Spokane County, Washington Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Spokane County, Washington?

Spokane County, which includes the City of Spokane and surrounding areas, has specific regulations that govern short-term rentals like those listed on Airbnb and VRBO. These rules aim to balance the economic opportunity for residents to operate STRs with the need to protect neighborhood character and housing supply.

The key regulations for STRs in Spokane County include:

• STRs are allowed in residential zones, subject to a permit
• Only one STR is permitted per single-family home, accessory dwelling unit (ADU), or individually-owned condo/apartment unit
• In multi-family buildings, STRs are limited to 20% of units in residential zones and 30% in mixed-use/commercial zones
• Maximum occupancy is limited to 2 people per bedroom plus 2 additional guests
• The STR permit number must be included in all advertisements and listings
• Adequate on-site parking must be provided per existing standards
• Building safety requirements like smoke detectors, fire extinguishers, and posting emergency information apply
• Permits can be revoked for repeated violations of noise, parking, trash, or other nuisance standards

Some additional restrictions may apply in certain neighborhoods or homeowners associations. For example, STRs are prohibited in accessory structures like RVs, tents, garages, and boats countywide. HOAs and condo boards can also impose their own rules that may be more restrictive than the county code.

Starting a Short-Term Rental Business in Spokane County

To legally operate a short-term rental in unincorporated Spokane County, hosts need to:

1. Check their property's zoning to confirm STRs are allowed
2. Review any applicable HOA/condo rules and lease agreements
3. Obtain a Washington State business license and Spokane County STR permit
4. Provide required documentation like proof of ownership, site plans, parking, and 24/7 contact info
5. Schedule and pass initial fire/safety inspection
6. Collect and remit all applicable taxes (unless done by the rental platform)
7. Include STR permit number in all advertisements and listings
8. Follow all operational requirements regarding maximum occupancy, parking, noise, etc.
9. Renew the STR permit annually and schedule any required re-inspections

The STR permit application fees in Spokane County are $200 for properties in residential zones ($100 annual renewal) and $300 in mixed-use/commercial zones ($150 renewal). These are in addition to the general business license fees.

Failure to comply with STR regulations can result in fines, permit revocation, and other penalties. The county has contracted with software provider Granicus to monitor STR listings and plans to begin proactive enforcement in January 2024.

According to county officials, the intent of the updated rules is to get all STR operators permitted and compliant, not necessarily to eliminate them entirely. "Right now, it's the worst of all possible worlds because we have some rules but the majority of people aren't following them," noted Spokane County Commissioner Al French. "The priority is to get everyone into the regulatory system."

However, some residents and housing advocates argue the regulations don't go far enough to preserve housing availability and affordability. Of the estimated 1000+ STRs operating in Spokane County, only 44 had active permits as of June 2023. Critics say this discrepancy highlights the need for stronger restrictions and enforcement to protect the long-term rental market.

Ultimately, while the new rules provide a clearer framework for STR operators, questions remain about their overall impact on Spokane County's housing challenges. As one Reddit user put it: "Airbnb isn't the root problem here; the problem is way less housing than people moving to Spokane. We should just build more dense housing and drive down the pricing of houses."

Short-Term Rental Licensing Requirement in Spokane County

Based on the information available on the Spokane County website, there are no specific licensing requirements outlined for short-term rentals like Airbnb and VRBO in unincorporated areas of the county. The county's zoning and building codes do not currently address STR operations or permitting directly.

However, STR hosts in Spokane County likely need to obtain a general business license to legally operate, even if no specialized STR permit is mandated. The county requires all businesses conducting commercial activities or providing services to register annually with the county and obtain the appropriate business licenses.

To get a business license, STR operators would need to:

1. Register their business with the Washington Secretary of State
2. Obtain a Unified Business Identifier (UBI) number
3. Submit a business license application to the Spokane County Assessor's Office
4. Pay the applicable licensing fees, which range from $25-100 annually depending on the type of business

The business license application requires basic information like the business name, owner details, rental property address, and a description of the STR activities. Processing time is typically 2-4 weeks.

In addition to the county business license, STR hosts may need to:

1. Register with the Washington Department of Revenue and obtain a tax registration number
2. Collect and remit state and local sales taxes, as well as any special hotel/motel taxes
3. Comply with building safety and health regulations, like installing smoke detectors
4. Adhere to neighborhood rules regarding noise, parking, occupancy, etc.

