La Conner, WA Short-Term Rental Investor Guide

Overview: Are Short-Term Rentals Allowed?

Explicit Answer: Short-term rentals (STRs) are prohibited in La Conner's Residential Zones (RD), except for Bed-and-Breakfast (B&B) operations, which require an Administrative Conditional Use Permit (Type II) and must be owner-occupied. In Commercial Zones, STRs are conditionally permitted as "residential uses" under Conditional Use permits, while guesthouses/guest rentals are permitted by right. A recent 2025 amendment explicitly bans STRs in residential units on the upper floors of live-work buildings within the South Commercial Zone.

Key Definitions:

• Short-Term Rental (STR): "A furnished, self-contained dwelling unit rented for 30 days or less" (proposed definition).
• Guesthouse/Guest Rental: A commercial use allowing rental of up to two guest units per building/lot in Commercial Zones.
• Bed-and-Breakfast (B&B): Owner-occupied home offering up to three rooms (detached ADUs prohibited).

How to Start an STR Business in La Conner

1. Residential Zone (RD):
   • Only B&Bs are viable. Apply for an Administrative Conditional Use Permit (Type II).
   • Verify owner-occupation status (owner must reside on the property).
2. Commercial Zone:
   • Apply for a Conditional Use Permit for STRs.
   • Confirm zoning compliance (e.g., no STRs in upper floors of live-work buildings).
3. State Requirements:
   • Register a Washington State Business License (UBI) if gross income ≥ $12,000/year.
   • Collect/remit state sales tax and lodging taxes.

Required Documents, Permits, and Licenses

| Requirement | Details | Authority | |-------------------------------|-----------------------------------------------------------------------------|----------------------------| | B&B Permit (Type II) | Owner-occupied; ≤3 rooms; primary residence; no detached ADUs | La Conner Planning Dept. | | STR Conditional Use Permit| Required in Commercial Zones; aligns with residential use standards | La Conner Planning Dept. | | WA State Business License | Mandatory for STRs; obtained via Dept. of Revenue | Washington State | | Insurance | $1M primary liability coverage (state law) | Statewide Requirement | | Safety Postings | CO alarms, emergency exits, max occupancy, local contact info inside unit | State Law (RCW 64.37.030) | | Tax Registration | Sales/lodging tax collection (platforms may remit on behalf of host) | WA Dept. of Revenue |

Specific Regulations: City, County, and State

City of La Conner (Primary Authority)

• Residential Zones (RD):
  • STRs prohibited. Only B&Bs allowed via Type II permit.
  • B&B operator must own a majority interest in the property.
• Commercial Zones:
  • Guesthouses/Guest Rentals: Permitted by right (≤2 units/building).
  • STRs: Conditional Use; must comply with residential use standards.
  • Live-Work Buildings (South Commercial Zone): STRs banned in upper-floor residential units (2025 update).
• Historic District: Churches restricted; STRs unaffected.

Skagit County

• No countywide STR ordinance. Regulations vary by city/census-designated place. Unincorporated areas rely on zoning/use tables.

Washington State

• RCW 64.37.010: STRs defined as lodging <30 consecutive nights.
• RCW 64.37.030: Mandatory safety rules (CO alarms, emergency info postings).
• RCW 64.37.050: $1M liability insurance requirement.
• Tax Obligations: State sales tax + lodging taxes (rate varies by jurisdiction).

Contact Information for Local Authority

La Conner Planning Department

• Address: Town Hall, 511 Morris St., La Conner, WA 98257
• Phone: (360) 466-3128
• Email: planning@townoflaconner.org
• Website: townoflaconner.org

Community Engagement:

• Subscribe to "Notify Me" on the town website for Planning Commission updates.
• Meetings held at Civic Garden Club (e.g., Oct 17, 2023 discussion).

Source Links

1. La Conner STR Community Packet (Oct 2023):
   Short-Term Rental Community Mingle Collected Packet
2. La Conner Weekly News Article (Sep 2023):
   Here’s a Primer on La Conner’s Short-Term Rental Regulations
3. GoSkagit News Article (Oct 2023):
   La Conner Discusses Short-Term Rental Regulations
4. Citizen Portal AI Article (May 2025):
   Planning Commission Narrows STR Use in South Commercial Zone
5. HouseHack Seattle Guide (State Overview):
   Skagit County Airbnb & STR Regulations

Critical Notes for Investors

• Regulatory Flux: La Conner’s STR policies are evolving. Verify current zoning and permit requirements before investing.
• Enforcement: The town prioritizes neighborhood integrity; violations could result in fines or closure.
• State Taxes: Ensure compliance with sales/lodging tax collection (platforms like Airbnb may handle this).
• Residential Zone Opportunities: B&Bs are the only viable STR option in residential areas, subject to strict owner-occupation rules.

This guide synthesizes all available data to date. Investors should directly engage the Planning Department for site-specific advice and updates.