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

YES, short-term rentals are explicitly allowed in Cle Elum, Washington. The City of Cle Elum has established comprehensive regulations for short-term rental housing through CEMC 17.160 (Ordinance 1601), passed in 2021. These regulations create a structured framework that permits unlimited short-term rentals in commercial zones and a limited number of permits in residential zones based on specific spacing requirements.

Cle Elum's approach is notably investor-friendly, providing clear rules, reasonable fees, and professional administration while maintaining community standards. The city has positioned itself as welcoming to responsible STR operations while implementing safeguards to protect neighborhood character and guest safety.

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How to Start a Short-Term Rental Business in Cle Elum

Step 1: Property Eligibility Assessment

Commercial Zones: Offer unlimited STR opportunities with no spacing restrictions between properties. These zones provide the most security for portfolio building and scaling operations.

Residential Zones: Subject to strict 250-foot minimum spacing requirements between STR property boundaries. Use the Cle Elum public map portal to verify eligibility and measure compliance with spacing requirements.

Property Type Requirements:

• Must be a legal conforming or legal nonconforming residential dwelling unit
• Not permitted: Apartment buildings in any zone
• Ownership Limit: Maximum of three STRs per owner/host

Step 2: Application Process

Initial Application Submission:

1. Submit separate application package for each proposed STR
2. Planning Department reviews all applications
3. Building Department conducts safety inspections
4. Type 2 review required if applicant doesn't reside in the dwelling (includes 300-foot neighbor notification)

Building and Safety Compliance:

• Complete building and fire safety inspection by Building Department
• Address any building code compliance issues
• May require building permit application during review process
• Install all required safety equipment before permit issuance

Step 3: License and Permit Acquisition

Required Permits:

• Short-Term Rental Permit ($1,000 annually)
• City Business License
• State Business License
• Building safety clearance

Annual Renewal Process:

• Permit term runs January through December (calendar year)
• Renewal deadline: December 15 annually
• Non-prorated fees - full payment required regardless of application timing
• Applications processed in order received

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Required Documents, Permits, Licenses, and Guidelines

Essential Documents

Primary Applications:

• Short-Term Rental Application (PDF)
• Annual Renewal Form (PDF)
• Building permit application form (provided during review process)
• Building Department Short-Term Rental Inspection Checklist

Licenses and Permits:

• Short-Term Rental Permit ($1,000 annually - $880 permit + $120 licensing/processing)
• City Business License (fee per city schedule)
• Washington State Business License (through Department of Revenue)
• Building safety clearance

Required Insurance and Safety Documentation:

• Certificate of Insurance covering STR operations
• Safety equipment verification documentation
• Building code compliance verification
• Fire safety compliance documentation

Operating Requirements Documentation

Posted Information Requirements:

• Host and local contact information
• Permit number and display requirements
• Maximum occupancy limits
• Parking information and vehicle limits
• Noise ordinance information
• Emergency contact information
• Check-in/check-out procedures
• House rules and property restrictions

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Specific Regulations for Short-Term Rentals

City of Cle Elum Regulations (CEMC 17.160)

Local Contact Person Requirements:

• Must designate local contact responsible for code compliance
• Immediate emergency response capability required
• Responsible for lodging tax reporting
• Must maintain current business license
• Property maintenance oversight including snow/ice removal

Zoning and Spacing:

• Commercial Zones: Unlimited STRs permitted, no spacing limitations
• Residential Zones: 250-foot minimum spacing between parcel boundaries
• Spacing confirmed using Kittitas County assessor's mapping portal data

Occupancy and Safety:

• Maximum occupancy determined by Cle Elum Fire Department safety guidelines
• Property may alternate between STR and full-time residence use
• During STR tenancies, no other uses permitted without additional permits
• Must comply with all building and fire safety codes

Parking Requirements:

• Minimum two designated off-street parking spaces
• Hard surfaces only (concrete or compact gravel)
• No grass or landscaping areas for parking
• All parking must be within property boundaries

Noise and Conduct Standards:

