Are Short‑Term Rentals Allowed in Cashmere?

Overview. Short‑term rentals (STRs) are allowed in Cashmere, but only under the City of Cashmere’s rules that are applied by Chelan County within Cashmere’s Unincorporated Urban Growth Area (UGA). Chelan County has formally adopted each city’s STR regulations for UGAs and defers entirely to those city codes for STRs within the UGA’s boundaries. The County’s STR rules apply primarily to unincorporated Chelan County outside UGAs (including the Stehekin Valley, which has its own separate process). Chelan County’s STR code itself is the operative regulatory framework you will use to understand standards like occupancy, insurance, taxes, signs, noise, parking, and permitting—but your zone status and allowance to operate in Cashmere UGA are determined under Cashmere’s land use code as incorporated by the County. If the City of Cashmere prohibits or limits STRs in certain residential zones or areas, that prohibition or limitation will govern operation in the UGA. If you are inside the city limits (not UGA), Cashmere’s municipal code governs. If you are outside both the city and the UGA, Chelan County’s STR code governs.

Bottom line: STRs can be operated in Cashmere UGA only if the City of Cashmere’s zoning and land use code for the subject parcel permits a short‑term/vacation rental use and the operation meets all state and county‑adopted standards (e.g., RCW 64.37 consumer protection, liability insurance; County noise, parking, fire, signs, and management plan requirements).

References: Chelan County CCC 11.88.290(2)(C)(iv); the County STR FAQ and code materials.

How to Start an STR Business in Cashmere (Market Entry Steps)

Use this step‑by‑step approach to validate eligibility and stand up a compliant operation:

1. Verify location and zoning

• Confirm whether your parcel is:
  • Inside the City of Cashmere limits (City code governs), or
  • Within the unincorporated Cashmere UGA (County applies City code under CCC 11.88.290(2)(C)(iv)), or
  • Outside city limits and outside any UGA (County STR code governs).
• Check the parcel’s zoning under the City of Cashmere’s zoning map (for UGA/city parcels) to confirm STR use is allowed where the property sits. If the City’s code restricts STRs in your zone or subarea, that restriction applies.
• Review the County’s STR Use Chart and Countywide STR provisions for insight on standards (occupancy, insurance, noise, parking, fire, signs, management plan, and renewal windows) even if City zoning ultimately controls permissibility in UGA.

2. Confirm STR allowance under current City rules

• The County has adopted each city’s regulations for UGAs. In practice, this means the City of Cashmere’s zoning provisions, permit requirements, caps (if any), and procedures apply to properties within the Cashmere UGA.
• If your zoning allows STRs, proceed. If not, consider a Bed & Breakfast where City codes allow it, or seek properties in zones where STRs are permitted.

3. Choose your STR model (County tiering as a compliance framework)

• Even in UGA/city areas, Chelan County’s STR code provides the operational standards you must meet:
  • Tier 1: Owner‑occupied; max 8 overnight occupants; max 8 daytime occupants. Includes home‑sharing and “same parcel as owner’s principal residence” with the owner on‑site, or the entire dwelling no more than 15 total days per year with a qualified on‑site person.
  • Tier 2: Non‑owner‑occupied; max 12 overnight occupants; max 12 daytime occupants.
  • Tier 3: Larger occupancy; max 16 overnight and 16 daytime occupants; typically requires a Conditional Use Permit (CUP) and highway access in County zoned areas. Inside UGAs, the City code controls, but County standards around occupancy, insurance, safety, signs, and management plans will still apply as adopted standards.

4. Align with UGA caps and availability (where applicable)

• Chelan County’s STR code sets caps for new Tier 2 and Tier 3 STRs in residential zones at 6% of the total housing stock for each zip code/UGAs and sets Peshastin UGA at 0% for new Tier 2/3. The code does not name a cap for the Cashmere UGA but applies City rules within UGAs, so any cap or allowance specific to Cashmere is a City‑code feature. If the City has no cap, you still must meet City zoning permissions and City‑specified permitting (if any). If the City imposes caps or limitations, they govern. If none exist, the County’s other operational standards (occupancy, insurance, noise, parking, signs, management plan, etc.) will still apply as part of the adopted framework.

