What should Olympia hosts know about vacation rental permit cap of?

Vacation rental permit cap of 2 units per owner.

What should Olympia hosts know about hosted homestays do not need?

Hosted homestays do not need a permit, only business licenses.

What are the key requirements for Olympia hosts?

Local contact must be available 24/7 and reside within 15 miles of the unit or within Thurston County.

What are the key requirements for Olympia hosts?

Insurance must be for at least $1,000,000 specifically for short-term rental use.

Are there rental limits in Olympia?

Multifamily buildings are limited to 1 STR unit or 3% of total units, whichever is greater.

Olympia, WA Short-Term Rental Rules...

Baseline Verification

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Verified: Feb 11, 2026

Summary

Olympia regulates short-term rentals by distinguishing between 'homestays' and 'vacation rentals,' requiring a specific permit and a two-unit cap for unhosted vacation rentals.

Restriction Level

✅

Permissive

Score: 0 (restrictive)

Why this classification:

•Limited to 2 properties per owner
•Permit required
•Reporting required
•Safety standards required
•No night cap
•No primary residence requirement
•Tenants can host

In Plain English

If you rent out an entire home (a vacation rental), you must obtain a city permit, pay a $100 fee every two years, and you are limited to operating only two such units. If you are just renting out a room while you live on-site (a homestay), you don't need the STR permit but still must obtain city and state business licenses. All operators must carry $1 million in liability insurance and provide a local contact person available 24/7 who lives within 15 miles or within Thurston County.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$100

Processing Time

2 weeks

5 Things Hosts Often Miss

Regulation Details

Eligibility(6)

•Olympia: You can have a co-host or property manager help manage your listing.
•Olympia: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Olympia limits hosts to a maximum of 2 STR properties per owner.
•Olympia allows STRs in the following property types: Single Family, ADU, Duplex, Triplex, Fourplex, Townhouse, Multifamily.

Requirements(13)

•Olympia STR warning: Vacation rental permit cap of 2 units per owner.

Application Process(8)

•Olympia STR permit - Step 2: Verify Zoning and Parcel Limits. Check if your property is in a permitted zone and ensure you do not exceed the limit of two vacation rentals per owner. Time: 1 day.

Fees & Costs(2)

•Olympia charges a registration fee of $100 (biennial).
•Olympia: Insurance must be for at least $1,000,000 specifically for short-term rental use.

Taxes(2)

•Washington has a state sales tax of 0.065% that applies to STR rentals.
•Olympia charges a Special Hotel/Motel Tax of 0.02%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO generally collect and remit state and local lodging taxes in Washington.

Limits & Restrictions(6)

•Olympia limits stays to a maximum of 29 nights.
•Olympia occupancy calculation: Maximum of 10 adults or 2 adults per bedroom, whichever is less. Count your bedrooms to determine your max guest limit.
•Olympia enforces quiet hours: 10:00 PM - 7:00 AM.
•Olympia limits STRs to a maximum of 10 guests. Formula: Maximum of 10 adults or 2 adults per bedroom, whichever is less

Safety Requirements(1)

•Olympia requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Floor plan with evacuation routes, Good Neighbor Guidelines posted, Copy of license and permit number posted.

Penalties(2)

•Olympia enforces the following penalties for STR violations: First offense: Civil penalties and potential suspension. Second offense: Increased civil penalties. Third offense: Permit revocation. Permit may be revoked for violations.
•Olympia: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(2)

•Olympia: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Olympia exempts the following from STR regulations: hosted rentals (where host is present), long-term rentals (30+ days), extended stays, Hotels, Motels, Bed and Breakfasts.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other Washington Markets

Lake Chelan

Washington

Moderate

Short-term rentals are strictly regulated in the City of Lake Chelan under Chapter 5.56 of the Municipal Code. Hosts must obtain an annual permit, adhere to a occupancy limit of 2 per bedroom plus 2, and maintain a local representative available 24/7.

Permit required

0.1% total tax

Ocean Shores

Washington

Moderate

Ocean Shores requires all short-term rentals to obtain a specific STR license (Chapter 5.44) and a general city business license. Hosts are subject to a local 5% STR tax in addition to Washington state sales and lodging taxes.

Permit required

0.1% total tax

Anacortes

Washington

Strict

Short-term rentals are permitted in the City of Anacortes subject to a mandatory land-use permit and annual renewal. While owners do not have to reside on-site, there is a limit of one STR permit per person or entity.

Permit required

0.1% total tax

Walla Walla

Washington

Strict

Short-term rentals in the City of Walla Walla are regulated under Title 20.170, requiring a specific Land Use Permit and a safety inspection. The city distinguishes between owner-occupied (Type I) and non-owner occupied (Type II) rentals, with the latter subject to a strict one-per-block-face density limit.

Permit required

0.1% total tax

Olympia

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

5 Things Hosts Often Miss

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Regulation Details

Eligibility(6)

Requirements(13)

Application Process(8)

Fees & Costs(2)

Taxes(2)

Limits & Restrictions(6)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

Related Content

Other Washington Markets

Lake Chelan

Ocean Shores

Anacortes

Walla Walla

Olympia

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

5 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Olympia?

2What is the short-term rental tax rate in Olympia?

3Are there limits on the number of rentals I can operate?

4What are the local contact requirements for Olympia rentals?

Related Content

Other Washington Markets

Lake Chelan

Ocean Shores

Anacortes

Walla Walla