One Pierce County town has now banned all short-term rentals and Airbnbs. Here’s why
The Town of Steilacoom has outlawed short-term rentals like Airbnb, and some property owners disagree with the decision.
The town council passed the motion in late July in a 5-0 vote. Mayor Dick Muri said he heard from residents concerned over parking and homes in the residential area being converted into “hotels.”
Craig Hanna has been a Steilacoom resident for more than 20 years. He rents out a room through Airbnb as a supplement to his income to help cover the costs of his daughter’s education.
Hanna struggles with the council’s decision that limits what a property owner can do with their homes. During the 2015 U.S. Open Championship, he started renting out rooms at the town’s recommendation for residents, Hanna said.
He used to rent out space for long-term rentals, but he said that was more difficult to maintain. He feels the law targets shorter rentals, but long rentals can be more damaging for the town’s image.
“With long rentals, the appearance of the house is more difficult to upkeep,” he said. “A lot of times flower beds have died or they have multiple cars parked in front of them.”
The change to town code does not impact long-term rentals, bed-and-breakfast and guest houses. Muri said the largest difference is that the owner is present at B&Bs.
A short-term rental is defined as a stay for 30 or fewer days.
Hanna worries that this cuts the income possibilities for Steilacoom residents. The town is largely seen as a historical bedroom community with a handful of eateries and small businesses.
“To eliminate some economic growth for these residents is devastating, because there are not that many options for them,” Hanna said.
Muri said property owners renting out space just need to obtain a business license and move in to the property to continue.
“We still have bed and breakfasts allowed,” the mayor said. “People can come and stay, and the owner is on site at the residence providing services.”
The town began looking into the matter in 2019 after residents voiced concerns.
“It wasn’t done quickly,” Muri said. “This was a thought-out discussion from the planning commission and months in front of town council.”
Town Administrator Paul Loveless said Steilcoom isn’t the only jurisdiction in Washington to have strict rules on rentals and pointed to Leavenworth. Chelan County, where Leavenworth is located, recently passed legislation banning short-term rentals in residential zoning locations.
The town of 6,500 has between 2,600 and 2,800 residences, Steilacoom city planner Doug Fortner said. The town estimates there are between five and 10 homes being rented as short-term rentals.
Among other requirements, the state requires businesses that make $12,000 or more to register. The Steilacoom town code has a lower threshold, requiring anyone conducting business activity to obtain a town business license.
The code change is in effect, but gives existing Airbnb and short-term rental owners six months to comply. If there are still rentals by the end of January, owners will be fined $500 for the first day of offense and $1,000 every day thereafter.
Hanna said he will stop renting out his room, because he doesn’t want to be a bed and breakfast.
This story was originally published August 4, 2021 at 2:29 PM.
