Short-Term Rentals
Short-Term Rentals
State and Redmond Business License
The City updated its Redmond business license requirements for short-term rentals.
These updates involve Redmond Municipal Code (RMC) 5.04 General Business Regulations and will be effective on Jan. 1, 2026.
Review the following:
To learn about operating a short-term rental, attend a workshop with OneEastside on Jan 13. RSVP to this free workshop.
Learn More
Short-term rentals are defined by the Revised Code of Washington (RCW) state as a lodging use, that is not a hotel or motel or bed and breakfast, in which a dwelling unit, or portion thereof, that is offered or provided to a guest by a short-term rental operator for a fee for fewer than thirty consecutive nights. (64.37.010(9)(a) RCW)
In addition to the above the RCW clarifies that short-term rentals does not include any of the following:
- A dwelling unit that is occupied by the owner for at least six months during the calendar year and in which fewer than three rooms are rented at any time;
- A dwelling unit, or portion thereof, that is used by the same person for thirty or more consecutive nights; or
- A dwelling unit, or portion thereof, that is operated by an organization or government entity that is registered as a charitable organization with the secretary of state, state of Washington, or is classified by the federal internal revenue service as a public charity or a private foundation, and provides temporary housing to individuals who are being treated for trauma, injury, or disease, or their family members. (64.37.010(9)(b) RCW)
Licensing Requirements
Definitions:
- Refer to the RCW 64.37.010 Short-Term Rentals definition for the City's definition of Short-Term Rentals.
Business License:
- In addition to the Washington state license for engaging in businesses, a City of Redmond license or endorsement is required.
- One business license must be obtained for a person or entity operating one or more short-term rentals in a multifamily or mixed-use development.
- An individual or entity operating one or more short-term rentals in other forms of development must obtain one business license for every individually addressed short-term rental unit.
Communication and Transparency
- RCW 64.37 provides statewide standards for communication. In addition, the City of Redmond Short-Term Rental Guide provides to operators communication standards and recommendations for good neighborhood relations, to establish ongoing communication with the City, and to support local tourism.
- All rental businesses must also post applicable material regarding tenant rights. This posting is available at the City of Redmond Development Services Center.
Safety
- Applications for new and renewal business licenses of short-term rental businesses must provide for review by the City of Redmond Director of Planning and Community Development, or their designee, an original copy of the City of Redmond Short Term Rental Safety Checklist including the signature(s) of the respective property owner of the short-term rental establishment. The checklist is provided as an exhibit, on the last page of the Short-Term Rental guide.
RMC 5.04.110 defines the steps taken by the City for businesses that fail to obtain a business license.
- Any person who engages in, or carries on, any business subject to the payment of a license fee hereunder without having obtained a business license to do so shall be guilty of a violation of this chapter for each day during which the business is so engaged in or carried on; and any person subject thereto who fails or refuses to pay the license fee, or any part thereof, on or before the due date, shall be deemed to be operating without having obtained a license to do so.
- Any City of Redmond police officer, any code compliance officer, or other such person designated by the finance director can assist the finance director in enforcing the provisions of Title 5.
- Businesses operating without a license are subject to a one hundred (100) percent penalty of the licensing fee due.
- The finance director is authorized, but not obligated, to waive all or any portion of the penalties provided herein in the event that the finance director determines that operating without a license was due to excusable neglect or extreme hardship.
The world’s largest sporting event is coming to our backyard in the summer of 2026! This international tournament will see 48 different nations playing for the title of global champion. Seattle will host six matches from June 15 - July 6, including USA's second group fixture and two knockout games.
Hosting the event is anticipated to leverage more than $1 billion in economic activity for the region. About 750,000 visitors will be in the Seattle region to soak up the event atmosphere with the over four billion global viewers tuning in. With the new light rail transportation system – and its expected further expansion in time for the excitement of next year’s competition – Redmond is ready to leverage this opportunity to welcome the world and foster economic impact for the local economy.
Get Involved
- Sign up for the Economic Development eNews and City eNews to stay up-to-date on information and opportunities.
Learn More
Learn more about Redmond's plan for the World's Game by visiting redmond.gov/Soccer.
Short-Term Rental Community Meeting
July 21, 2025
The community attended a presentation and discussion with city staff to consider proposed updates to regulations regarding short-term rentals in Redmond. The following includes the questions asked of participants and their responses as well as their questions and suggestions. Staff responses are also included.
Q1. Please discuss the proposal for Redmond short-term rental business license required:
- 1 Redmond business license per short-term rental in single family zoning districts
- 1 Redmond business license per operator in multifamily zoning districts
What does the $153 Redmond Business License fee provide to the short-term rental operator? Does it cover city services?
Yes, it covers city services, such as public safety, infrastructure maintenance, and economic and tourism support services.
Is it a one-time fee?
Business licenses are renewed annually.
Is this a way for the City to create an advertising list? What does the operator gain?
Requiring a city business license is a conduit for the City and operator to build a relationship, including access to Economic Development and Tourism support services.
When licenses are renewed, will there be restrictions?
