For many years now, Airbnb rentals have been a popular lodging choice for tourists and travelers in the US and around the globe. Short-term rentals generally bring many benefits to those who operate them and their guests. Numerous Airbnb data and market reports prove this which has encouraged real estate investors (and homeowners looking for an added income) to rent out their properties on Airbnb.
This has become a popular rental strategy in numerous cities of different states, including the state of Washington. If you’re reading this, then you most likely want to know in which cities a real estate investor should consider an Airbnb Washington State rental property. This blog post has the answer to this and more!
In the first half of this blog, we list the 10 best cities in Washington State to rent out for the short-term on Airbnb alongside data and real estate analytics. These numbers were estimated with our Investment Property Calculator – a must-have tool for any real estate investor! To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Before we start, you should know that there are a number of regulations regarding short-term rental properties in Washington State that might differ from one city to another. So, make sure to read the second half of this blog which covers what you need to consider before investing in Airbnb Washington State.
Note: If you’re curious about the future of Airbnb, read this: What Will 2019 Look Like for Airbnb Real Estate Investing?
Top 10 Cities to Invest in Airbnb Washington State
#1 Bainbridge Island
- Median Property Price: $491,933
- Price Per Sq/Ft: $188
- Airbnb Rental Income: $5,042
- Cash on Cash Return: 6.74%
- Airbnb Occupancy Rate: 53.33%
#2 Port Angeles
- Median Property Price: $342,520
- Price Per Sq/Ft: $217
- Airbnb Rental Income: $3,149
- Cash on Cash Return: 6.13%
- Airbnb Occupancy Rate: 61.29%
#3 Federal Way
- Median Property Price: $448,502
- Price Per Sq/Ft: $209
- Airbnb Rental Income: $3,377
- Cash on Cash Return: 4.9%
- Airbnb Occupancy Rate: 48.31%
#4 Tacoma
- Median Property Price: $359,446
- Price Per Sq/Ft: $209
- Airbnb Rental Income: $2,751
- Cash on Cash Return: 3.55%
- Airbnb Occupancy Rate: 63.19%
#5 Spokane
- Median Property Price: $297,496
- Price Per Sq/Ft: $140
- Airbnb Rental Income: $2,046
- Cash on Cash Return: 3.53%
- Airbnb Occupancy Rate: 60.59%
#6 Everett
- Median Property Price: $393,845
- Price Per Sq/Ft: $261
- Airbnb Rental Income: $2,362
- Cash on Cash Return: 3.5%
- Airbnb Occupancy Rate: 65.27%
#7 Bellingham
- Median Property Price: $394,513
- Price Per Sq/Ft: $248
- Airbnb Rental Income: $2,653
- Cash on Cash Return: 3.49%
- Airbnb Occupancy Rate: 63.99%
#8 Burien
- Median Property Price: $463,758
- Price Per Sq/Ft: $274
- Airbnb Rental Income: $2,929
- Cash on Cash Return: 3.18%
- Airbnb Occupancy Rate: 36.71%
#9 Vancouver
- Median Property Price: $449,937
- Price Per Sq/Ft: $208
- Airbnb Rental Income: $2,565
- Cash on Cash Return: 2.98%
- Airbnb Occupancy Rate: 61.85%
#10 Kirkland
- Median Property Price: $677,035
- Price Per Sq/Ft: $422
- Airbnb Rental Income: $3,374
- Cash on Cash Return: 2.58%
- Airbnb Occupancy Rate: 63.61%
As any experienced real estate investor would know, profitable investment properties are found in profitable locations. And by location, we’re not only talking city-wise, but neighborhood-wise too. If you think that analyzing different properties in a number of neighborhoods will take months, think again! With the different tools we offer, you can easily and efficiently analyze investment properties in your city and neighborhood of choice in the comfort of your home.
One of our tools is the Airbnb Rental Calculator which allows you to evaluate how profitable a certain property is for an Airbnb investment. You can analyze the location, get real estate rental comps, and estimate your potential return on investment all in a matter of minutes! Click here to start analyzing Airbnb Washington State properties and find the best one to capitalize on.
Related: Airbnb Rental Calculator: The Ultimate Tool for Airbnb Hosts in 2018
What to Know Before Investing in Airbnb Washington State
Just like many states in the US housing market, investing in short-term rental properties in Washington State does come with some regulations. First, Washington State defines short-term rentals as “lodging provided by an owner or operator for less than 30 consecutive days in a dwelling or residential unit for a fee.” Short-term rentals include vacation home rentals, a room in a house, condo units or apartment rentals. In addition, a property owner is presumed to be conducting a business if he/she is:
- Advertising the rental property for overnight accommodations on an online platform (Airbnb or similar sites)
- Hiring a property manager to manage the rental property rental, or
- Selling 3 or more short-term rentals in a year.
Any owner of an Airbnb Washington State rental is required to obtain a state business license and to register with the Washington Department of Revenue. Plus, short-term rental property owners may be subject to state and local taxes. These include business and occupation (B&O) taxes, local lodging taxes, and other city fees. Keep in mind, these regulations regarding Airbnb Washington State may differ from one city to another.
For example, an owner of an Airbnb vacation home rental in Tacoma must reside in the home if he/she is renting individual rooms or a separate unit. However, if the owner is renting out an entire home, then he/she is not required to reside there. While in Kirkland, the property owner or Airbnb host must occupy the property as a primary residence at least 245 days per year.
As you can see, vacation home rentals are allowed in many cities in the Washington State housing market. However, as Airbnb Washington State is quickly growing, those cities have set requirements simply to regulate and ensure that short-term rental properties are operated in a safe manner.
The Bottom Line
To conclude, the Washington State housing market is a top option for real estate investors thinking of owning a short-term rental property. Airbnb Washington State is both affordable and profitable, so why not consider investing there? Just make sure to check and comply with the laws and regulations in the city of your choice!
Searching for other real estate markets for a short-term rental investment? These Are the Best Cities for Airbnb Investment 2018.
Remember, Mashvisor can help you find properties to rent out on Airbnb (or traditionally) for a good return on investment. To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.