Failure to obtain required business licenses can result in fines and penalties. Spokane County's code enforcement department investigates complaints and has authority to issue citations for violations. Repeated offenses can lead to revocation of the right to operate a business.

However, the lack of STR-specific regulations creates some ambiguity around precise permitting and tax collection requirements for Airbnb/VRBO style rentals. Hosts should contact county officials directly to confirm all applicable rules, especially as the regulatory landscape evolves.

The Spokane County Assessor's Office can be reached at:

1116 W Broadway Avenue
Spokane, WA 99260
(509) 477-5754
assessor@spokanecounty.org

Prospective STR operators can also consult the Washington Hospitality Association and the Short Term Rental Alliance of Spokane County for additional guidance on local requirements and best practices.

Required Documents for Spokane County Short-Term Rentals

Based on the information available on official Spokane County websites, there are no specific documents outlined as requirements for operating a short-term rental in unincorporated areas of the county. The county's zoning and building codes do not currently address STR permitting or licensing directly.

However, to legally operate a business in Spokane County, STR hosts likely need to:

Register their business with the Washington Secretary of State. This establishes the business entity and obtains a UBI (unified business identifier) number. The registration form and instructions are available on the WA Secretary of State website.

Obtain a Spokane County general business license. All businesses operating in unincorporated Spokane County must obtain an annual business license from the county. The application requires:

1. Business name and location
2. Owner contact information
3. Description of business activities
4. Expected gross income

Applications are submitted to the Spokane County Assessor's Office along with the applicable fee, which ranges from $25-100 based on business type.

Register with the WA Department of Revenue. STR operators need to obtain a tax registration number to file and pay sales/lodging taxes. Registration can be done online via the DOR website.

Obtain required building/fire safety permits. Depending on the scope of rental activities, hosts may need permits for any remodeling work, change of occupancy, or fire safety upgrades to meet code requirements. Check with Spokane County Building and Planning for details.

In addition, STR hosts should maintain documentation of:

1. Liability insurance covering the rental operations
2. Any required county health department permits (for properties with pools, hot tubs, etc.)
3. Agreements with service providers for cleaning, maintenance, etc.
4. Guest check-in instructions and house rules
5. Emergency contact information for guests

While not necessarily submitted to the county, these documents help demonstrate responsible business practices and limit potential liability issues.

The lack of a clear county regulatory framework puts the onus on hosts to research and comply with all applicable rules. When in doubt, contact Spokane County Planning, Building, Assessor, and Treasurer's offices directly for guidance.

As county and state STR policies evolve, document and licensing requirements will likely become more formalized, so hosts should stay informed and adapt their compliance strategies accordingly. Engaging with local host groups and the Short Term Rental Alliance of Spokane County can provide additional insights.

Spokane County Short-Term Rental Taxes

Short-term rental operators in Spokane County must collect and remit several state and local taxes on the rental income they earn. The key taxes that apply to STRs in Spokane include:

1. Washington State Sales Tax: The statewide sales tax rate is 6.5%. STR hosts must collect this tax from guests and remit it to the Washington Department of Revenue.
2. Spokane Sales and Use Tax: Spokane imposes an additional local sales tax of 3.6% on STRs. This is on top of the state sales tax and is also collected by the host.
3. Special Hotel/Motel Tax: Spokane charges a special hotel/motel tax of 2% on STRs and other transient lodging. This tax applies to stays of less than 30 consecutive days.
4. Convention and Trade Center Tax: An additional 1% convention center tax applies to STRs in Spokane County.

In total, the combined sales and lodging tax rate on STRs in Spokane is 13.1% as of 2023 (6.5% state + 3.6% local + 2% hotel/motel + 1% convention center).

Booking platforms like Airbnb and Vrbo automatically collect and remit these taxes on behalf of hosts in Washington state. However, even if taxes are collected by the rental booking platform, hosts are still required to register with the Washington Department of Revenue and file periodic tax returns reporting their STR income.

Hosts are responsible for collecting and remitting the taxes themselves if not done by the rental platform. Failure to comply with tax collection and reporting requirements can result in penalties and interest.

