Short-Term Rental Investment Guide: Centralia, WA

Overview: Are Short-Term Rentals Allowed in Centralia, WA?

YES, short-term rentals are explicitly allowed in Centralia, WA. The city has established a comprehensive regulatory framework for short-term rentals (STRs) in their zoning code (Centralia Municipal Code Title 20). Short-term rentals, including both homestays and vacation rentals, are permitted uses in specified zoning districts as outlined in CMC 20.11 (Land Use Tables). The regulations cover all aspects from operational requirements to safety standards, demonstrating that Centralia welcomes STR operations within a structured regulatory environment.

How to Start a Short-Term Rental Business in Centralia, WA

Step 1: Zoning Compliance Verification

• Confirm your property is located in a zoning district that permits short-term rentals per CMC 20.11
• Properties in R-5A, R-2A, R:2, R:4, and R:8 zoning districts allow up to two STRs per property
• Properties in R:15, R:20, and other zoning districts may require a Conditional Use Permit for additional STRs on the same property

Step 2: Utility Connections

• R:4, R:8, R:15, R:20, and other zoning districts: Connect to all city utilities
• R-5A, R-2A, and R:2 zoning districts: Connect to city electric and water, and city sewer if within 200 feet
• Properties not required to connect to city sewer must meet Lewis County septic system requirements

Step 3: Pre-Application Requirements

• Provide courtesy notice to all property owners within 300 feet of your proposed STR location
• Include operation description, number of bedrooms for overnight guests, and owner/operator contact information
• Obtain any required city and State business licenses

Step 4: Application Process

• Submit application for short-term rental permit
• Provide proof of liability insurance meeting RCW 64.37.050 requirements
• Designate a local contact person who resides within 15 miles of the STR or within Lewis County

Step 5: Operational Setup

• Ensure property meets all applicable state and local health, safety, and building code regulations
• Install required parking (one stall per rental unit) with designated signage
• Comply with setback requirements for the underlying zoning district

Required Documents, Permits, Licenses, and Guidelines

Permits and Licenses:

• City Business License - Required for all STR operators
• State Business License - Required per Washington State regulations
• Short-term Rental Permit - Issued by City of Centralia
• Conditional Use Permit - Required for additional STRs in R:15, R:20, and other specified districts

Required Documentation:

• Liability Insurance Certificate - Must comply with RCW 64.37.050
• Utility Connection Documentation - Proof of required utility connections
• Property Ownership Verification - Title report or deed documentation
• Local Contact Information - Name, phone number, and address of responsible party within 15 miles
• Building Code Compliance Certification - Fire protections, egress, accessibility standards

Operational Guidelines:

• Guest Capacity Limits: Maximum of 2 adults per bedroom (children under 12 may share with parents)
• Maximum Occupancy: 10 adults total or building code maximum, whichever is less
• Structure Requirements: STRs must operate within legally established dwelling units only
• Exclusions: Cannot operate outdoors, in accessory structures, mobile homes, RVs, or wheeled vehicles

Specific Regulations for Short-Term Rentals

City-Level Regulations (Centralia Municipal Code):

Operational Requirements:

• Parking: One parking stall per rental unit with designated tenant signage per CMC 20.72
• Setbacks: Must comply with underlying zoning district requirements
• Safety Standards: Fire, smoke protections, egress, accessibility, structural design compliance
• Waste Management: Cannot generate solid waste beyond typical residential levels

Neighbor Relations:

• Noise/Disturbance Limits: Must not generate measurable levels of dust, smoke, odor, glare, or noise beyond residential use
• Agreement Provisions: STR agreements must include provisions encouraging renter consideration for neighbors
• Local Contact: Must have designated representative for immediate response to city requests

Business Restrictions:

• Subleasing: STRs cannot be subleased
• Owner-Occupancy: Not required to be owner-occupied
• Tax Remittance: Operator responsible for timely lodging excise tax payments

County-Level Regulations (Lewis County):

• Septic System Requirements: Properties not connecting to city sewer must meet all Lewis County septic system requirements
• Critical Areas: STRs prohibited where development is restricted due to proximity to sewage infrastructure, critical areas, or unsuitable physical characteristics per CMC Title 16

State-Level Regulations (Washington State):

• RCW Chapter 64.37: Must comply with all Washington State short-term rental regulations
• Liability Insurance: Must meet RCW 64.37.050 insurance requirements
• Business Licensing: Washington State business license requirements
• Tax Obligations: State lodging excise tax and other applicable tax requirements
• WAC Compliance: Washington Administrative Code health, safety, and building standards

Contact Information for Local STR Authority

City of Centralia Community Development Department

• Address: 118 West Maple Street, P.O. Box 609, Centralia, WA 98531-0609
• Phone: (360) 330-7662
• Fax: (360) 330-7673
• Email: www.centraliaguide.com
• Website: www.cityofcentralia.com

Key Staff Contacts:

• Emil Pierson, AICP - Community Development Director
• Hillary Hoke - Assistant Community Development Director

Meeting Information:

• Planning Commission Meetings: Generally held at 6:00 PM on specified Thursdays
• Meeting Location: Centralia City Hall, First Floor, 118 W Maple Street, Centralia, WA
• Zoom Access: Available for remote participation (meeting-specific credentials provided)

Source Pages

1. Centralia Municipal Code - Chapter 20.04 General Provisions (Draft 8/22/2025)

   • www.cityofcentralia.com/DocumentCenter/View/4648
   • Contains detailed STR regulations in Section 20.04.110

2. Centralia Municipal Code - Chapter 20.06 Definitions (Draft 8/22/2025)

   • www.cityofcentralia.com/DocumentCenter/View/4648
   • Provides definitions for housing types and regulatory terms

3. City of Centralia Official Website

   • www.cityofcentralia.com
   • Additional resources and updates

Note: This guide is based on draft municipal code documents dated August 22, 2025. Investors should verify current requirements with the City of Centralia Community Development Department before proceeding with any STR investments or operations.