So you bought a property in Seattle and want to start making money by listing it on Airbnb. There's a couple of steps to follow so you can legally rent out your property. They can seem daunting, but it's not bad!

Understanding Short-Term Rentals in Seattle

The first thing you want to do is make sure you fall into the category of a short-term rental, which is any property rented out for less than 30 consecutive nights. There are limits to the type of property you rent out in Seattle, for example you can't rent out RVs, tents, garages, and boats as short-term rental property. Make sure you check out zoning laws and you're able to rent out your property in that area.

Required Licenses and Registrations

Second, you'll need to apply for 2 licenses and an RRIO:

• Apply for a Business License Tax Certificate.
  • The cost is $55 and must be renewed every year.
  • You'll need your business license tax certificate number to complete the following license application.
• Apply for a Short-Term Rental Operator's License.
  • Only the owner of the property can do this, nobody else!
  • The cost is $75 and needs to be renewed annually.
  • With this license you can legally rent out 2 properties. One of the properties must be listed as your primary residence.
• If you have a second unit that isn't your primary residence, once you have your licenses, apply to obtain a Rental Regulation & Inspection Ordinance (RRIO), which basically ensures the safety of your property. You don't need to wait for an RRIO to get a Short-Term Rental Operator's License.

Tax Requirements

Third, after you've obtained your Business License Tax Certificate, make sure you register for the Transient rental income tax and the Convention and Trade Center Tax. If in doubt, read the Department of Revenue's information on Short-Term Rentals and their Lodging Guide about Washington taxes. If you're renting your property out on Airbnb, they break down tax information for Washington State on their website.

Record Keeping and Staying Informed

Make sure you keep thorough record of all your bookings in case you're audited, and always read the information listed on the City of Seattle's website to stay up to date on all regulations. If things change, you probably won't be alerted, so it's up to you to stay informed.