Washington Passes New Short-Term Rental Disclosure Law

Washington Homebuyers Should Pay Attention to Short-Term Rental Rules Before Purchasing Investment Properties

Short-term rentals remain an important consideration for Washington homeowners and real-estate investors, particularly in communities where local governments regulate vacation rentals.

Washington has statewide requirements for short-term-rental operators, while cities and counties can impose additional rules on where and how short-term rentals may operate. For buyers considering a property as a vacation rental or investment property, understanding those requirements before purchasing can help prevent unexpected compliance costs or restrictions.

Washington Has Statewide Short-Term Rental Requirements

Washington’s short-term-rental law establishes several requirements for operators.

Among other things, operators must provide guests with contact information, comply with applicable carbon-monoxide alarm requirements, and post important safety information inside the rental, including the property’s address, emergency contacts, floor plans showing exits, maximum occupancy limits and operator contact information.

Short-term-rental platforms operating in Washington also have responsibilities under state law, including registration with the state and providing operators with information regarding applicable tax and safety requirements.

Local Rules Can Be Different From One Community to Another

One of the most important considerations for buyers is that Washington does not have a single statewide set of rules governing every aspect of short-term rentals.

Cities and counties may have their own requirements affecting property owners and rental activity.

Depending on the location, local regulations can address matters such as:

  • Short-term-rental permits
  • Business licenses
  • Occupancy limits
  • Safety requirements
  • Parking
  • Local taxes
  • Number of rental units
  • Zoning
  • Operating requirements
  • Neighborhood restrictions

Washington law also recognizes that cities and counties may impose requirements on property sellers or landlords to provide information relating to a property or its surrounding area, subject to statutory posting requirements.

For this reason, buyers should check the specific city or county rules before assuming a property can legally operate as a short-term rental.

What Homebuyers Should Investigate

A buyer interested in purchasing a property for short-term rental purposes should conduct additional due diligence before making an offer.

Important questions include:

Is short-term rental use allowed?

Check the property’s zoning and local regulations.

Does the property require a permit or business license?

Some jurisdictions impose registration, licensing or permitting requirements.

Are there occupancy restrictions?

Local governments may impose limits that affect the property’s potential rental income.

Are there local taxes?

Owners may have state and local tax obligations associated with short-term rental activity.

Are there HOA or condominium restrictions?

Even when local law permits a short-term rental, an HOA, condominium association or other governing documents may restrict or prohibit rentals.

HOA Rules Can Be Especially Important

For properties located within an HOA or condominium community, buyers should review the association’s governing documents before purchasing.

An HOA may have restrictions concerning:

  • Minimum rental periods
  • Short-term rentals
  • Guest occupancy
  • Parking
  • Noise
  • Use of common areas
  • Registration of tenants or guests

This means a property can potentially be legal as a short-term rental under local government regulations while still being restricted by the community’s governing documents.

For buyers, checking both government regulations and HOA rules is essential.

Seller Disclosure Requirements Are Also Important

Washington already has a statutory seller disclosure process for residential real estate.

Under Washington’s real-property disclosure law, sellers generally must provide a completed disclosure statement unless an exemption applies or the buyer waives the disclosure. The disclosure concerns the seller’s actual knowledge of specified conditions and characteristics of the property.

The disclosure statement includes questions involving matters such as title, leases or rental agreements, easements, zoning violations, nonconforming uses and unusual restrictions that could affect future construction or remodeling.

This can be relevant to properties being operated as short-term rentals, but it is important not to characterize the existing disclosure form as a dedicated statewide short-term-rental disclosure form.

Changes Coming in 2027

Washington’s residential seller-disclosure statute has also been amended in 2026, with certain changes taking effect January 1, 2027.

The updated statutory disclosure form continues to require sellers to disclose information based on their actual knowledge of the property and includes questions involving leases, restrictions, zoning and other property-related matters.

Real-estate professionals and property owners should therefore review the applicable disclosure requirements before entering into transactions after the new provisions take effect.

Example: A Vacation Home in Chelan

Consider a homeowner selling a vacation property in the Lake Chelan area.

A buyer interested in continuing to operate the property as a short-term rental should not rely solely on the property’s existing rental history.

The buyer should independently verify:

  • Whether short-term rental use is currently permitted
  • Whether a local permit is required
  • Whether the permit can be transferred
  • Applicable occupancy limits
  • Local tax requirements
  • Any zoning restrictions
  • Any outstanding violations
  • HOA or community restrictions
  • Whether future changes to local regulations could affect operations

This due diligence can help the buyer understand whether the property’s previous rental activity can realistically continue after the sale.

Example: Seattle Condominium

The same principle applies to condominiums in Seattle.

A condominium may be located in an area where short-term rentals are subject to local regulations, but the building’s governing documents could impose additional restrictions.

A prospective buyer should therefore review the condominium declaration, bylaws, rules and other applicable association documents before assuming short-term rental use is permitted.

What This Means for Sellers

Property owners who currently operate short-term rentals should keep their documentation organized.

Depending on the property and jurisdiction, useful records may include:

  • Current permits
  • Business licenses
  • Tax records
  • Local registration information
  • Inspection records
  • HOA correspondence
  • Rental agreements
  • Notices of violations
  • Property-management records

Keeping these records organized can make the transaction process easier and help answer questions from prospective buyers.

What This Means for Real Estate Agents

Real-estate professionals working with investment properties should encourage buyers to perform location-specific due diligence.

Agents should avoid assuming that a property’s existing short-term-rental operation automatically means the next owner will be able to continue the same activity.

Local regulations can change, and permits or licenses may have specific transfer or renewal requirements.

Washington’s real-estate licensing law also requires brokers to disclose known material facts that are not readily apparent or ascertainable to a party, while the law does not generally impose a duty to investigate matters the broker has not agreed to investigate.

What This Means for HOAs and Community Associations

This topic is particularly relevant for homeowners associations.

HOA boards should understand how their governing documents address short-term rentals and ensure that rules are communicated clearly to homeowners.

Associations may want to review:

  • Rental restrictions
  • Minimum lease periods
  • Registration procedures
  • Guest policies
  • Parking requirements
  • Noise provisions
  • Enforcement procedures
  • Rules affecting common areas

Clear policies can help prevent disputes between homeowners, guests and neighboring residents.

What Buyers Should Do Before Purchasing

If you are considering purchasing a Washington property as a short-term rental investment:

1. Check local zoning.
Confirm that the intended use is permitted.

2. Check permit requirements.
Determine whether the property requires a local short-term-rental permit or license.

3. Check whether permits transfer.
Don’t assume the seller’s authorization automatically transfers to the buyer.

4. Review HOA documents.
Confirm that the community does not prohibit or restrict short-term rentals.

5. Review taxes.
Understand applicable state and local tax obligations.

6. Review the seller disclosure.
Look for information concerning leases, restrictions, zoning and other relevant property conditions.

7. Confirm everything with the appropriate local authority.
Local rules can vary significantly from one Washington community to another.

Final Takeaway

Washington does not currently appear to have enacted the sweeping statewide short-term-rental transaction disclosure law described in the original draft.

Instead, Washington has an existing statewide regulatory framework for short-term rentals, while cities and counties can impose additional requirements. Washington also has a statutory seller-disclosure process for residential property, with amendments scheduled to take effect in 2027.

For homeowners and investors, the biggest lesson is simple:

Before purchasing a property with plans to operate it as a short-term rental, verify the local rules, permits, taxes and HOA restrictions rather than relying solely on the property’s current rental history.

For community associations, maintaining clear and consistently enforced rental policies can also help reduce disputes and ensure homeowners understand the rules governing short-term rentals.