Overview: Are Short-Term Rentals Allowed in Coupeville, WA?

Short-term rentals are allowed in Coupeville, WA, but with significant restrictions. The town permits STRs in commercial zones (Historic Local Commercial, Town Center, and General Commercial) but prohibits new STRs in residential zones. Properties legally established as STRs before December 1, 2019, may continue operating under grandfathering provisions. All STRs require an annual license regardless of zoning location.

How to Start a Short-Term Rental Business in This Market

Step 1: Property Location Assessment

Before acquiring or converting a property, verify the zoning designation. Commercial zones (HLC, TC, GC) allow STRs as permitted uses without additional land use permits. Residential zones (RR, LDR, RM 9,600, HDR) prohibit new STRs except for properties with legal establishment prior to December 1, 2019.

Step 2: Zoning Compliance Verification

• Commercial Zones (Allowed):

  • Historic Local Commercial (HLC)
  • Town Center (TC)
  • General Commercial (GC)

• Residential Zones (Prohibited for New STRs):

  • Rural Residential (RR)
  • Low Density Residential (LDR)
  • Residential Multi-Family 9,600 (RM 9,600)
  • High Density Residential (HDR)

Step 3: Licensing Process

All STRs require an annual license valid for one year and nontransferable. The licensing process includes property inspection, safety compliance verification, and ongoing operational monitoring.

Required Documents, Permits, Licenses, and Guidelines

City of Coupeville Requirements

Required License

• Short-Term Rental License (valid for one year, nontransferable)
• Fee: $100 (Issuance & Inspection)

Required Documentation Checklist

For New Issuance:

1. Complete Short-Term Rental license application form
2. Scaled site plan identifying all buildings, off-street parking spaces for residents and guests, and exterior refuse containers
3. Floor plan identifying all rooms, their uses, exits, egress routes, and fire extinguisher locations
4. Proof of annual fire inspection or request for Building Official to conduct inspection
5. If applicable: signed letter from condominium association officer approving STR use
6. Recent Island Disposal bill to confirm refuse collection through Town's contract waste hauler
7. Signed and notarized Agent Authorization form (if applicant is not the property owner)
8. Current Washington State business license (UBI) number
9. Copy of rental agreement template
10. Response to neighborhood complaints from preceding 12-month period (if any)

For Renewals:

• Same requirements as new issuance, with additional documentation if changes have occurred since the previous application

Additional Required Forms

• Agent Authorization Form (if someone other than the property owner is applying)
• Life-safety self-certification (if fire inspection is over one year old)

Washington State Requirements

Business Licensing

• Washington State Business License (UBI number required)
• Registration through the Washington State Department of Revenue

Insurance Requirements

• Primary liability insurance of at least $1,000,000 or coverage through hosting platform

Tax Obligations

• Collection and remittance of all required taxes including sales tax, occupancy tax, and lodging taxes

Specific Regulations for Short-Term Rentals

Town of Coupeville Regulations

Zoning Restrictions

• Commercial Zones (HLC, TC, GC): STRs are permitted uses that do not require land use permits
• Residential Zones: STRs prohibited except for legally established properties prior to December 1, 2019
• Grandfathering Provision: Properties legally established as STRs from 1998-2019 with Conditional Use Permits retain eligibility to apply for licenses if use was not discontinued for over one year

Operational Requirements

• Local Contact: 24-hour contact person must be available to respond in person to complaints within one hour when guests are present
• Fire Safety: Annual fire inspection required for all STRs
• Life Safety Compliance:
  • UL-listed smoke detectors/alarms functioning properly
  • UL-listed carbon monoxide alarms outside sleeping rooms
  • Minimum 2A-10BC rated fire extinguisher on egress route
  • Egress windows in sleeping rooms must meet building code requirements
• Building Code Compliance: Property must have been approved as habitable space per building codes at time of construction or conversion

