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

Yes, short-term rentals are explicitly allowed in Lakewood, WA. Short-term rentals (STRs) are defined as units rented for less than 30 consecutive calendar days and are permitted in most land use zones throughout the city. However, STRs are prohibited in Commercial Zones (C1-C3), Industrial Zones (IBP, I1, I2), Public and Semi-Public Institutional zones, and Open Space Recreation zones (OSR1 and OSR2).

This makes Lakewood, WA a permissible market for STR investment, unlike some jurisdictions that have implemented complete bans on short-term rentals.

How to Start a Short-Term Rental Business in Lakewood

Starting an STR in Lakewood involves a structured regulatory process designed to ensure safety and community compatibility:

Step 1: Verify Zoning Compliance

Before proceeding, confirm your property is located in an approved zone. STRs are permitted in:

• Residential zones (R1-R4)
• Multi-family zones (MR1, MR2, MF1-MF3)
• Mixed residential areas (ARC)
• Neighborhood commercial zones (NC1, NC2)
• Transit-oriented development (TOC)
• Central business district (CBD)

Step 2: Secure Required Permits and Licenses

STRs are regulated as a Type II administrative decision by the Planning and Public Works Department. This process requires public noticing but results in an administrative decision rather than a public hearing.

Step 3: Complete Inspection Requirements

All STRs must undergo inspection by both the City and Fire District to ensure compliance with building and fire code requirements. Deficiencies must be corrected before the structure can be rented.

Step 4: Implement Operational Requirements

Install required postings, ensure 24-hour contact availability, and establish good neighbor compliance procedures.

Required Documents, Permits, and Licenses

Primary Permits and Licenses

1. STR Permit (Type II administrative procedure)
2. City Business License (mandatory, must be renewed annually)
3. Rental Housing Safety Program (RHSP) Registration

Required Application Documentation

• Completed STR permit application
• Verified statement of property ownership or written consent from all owners
• Written description of proposed STR operation
• Location description for STR operation
• Number of off-street parking spaces provided for guest use
• Completed good neighbor policy form
• STR permit fee (per City Council fee schedule)

Annual Renewal Requirements

• Annual business license renewal application
• Signed and notarized affidavit confirming compliance with general regulations (form approved by Director and City Attorney)

Specific Regulations for Lakewood, WA

Zoning and Location Requirements

• STRs permitted in most residential and mixed-use zones
• Prohibited in commercial, industrial, and certain institutional zones
• Must comply with all zoning district performance standards

Safety and Inspection Requirements

• Initial Inspection: Free inspection upon registration with RHSP
• Ongoing Inspections: Properties must be inspected once every five years
• Re-inspection Fees: Apply if initial inspection fails
• Code Compliance: Must meet all building and fire code requirements

Operational Requirements

Contact and Availability

• STR permittee or designee must be available to respond within one hour to complaints, guest concerns, and inquiries
• 24-hour contact information must be posted in a visible location within the main living space
• Contact information must be clearly displayed in all advertising and listings

Good Neighbor Policy Requirements

The Good Neighbor Policy must be posted in a visible location within the main living space and cover:

• 24-hour contact information and emergency procedures
• General respect for neighbors and property
• Noise restrictions and quiet hours
• Maintenance and garbage disposal procedures
• Pet policies and leash laws
• Parking and traffic safety requirements
• Event restrictions (no banquets, parties, or commercial gatherings)
• Tenant responsibility and compliance enforcement

Parking Requirements

• All off-street parking required for the primary use of the site must be made available to guests
• On- or off-premises signs advertising the STR are not permitted
• Guests must park responsibly and utilize designated off-street spaces

Occupancy and Use Restrictions

• Maximum occupancy regulated per Lakewood Municipal Code Title 15 (Buildings and Construction)
• No commercial gatherings or events for direct or indirect compensation
• Non-commercial gatherings allowed if they don't infringe on neighbors' peaceful enjoyment
• STRs must not manifest characteristics of a business incompatible with residential enjoyment

Advertising and Listing Requirements

• STR permit number must be posted on every listing advertising the STR
• City of Lakewood business license must be posted on every listing
• This includes all online platforms such as Airbnb, VRBO, and others

Tax and Fee Obligations

• Transient lodging tax collection and remittance required
• Fee adjustments for STRs planned in the 2025-2026 City Master Fee schedule
• All local, state, and federal tax requirements must be met

ADU-Specific Considerations

The city has been considering allowing STRs in Accessory Dwelling Units (ADUs), with the Planning Commission recommending approval in 2024. This would provide additional investment opportunities but with specific requirements to be determined.

State-Level Washington Regulations

While Lakewood provides the primary regulatory framework, Washington State has enacted legislation supporting ADU development and regulating STRs:

• House Bill 1337: Requires cities to allow ADUs in single-family residential zones and addresses parking restrictions near transit
• State law alignment: Lakewood is updating STR definitions and regulations to align with state requirements

Contact Information for Local Authorities

Planning and Public Works Department

Address: 6000 Main St SW, Lakewood, WA 98499
Phone: (253) 512-2261
Office Hours: Tuesday-Thursday, 9am-12pm (Planner of the Day)
Website: www.cityoflakewood.us/planning-and-public-works

Specific Contact Emails

• Permit Center: permits@cityoflakewood.us
• Rental Housing Safety Program: rentals@cityoflakewood.us
• Business Licensing: businesslicensing@cityoflakewood.us
• Engineering: publicworksengineering@cityoflakewood.us
• Planning: planning@cityoflakewood.us

For RHSP Inspection Scheduling

• Email: rentals@cityoflakewood.us
• Link: Available through city website

City Phone Main Line

Phone: (253) 589-2489

Links to Source Pages

1. Lakewood Planning Division STR Brochure: cityoflakewood.us/wp-content/uploads/2025/02/P4-Short-Term-Rentals-Pro-Tip.pdf
2. Lakewood Municipal Code - STR Regulations: lakewood.municipal.codes/LMC/18A.40.090
3. Good Neighbor Policy Worksheet: cityoflakewood.us/wp-content/uploads/2025/01/GOOD-NEIGHBOR-POLICY-WORKSHEET.pdf
4. City Planning Website: www.cityoflakewood.us/planning-and-public-works

Market Context

As of November 2023, Lakewood had 136 active short-term rentals with a median nightly rate of $96. The market has experienced significant growth, with a 45% increase in units within the last calendar year. The presence of Joint Base Lewis-McChord provides steady demand from military personnel and families, while proximity to Mount Rainier National Park and Tacoma attractions adds to the visitor base.

The city's enforcement challenges primarily relate to identifying and monitoring STR compliance, particularly given the dispersed nature of residential STRs. This creates opportunities for compliant operators while highlighting the importance of thorough regulatory adherence.

Compliance Enforcement

Non-compliance with STR regulations is enforced through:

• Lakewood Municipal Code enforcement procedures
• Title 18B (Downtown Development Code) and Title 18C (Station District Development Code) enforcement
• Title 15 (Buildings and Construction) enforcement
• Title 5 (Business Licenses and Regulations) enforcement
• Administrative fines and permit revocation for violations

The city's approach emphasizes voluntary compliance through clear requirements, public noticing procedures, and regular inspection schedules rather than punitive measures for compliant operators.