Executive Summary: STR Allowance Status

Short-term rentals are allowed in Peshastin, WA, but with significant restrictions. Specifically:

• Peshastin Urban Growth Area (UGA): New short-term rentals are prohibited in residential zones. STRs are only permitted in commercial zones (Downtown Commercial C-D and Highway Commercial C-H) within the Peshastin UGA.
• Existing non-conforming STRs: Properties that were legally operating before the August 25, 2020 moratorium may continue as non-conforming uses, subject to specific requirements and restrictions.
• Maximum STR Share: Peshastin UGA has a 0% maximum share of STRs for new Tier 2 and Tier 3 rentals in residential zones, effectively banning new STRs in residential areas.

Starting a Short-Term Rental Business in Peshastin

Prerequisites for New STRs in Peshastin

1. Location Requirements: Your property must be located in a commercial zone within the Peshastin UGA (C-D or C-H zones)
2. Zoning Compliance: Confirm your property's current zoning designation allows STR use
3. STR Tier Classification: Determine which tier applies to your planned operation

STR Tier Classifications

• Tier 1: Owner-occupied STRs (owner present during rentals)
• Tier 2: Non-owner occupied STRs
• Tier 3: STRs with larger occupancy (over 12 guests) requiring highway access

Application Process Timeline

1. Registration Phase: Complete provisional self-certification registration
2. Permit Application: Submit full STR permit application
3. Inspection: Complete required fire, safety, and health inspections
4. Annual Renewal: Maintain current permit status with annual renewals

Required Documents, Permits, and Licenses

Essential Permits

• Short-Term Rental Administrative Land Use Permit (CCC 11.88.290)
• Conditional Use Permit (CUP) - Required for Tier 3 STRs
• Fire Marshal Inspection - Required for all new permits
• Health District Approval - For wastewater system compliance

Required Documentation

• Property Management Plan including:
  • Floor plan and site map with escape routes
  • Contact information for qualified person (responds within 60 minutes)
  • Fire protection plan (Ready Set Go program compliance)
  • Consumer Safety compliance (RCW 64.37.030)
• Liability Insurance consistent with RCW 64.37.050
• Business Registration and tax compliance
• Telecommunications: Operable landline or VOIP telephone installed

Annual Requirements

• Annual Permit Renewal (expires December 31 each year)
• Self-certification checklist for health and safety
• Property Management Plan updates
• Advertising compliance (permit number in all advertisements)

Specific Regulations for Peshastin, Chelan County, and Washington State

Peshastin Urban Growth Area (UGA) Specific Rules

Zoning Allowances

• R-1, R-2, R-3 (Residential Zones): STRs prohibited for new operations
• C-D (Downtown Commercial): Permitted for Tier 1 and Tier 2 STRs; Tier 3 STRs permitted
• C-H (Highway Commercial): Permitted for Tier 1 and Tier 2 STRs; Tier 3 STRs permitted
• Industrial Zones: STRs not permitted

Existing Non-Conforming STRs

Properties that were operating before August 25, 2020 may continue if they:

• Paid required taxes (RCW 64.37) from July 28, 2019 to August 25, 2020
• Complete compliance requirements within specified timeframes
• Obtain required permits by December 31, 2022
• Maintain liability insurance

County-Wide STR Regulations

Operational Standards

• Occupancy Limits:
  • Tier 1: Maximum 8 persons including children
  • Tier 2: Maximum 12 persons including children
  • Tier 3: Maximum 16 persons including children
• Parking: 1 space per bedroom plus 1 space for on-site manager
• Noise Compliance: Must comply with CCC Chapter 7.35
• Garbage Management: Year-round service with proper containers
• Qualified Person: Must respond to complaints within 60 minutes

Distance Requirements

• Minimum Separation: 200 feet between new Tier 2 STRs in residential zones
• Highway Access: Tier 3 STRs must have direct highway access

Washington State Requirements

• Tax Compliance: State hotel/motel taxes per Department of Revenue
• Consumer Safety: RCW 64.37.030 requirements
• Liability Insurance: RCW 64.37.050 minimum coverage

Permit Fees (Current as of 2021)

Application Fees

• Tier 1 STR Permit: $500 (first permit), $500 (annual renewal)
• Tier 2 STR Permit: $500-$900 depending on inspection requirements
• Tier 3 STR Permit: $2,270 (includes CUP application), $750 (annual renewal)
• Provisional Registration: $125-$187.50 (2021 provisional)

Additional Fees

• Fire Marshal Inspection: $100
• Late Registration: Double applicable fees
• CUP Processing: $1,520

Contact Information

Primary Authority

Chelan County Community Development Department

• Phone: (509) 667-6220
• Email: Available through department website
• Website: Chelan County Community Development
• Address: Chelan County Courthouse, 401 Washington St, Wenatchee, WA 98801

Key Departments

• Fire Marshal: Contact through Community Development for inspections
• Chelan-Douglas Health District: (509) 886-6400 - For wastewater and health compliance
• Code Enforcement: (509) 667-6220 - For violations and compliance issues

Permit Application Process

• Location: Community Development Office
• Application Window: Applications accepted during designated periods (typically June 1-July 31)
• First-Come, First-Served: Application acceptance is on this basis after cap calculations

Important Restrictions and Limitations

Housing Stock Caps

• Peshastin UGA: 0% new STRs allowed in residential zones
• Existing Non-Conforming: May continue but cannot expand or transfer ownership except once within 5 years
• Commercial Zones: Exempt from residential housing stock caps

Transfer Restrictions

• Conforming STRs: Permits non-transferable
• Non-Conforming STRs: Transfer allowed once within 5 years to new owner
• Subsequent Transfers: Property loses non-conforming status

Enforcement

• Operating Without Permit: Immediate cease and desist
• Code Violations: Civil penalties, permit revocation, or criminal prosecution
• Repeat Violations: Double penalty for same violation type within 12 months

Source References

• Chelan County Short-Term Rental Code (Final adopted July 27, 2021): Chelan County STR Code
• Short-Term Rental Moratorium Resolution 2020-86: Moratorium Information

Disclaimer: This guide is based on regulations effective as of September 2021. STR regulations can change. Investors should verify current requirements with Chelan County Community Development Department before making investment decisions.