As professional property managers in King County, Washington, we tend to focus on long-term residential leases. This is where the most stability can be found for any investor. We like that that’s a plan in place that stretches beyond the existing lease term, and we appreciate that it’s so much easier to plan for repairs, updates, tenant communication, rent collection, and renewals with a long-term resident making your rental property their home.
There’s been a surge in short-term rentals lately, however, and it’s hard to ignore.
This is an area that draws an astonishing number of visitors every year. The data we’ve gathered from 2023 says that 37.8 million people visited King County that year, which was a 9% increase in 2022 numbers. Tourism is growing. People are looking for short-term rentals. Investors and even homeowners are eager to meet the demand by renting out properties for a few nights or a few weeks.
So let’s talk about the rise of short-term rentals in King County. We’re providing our own perspective as property managers here, and real estate investors. Should you rent out a property in the short-term instead of the long-term? There’s no easy answer.
First, we’ll acknowledge the growth of these property types. Then, we’ll talk about the laws that are only growing stricter around short-term rentals. Finally, we’ll provide some tips around whether you want to invest in short-term or long-term properties, or, ideally, both.
Why Are Short-Term Rentals So Popular with Investors and With Traveling Tenants?
King County’s location, with Seattle as its largest urban center, makes it a prime destination for both international and domestic tourists. The region offers a rich blend of natural beauty, cultural attractions, and thriving industries, drawing visitors year-round. Whether it’s people coming to attend major events like the Seattle International Film Festival (SIFF), the Seattle Art Fair, or the numerous conferences held in the city, the demand for short-term accommodations is on the rise.
- Alternative Accommodations, Please
Traditional hotels have long dominated the accommodation landscape, however, over the last decade at least, travelers have begun to seek out alternative options for lodging, looking for unique, personalized, and more cost-effective experiences. Short-term rentals, typically offered through platforms like Airbnb and Vrbo, provide travelers with the ability to rent a whole home or apartment rather than staying in a hotel. This offers a more home-like atmosphere, access to amenities like kitchens, and sometimes even scenic views or quirky properties not available through traditional hotel chains.
For families or larger groups, renting a home can be a more affordable option than booking multiple hotel rooms. Short-term rentals also offer the flexibility to stay in residential neighborhoods, often providing a more authentic experience compared to staying in more commercial areas.
- The Rise of Remote Work and Flexibility
One of the most significant drivers of the increase in short-term rentals across King County has been the rise of remote work. We’ve seen a shift in the way businesses operate, and many employees no longer need to work in an office full-time. This newfound flexibility has allowed people to travel more freely and seek out temporary living arrangements in areas outside of their home cities.
King County is a prime example of how remote work has led to an increase in short-term rentals. With Seattle being home to major tech companies like Amazon, Microsoft, and numerous startups, professionals can work from anywhere. Many remote workers have seized the opportunity to experience life in different parts of the county, whether it’s renting a cabin in Snoqualmie or a chic apartment in Capitol Hill.
For many, the idea of combining a work trip with leisure travel—often referred to as “bleisure”—has become an appealing option. These remote workers and digital nomads are fueling the demand for short-term rental properties, contributing to their proliferation across the region.
- This is a Gig Economy and Entrepreneurial Landlords are on the Rise
Another factor contributing to the rise of short-term rentals in King County is the increasing number of people turning to the gig economy for income. In recent years, property owners in King County have capitalized on the popularity of platforms like Airbnb to supplement their income. What was once a modest source of extra cash for homeowners has become a full-fledged business model for many owners.
For some enterprising landlords, the ability to rent out a room in their home or an entire property for short periods of time allows them to cover mortgage payments, pay off debts, or fund other life goals. King County’s housing market, which can be expensive, especially in cities like Seattle, makes it an attractive option for homeowners looking to earn additional income. The proliferation of short-term rentals in both urban and suburban areas has encouraged these entrepreneurial landlords to enter the market, offering a wide range of properties, from luxury homes to budget-friendly studios.