Restrictions are based on state and city regulations. It is the City’s regulations that are being studied at this time. If regulations are to be refined in the future, the City would do additional community engagement.
Participant Suggestion: Short-term rental rules should be combined with the business license. This would be similar to how HOA rules are managed.
Do you believe that because short-term rentals are a small percentage of the City’s housing supply that residents aren’t concerned about them?
The City receives a small number of concerns regarding short-term rentals, such as through our online customer service portal. Often these are regarding noise, parking, and parties.
How will residents and owners of short-term rentals know if a business license is required?
The City uses a wide variety of communication channels to reach community members, such as enewsletters, social media, and direct mail. Staff also have access to state issued business licenses for reference. A series of webpages and the Redmond Municipal Code provide details of the requirements:
- Business Licensing webpage: https://www.redmond.gov/230/Business-Licensing
- Redmond Municipal Code, Chapter 5.04 General Business Regulations: https://redmond.municipal.codes/RMC/5.04
Participant Suggestion: Require a business license for businesses but not for residents and small operators. For example, only require a business license when an operator manages two or more units.
The current proposal is for consistency with the state definition of short-term rental that includes an exemption for certain conditions:
"Short-term rental" means a lodging use, that is not a hotel or motel or bed and breakfast, in which a dwelling unit, or portion thereof, that is offered or provided to a guest by a short-term rental operator for a fee for fewer than thirty consecutive nights.
"Short-term rental" does not include any of the following:
- A dwelling unit that is occupied by the owner for at least six months during the calendar year and in which fewer than three rooms are rented at any time;
- A dwelling unit, or portion thereof, that is used by the same person for thirty or more consecutive nights; or
- A dwelling unit, or portion thereof, that is operated by an organization or government entity that is registered as a charitable organization with the secretary of state, state of Washington, or is classified by the federal internal revenue service as a public charity or a private foundation, and provides temporary housing to individuals who are being treated for trauma, injury, or disease, or their family members.
Has the City thought about compliance issues?
Yes, this study also considers the City’s standard operations including how changes to the code would impact the current operations. Education is a required portion of RCW 64.37.030 Consumer Safety, through which cities and counties must implement the following provision: (3) For a first violation of this section, the city or county attorney must issue a warning letter to the owner or operator. An owner that violates this section after receiving a warning letter is guilty of a class 2 civil infraction under chapter 7.80 RCW.
Q2. Please discuss the communication proposal. What information should be shared with the City; with neighbors for awareness; and with multifamily management for state legislative compliance, such as RCW 64.37.030 Consumer Safety. As a neighbor, how would you like to remain aware of operations and how to communicate with you? What communication formats would work well?
Communication is a good idea, but how would it be implemented? HOAs do not know the unit(s) is being rented. HOAs most frequent issues are with individual owners and not with management companies. It would be helpful to have contact information to call, even if a friend of the owner.
It is common courtesy to notify neighbors when renting a unit. Provide contact information to them. Encourage this type of contact/communication between neighbors.
Recommend to operators and management companies to reach out to neighbors.
Q3. Please discuss the consumer safety proposal that would help operators and customers confirm a short-term rental’s conformance with RCW 64.37.030 Consumer Safety. What items should be included on a consumer safety checklist for guest of the short-term rental? How should the short-term rental operator share the checklist with their guests?
Reminder that fire extinguishers have an expiration date. The operator should confirm they are current or have been recharged.
It is standard for management companies to provide information, such as emergency exits. Houses have exterior lighting for access, but it is not a requirement.
Airbnb provides a refrigerator magnet for emergency information to be accessible.
Q4. What did we miss today? What else is also important for short-term rental operators, their guests, and the City? Going forward, how would you like the City to maintain this new relationship with short-term rental operators?
Important to define short-term rental.
Have an informational session to identity what is needed for operators, neighbors, and consumers to know.
Invite Airbnb and other platform representatives to attend regularly scheduled information sessions.
If the code is changed, how long does it remain in effect?
The code remains in effect until a change is made or a date certain for its expiration is also adopted. The process for updating the code in the future would be similar to the current process, which includes several opportunities for community involvement.
What happens to current operators when/if rules change?
If the proposal is adopted to include requirements for City of Redmond business licenses, operators of short-term rentals that meet the adopted definition of a short-term rental will need to obtain a City of Redmond business license. Information including instructions will be provided on the City of Redmond Business License webpage and communicated directly with operators through mail, email, and telephone.
In addition, RCW 64.37.040 Short-Term Rental Platforms requires that short-term rental platforms inform operators, who use their platform, of the operator's responsibilities to collect and remit all applicable local, state, and federal taxes unless the platform does this on the operator's behalf.
For information regarding site-specific issues, please refer to the following:
- Regarding noise such as loud music, shouting, vehicles, refer to RMC 9.42 Public Peace, Crimes Relating To.
- Regarding litter, refer to RMC 6.04 Litter Control Code.
- Regarding outdoor storage, refer to RZC 21.04.2200 Outdoor Storage and Retail Display.
- Regarding signs, refer to RZC 21.44 Signs.
- Regarding sidewalk litter or debris, refer to RMC 6.04.040 Prohibitions.