Tacoma residents who rent out their homes for short-term stays, such as those advertised on Airbnb and VRBO, won’t have to get a hotel license from the city.
The City Council on Tuesday passed an ordinance exempting short-term rentals — less than 30 days — of entire single-family homes and homes with fewer than three bedrooms from hotel license requirements.
While they won’t need a hotel license from the city, people running short-term rentals still will need a business license. An annual business license costs $25 for people who expect to gross less than $12,000 a year on their short-term rentals and $110 for those who expect to make more than $12,000 but less than $250,000.
(Anyone out there who might be earning more than $250,000 a year on short-term rental of their home would have to pay a $250 fee, according to the city’s newly adopted business license fee schedule.)
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Earlier this year, the city adopted a fairly hands-off approach to short-term rentals in Tacoma. Passed as part of a broader update to the city’s land-use code, the rules require those renting out rooms or properties to get a business license from the city. The rules also say that hosts who live on-site can rent up to nine guest rooms, and a host who doesn’t live on-site can rent an entire house (but not individual rooms) for up to 30 days at a time. The units have to be equipped with smoke and carbon monoxide detectors.
Rentals with fewer than three guest rooms and rentals of an entire home are allowed in all zoning districts except for industrial, but rentals with between three and nine guest rooms are not allowed in single-family residential zones.