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  1. Home
  2. ·
  3. Regulations
  4. ·
  5. Washington
  6. ·
  7. Lake Chelan

Lake Chelan

Moderate
WashingtonUpdated Mar 31, 2026
Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

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.

Restriction level

Severity 33
Classification
Moderate
33
Severity

Why this classification

  • High permit fee: $500
  • Tenants cannot host
  • Permit required
  • Reporting required
  • No night cap
  • No primary residence requirement

In plain English

What this means for you

To host an Airbnb in the City of Lake Chelan, you must first verify your house is in a zone that allows rentals, as many residential areas have strict limits. You will need to apply for a city permit which costs $500 annually and involves a safety inspection. You also need a Washington State business license to collect taxes. You must provide guests with 'Good Neighbor Guidelines' and make sure you have enough off-street parking for every car they bring.

At a glance

Key numbers
Permit requiredYes
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$500
Processing time30-60 days

7 things hosts often miss

Common compliance gaps
  1. 1The City of Lake Chelan rules are separate and often stricter than those in Unincorporated Chelan County.
  2. 2Short-term rentals are prohibited in Accessory Dwelling Units (ADUs) built after 2018.
  3. 3You must have a local representative who can respond to complaints within 60 minutes, 24/7.
  4. 4The maximum occupancy is strictly 12 people, regardless of house size.
  5. 5Off-street parking is required; guests are typically not allowed to park on the street depending on the zone.
  6. 6Operating without a permit can lead to immediate fines and a one-year ban on applying for a license.
  7. 7Special event permits are required if you intend to use the STR for weddings or large parties.

Regulation details

Sourced from official code
Eligibility10 rules
  • Lake Chelan: Short-term rentals are prohibited in Accessory Dwelling Units (ADUs) built after 2018.
  • Lake Chelan, WA: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
  • Lake Chelan, WA: You can have a co-host or property manager help manage your listing.
Requirements21 rules
  • Lake Chelan STR warning: Special event permits are required if you intend to use the STR for weddings or large parties.
  • Lake Chelan STR warning: Short-term rentals are prohibited in Accessory Dwelling Units (ADUs) built after 2018.
  • Lake Chelan: A fire inspection may be required before you can operate. Schedule early as this can delay your start date.
Application process12 rules
  • STR regulations overview for Lake Chelan: 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.
  • Lake Chelan, WA extended permit requirement: Inspection fee if required
Fees & costs1 rule
  • Lake Chelan charges a registration fee of $500 (annual). Extended/additional fee: $100 (Inspection fee if required).
Taxes2 rules
  • Washington has a state sales tax of 6.5% that applies to STR rentals.
  • Lake Chelan charges a Special Hotel/Motel Tax of 3%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO generally collect and remit WA state and local lodging taxes automatically.
Limits & restrictions6 rules
  • Lake Chelan: The maximum occupancy is strictly 12 people, regardless of house size.
  • Lake Chelan limits stays to a maximum of 30 nights.
  • Lake Chelan enforces quiet hours: 10:00 PM to 7:00 AM.
  • Lake Chelan occupancy calculation: 2 per bedroom plus 2 additional guests, not to exceed 12 total.. Count your bedrooms to determine your max guest limit.
Safety requirements1 rule
  • Lake Chelan requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Backflow prevention device on irrigation, Visible address signage, Egress windows in all sleeping rooms.
Penalties4 rules
  • Lake Chelan enforces the following penalties for STR violations: First offense: Notice of Violation. Second offense: Civil penalty up to $500 per day. Third offense: Permit revocation for one year. Daily fine: $500. Permit may be revoked for violations.
  • Lake Chelan: Operating without a permit can lead to immediate fines and a one-year ban on applying for a license.
Exemptions3 rules
  • Lake Chelan, WA: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
  • Lake Chelan: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes 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.

Researched & verified by Learn STR at GoStudioM

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