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

Starting a Short-Term Rental Business in Pierce County

Pierce County allows short-term rentals like Airbnb and VRBO in many areas, but there are some requirements property owners must follow:

• Obtain a business license from Pierce County
• File a Short-Term Vacation Rental Affidavit with Pierce County Planning & Public Works indicating the property will be used as a vacation rental
• Provide a Good Neighbor brochure to each renter describing appropriate vacation rental etiquette
• Notify all neighboring property owners directly adjacent to the vacation rental
• List the vacation rental property on websites like Airbnb or VRBO
• Limit occupancy to 10 guests maximum
• Provide designated guest parking spaces
• Limit guest stays to no more than 30 days

The Short-Term Vacation Rental Affidavit must be signed by the property owner and notarized. It requires providing owner contact information, a representative or property management contact if applicable, and the websites where the rental is advertised.

Gig Harbor, a city within Pierce County, recently passed its own short-term rental regulations in February 2023. The city has approved 18 short-term rentals so far under the new rules. Owners need both a short-term rental permit and business permit to operate. The city allows only one short-term rental permit per person.

Most of the approved rentals are located in Gig Harbor's tourist areas like the Millville District, Finholm District, and Peacock Hill. The city expected to see applications concentrated in those neighborhoods. So far, there have been no complaints or issues with the permitted rentals according to rental owners and a local short-term rental alliance.

Pierce County is considering additional policies to regulate short-term rentals, especially in the Gig Harbor Peninsula, Key Peninsula and Anderson-Ketron Islands areas. Potential changes include:

1. Limiting the total number of short-term rentals allowed in certain areas to preserve neighborhood character
2. Restricting the number of guests in rentals with septic systems to the septic capacity
3. Requiring a license or permit for legal short-term rentals countywide

The policies aim to balance the economic benefits of short-term rentals with their potential impact on residential areas. Pierce County recognizes that approaches may need to differ based on the unique character of various parts of the county.

In summary, short-term rentals are allowed in much of Pierce County if owners follow the proper procedures like obtaining permits and notifying neighbors. But as the industry grows, the county and cities within it are adopting more detailed regulations to manage the effects of vacation rentals on local communities. Prospective short-term rental operators should carefully review the latest requirements before starting their business.

Short-Term Rental Licensing Requirements in Pierce County

To legally operate a short-term rental in unincorporated Pierce County, property owners must meet the following requirements according to the Pierce County Planning and Public Works Department:

1. File a Short-Term Vacation Rental Affidavit with Pierce County Planning & Public Works indicating the intent to use the property as a vacation rental. The affidavit must include:

1. Property owner contact information
2. Representative or property management contact information, if applicable
3. Websites and platforms where the vacation rental is advertised
4. Confirmation that notification was provided to all neighboring property owners directly adjacent to the STR
5. Signature of the property owner, notarized

2. Provide a Good Neighbor brochure to each renter describing appropriate vacation rental etiquette.

3. Limit the rental to:

1. A maximum of 5 guest rooms
2. No more than 10 total guests at a time
3. Guest stays of 30 days or less

4. Provide designated guest parking spaces.

The Short-Term Vacation Rental Affidavit can be submitted by mail or in-person to:

Pierce County Planning & Public Works
2401 South 35th Street
Tacoma, WA 98409

There is currently no fee listed for submitting the Short-Term Vacation Rental Affidavit. The typical processing time is not specified.

Failure to meet these standards can result in Pierce County issuing a cease and desist order for the vacation rental operation. The county estimates it receives up to 10 complaints per year regarding short-term vacation rentals, with many found not to be in violation of county code.

It's important to note that incorporated cities within Pierce County, such as Tacoma, have their own STR regulations and licensing requirements that may differ from the county's. STR operators should check their local city requirements in addition to the county's.

Required Documents for Pierce County Short-Term Rentals

To legally operate a short-term rental in unincorporated Pierce County, property owners must submit the following required documents to the Pierce County Planning and Public Works Department:

1. Short-Term Vacation Rental Affidavit

1. A signed and notarized affidavit declaring the owner's intent to use the property as a short-term rental.
2. The affidavit must provide contact information for the owner, local representative, and property management company (if applicable).
3. It should also list the websites where the rental is advertised and confirm that neighboring property owners have been notified.
4. The affidavit form can be obtained from the Pierce County Planning and Public Works Department website.