Parking Requirements

• One off-street parking space required for each guest room
• Off-street spaces for full-time equivalent employees not residing at the inn
• Spaces must be identified on scaled site plan

Condominium Requirements

• Condominium Association Approval: Signed letter from association officer required
• Mixed-Use Development: Disclosure of other land uses in building or on site

Signage Restrictions

• New signs require sign permit
• All signage must comply with Chapter 16.28 CTC regulations
• Sign permit required before installation

Prohibited Activities

• Outdoor amplified sound
• Social events with non-registered guests
• Operation without valid license or inconsistent with application information

Special Considerations

Historic Commercial Center Zone

• Ground-floor short-term rentals prohibited in Front Street buildings located west of Main Street
• This restriction exists to maintain historical accuracy and commercial character

Refuse Collection

• Use of Town's contract waste hauler (Island Disposal) required
• Recent bill required as proof of service

Grandfathered Properties

• Properties legally established as STRs before December 1, 2019, may continue operating
• Must have had Conditional Use Permit (CUP) from 1998-2019
• Use must not have been discontinued for over one year
• Must comply with all current licensing and safety requirements

Contact Information for Local Authority

Town of Coupeville

• Phone: (360) 678-4461
• Email: permits@townofcoupeville.org
• Physical Address: 4 NE 7th Street, Coupeville, WA 98239
• Mailing Address: P.O. Box 725, Coupeville, WA 98239
• Website: www.townofcoupeville.org

Primary Contact for STR Licenses:

• Building Official (for fire inspections and safety compliance)
• Planning Department (for zoning and regulatory questions)

Operating Hours: Contact town office during regular business hours for application questions and processing.

Links to Source Pages

1. Town of Coupeville STR License Application (2021): townofcoupeville.org/wp-content/uploads/2021/04/Short-Term-Rental-License-Application.pdf

2. Town of Coupeville STR Application (Revised 2023): townofcoupeville.org/wp-content/uploads/2023/02/STRApp_2023_Fill.pdf

3. Coupeville Town Code - Short-Term Rental Regulations: librarystage.municode.com/wa/coupeville/codes/code_of_ordinances?nodeId=TIT5BULIRE_CH5.38SHRMRELI_5.38.030SHRMREICRE

4. News Article - STR Restrictions Implementation (2019): www.whidbeynewstimes.com/news/coupeville-town-council-votes-to-restrict-short-term-rentals/

5. News Article - STR Code Discussion Status (2025): www.southwhidbeyrecord.com/news/coupeville-town-council-ceases-short-term-rental-code-discussion/

6. Washington State STR Regulations Guide (2024): househackseattle.com/blog/washington-state-short-term-rental-rules-what-hosts-need-to-know-in-2024

Investment Considerations and Recommendations

Market Viability

Coupeville's STR market is constrained by zoning restrictions that concentrate allowable properties in limited commercial zones. This creates scarcity that may support premium pricing but limits inventory expansion opportunities.

Regulatory Risk

Recent council discussions (as of 2025) regarding potential amendments to allow STRs in over-water buildings were ultimately discontinued, indicating the town's cautious approach to STR expansion. Investors should expect continued regulatory oversight and potential tightening of rules.

Compliance Costs

Beyond the $100 annual license fee, budget for:

• Annual fire inspection costs
• Potential building inspection if property hasn't been previously approved as habitable space
• Required insurance coverage ($1M minimum liability)
• State business licensing and tax obligations
• Refuse collection through designated hauler

Due Diligence Requirements

Before purchasing any property for STR purposes:

• Verify zoning designation and eligibility
• Confirm if property qualifies as grandfathered STR if in residential zone
• Review all safety and building code compliance requirements
• Assess parking availability and compliance
• Investigate any existing neighborhood complaints or violations
• Confirm condominium association policies if applicable

This guide provides current regulatory requirements as of 2025. Given the dynamic nature of STR regulations, investors should verify all requirements with the Town of Coupeville before making investment decisions or beginning operations.