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

Yes, short-term rentals are explicitly allowed in Edmonds, Washington. However, it is important to understand that Edmonds does not have city-specific short-term rental regulations. Instead, short-term rental operations in Edmonds are governed by Washington State law RCW 64.37, which provides comprehensive statewide regulations for short-term rentals. Additionally, operators must comply with local business licensing requirements and general zoning provisions.

The legal framework for short-term rentals in Edmonds operates on three levels:

1. State regulations (RCW 64.37) - Primary governing law for STRs
2. Local business licensing - Required under Edmonds Municipal Code
3. General zoning compliance - Must adhere to residential and commercial zoning requirements

How to Start a Short-Term Rental Business in Edmonds

Step 1: Property Eligibility Assessment

Before proceeding, ensure your property meets the basic requirements:

• Property Type: Must be a dwelling unit (single-family residence, apartment, condominium, cooperative unit, or room)
• Duration: Rentals must be for fewer than 30 consecutive nights
• Zoning Compliance: Verify your property is in a zone that allows residential lodging uses
• Exclusions: Properties occupied by owners for at least 6 months per year with fewer than 3 rooms rented at any time may qualify for exemption

Step 2: Business Registration

Edmonds requires business licensing for any entity engaging in business activities within city limits. The process involves:

1. Determine Business Nexus: Under Edmonds City Code 4.72.010, "engaging in business" includes owning, renting, or leasing real property in the city
2. Register with Business Licensing Service (BLS): Washington State's Department of Revenue provides business licensing services to Edmonds
3. Obtain Required Permits: Work with the Planning and Development Department for any necessary permits

Step 3: State Law Compliance

Washington State RCW 64.37 requires STR operators to:

• Collect and remit all applicable taxes
• Meet consumer safety requirements
• Maintain liability insurance
• Provide required information to guests

Step 4: Operational Setup

Establish your rental operation with:

• Property management systems
• Guest communication protocols
• Booking platform integration
• Local property management (if not owner-operated)

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (RCW 64.37)

1. Tax Registration and Remittance

• Register with Washington State Department of Revenue
• Collect and remit: sales tax, lodging tax, occupancy taxes, and any local taxes
• Maintain detailed records of all transactions
• File regular tax returns as required

2. Consumer Safety Compliance

• Provide 24/7 contact information to guests
• Ensure carbon monoxide alarm compliance per RCW 19.27.530
• Post required information conspicuously in each STR unit:
  • Property street address
  • Emergency contact information (police, fire, medical)
  • Floor plan showing fire exits and escape routes
  • Maximum occupancy limits
  • Operator contact information

3. Liability Insurance

• Maintain primary liability insurance coverage of at least $1 million aggregate
• Or conduct transactions through a platform providing equal or greater coverage
• Obtain certificates of insurance as proof of coverage

4. Platform Requirements (if using online platforms)

• Platforms must be registered with Washington State Department of Revenue
• Platforms must inform operators of tax and safety responsibilities
• Platforms must provide notice about potential insurance coverage gaps

Local Requirements (Edmonds Municipal Code)

1. Business License

• Register with Business Licensing Service (BLS) through Washington State Department of Revenue
• Pay applicable business license fees
• Renew annually
• Keep license current and posted

2. Zoning Compliance

• Verify property is in appropriate zoning district
• Comply with general residential use requirements
• Ensure no additional permits are needed for your specific use

3. Building and Safety Compliance

• Meet all building code requirements
• Obtain necessary building permits for any modifications
• Schedule inspections through My Building Permit system if required

Specific Regulations for Short-Term Rentals

State Regulations (RCW 64.37)

Tax Obligations:

• Operators must remit all applicable local, state, and federal taxes
• This includes sales tax, lodging tax, occupancy taxes, and other assessments
• If using platforms, they may collect and remit taxes on your behalf

Consumer Safety Standards:

• Provide contact information available during guest stays
• Comply with state carbon monoxide alarm requirements
• Post emergency information and evacuation routes
• Display maximum occupancy limits
• Provide operator contact information

Liability Insurance Requirements:

• Minimum $1 million primary liability coverage
• Coverage must apply to the STR dwelling unit
• Alternative coverage through qualifying platforms acceptable

Platform Regulations:

• Platforms must register with Washington State
• Must inform operators of tax and safety responsibilities
• Must provide insurance coverage notices

Local Regulations (Edmonds)

Business Licensing:

• All business activities require registration
• Registration through Washington State Business Licensing Service
• Includes activities related to rental property ownership and management

Code Enforcement:

• Subject to city code enforcement for violations
• Complaints can be filed through Planning and Development Department
• Appeals process available through Hearing Examiner

Zoning Requirements:

• Must comply with underlying zoning designations
• No specific STR overlay zones identified in provided materials
• General residential use standards apply

County-Level Regulations

No Snohomish County-specific STR regulations were identified in the provided sources. County health and safety codes may apply.

Contact Information for Local Authority

Primary Contact: Planning and Development Department

• Phone: 425-771-0220
• Email: [email protected]
• Physical Address: City Hall, 121 5th Ave N, Edmonds, WA 98020
• Phone (Main): 425-775-2525

Code Enforcement:

• Contact Planning and Development Department
• For emergency violations: 911
• Non-emergency complaints: Written complaint required
• Investigation typically begins within one week

Business Licensing:

• Washington State Business Licensing Service (BLS)
• Administered through Washington State Department of Revenue
• Local processing through City of Edmonds

Appeals and Hearings:

• Edmonds Hearing Examiner
• Appeals must be filed within 10 days of notice
• Final appeal to Snohomish County Superior Court within 10 working days

State-Level Contacts:

• Washington State Department of Revenue: For tax registration and remittance
• Legislative Hotline: 1-800-562-6000 (for state law questions)

Links to Source Pages

Edmonds Municipal Code - Bed and Breakfasts (Related): edmonds.municipal.codes/ECDC/20.23

Washington State RCW 64.37 - Short-Term Rentals: app.leg.wa.gov/RCW/default.aspx?cite=64.37&full=true

Edmonds Code Enforcement FAQ: edmondswa.gov/government/departments/development_services/code_enforcement/frequently_asked_questions

Edmonds Business License Definitions: edmonds.municipal.codes/ECC/4.72.010

Edmonds Permit Information and Forms: edmondswa.gov/services/permit_assistance/permit_information___forms/informational_handouts

Washington State Legislature: leg.wa.gov

My Building Permit (Online Permitting): mybuildingpermit.com

City of Edmonds Official Website: www.edmondswa.gov

Important Considerations for STR Investors

1. Legal Compliance: Always operate under the assumption that full compliance with all applicable laws is required
2. Insurance: Standard homeowner policies typically do not cover short-term rental activities
3. Tax Implications: Work with a tax professional to understand all applicable taxes and deductions
4. Neighborhood Relations: Maintain good relationships with neighbors to prevent complaints
5. Professional Management: Consider hiring local property management for operational efficiency
6. Regular Updates: Laws and regulations can change; stay informed about updates to RCW 64.37

This guide provides a comprehensive overview of short-term rental regulations in Edmonds, Washington. Always consult with legal and tax professionals for specific advice regarding your investment strategy.