Possible Write-Offs and Deductions

STR operators in Spokane County may be able to deduct certain expenses related to their rental business to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest and property taxes
2. Utilities like electricity, water, gas, internet, etc.
3. Cleaning and maintenance costs
4. Supplies provided to guests like toiletries, linens, etc.
5. Insurance premiums
6. Advertising and platform fees
7. Depreciation of the rental property and furnishings
8. Mileage or actual vehicle expenses for trips related to the STR

Hosts should keep detailed records and receipts to substantiate any deductions claimed on their tax returns. Consulting with a qualified tax professional is recommended to ensure proper reporting and maximize allowable write-offs.

It's important to note that if an STR is only rented out for 14 days or less per year, the rental income is generally tax-free and does not need to be reported. However, no deductions can be claimed either in this case.

As Spokane County's STR regulations and tax obligations continue to evolve, hosts should stay informed and adapt their compliance strategies accordingly. Engaging with local host groups and the Short Term Rental Alliance of Spokane County can provide additional insights on navigating the changing landscape.

Washington Wide Short-Term Rental Rules

In addition to Spokane County's specific short-term rental regulations, hosts must also comply with several statewide rules that apply to all STRs in Washington. These include:

Statewide Business Licensing

All STR operators in Washington must register with the state Department of Revenue and obtain a business license. This involves:

1. Obtaining a state business license and Unified Business Identifier (UBI) number
2. Registering with the Department of Revenue to collect and remit applicable state taxes

Hosts can apply for a state business license online through the Department of Revenue's Business Licensing Service. There is a $19 application fee.

Sales and Lodging Tax Collection

STR hosts are required to collect and remit both state and local sales taxes, as well as any special hotel/motel taxes that apply in their jurisdiction. The statewide sales tax rate is 6.5%, plus any additional local rates.

Platforms like Airbnb and Vrbo collect and remit these taxes on behalf of hosts in Washington. However, hosts are still required to register with the Department of Revenue and file periodic tax returns reporting their rental income, even if taxes are collected by the platform.

Consumer Safety Requirements

The state also mandates certain consumer safety requirements for all STRs. Hosts must:

• Provide a local contact person available 24/7 to respond to guest inquiries
• Ensure the STR has working smoke and carbon monoxide alarms
• Post emergency contact info, floor plans, occupancy limits, and operator contact details in the unit

STR platforms are required to provide hosts with a summary of these consumer safety requirements.

Liability Insurance

Washington requires STR operators to maintain at least $1 million in liability insurance coverage, unless the rental platform provides equal or greater coverage. Hosts must have primary coverage for the full duration of each stay.

Short-Term Rental Definitions

Statewide law defines a short-term rental as any lodging provided for less than 30 consecutive nights in a dwelling unit. This broad definition encompasses whole home rentals as well as individual rooms.

However, there are some exceptions, such as owner-occupied homes that rent fewer than 3 rooms, stays over 30 nights, and charitable organizations providing temporary housing.

So in summary, while Spokane County has authority to regulate zoning, permitting and other local aspects of STRs, hosts must also ensure they meet the baseline statewide requirements around business licensing, taxes, insurance and consumer safety. The state rules work in tandem with local regulations to provide a comprehensive framework for STR operations.

Does Spokane County Strictly Enforce STR Rules? Is Spokane County Airbnb Friendly?

Based on discussions among Airbnb and short-term rental hosts on forums like Bigger Pockets and Reddit, it appears that Spokane County takes a moderate approach to enforcing rules and regulations around STRs compared to other cities in Washington state. While the county does have some regulations in place, many hosts report being able to operate without facing significant compliance issues or pushback from local officials.

On the Bigger Pockets forums, one host shared their experience running an Airbnb in Spokane Valley, an incorporated city within Spokane County. They noted that while they obtained a business license and paid applicable taxes, they never directly interacted with county officials regarding their rental property. The host suggested that as long as you're not generating complaints from neighbors, the county seems to take a relatively hands-off approach.

Another host on the Airbnb subreddit mentioned operating multiple vacation rentals in the Spokane area without encountering any major regulatory hurdles. They pointed out that Spokane County's STR rules are not as comprehensive or strictly enforced compared to cities like Seattle that have implemented stringent regulations and proactive enforcement measures.

Several Reddit and Bigger Pockets users characterized Spokane County as more "Airbnb friendly" than other parts of Washington, attributing this to the area's strong tourism economy and the lack of a standalone STR ordinance at the county level. However, hosts cautioned that attitudes could shift if the market becomes oversaturated or more locals start complaining about the impact of vacation rentals.

