Seattle Passes Bill to Regulate Short-Term Rentals
After months of debate and modifications, Seattle City Council finally passed new Airbnb regulations that will place a 2-unit limit on all short-term rental operators. As GeekWire reported, the new set of regulations is “designed to prevent property owners form operating Airbnbs and other short-term rentals as if they were hotels” and “is part of a larger effort to ensure an adequate supply of long-term rental stock for the city’s permanent residents.”
Under the new regulations, operators will not be permitted to host more than two dwelling units and will require a special short-term license. Some hosts will be exempted from the new regulations, including those already operating within the “Downtown Urban Center,” and current hosts outside of the downtown core will be allowed to rent their primary residence in addition to two additional units.
The new rules come shortly following a city council approved short-term rental tax, which “is estimated to bring in approximately $7 million annually.” Seattle’s structure is likely to serve as a framework for other cities, particularly those experiencing a shortage of housing and growing population.
Queen Anne, Seattle
2BD/1BA, 850 sqft on 4,000 sqft lot
Sales Price: $860,000
Gross Income: $60,972 to $78,228
Net Operating Income: $45,729 to $58,671
Cap Rate: 5.32% to 6.82%