Cle Elum, Washington Short Term Rental Regulations Guide for Airbnb hosts

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.

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:

Submit separate application package for each proposed STR
Planning Department reviews all applications
Building Department conducts safety inspections
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

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

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)

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/

Important Source Links

Primary Official Sources:

Application and Compliance Documents:

Interactive Tools:

Cle Elum Public Map Portal

State and County Resources:

Business and Management Resources:

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.

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