2. Good Neighbor Brochure

1. A copy of the Good Neighbor brochure that will be provided to each short-term rental guest, describing appropriate vacation rental etiquette.
2. The brochure should cover topics such as parking, noise, occupancy limits, and quiet hours.
3. A template brochure is available from the Pierce County Planning and Public Works Department.

3. Pierce County Business License

1. A completed business license application form from the Pierce County Auditor's Office.
2. The application must include the property owner's name, contact information, and the rental property address.
3. Business license applications can be submitted online or in-person at the Pierce County Auditor's Office.

4. Proof of Liability Insurance

1. Documentation showing that the short-term rental property is covered by at least $1 million in liability insurance, as required by Washington state law.
2. The insurance policy must be maintained throughout the duration of the short-term rental operation.

These documents ensure that short-term rentals comply with Pierce County Code 18A.37.040, which outlines the requirements for operating vacation rentals in unincorporated areas of the county. Failure to submit the required documents and adhere to the code can result in enforcement action by Pierce County, including fines and orders to cease operation.

It's important to note that incorporated cities within Pierce County, such as Tacoma, may have additional or different requirements for short-term rentals. Property owners should check with their local city government for specific regulations.

By submitting the required documents and following Pierce County's short-term rental regulations, property owners can legally operate vacation rentals while minimizing impacts on neighboring residents and communities.

Pierce County Short-Term Rental Taxes

Short-term rental operators in Pierce County are required to collect and remit several types of taxes on the rental income they earn. The primary taxes that apply to short-term rentals include:

1. Sales Tax

1. The combined state and local sales tax rate in Pierce County is 9.9% as of 2023.
2. This includes the 6.5% Washington state sales tax, plus an additional 3.4% in local sales taxes.
3. Short-term rental operators must collect sales tax from guests and remit it to the Washington Department of Revenue.

2. Lodging Tax

• Pierce County imposes a 2% lodging tax on all short-term rentals in unincorporated areas of the county.
• This tax is in addition to the sales tax and must be collected from guests and remitted to the Pierce County Department of Revenue.
• The lodging tax funds are used to support tourism promotion activities in Pierce County.

3. Business and Occupation (B&O) Tax

• Short-term rental operators are subject to the Washington state B&O tax, which is a tax on gross receipts.
• The B&O tax rate for short-term rentals falls under the "Retailing" classification, which has a rate of 0.471% as of 2023.
• Operators can claim a Small Business B&O Tax Credit if their total B&O tax liability is less than $1,000 per year.

4. Convention and Trade Center Tax

• Pierce County does not currently impose a Convention and Trade Center Tax on short-term rentals.
• However, this tax applies to lodging businesses in King County, so short-term rental operators should be aware of it if they expand their operations to that area.

It's important to note that these tax rates and requirements are subject to change, so short-term rental operators should regularly check with the Washington Department of Revenue and Pierce County for updates.

Deductions and Write-Offs

Short-term rental operators may be able to deduct certain expenses from their rental income to reduce their tax liability. Some common deductions include:

• Mortgage interest and property taxes (if the rental is also used as a personal residence)
• Cleaning and maintenance costs
• Utilities paid by the owner
• Supplies and amenities provided to guests
• Advertising and marketing expenses
• Depreciation of furniture and equipment used in the rental

Owners should keep detailed records of all rental-related expenses and consult with a tax professional to ensure they are claiming all eligible deductions. By carefully tracking income and expenses, short-term rental operators can minimize their tax burden while remaining in compliance with all applicable laws and regulations.

Washington State Wide Short-Term Rental Rules

In addition to Pierce County's local regulations, short-term rental hosts must also comply with Washington state laws governing vacation rentals. These statewide rules, outlined in Chapter 64.37 of the Revised Code of Washington (RCW), establish baseline requirements for all short-term rental operators in the state.

The key provisions of Washington's short-term rental law that affect Pierce County hosts include:

• Business Licensing: All short-term rental operators must obtain a state business license from the Washington Department of Revenue. This is in addition to any local licenses required by Pierce County or incorporated cities.
• Taxes: Operators are responsible for collecting and remitting all applicable state and local taxes, including sales tax, lodging tax, and business and occupation (B&O) tax, unless the rental platform collects and remits taxes on the operator's behalf.
• Insurance: Short-term rental operators must maintain primary liability insurance coverage of at least $1 million to cover the rental property, unless all bookings are made through a platform that provides equivalent liability coverage.
• Consumer Safety: Hosts are required to provide guests with the operator's contact information, fire safety and emergency information, and a local emergency contact. Rentals must also have working smoke and carbon monoxide alarms.
• Short-Term Rental Platforms: Booking platforms like Airbnb and VRBO must inform operators of their tax collection and insurance obligations under state law. Platforms must also remove listings for operators who fail to obtain a state business license or provide proof of liability insurance.

