Overview: Are Short-Term Rentals Allowed in Sequim?

Explicit answer: Yes, short-term rentals (STRs) are allowed in Sequim, WA, with important caveats. The City has historically treated STRs as a residential use when no other commercial activity occurs on-site and has not adopted formal STR regulations as of April 2022. However, enforcement has been inconsistent. Hosts have occasionally received letters (primarily in R4‑8 residential areas) interpreting certain zoning provisions against “transient accommodations,” while the City’s official fact sheet also lists R4‑8 as a permitted zone for single‑family residences and does not impose time limits on such rentals. The City Council’s last formal discussion was in 2019, when it directed staff to monitor the market informally rather than regulate. The overall environment is permissive but volatile, with zoning enforcement occasionally impacting operations.

How to Start a Short-Term Rental Business in Sequim

• Confirm zoning compliance

  • Verify that your property is located in a permitted zone for STRs (see Regulatory Details).
  • Note that ADUs (accessory dwelling units) are prohibited from short‑term rental use in Sequim (see SEPA record 201906229 under Regulatory Details).

• Comply with state requirements

  • Follow RCW 64.37 (Washington’s STR law) for consumer safety, liability insurance, and platform obligations (e.g., registration numbers must be displayed on listings).

• Set up taxes

  • Collect and remit all applicable state lodging taxes, and any county lodging tax that applies to your location. There is no evidence in the provided documents of a separate City of Sequim lodging tax; if other sources mention a city lodging tax, treat it as unconfirmed unless validated by the City Finance/Revenue Department.

• Establish operational standards

  • Implement quiet hours and a noise policy, manage parking, arrange garbage and recycling service, and set clear guest rules.

• Maintain documentation

  • Keep insurance proof, tax remittance records, guest logs/contracts, and platform registration numbers (RCW 64.37).

• Monitor the regulatory environment

  • Follow City Council meetings and planning updates; enforcement interpretations have changed, and the City may adopt new rules in the future.

Required Documents, Permits, Licenses, and Guidelines

• State (Washington) requirements:

  • Registration number (from Washington State Department of Revenue) displayed on STR platform listings.
  • Liability insurance appropriate for lodging use (RCW 64.37).
  • Compliance with consumer safety provisions (RCW 64.37).
  • Collection and remittance of lodging taxes (state and any applicable county tax).

• City of Sequim:

  • No city‑specific STR business license or permit was required as of April 2022; the City does not formally regulate STRs. If you see a “city business license” claim elsewhere, treat it as unconfirmed for STRs unless the City provides written confirmation.

• Operational guidelines (best practices):

  • Enforce occupancy limits consistent with fire safety and zoning.
  • Maintain waste management arrangements and provide clear recycling/composting rules.
  • Establish parking plans and quiet hours to prevent neighborhood complaints.

Specific Regulations for Short-Term Rentals

City of Sequim

• Current status: The City does not regulate STRs and treats them as residential use when no other commercial activity occurs on‑site (as of April 2022).
• Zoning allowances and prohibitions:
  • Permitted zones for STRs (single‑family residence): R4‑8; Downtown; Lifestyle; Planned Resort Community.
  • Prohibited: Accessory Dwelling Units (ADUs); commercial/warehouse zones; travel trailers/RVs; retail business space designated for storage.
• ADU prohibition: City documents specifically prohibit ADUs from being used as short‑term rentals (see SEPA record 201906229).
• Enforcement notes: Some hosts in R4‑8 have received letters interpreting zoning to disallow STRs; yet the City’s fact sheet lists R4‑8 as a permitted zone. The City has not adopted formal STR rules and directs complaints to police if guests create disturbances.

County (Clallam County)

• Clallam County Code Chapter 33.51 governs “Vacation Rentals,” primarily in unincorporated areas of the county, not within Sequim’s city limits.
• Chapter 33.51 defines “vacation rental” and establishes standards for parking, occupancy, and operations.
• If your property is in unincorporated Clallam County (outside Sequim city limits), you must comply with County Chapter 33.51 requirements.

State (Washington)

• RCW 64.37 defines short‑term rentals, establishes consumer safety and liability requirements, and mandates collection/remittance of lodging taxes.
• STRs are not considered a commercial use if no other commercial activity occurs on the property.
• Operators must obtain and display a registration number and collect all applicable taxes.

Contact Information

• City of Sequim (general)

  • Phone: (360) 683‑4139
  • Address: 690 S. Ennis Street, Sequim, WA 98382
  • Website: sequimwa.gov
  • Planning Department: zoning compliance questions

• Clallam County Department of Community Development (for county vacation rental standards in unincorporated areas)

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

Source Links

• City of Sequim Short-Term Rentals Fact Sheet (April 8, 2022): sequimwa.gov/DocumentCenter/View/19739
• Clallam County Code Chapter 33.51: Vacation Rentals: clallam.county.codes/CCC/33.51
• Washington State Department of Ecology SEPA Register – ADU Amendment: apps.ecology.wa.gov/separ/Main/SEPA/Record.aspx?SEPANumber=201906229
• Airbnb Community Thread – Sequim STR Enforcement Reports (Oct 2021): community.withairbnb.com/t5/Help-with-your-business/Airbnb-ban-in-Sequim-Washington/td-p/1519923

Important: Regulations evolve. Verify current requirements with the City of Sequim and Clallam County before launching or expanding operations.