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

YES, short-term rentals are explicitly allowed in Port Angeles, WA. The City of Port Angeles permits short-term rental operations within city limits under specific regulations that took effect July 1, 2024. The city has established a comprehensive licensing framework for three categories of short-term lodging: Bed and Breakfasts (BNB), Type I Short-Term Rentals, and Type II Short-Term Rentals.

How to Start a Short-Term Rental Business in Port Angeles

Step-by-Step Process

1. Property Registration: Contact the Department of Community & Economic Development at (360) 417-4STL (4785) or STL@cityofpa.us to register your property in the licensing portal system.

2. Determine Your License Type:

   • Type I STR: Owner/lessee's principal residence where you're personally present during rentals
   • Type II STR: Not your principal residence (citywide cap of 200 licenses)
   • Bed & Breakfast: Onsite resident operator providing breakfast service

3. Complete Application: Submit application through the online licensing portal within 90 calendar days of initiation.

4. Pay License Fee: Fees vary by license type (see fee schedule below).

5. Schedule and Pass Fire-Life Safety Inspection: Required for STRs, scheduled after application completion and fee payment.

6. Provide Insurance Proof: Minimum $1 million general liability insurance required.

7. Sign Good Neighbor Policy: Must be posted visibly inside the unit upon approval.

Application Timeline Requirements

• 90 calendar days to complete the entire application process
• Applications not completed within 90 days will be discontinued
• If fees have been processed, a prorated refund will be issued
• Licenses awarded on first-completed basis until Type II cap (200) is reached

Required Documents, Permits, Licenses, and Guidelines

Business License Application Requirements

All Applicants Must Provide:

1. Complete application for City short-term rental business license
2. Site plan to scale showing entire dwelling unit, other structures, parking, entrance/exit locations
3. Floor plan to scale including structure dimensions, square footage, smoke/CO detector locations, fire extinguisher locations, ingress/egress areas with dimensions, all labeled rooms, and clearly marked sleeping accommodations
4. Proof of General Liability Insurance ($1,000,000 minimum) or insurance estimate for new STRs
5. State of Washington Master Business License
6. Proof of Ownership (Articles of Incorporation, recorded deed, property tax record)
7. Signed Good Neighbor Policy (must be posted inside unit upon approval)

Renewal Applications Must Also Include:

• Summary of booking history (nights booked, average price charged)
• Evidence of lodging taxes paid to Washington State
• Documentation of full compliance with license requirements and inspections
• Attestation and printouts of advertisements from preceding licensing period

Permits and Inspections

• Fire Life-Safety Inspection: Required for all STRs, conducted by City of Port Angeles
• State and County Health Inspections: Required for Bed & Breakfasts from Washington State Department of Health and Clallam County Department of Health

Platform Licensing

Short-term rentals must use platforms licensed by the City of Port Angeles. Platforms like Airbnb and VRBO must also obtain city operating licenses.

Specific Regulations for Short-Term Rentals

Type I Short-Term Rentals

• Definition: Dwelling that is owner's or designated lessee's principal residence
• Requirements:
  • Rental rooms located within same structure as primary residence
  • Owner or designated lessee personally present during rental period
• Cap: No citywide restrictions on number
• License Fee: $855.90 (3-year license)

Type II Short-Term Rentals

• Definition: Dwelling unit that is not owner's or designated lessee's principal residence
• Cap: 200 licenses citywide
• Restrictions:
  • One unit per license
  • One license per owner
  • One license per marital community
  • One license per parcel
• License Fee: $1,426.50 (3-year license)

Bed and Breakfast

• Definition: Lodging where rooms are provided by onsite resident operator/owner for fee by prearrangement, with breakfast/light snacks served
• License Fee: $576.60 (3-year license)
• Additional Requirements: Must post license, good neighbor policy, and emergency contact information in each guest room

Zoning and Location Restrictions

• Type I STRs: No location-based restrictions
• Type II STRs: No location-based restrictions (subject to cap)
• Historical Context: Previous 2017 ordinance allowed STRs in Residential Medium Density (RMD), Residential High Density (RHD), and Commercial Zones (except Commercial Office requiring Conditional Use Permit)

Enforcement and Penalties

Violations:

• 1st Violation: $500.00
• 2nd Violation: $1,000.00
• 3rd+ Violations: $3,000.00

Daily Fines (after notice of violation and order to cease):

• First 14 days: $500.00 per day
• After 14 days: $1,000.00 per day

License Revocation: Upon third violation within 36 months, license revoked and cannot be renewed; owner prohibited from applying for any city STR license for two years.

Special Provisions

Previously Compliant Owners: August 2024 ordinance allows owners who were compliant under the 2017 code and 2023 moratorium to apply for multiple Type II licenses if they:

• Operated prior to July 1, 2024
• Remained under same ownership as of July 1, 2024
• Were fully compliant with Ordinance 3577 and 2023 moratorium

Limited application window: August 26 - September 6, 2024.

State-Level Regulations (Washington)

Insurance Requirements

• RCW 64.37.050: Proof of short-term rental liability insurance required
• Platform-provided insurance only covers bookings through that specific platform
• General liability insurance required if advertising on multiple platforms or accepting direct bookings

Lodging Taxes

• Must comply with Washington State lodging tax requirements
• Evidence of payment required for license renewal
• Printouts from licensed platforms (Airbnb, VRBO) acceptable as proof

Contact Information

Primary Contacts

Short-Term Lodging Administrator

• Phone: (360) 417-4STL (4785)
• Email: STL@cityofpa.us
• Department: Community & Economic Development

Physical Address 321 East 5th Street Port Angeles, WA 98362

General City Information

• Phone: (360) 457-0411
• Email: cityclerk@cityofpa.us
• Website: www.cityofpa.us

Key Resources

• Online Licensing Portal: www.cityofpa.us/ShortTermLodging
• Fire Life-Safety Inspection Scheduling: Available through city website after application completion
• Municipal Code: library.municode.com/wa/port_angeles/codes/code_of_ordinances

Source Links

1. City of Port Angeles Short-Term Lodging Main Page: cityofpa.us/1290/Short-Term-Lodging
2. Short-Term Lodging FAQ: cityofpa.us/DocumentCenter/View/13955/Short-Term-Lodging-Frequently-Asked-Questions-FAQ
3. Airbnb Help Article: www.airbnb.ca/help/article/3750
4. Peninsula Daily News - STR Class Change: www.peninsuladailynews.com/news/str-class-change-forces-building-updates/
5. City Council Ordinance Adjustment: wa-portangeles.civicplus.com/CivicAlerts.asp?AID=1662&ARC=3016
6. Peninsula Daily News - Council Clarification: www.peninsuladailynews.com/news/council-clarifies-port-angeles-short-term-rental-policy/
7. Port Angeles Municipal Code Chapter 17.23: library.municode.com/wa/port_angeles/codes/code_of_ordinances?nodeId=TIT17ZO_CH17.23SHRMRE
8. Port Angeles Municipal Code Chapter 17.24: library.municode.com/wa/port_angeles/codes/code_of_ordinances?nodeId=TIT17ZO_CH17.24BEBR

This guide is current as of the provided content. Investors should verify current regulations with the City of Port Angeles before proceeding with any STR operations.