These statewide regulations create a legal framework for short-term rentals that applies throughout Washington, including in Pierce County. However, counties and cities may adopt additional rules and restrictions to address local concerns and priorities.

For example, Pierce County requires operators to submit a signed Short-Term Vacation Rental Affidavit and provide a Good Neighbor brochure to guests, on top of the state's licensing and safety requirements.

Therefore, Pierce County short-term rental hosts must carefully review both state and local regulations to ensure they are in full compliance. Failure to adhere to these rules can result in fines, license revocation, and other penalties.

Does Pierce County Strictly Enforce Short-Term Rental Rules?

Based on discussions in online forums like Reddit and Bigger Pockets, it appears that Pierce County does not strictly enforce its short-term rental regulations compared to some other jurisdictions in Washington state. Many hosts seem to operate STRs in Pierce County despite not fully complying with the county's rules.

One Reddit user shared that code enforcement staff estimates the county receives only about 10 complaints per year regarding short-term vacation rentals, with many rentals found not to be in violation of county code upon investigation. Market data from 2023 showed over 1,600 entire homes listed on Airbnb and VRBO in Pierce County, but compliance with the county's Short-Term Vacation Rental Affidavit requirement was estimated to be as low as 4% in some areas.

Compared to strict regulations and enforcement in Seattle and King County, Pierce County appears to be more Airbnb-friendly overall. Short-term rental operators on Bigger Pockets have described Pierce County as "fine" and "not too onerous" for running STRs. The county's requirements, like filing an affidavit and notifying neighbors, are seen as relatively easy to meet.

However, this may change in the future as Pierce County evaluates additional policies to regulate short-term rentals, especially in popular areas like Gig Harbor and Anderson Island. Potential changes being considered include limiting the total number of STRs in certain neighborhoods and requiring county-wide permits. But for now, many hosts seem comfortable operating STRs in Pierce County even if they don't fully comply with existing rules due to limited enforcement by the county.

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

Starting a short-term rental business in Pierce County can be a lucrative venture, but it requires careful planning and compliance with local regulations. Here are the key steps to get started:

• Research local regulations: Familiarize yourself with Pierce County's short-term rental rules, including the requirement to file a Short-Term Vacation Rental Affidavit with Pierce County Planning & Public Works. Also, check if your property is located in an area zoned for short-term rentals. Review Pierce County Code 18A.37.040 for detailed requirements and consult with the Planning & Public Works Department if you have any questions.
• Obtain necessary licenses and permits: Apply for a Washington State business license and any required local licenses. If your property is located in an incorporated city like Tacoma, check their specific licensing requirements as well. Use the Washington State Department of Revenue's Business Licensing Wizard to determine which licenses you need.
• Prepare your property: Ensure your rental property is clean, well-maintained, and equipped with essential amenities. Consider hiring a professional photographer to capture high-quality images of your property for your online listing. Focus on creating a welcoming and comfortable space that will attract positive reviews from guests.
• Create a detailed listing: Craft an accurate and compelling description of your property, highlighting its unique features and amenities. Be transparent about any house rules or restrictions, such as occupancy limits or quiet hours. Use popular vacation rental platforms like Airbnb or VRBO to list your property and manage bookings.
• Establish a pricing strategy: Research comparable short-term rentals in your area to determine a competitive nightly rate. Consider adjusting your prices based on seasonal demand and any special events in the region. Use dynamic pricing tools to automatically optimize your rates based on market conditions.
• Implement a cleaning and maintenance plan: Develop a thorough cleaning checklist and schedule to ensure your property is always guest-ready. Have a plan in place for handling any maintenance issues that may arise during a guest's stay. Consider hiring a professional cleaning service and establishing relationships with reliable maintenance providers.
• Provide excellent customer service: Respond promptly to guest inquiries and be available to address any concerns during their stay. Consider creating a welcome book with local recommendations and important information about your property. Encourage guests to leave reviews by providing a great experience and following up with a thank-you message after their stay.
• Comply with tax obligations: Short-term rental operators in Pierce County must collect and remit state and local sales taxes, as well as lodging taxes. Keep accurate records of your income and expenses for tax purposes. Use a bookkeeping system designed for vacation rentals to simplify your tax reporting and maximize deductions.
• Continuously improve your business: Monitor your competition, guest reviews, and market trends to identify areas for improvement. Invest in upgrades and amenities that will set your property apart and drive repeat bookings. Regularly solicit feedback from guests and implement their suggestions to enhance the overall guest experience.