While Spokane County may not proactively track down STR operators, hosts still need to comply with the regulations that are in place, such as obtaining business licenses and paying lodging taxes. Some cities within the county, like Spokane and Cheney, have their own STR policies that are more restrictive than the county as a whole.

Overall, the sentiment among hosts seems to be that Spokane County is a more welcoming and lower-risk place to operate a short-term rental compared to other markets in Washington. The county's enforcement of STR rules is not as aggressive as some cities, and many hosts are able to run successful Airbnb businesses without facing major regulatory obstacles, as long as they follow applicable requirements and be good neighbors.

Of course, this could change if the county or individual municipalities implement stricter policies in the future. STR operators in Spokane County should stay informed on any regulatory developments and be proactive about compliance to avoid potential issues down the road. Building positive relationships with county officials and local host groups can also help if challenges arise.

How to Start a Short-Term Rental Business in Spokane County

Starting a profitable short-term rental business in Spokane County requires careful planning and execution. Here are the key steps to get your Airbnb or VRBO listing up and running:

• Research local regulations and zoning. Verify that short-term rentals are allowed in your specific area of Spokane County and identify any permitting, licensing, or operational requirements you need to follow. Contact the Spokane County Building and Planning Department for guidance.
• Prepare your property. Ensure your rental space is safe, clean, and well-furnished to meet guest expectations. Install required safety equipment like smoke and carbon monoxide detectors. Consider making upgrades to stand out, such as fast WiFi, quality linens, and thoughtful amenities.
• Register your business. Apply for a Washington State business license and any required local licenses or permits. You'll likely need to register for state and local taxes, including sales and lodging taxes, and set up a system to collect and remit them.
• Set up your business operations. Decide on key policies like minimum stay, check-in procedures, house rules, etc. Automate booking and pricing with an STR software platform. Arrange for reliable cleaning, maintenance, and guest support services. Open a separate bank account to manage rental income and expenses.
• Create your listing(s). Take professional photos and write a compelling description highlighting your property's best features and amenities. Be accurate and detailed so guests know what to expect. Decide on a competitive nightly rate based on your market research, costs, and revenue goals.
• Promote your listing and get bookings. Share your listing on social media and ask friends and family to help spread the word. Consider paid ads to stand out in search results. Communicate promptly with potential guests. Focus on securing those crucial first bookings and positive reviews which will drive future reservations.
• Manage the guest experience. Provide clear check-in instructions and be available to answer guest questions. Go above and beyond with small touches like handwritten welcome notes and local treats. Address any issues promptly and professionally. The guest experience is key to earning 5-star reviews.
• Optimize and grow your business. Analyze your booking and financial data regularly to find opportunities for improvement. Adjust your nightly rates and minimum stays based on demand. Reinvest some of your profits into property upgrades and amenities. Consider expanding to additional listings as you gain experience and capital.

Some additional tips for STR success in Spokane County:

• Join local host clubs or online forums to connect with other STR operators, share best practices, and stay up-to-date on regulatory changes.
• Maintain open communication with neighbors to address any concerns about your rental. Building positive relationships can prevent complaints.
• Pay attention to your reviews and guest feedback. Continuously work to enhance the guest experience. Timely responses to negative reviews can mitigate their impact.
• Keep detailed records of income and expenses to maximize tax deductions and understand your true profitability. Working with an accountant familiar with STRs can ensure compliance.
• Consider investing in noise monitoring devices to prevent parties and disruptions. Spokane County has strict rules around occupancy, parking, trash, and noise that could jeopardize your STR permit if violated.

With careful planning, detailed execution, and a commitment to continuous improvement, your Spokane County short-term rental business can thrive while providing memorable guest experiences. Stay informed on evolving regulations and be a responsible operator to maximize your odds of long-term success in this dynamic market.

Who to Contact in Spokane County about Short-Term Rental Regulations and Zoning?

Navigating the evolving short-term rental regulations in Spokane County can be complex for hosts looking to operate legally. Here are the key local government contacts and resources to help guide you through the process:

Spokane County Building and Planning Department
1026 W Broadway Ave, Spokane, WA 99260
Phone: (509) 477-3675
Email: bp@spokanecounty.org
Website: https://www.spokanecounty.org/177/Building-Planning

The Building and Planning Department is the first point of contact for questions about zoning, permits, building codes, and land use regulations that may impact your ability to operate a short-term rental in unincorporated Spokane County. They can help you determine if STRs are allowed at your specific property and outline any required approval processes.