Short-term rentals also provide more flexibility than traditional long-term leasing. Property owners have the ability to block off dates when they don’t want to rent out their property and can adjust pricing based on demand. This level of flexibility and control makes it a more appealing income-generating option for many.
- Tourism and Events: A Draw for Short-Term Rentals
King County is home to a wide variety of events, festivals, and tourism-driven activities that continue to bring people to the area. Whether it’s the annual Seattle International Boat Show, the bustling Pike Place Market, or the natural attractions like Mount Rainier, there is no shortage of reasons for travelers to visit. While many people still opt for traditional hotel accommodations, short-term rentals have increasingly become a preferred choice for visitors seeking a more immersive experience.
The city of Seattle, in particular, hosts major sporting events like Seattle Seahawks games, concerts at Lumen Field, and local festivals such as the Seattle Cherry Blossom and Seafair festivals. These events bring large crowds to the region, creating a steady stream of demand for short-term rentals. In many cases, short-term rental hosts can make a significant profit during peak event periods, making it an attractive income option for those with available properties.
Technology and the Ease of Renting
The growth of short-term rentals would not be as widespread without the enabling technology provided by companies online such as the big players like Airbnb, Vrbo, and Booking.com. These platforms make it easier than ever for property owners to list their spaces and for travelers to find and book accommodations. The ability to quickly list, search, and secure accommodations has removed much of the friction that once existed in booking temporary lodging.
These platforms also offer increased transparency and security compared to older methods of booking rental properties. Reviews from previous guests help travelers make informed decisions about where to stay, and hosts have the ability to vet potential guests. This mutual trust model has facilitated the rise of short-term rentals by creating a safer, more reliable experience for both hosts and guests.
For property owners, technology has streamlined the process of managing bookings, cleaning schedules, and communication with guests. Smart home devices and automated systems for key exchanges, temperature control, and security cameras have made it easier for property owners to manage short-term rental operations, even remotely.
Challenges in the Short-Term Rental Landscape
Despite the explosive growth in short-term rentals, or maybe because of it, laws have been tightened around zoning, registration, and taxes.
The legal and regulatory landscape around these rental properties is rapidly evolving. King County, including Seattle, has implemented various laws aimed at regulating short-term rentals to address concerns around housing affordability, neighborhood integrity, and fairness in the hotel industry.
In 2018, Seattle passed a law requiring short-term rental hosts to register their properties with the city, pay certain fees, and meet specific safety standards. The city has also imposed limits on the number of days a property can be rented out and has taken steps to ensure that short-term rental activity doesn’t negatively impact the long-term rental market.
Registration is required in the State of Washington, as well.
While these regulations are designed to protect both hosts and the community, they can also affect the growth of short-term rentals in King County. Hosts need to be aware of zoning laws, taxes, and permits, and ensure they comply with city ordinances. This evolving regulatory environment is something property owners and renters will need to navigate carefully as the market continues to expand.
As you can see, the rise of short-term rentals in King County brings numerous benefits, there are challenges to be addressed. In addition to regulatory concerns, there are issues related to affordability, housing availability, and the impact on local communities. Critics argue that short-term rentals contribute to the increasing cost of housing, particularly in Seattle, where the demand for rental properties already exceeds supply. If too many properties are taken off the long-term rental market and converted to short-term rentals, it could exacerbate the region’s housing crisis.
Not a lot of people love the impact of transient populations on neighborhoods. Short-term renters may not contribute to the long-term stability of a community in the same way that permanent residents do. Some neighborhoods have expressed concerns over noise, safety, and the disruption of local businesses.
A Question for King County Investors: Short-Term or Long-Term Properties?
