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

Yes, short-term rentals are currently allowed in Sequim, WA, but with important caveats. As of April 2022, the City of Sequim does not formally regulate short-term rentals (STRs). However, the regulatory landscape is evolving and there has been enforcement activity that STR operators must be aware of. Some hosts have received letters from the city instructing them to cease operations, particularly in R4-8 residential zones, based on interpretations of existing zoning codes regarding "transient accommodations."

How to Start a Short-Term Rental Business in Sequim

Step 1: Verify Zoning Compliance

Before starting your STR business, confirm that your property is in an allowable zone and meets all current interpretations of city code.

Step 2: Obtain Required Permits and Licenses

• Secure a City of Sequim business license for short-term rental operations
• Contact City Hall at (360) 683-4139 for specific licensing requirements
• Ensure compliance with any county-level requirements

Step 3: Set Up Tax Collection

• Register to collect and remit the local lodging tax (currently 2% of total booking cost)
• Comply with all state and federal tax obligations as required under RCW 64.37

Step 4: Ensure Property Compliance

• Verify maximum guest occupancy limits for your property
• Implement noise management protocols
• Ensure adequate parking is available
• Establish proper waste management procedures

Step 5: Monitor Regulatory Changes

Given the evolving regulatory environment, regularly check with city authorities for updates to STR regulations.

Required Documents, Permits, Licenses, and Guidelines

City-Level Requirements:

• Business License: Required from the City of Sequim
• Zoning Compliance: Must operate in permitted zones only
• Tax Registration: For collecting local lodging tax

State-Level Requirements (RCW 64.37):

• Tax Compliance: Payment of all applicable local, state, and federal taxes
• Occupancy and Lodging Taxes: Must be collected and remitted
• Consumer Safety Standards: As outlined in state regulations
• Liability Insurance: Required coverage for STR operations

Operational Guidelines:

• Guest Limits: Adhere to maximum occupancy restrictions
• Noise Control: Implement and enforce quiet hours
• Parking: Provide adequate parking for guests
• Waste Management: Ensure proper trash and recycling protocols

Specific Regulations for Short-Term Rentals

City of Sequim Regulations (SMC 18.20.020):

Prohibited Locations:

• Accessory Dwelling Units (ADUs)
• Retail business storage spaces
• Travel trailers or RVs
• Commercial/warehouse zones

Permitted Zones:

• Single-family residence R4-8 zones (though enforcement interpretation varies)
• Downtown areas
• Lifestyle zones
• Planned resort communities

Current Enforcement Status:

• The city does not actively regulate STRs but responds to complaints
• Some hosts in R4-8 zones have received cease-and-desist letters
• Enforcement appears to be based on interpretation of "transient accommodation" prohibitions
• The City Council last discussed STR regulation in 2019 and directed staff to informally monitor the market

State Regulations (RCW 64.37):

• STRs are defined as lodging use for fewer than 30 consecutive nights
• Not classified as commercial use if no other business activities occur on-site
• Operators must pay all applicable taxes
• Consumer safety and liability insurance requirements apply
• Platform regulations for booking services

County Regulations:

Clallam County has vacation rental standards under Chapter 33.51 of the county code, which may apply to properties in unincorporated areas or specific situations within city limits.

Contact Information

City of Sequim:

• Phone: (360) 683-4139
• Address: 690 S. Ennis Street, Sequim, WA 98382
• Website: www.sequimwa.gov
• Planning Department: Contact for zoning and regulatory questions

Clallam County Department of Community Development:

• Phone: (360) 417-2500
• Address: 223 E. 4th Street, Port Angeles, WA 98362
• Website: www.clallam.net

Additional Resources:

• Sequim Chamber of Commerce: For business support and networking
• Facebook Group: "Port Angeles STR Hosts United" for peer support
• Facebook Group: "Airbnb Professional Hosts Washington" for state-wide discussions

Source Links

• City of Sequim STR Fact Sheet - Official city document outlining current STR status
• Clallam County Vacation Rental Code - County-level vacation rental regulations
• STR Professional Map - Sequim - Third-party analysis of local regulations
• GoSummer Sequim Guide - Market overview and management insights
• Airbnb Community Discussion - Host experiences and regulatory challenges

Important Disclaimers and Recommendations

Regulatory Uncertainty: The STR regulatory environment in Sequim is currently in flux. Some hosts have received enforcement letters while the city maintains it doesn't formally regulate STRs. This creates uncertainty that prospective operators must carefully consider.

Due Diligence Required: Before investing in or operating an STR in Sequim:

1. Consult directly with the City Planning Department
2. Review your specific property's zoning status
3. Consider legal consultation given the regulatory uncertainty
4. Stay connected with local host groups for updates
5. Monitor City Council meetings for potential regulatory changes

Professional Advice: Given the complex and evolving regulatory landscape, consider consulting with local attorneys specializing in land use or short-term rental operations before making significant investments in Sequim STR properties.

The information provided reflects the current understanding of STR regulations in Sequim as of 2024, but regulations can change rapidly. Always verify current requirements directly with local authorities before establishing or continuing short-term rental operations.