New Short-Term Rental Regulations in Vancouver, WA: What You Need to Know for 2024

by Cassandra Marks

New Short-Term Rental Regulations in Vancouver, WA: What You Need to Know for 2024

Investing in Vancouver just got a bit more complicated, here's exactly what's changed and how to stay compliant.

📋 Permit Required 🔢 870-Permit Cap 💵 $250 Permit Fee

By Cassandra Marks (Realtor Cas) · Published May 4, 2024 · 6 min read

📌 Direct Answer — What Are the New Short-Term Rental Rules in Vancouver, WA?

As of January 1, 2024, the City of Vancouver requires a short-term rental permit for any residential property (or part of one) rented for stays under 30 days, including listings on Airbnb and VRBO. Owner-occupied properties where the owner lives there at least six months a year and rents fewer than three rooms are exempt from needing a permit. Permits cost a $250 one-time fee, require a $1 million liability insurance policy, city and state business licenses, and neighbor notification. The pilot program is capped at 870 total permits citywide and will run for 24 months to evaluate its impact.

Cassandra Marks - REALTOR®, Realtor Cas, Vancouver WA & Clark County | View full bio & credentials →

Investing in Vancouver, Washington's real estate just got a bit trickier as of January 1st, 2024. Don't worry, it's not the end of short-term rentals, but it is something to consider if you're planning to use your property as a short-term rental. So, let's dive into what's new!

Hi there, I'm Cassandra Marks, also known as Realtor Cas, your go-to guide for everything Southwest Washington, Clark County, Vancouver, and even Portland. I'm both a local and national investor, so I've got you covered. If you have any questions or are considering purchasing or investing in these areas, shoot me an email, text, or DM on social media at Realtor Cas. Let's talk about your goals!

📋 What Counts

New Short-Term Rental Regulations: The Basics

Starting January 1st, 2024, the City of Vancouver is accepting permit applications for its new short-term rental pilot program. Here's what you need to know.

Definition of a Short-Term Rental

A residential property or part of it (like a room, guest house, ADU, etc.) available for rent for stays less than 30 days. This includes rentals on platforms like Airbnb and VRBO.

What Is NOT Considered a Short-Term Rental

A dwelling unit rented for fewer than 30 consecutive days isn't considered a hotel, motel, or bed and breakfast.
A property occupied by the owner for at least six months a year with fewer than three rooms rented at any time.
A property rented to the same person for 30 or more consecutive days.
A property operated by a registered charitable organization.

💡 Examples

Real Examples: Do You Need a Permit?

Owner-Occupied Property

If you live in your home for more than six months a year and rent it out for the rest, it does not qualify as a short-term rental needing a permit.

ADU Rented for 30+ Days

Renting an ADU in one-month increments to people like traveling nurses does not require a short-term rental permit.

ADU Rented for Short Stays

An ADU with four bedrooms rented for three nights at a time does require a permit, even if the ADU isn't the owner's primary residence.

📝 Permit Process

How to Get Your Short-Term Rental Permit

Until now, the city's land use and development code didn't allow short-term rentals in residential zones except as bed and breakfasts. Here's how to get your short-term rental permit.

1. Research and Preparation

Ensure your property is within Vancouver city limits.
Obtain a Washington state business license and a City of Vancouver business license.
Get at least $1 million in liability insurance.
Notify your neighbors with a detailed letter about your rental.

2. Complete the Application

Fill out the short-term rental permit form, including all necessary documents (letters, insurance, etc.).

3. Pay the Fees

Submit your application and pay the $250 one-time permit fee.

4. Approval and Posting

If approved, you'll receive a permit number and certificate to post at your rental property.

🎯 Program Goals

Program Goals and Monitoring

The pilot program will run for 24 months to assess its effectiveness. The city aims to:

Limit short-term rentals to 870, preserving housing for long-term residents.
Exclude short-term rentals from developments receiving multifamily tax exemptions.
Ensure ongoing compliance and monitor impacts on housing affordability, public safety, and community well-being.

Letters were sent to 425 current short-term rentals within city limits, explaining the new regulations and permit process. The limit is 870 permits, so if you're considering a short-term rental, act quickly.

✅ The Big Picture

The Big Picture for Vancouver, WA Investors

Short-term rentals have grown in popularity in the Pacific Northwest, including Vancouver. However, this new regulation is a step to balance the needs of long-term residents and investors. Always do your due diligence and stay updated, as the rules may change after the trial period.

If Vancouver's new regulations feel too restrictive, check out my video on the six suburbs of Vancouver where you might find great opportunities.

🔗

Direct sources for more information: City of Vancouver: Now Accepting Short-Term Rental Permit Applications · City of Vancouver Community Development: Short-Term Rentals

Frequently Asked Questions

Short-Term Rentals in Vancouver, WA — Common Questions Answered

What are the rules for short-term rentals in Vancouver, WA?

Short-term rentals are allowed under Vancouver's pilot program. Operators must obtain city and state business licenses, a short-term rental permit, carry at least $1 million in liability insurance, and notify neighbors. Owner-occupancy is not required to obtain a permit, it's only relevant if you want to be exempt from needing a permit at all, which applies to owners who live on the property at least six months a year and rent fewer than three rooms.

Is Airbnb legal in Vancouver, WA?

Yes, but only if you comply with local regulations. Hosts must register, obtain permits, and follow zoning and safety standards.

Are short-term rentals allowed in Clark County, WA?

Yes, but rules vary. Properties inside Vancouver city limits follow city regulations, while others in unincorporated areas may have different requirements.

Do I need a business license for a short-term rental in Washington?

Yes. You'll need a Washington State business license and a city-specific business license for your rental location.

Can I rent out my basement suite on Airbnb in Vancouver, WA?

Yes, if it meets zoning, health, and safety requirements and you obtain the required permit. If it's part of your primary residence and you occupy the home at least six months a year while renting fewer than three rooms, it may qualify for the owner-occupancy exemption instead.

What is the 90-day Airbnb rule?

There's no 90-day limit in Vancouver, WA. The city's pilot program caps the total number of permits citywide at 870 rather than limiting individual rental days per year.

What is the short-term rental tax rule in Washington?

Short-term rentals must collect and remit lodging and sales taxes. Platforms like Airbnb may do this automatically, but hosts are responsible for compliance.

Do I have to pay taxes on Airbnb income in Washington?

Yes. Rental income is taxable and may also be subject to business and occupation (B&O) taxes.

Can I start a short-term rental business with no money?

Unlikely. Startup costs include licenses, insurance, furnishings, and compliance upgrades.

What is the 7-day rule in short-term rentals?

There is no 7-day rule in Vancouver, WA. Stays under 30 days are considered short-term rentals and subject to specific regulations.

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Cassandra Marks

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Realtor, Licensed in OR & WA License ID: 201225764