5. Assemble required documents and plans before applying

• Liability insurance: minimum $1,000,000 primary liability (RCW 64.37.050).
• Consumer‑safety compliance materials per RCW 64.37.030 to be included in your Property Management Plan and guest information.
• Property Management Plan (County requires this regardless of UGA/city/county location):
  • Floor plan and site map with boundaries and emergency escape routes.
  • Contact details for the owner/operator and a Qualified Person able to respond on‑site within 60 minutes (24/7 when rented).
  • Consumer safety information and Fire Protection Plan (Ready, Set, Go—type plan; restrictions on fireworks/open flames; secured devices during burn bans).
  • Address and phone display requirements; landline or VOIP phone installed and recorded with Rivercom (with alternatives considered case‑by‑case).
  • Good Neighbor Guidelines; parking plan and maximum vehicles; maximum guests and bedrooms; emergency notification method; and all other required items per the County code.

6. Apply for the appropriate approvals and permits

• City of Cashmere (for parcels inside city limits): obtain any required City zoning/building approvals and City‑specified STR permits/registrations.
• Cashmere UGA (unincorporated parcels): Chelan County processes a short‑term rental land use permit using City zoning standards under CCC 11.88.290(2)(C)(iv). If Tier 3 is proposed, a Conditional Use Permit is required. The County’s permitting procedures control in UGA.
• County areas (outside UGA): apply directly with Chelan County Community Development under CCC 11.88.290. Ensure parcel compliance (no code violations), complete the application, pass inspections, and receive your permit before advertising or renting.

7. Licensing and tax registration (State level)

• Washington State Department of Revenue (DOR): register for a tax account; collect and remit state sales tax and the Washington State and Local (combined) hotel/motel tax (often called “transient rental tax”) due on STR rents. Monthly or quarterly filing is standard depending on volume; confirm reporting cadence with DOR.
• Local hotel/motel tax: Chelan County collects or coordinates lodging tax remittance; ensure you are enrolled and current with local lodging tax filings as administered through DOR or the County’s tax program (CCC 6.30 references local sales and lodging tax compliance).

8. Build and stage your property

• Ensure on‑site sewage and water capacity align with occupancy plans (County standards reference Chelan‑Douglas Health District and any sewer district constraints).
• Provide required fire safety equipment (e.g., at least one 2A:10BC extinguisher in common living areas).
• Install and maintain required signage: address visibility and an STR sign (≤ 8 sq ft; ≥ 4‑inch letters; indirect illumination if lit), positioned per County rules.

9. Marketing and advertising

• Include the assigned permit number in all advertisements and platforms (County requirement; helpful to build trust and aid compliance).
• Follow City/County rules for event hosting and daytime occupancy. Exceeding daytime limits or hosting events may require a CUP.

10. Ongoing compliance and renewals

• Operate within all standards: occupancy, parking, noise, trespass, garbage, fire safety, consumer protection, and good neighbor practices.
• Renew annually. For County‑issued permits, renewals run September 1–October 31. Late fees apply in November (2× permit fee) and December (3× permit fee). A permit expires December 31 regardless of issue date.
• Inspections: the County’s Fire Marshal’s Office conducts in‑person fire inspections every other year (fees appear in the Fire Prevention and Investigation fee table). The Marshal’s Office is no longer part of Community Development.

References: CCC 11.88.290; County STR permit fees and late renewal schedule; County STR code change reference chart (2025 changes noted for parking, late renewal fees, and fire inspection cadence); County STR FAQ.