Spokane Regional Health District
1101 W College Ave, Spokane, WA 99201
Phone: (509) 324-1560
Website: https://srhd.org/

The Health District regulates STRs in Spokane County from a public health perspective. Contact them for information on regulations related to septic systems, wells, food service, pools/hot tubs, and other health/safety issues that may apply to your STR property.

Washington State Department of Revenue
1330 N Washington St, Suite 5600, Spokane, WA 99201
Phone: (509) 327-0200
Website: https://dor.wa.gov/

You'll need to register your STR business with the Department of Revenue and obtain a Unified Business Identifier (UBI) number. They can assist with questions about state business licensing requirements and applicable taxes for STRs, including lodging and sales tax collection.

In addition to government agencies, connecting with local host groups and forums can provide valuable insights from experienced operators on navigating the regulatory landscape:

Spokane Short-Term Rental Alliance (SSTRA)

• Website: https://www.spokanestra.org/
• FacebookGroup: https://www.facebook.com/groups/spokanestra

The SSTRA is a non-profit trade association representing the interests of STR owners and managers in the greater Spokane area. They advocate for fair and effective policies, provide educational resources, and host regular meetings and events for members to network and share best practices.

Spokane Area Vacation Rental Operators Facebook Group

Facebook Group: https://www.facebook.com/groups/spokanevroperators/

This is an active online community of over 1,000 vacation rental owners and managers in the Spokane region. Members ask questions, discuss local STR issues, and support one another. Many of the posts focus on regulatory topics and updates.

Bigger Pockets Spokane Forum

https://www.biggerpockets.com/forums/532-spokane-wa

While Bigger Pockets is geared more towards real estate investing in general, there are several threads on their Spokane-specific forum that discuss the evolving STR ordinances and experiences of local hosts.

By engaging with both government officials and experienced operators in the Spokane STR community, prospective hosts can better understand the requirements to run a compliant short-term rental business. As regulations continue to change, it's important to stay connected to these resources for the most up-to-date information.

What Do Airbnb Hosts in Spokane County on Reddit and Bigger Pockets Think about Local Regulations?

Discussions among Airbnb hosts in Spokane County on forums like Reddit and Bigger Pockets reveal a mix of opinions and experiences related to local short-term rental regulations. Here are some key takeaways from these online communities:

On the Spokane subreddit, a post titled "Spokane wants to regulate AirBnBs (again). No one can prove their local impact." generated significant discussion. Some commenters argued that Airbnbs reduce available housing for locals and drive up rents. One host shared their personal experience, noting that Airbnb income allowed them to keep paying their mortgage. The general sentiment was that building more dense housing is the real solution to Spokane's housing challenges, not just regulating STRs.

In a thread on the Airbnb subreddit, hosts discussed the importance of researching and complying with local regulations. One host advised others to check their property's zoning, obtain necessary permits and licenses, and collect applicable taxes to avoid issues with the city. They noted that while Spokane County's STR rules may not be as strict as some cities, it's still crucial to operate legally.

On Bigger Pockets, a post asking "What makes Spokane and Washington a great place to invest?" touched on the regulatory environment. Respondents noted that Spokane is generally more landlord-friendly than markets on the west side of the state. However, they cautioned that evolving STR ordinances and enforcement could impact the viability of Airbnb investments going forward.

Another Spokane Reddit thread titled "Is rent really as crazy as it appears?" included discussion of how the proliferation of Airbnbs may be impacting the long-term rental market. Some commenters expressed frustration with absentee Airbnb landlords and argued for stronger regulations to protect housing availability and affordability for residents.

While not specific to Spokane, conversations in the Airbnb host subreddit often center around navigating local regulations and ordinances. Hosts share strategies for compliance, express frustrations with unclear or inconsistent rules, and debate the proper balance between property rights and community concerns.

Overall, the sentiment among Spokane Airbnb hosts on these forums seems to be that sensible, consistently enforced regulations are acceptable. Most recognize the need to be good neighbors and support the local community. However, many also argue that STRs are not the primary driver of Spokane's housing issues and should not be scapegoated with overly restrictive policies.

As one host put it, "I understand the concerns about housing supply, but my Airbnb allows me to afford to live in my home and support my family. The solution is creating more housing options for everyone, not vilifying short-term rentals." This perspective encapsulates the balancing act that Spokane County and hosts must strike as the STR market matures.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.