Olympia, Washington

Short-term rentals are permitted in Olympia under an ordinance effective September 27, 2021, and no major changes have been identified since. The city separates two types. A homestay is a room rented while the owner or a permanent resident lives on site, and it needs only a City of Olympia business license. A vacation rental is an entire dwelling rented with no permanent resident present. It requires a business license plus a Short-Term Rental Permit, which renews every two years. A permit fee is not published in the profile data, so confirm the current cost with the city. Vacation rentals have no owner-occupancy requirement and no primary-residence requirement, which makes Olympia relatively investor-friendly. Homestays do require the owner or a permanent resident to be present when guests stay. Vacation rentals must designate a 24/7 local contact who lives within Thurston County or within 15 miles of the property. New operators are limited to two vacation rental permits, although operators who ran more than two properties before September 27, 2021 are grandfathered if they meet the other requirements. Rentals are allowed in accessory dwelling units, detached houses, duplexes, triplexes, fourplexes, townhouses and larger multi-unit dwellings, and they are prohibited in Auto Services and Industrial zones. Hosts must register with the Washington State Department of Revenue and remit lodging taxes. Olympia levies a 4% special excise lodging tax on top of state and local sales taxes. Rentals must meet building, fire, sanitation, noise and nuisance standards. Enforcement severity is rated moderate, and violations can lead to civil penalties and suspension or revocation of the license.