Required Documents, Permits, Licenses, and Guidelines

• Short‑term rental land use permit (County) where applicable. In Cashmere UGA, the County issues permits using City zoning standards under CCC 11.88.290(2)(C)(iv). If your property is within city limits, obtain any City‑specified STR permit/registration and required zoning approvals.
• Conditional Use Permit (CUP): required for Tier 3 proposals where a CUP is indicated in the District Use Chart and under CCC 11.88.290(3)(B)(iii); also required to exceed daytime occupancy limits or to host events.
• Consumer Safety (RCW 64.37.030): provide clear safety information in your Property Management Plan and to guests (e.g., egress, utilities, contact info).
• Liability Insurance (RCW 64.37.050): maintain primary liability coverage of at least $1,000,000.
• Property Management Plan: comprehensive plan including floor plan/site map with escape routes; owner/operator and Qualified Person contact info; consumer safety; fire protection plan; emergency communications (including landline/VOIP and Rivercom recording); maximum guests/bedrooms; maximum vehicles and designated parking; Good Neighbor Guidelines.
• Signage: address sign per County code and STR registration sign meeting size, visibility, and contact‑info requirements.
• Fire safety: fire protection plan with restrictions on open flame devices during burn bans; at least one 2A:10BC extinguisher, charged and serviceable.
• Parking plan: ensure compliance with Chapter 11.90 and Good Neighbor Guidelines (two verified violations within six months may trigger enforcement and permit revocation).
• State and local tax registration: Washington Department of Revenue account for sales and lodging taxes; enroll for local hotel/motel tax; maintain compliance with CCC Chapter 6.30.
• Health and sanitation: verify occupancy aligns with approved sewage/water capacity and any conditions of the Chelan‑Douglas Health District or relevant sewer district.
• Annual renewal: complete before October 31; plan for in‑person fire inspections every other year and any City/County inspection requirements.

References: CCC 11.88.290; RCW 64.37; CCC Chapter 6.30; County STR FAQ and fee schedule.

City‑, County‑, and State‑Level Regulations for STRs (Focus on Cashmere and Chelan County)

City of Cashmere (within city limits and unincorporated UGA, as applied by County)

• Chelan County has adopted each city’s STR regulations for UGAs; therefore, the City of Cashmere’s zoning and STR standards control whether and how STRs can operate in the Cashmere UGA.
• In practice, you must comply with:
  • Cashmere municipal code provisions on short‑term/vacation rentals where applicable.
  • City zoning permissions (e.g., whether STRs are allowed, require a CUP, or are prohibited in certain residential zones).
  • City building, fire, and life safety requirements as applicable.
• Where Cashmere UGA zoning permits STRs, the County’s adopted operational standards (occupancy, insurance, noise, parking, signage, fire safety, consumer protection, management plan) apply. The County’s permitting procedures govern UGA permit issuance.
• If the City prohibits STRs in a given zone or subarea, that prohibition governs inside the UGA. If the City has a cap or limits on STRs, those limits govern inside the UGA.

Chelan County (unincorporated areas outside UGAs and UGA‑wide standards)

• Zoning allowances and caps (CCC 11.88.290(2)(B),(C)):
  • Tier 1 STRs are an accessory use in most rural/resource zones with standards.
  • Tier 2 and Tier 3 STRs in residential zones are capped at 6% of total housing stock per zip code or UGA; Peshastin UGA is capped at 0% for new Tier 2/3; County code defers to City rules within other UGAs, including Cashmere.
  • Tier 3 typically requires a CUP and highway access; minimum lot sizes apply in some zones; separation distances apply in the Manson UGA.
• Operational standards that apply across the County (and are adopted within UGAs):
  • Occupancy: Tier 1 max 8 overnight/8 daytime; Tier 2 max 12/12; Tier 3 max 16/16.
  • Parking: at least one off‑street space per two rented bedrooms (outside setbacks, no recorded easements); exceedances require a CUP for events.
  • Noise: must comply with Chapter 7.35; two verified violations within six months can trigger enforcement and revocation.
  • Trespass: rules required in leases and management plans; owners must abate violations within 60 minutes.
  • Garbage: proper containers and pickup; include in management plan.
  • Signage: address visible; STR sign ≤ 8 sq