Here are some of the benefits to renting your King County property out with a short term lease:
| Flexibility
You are provided with more flexibility. This type of rental arrangement means you aren’t tied down for a year or longer. You don’t have to fulfill the obligations of a long-term lease agreement. If you’re leaving the area temporarily and you hope to move back into the home one day, short term leases will allow you to get the home back when you’re ready. You can also reserve specific times when you’ll use the property yourself. You have the freedom to structure rental periods seasonally or in ways that work best for your own needs. |
| More Money Per-Night
Earnings are structured differently with short term rentals, and you can charge more on a per-night basis than you do with long-term rentals. This can generate some great cash flow, especially if you manage to maintain high occupancy rates. The nightly or weekly rate you charge on a short term rental is often double or even triple what you’d charge per-night on a long term rental. |
| Guests instead of Tenants
The tenant relationship is different. You’ll still have to respect the needs and desires of your guests, but they don’t have the same rights as your long-term tenants. You’ll also have the opportunity to meet a lot of diverse tenants, if you want to. Some property owners are naturally extroverted, and they want to greet and get to know the people staying in their property. A lot of short-term rentals have guest books where their guests can leave messages. |
There are also some drawbacks which also need to be considered. What you might not like about renting out your home in the short term is:
| Managing the Rental
There’s more time and effort required. Your guests and visitors are constantly changing, and you have to remain responsive. You have to clean. You have to fix what’s broken. If you cannot commit to the ongoing maintenance and care of your property, a short term lease might not be best. |
| Vacancies
Vacancies will happen, and they will feel expensive. Your King County home won’t always be occupied. There will be high seasons and low seasons, so you might find yourself making $5,000 one month and $500 the next month. This can make budgeting and planning a challenge. |
| Furnishings and Amenities
Furnishings need to be attractive, comfortable, and high-quality. You’ll need to provide furniture as well as linens, pots and pans, cooking utensils, and creature comforts that guests are looking for. Wi-Fi will need to be good, smoke and carbon monoxide detectors must work, and you’ll have to have safety precautions in place. |
Is long-term leasing a better option for you? Here’s why the answer might be yes:
| Long-Term Demand
You’ll have high demand from tenants. Well-maintained homes in desirable locations are in high demand. The supply is not exactly keeping up with the demand, especially now, when tenants are putting off home purchases until interest rates come down. There is a healthy pool of renters. So, you’re likely to find highly qualified tenants when you’re renting out a long-term property. There’s no hustling for the next guest. |
| Stability
Long-term tenants provide stability for your King County investment property. There’s less cleaning that needs to be done and the wear and tear usually isn’t as intense because instead of a revolving door of guests, you have consistent people in place for a year or longer. |
But, why wouldn’t you want to make your home a long-term rental property?
| Earnings Could be Higher
Simple money math. You won’t get as much rent per-night. While your monthly rent will be comfortable, especially as rents are rising, a short term rental can charge much more per night. |
| Lease Terms
You’re locked into the lease agreement. If you decide you want to move into the home yourself but the tenant still has seven months on the lease agreement, you’re going to find that it’s practically impossible. You don’t have the same kind of flexibility. |
| Laws
Short-term rentals have strict laws and requirements, but the long-term leases aren’t without laws and tenant protections, too. Landlord and tenant laws apply to long-term homes. Washington State has a lot of protections in place for tenants, and long-term landlords will have to understand and comply with fair housing laws, security deposit requirements, habitability standards, and other state, local, and federal requirements. |
The best choice for you will depend on your investment plans and goals. Take a look at what you’re hoping to accomplish, and make some property decisions based on that. We can tell you that either way, investments in King County are valuable.
Let’s Discuss Your Options
Short-term rentals are undeniably on the rise in King County, Washington, driven by the region’s booming tourism industry, the growth of remote work, technological advancements, and the entrepreneurial spirit of property owners. While the rise of these rentals offers many benefits for you as an owner as well as affordable, flexible, and unique accommodations for guests, there are challenges that need to be addressed to ensure their long-term sustainability.
As the market continues to evolve, it will be interesting to see how both regulators and the community at large balance the demands for short-term rentals with the need for affordable housing and neighborhood cohesion. In the meantime, short-term rentals in King County will likely remain a significant part of the local economy and travel experience.
All decisions are easier to make when you have the support of a property management expert in King County. We’re your expert and your front-line gladiators. Please contact us at Real Estate Gladiators. We serve Monroe, Issaquah, Bellevue, Everett, Lake Stevens, Kirkland, and other cities in and around King and Snohomish counties in Washington State.