By following these steps and staying attuned to the needs of your target market, you can build a successful short-term rental business in Pierce County. Remember to stay compliant with local regulations and prioritize guest satisfaction to ensure the long-term viability of your venture.

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

For questions about short-term rental regulations and zoning in unincorporated Pierce County, contact the Pierce County Planning and Public Works Department:

Pierce County Planning & Public Works
2401 South 35th Street
Tacoma, WA 98409
Phone: (253) 798-7250
Website: https://www.piercecountywa.gov/4999/Planning-Public-Works

The Development Center can assist with questions about permits, planning, building codes, and site requirements:

Phone: (253) 798-3739

For code enforcement issues related to short-term rentals, such as noise complaints or parking violations, contact:

• Phone: (253) 798-4636
• Online: https://www.piercecountywa.gov/1571/Report-a-Code-Enforcement-Issue

Prospective and current short-term rental hosts in Pierce County may also find the following online communities and resources helpful:

• The /r/airbnb_hosts subreddit is an active forum for Airbnb hosts to ask questions and share advice. Search for posts about Tacoma or Pierce County or create a new post: https://www.reddit.com/r/airbnb_hosts/
• Bigger Pockets has a dedicated forum for short-term and vacation rental discussions where hosts can connect and learn from each other's experiences: https://www.biggerpockets.com/forums/530-short-term-vacation-rental-discussions
• The Bigger Pockets blog also publishes articles with tips for short-term rental hosts. A recent post discusses the outlook for new STR hosts in 2023: https://www.biggerpockets.com/blog/on-the-market-56

Connecting with other local short-term rental operators, either online or in person through meetups, can be a great way to get area-specific advice and stay up-to-date on any regulatory changes that may affect your business. Pierce County is still refining its approach to short-term rentals, so it's important for hosts to closely follow any policy developments and maintain open lines of communication with county officials.

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

Based on discussions in online forums like Reddit and Bigger Pockets, Airbnb hosts in Pierce County have mixed feelings about local short-term rental regulations. Here are some key insights and experiences shared by hosts:

Reddit - Tacoma. I'm new to being an Airbnb host

• In this Reddit thread, a new Airbnb host in Tacoma asks for advice on pricing and occupancy rates.
• Commenters suggest using the Airbnb app to compare listings in the area and reaching out to other local hosts for guidance.
• They note that rates and occupancy can vary widely depending on the specific location, amenities, and interior design of the property.

Bigger Pockets - Tacoma area condo Airbnb/short term rentals

• A Bigger Pockets post asks about investing in condos for short-term rentals in the Tacoma/Seattle area.
• The poster wonders if it's possible to offset HOA costs and cash flow with short-term rental income.
• While no definitive answer is provided, the post suggests that some hosts are considering condos as a viable option for Airbnb in Pierce County.

Bigger Pockets - Short Term Rental Washington State

1. In another Bigger Pockets thread, an investor looks for insights on starting a short-term rental in western Washington, particularly in the Cascade mountains.
2. They seek recommendations for real estate agents specializing in short-term rentals in the region.
3. The post indicates that some investors are actively exploring short-term rental opportunities in Pierce County and the surrounding areas.

Reddit - Should I Host a Top Floor or a Bottom Floor Condo for a 30+ Day

1. A Reddit post asks for advice on hosting a condo in a 3-story building without an elevator in Tacoma.
2. While not directly related to regulations, the post suggests that hosts are navigating unique challenges when operating short-term rentals in multi-unit buildings.

Overall, these online discussions indicate that Airbnb hosts in Pierce County are actively seeking information and guidance on local regulations and best practices. While opinions on specific rules may vary, there seems to be a general interest in understanding and complying with local requirements to operate successful short-term rentals in the area.

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.