Overview: Are short-term rentals allowed in Lacey, WA?

Short-term rentals are permitted in Lacey, subject to state law requirements (RCW 64.37), city building and safety codes, and the city’s Residential Rental Registration Program when applicable. The City of Lacey does not publish a standalone short‑term rental permit or licensing program; the state framework governs operation, consumer safety, insurance, and taxes. Properties that are part of a residential rental complex with five or more units must register with the city’s Residential Rental Registration Program; all other single-family and small multifamily STRs are not separately registered by the city but must meet state-mandated safety, tax, and platform obligations.

Lacey’s rules are permissive at the municipal level but embedded in existing codes (building, safety, and the rental registration program for larger complexes). Investors should verify zoning with the Community & Economic Development Department before listing, and ensure full compliance with state and any county-level tax obligations.

Market entry: How to start a short-term rental business in Lacey

• Confirm zoning and land use. STRs are considered a lodging use; ensure the property’s zoning allows residential lodging and that there are no HOA/CC&R restrictions prohibiting short-term rentals.
• Secure liability insurance. Washington requires primary liability coverage of at least $1,000,000 per short-term rental transaction or equivalent coverage provided by the platform.
• Choose a platform and confirm tax handling. Platforms must register with the Washington Department of Revenue and, if they collect on your behalf, remit occupancy/sales/lodging and other applicable taxes to the appropriate jurisdiction.
• Designate a local contact. The state requires guests be provided with contact information who can respond during the stay. For larger complexes, identify on‑site or local management and security contacts.
• Prepare guest-facing safety and information postings (state mandated): street address; emergency contacts (police/fire/EMS); floor plan with exits and escape routes; maximum occupancy; operator/contact information; compliance with carbon monoxide alarm rules.
• Complete city registration if the property is in a complex with five or more units. All buildings in such complexes must be registered with the city annually; new buildings register at final inspection or certificate of occupancy.
• Establish bookkeeping for taxes. Maintain records for sales, lodging, occupancy, and B&O taxes. Verify whether Lacey or Thurston County imposes any local lodging taxes in addition to state requirements.
• Operationalize the guest experience. Provide clear house rules, eviction routes, and 24/7 contact procedures; maintain smoke/CO detectors, safe egress, and address visibility for emergency responders.
• Maintain ongoing compliance. Renew city registration annually for applicable complexes, keep insurance current, and monitor any state or local regulatory updates.

Documents, permits, licenses, and guidelines

• Municipal registration (if applicable). Required only for properties in residential rental complexes with five or more units in the same complex:
  • Annual registration with the City of Lacey ($5.00 per unit; maximum $500 per complex).
  • Information required: owner and mailing address; owner phone; property addresses; unit counts, gross floor area, bedroom counts and areas; tenant-screening use; on-site manager phone; security agency phone; and, if owner resides beyond 50 miles of City Hall, local agent details.
  • Changes in ownership require a new registration.
• State-level safety postings (all STRs):
  • Street address; emergency contacts; floor plan with exits/escape routes; maximum occupancy; operator/contact information.
  • Compliance with state carbon monoxide alarm requirements (RCW 19.27.530 and State Building Code Council rules).
• Liability insurance:
  • $1,000,000 primary coverage per unit or platform-provided equivalent.
• Business registration and taxes:
  • Platform registration and potential tax remittance through the platform (RCW 64.37.040 and .020). Operators remain responsible for compliance even if a platform collects on their behalf.
• Building and life safety codes:
  • Adherence to Lacey’s adopted codes (International Building and Residential Codes, property maintenance, electrical, plumbing, energy codes), including required devices and design considerations for larger rental complexes (e.g., locking devices, lighting, fencing, addressing, signage).
• Additional considerations:
  • For any construction improvements, obtain building permits and pass inspections before hosting guests.
  • Comply with all applicable nuisance, noise, and sanitation standards to avoid code enforcement issues.

Specific regulations: City of Lacey, Thurston County, and State of Washington

• City of Lacey — Residential Rental Registration Program (LMC 14.02)
  • Applies to properties in complexes with five or more rental dwelling units.
  • Annual registration; $5/unit with a $500 cap per complex.
  • Crime prevention provisions for complexes (locking devices, lighting, fencing, address numbers, site maps, warning signage).
  • Registration required at final inspection or certificate of occupancy for new buildings; changes in ownership trigger a new registration.
  • Civic contact: Code Compliance Officer and Community & Economic Development Department (contact details below).
• State of Washington — Short-Term Rentals (RCW 64.37)
  • Definitions and scope: STR is a lodging use offered for fewer than 30 consecutive nights, excluding hotels/motels/bed and breakfasts.
  • Taxes (RCW 64.37.020): Operators must remit all applicable local, state, and federal taxes; platforms may collect and remit on the operator’s behalf.
  • Consumer safety (RCW 64.37.030): Mandatory postings and contact availability during stays; compliance with CO alarm rules; first violation receives a warning; subsequent violation is a civil infraction.
  • Platform obligations (RCW 64.37.040): Platforms must register with the Department of Revenue, inform operators of tax and safety responsibilities, and provide written notice that personal insurance may not cover STR use.
  • Liability insurance (RCW 64.37.050): $1,000,000 primary coverage per transaction or platform-provided equivalent.
• Thurston County — Lodging tax
  • The provided sources do not confirm whether Thurston County imposes a lodging tax on STRs or its rate. Investors should verify directly with county finance/tax authorities.
• Other city codes (as adopted in Lacey Municipal Code)
  • Building, residential, mechanical, plumbing, electrical, property maintenance, energy, flood hazard prevention, geologically sensitive areas, and design review requirements apply to all residential uses, including STRs where relevant.
  • For large multifamily complexes, additional security and design standards apply; address visibility, site maps, and “No Trespassing” signage are required.
  • Accessory dwelling units (ADUs) are subject to specific design and parking guidance; ADU rules alone do not govern STRs but may inform site planning and parking considerations.

Contacts: Local authority in charge of STRs

• City of Lacey — Community & Economic Development (Permitting, Zoning, Rental Registration)
  • Phone: 360-491-5642
  • Email: build@cityoflacey.org
  • Hours: Monday–Friday, 9:00 AM–5:00 PM
  • Address: City Hall (use department page for exact location)
• Code Compliance Officer (Residential Rental Registration Program)
  • Kevin Zwink
  • Phone: 360-438-2695
  • Email: kevin.zwink@cityoflacey.org
• Department of Revenue (State — platform registration and tax)
  • General information: Washington State Department of Revenue
  • Phone: 360-534-1500 (DOR main line; check DOR website for STR/platform-specific contacts)

Source links

• City of Lacey — Residential Rental Registration Program: cityoflacey.org/rental-registration-program/
• Lacey Municipal Code — Chapter 14.02 Residential Rental Registration Program: lacey.municipal.codes/LMC/14.02
• City of Lacey — Building & Zoning Resources: cityoflacey.org/resources/building-zoning/
• RCW 64.37 — Short-Term Rentals (State of Washington): app.leg.wa.gov/RCW/default.aspx?cite=64.37&full=true
• City of Lacey — Lacey Municipal Code (general reference): lacey.municipal.codes/

Note: The City of Lacey does not publish a dedicated short‑term rental permit or license for single-family or small multifamily STRs. Operators must meet the state framework and the city’s rental registration program if the property is part of a complex with five or more units. Always confirm zoning and tax obligations with the city and county before listing.