• Quiet hours: 10:00 PM to 7:00 AM daily
• Audible noise activities limited to 7:00 AM to 10:00 PM
• All noise complaints subject to police investigation
• Excessive animal noise prohibited at all hours

Property Maintenance Standards:

• Mandatory city garbage service required
• Maintain adequate collection to prevent overflow
• Mayor may require larger garbage cart after complaints
• Must maintain residential character in residential zones
• No unusual emissions (noise, glare, vibrations, odors)

Pet Policies:

• All local animal laws must be followed
• City leash law compliance required
• Prompt cleanup of animal waste required
• No exotic animals or pets permitted

Special Events and Camping:

• No camping, RVs, campers, or tent accommodations permitted
• Weddings, corporate events, and large parties require city event approval
• Additional permits required for special activities

Kittitas County Context

Elk Meadows HOA: Rentals shorter than 6 months not allowed (HOA-specific restriction)

Neighboring Communities:

• Roslyn: Unoccupied STRs banned in residential zones; occupied rentals with owner present allowed (max 2 rooms); Urban Overlay zone allows unoccupied STRs with license

Washington State Regulations

State-Level Requirements (RCW 64.37):

• Short-term rental defined as lodging for less than 30 consecutive days
• All STR operators must obtain Washington State business license
• Primary liability insurance of at least $1 million required, or platform coverage
• Collect and remit all required taxes (sales, occupancy, lodging)

Tax Obligations:

• Washington State Retail Sales Tax (typically 8-10% total, varies by location)
• Business & Occupation (B&O) Tax: 0.471% of gross rental income
• Cle Elum Lodging Tax (rate established by city ordinance)
• State excise tax returns required (monthly, quarterly, or annually based on income)

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Contact Information for Local STR Authority

City of Cle Elum Planning Department

• Email: planning@cleelum.gov
• Phone: (509) 674-2262 x110
• Address: 119 West First Street, Cle Elum, WA 98922
• Hours: Monday-Thursday 9:00 AM - 4:30 PM, Friday 7:00 AM - 3:30 PM
• Responsibilities: STR permits, zoning compliance, application processing

City of Cle Elum Building Department

• Main Phone: (509) 674-2262
• Responsibilities: Building and fire safety reviews, building code compliance, safety inspections

Washington State Department of Revenue

• Business Licensing: (800) 647-7706
• Website: dor.wa.gov
• Responsibilities: UBI registration, state tax requirements

Additional Resources:

• Cle Elum Chamber of Commerce: Local business networking
• City Website: cleelum.gov
• STR Information: cleelum.gov/city-services/planning/short-term-rentals/

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Important Source Links

Primary Official Sources:

• City of Cle Elum STR Regulations Page
• Cle Elum Municipal Code CEMC 17.160
• Operating Standards CEMC 17.160.050
• Short-Term Rental Ordinance 1601 (PDF)

Application and Compliance Documents:

• STR Application Form (PDF)
• Annual Renewal Form (PDF)
• Building Department Inspection Checklist
• Map Instructions (PDF)

Interactive Tools:

• Cle Elum Public Map Portal

State and County Resources:

• Washington State STR Law RCW 64.37
• WA Department of Revenue Lodging Guide
• STRProfitMap Cle Elum Analysis
• The Offer Sheet Cle Elum Guide

Business and Management Resources:

• City Business Licenses
• City Fees & Rates
• Cle Elum Municipal Code

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Investment Considerations and Market Outlook

Cle Elum presents exceptional opportunities for STR investors who understand and embrace both regulatory requirements and the unique mountain character of this Pacific Northwest destination. The city's balanced regulatory approach, clear application process, and reasonable fees create a professional environment for compliant operators while protecting community standards.

Key Success Factors:

• Commercial zones offer unlimited portfolio growth potential
• Residential properties provide neighborhood character but limited by 250-foot spacing
• Annual permit renewal deadline of December 15 is non-negotiable
• Maximum three STRs per owner requires strategic planning
• Building and fire safety compliance essential before operations
• Professional property management recommended for optimal performance

The long-term outlook remains extremely positive, supported by continued tourism growth, Seattle market access, four-season appeal, and ongoing infrastructure improvements supporting increased visitor capacity.