preempt enforcement actions. Given the 300-foot notice requirement for non-owner-occupied properties, investors should anticipate scrutiny and engage proactively with neighbors.
• The 4% lodging tax and B&O filings should be integrated into your financial planning. Consider whether online travel agencies (OTAs) will collect and remit certain taxes on your behalf; confirm responsibilities in writing and reconcile filings accordingly.
• For owner-occupied/home-share operations, leverage the notification and exterior sign exemptions to streamline compliance—while still honoring all other obligations.
• Always verify the latest fee schedule and tax rates on official City and State pages. If you engage a property management company, remember that both owner and manager must hold city business licenses and STR certificates before renting any portion of a home.

This guide provides a complete, step-by-step compliance pathway and regulatory reference tailored to Bainbridge Island’s STR environment. Stay aligned with evolving municipal rules and state statutes to safeguard your investment and operational continuity.