Lakewood, Washington Short Term Rental Regulations Guide for Airbnb hosts

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

Yes, short-term rentals are explicitly allowed in Lakewood, WA. Short-term rentals (STRs) are defined as units rented for less than 30 consecutive calendar days and are permitted in most land use zones throughout the city. However, STRs are prohibited in Commercial Zones (C1-C3), Industrial Zones (IBP, I1, I2), Public and Semi-Public Institutional zones, and Open Space Recreation zones (OSR1 and OSR2).

This makes Lakewood, WA a permissible market for STR investment, unlike some jurisdictions that have implemented complete bans on short-term rentals.

What do Airbnb hosts actually earn in Lakewood?

Lakewood hosts earn a median $33,290/year with $154 ADR and 75% occupancy.

Top performers pull in $44,626+ per year.

See the full Lakewood market breakdown

How to Start a Short-Term Rental Business in Lakewood

Starting an STR in Lakewood involves a structured regulatory process designed to ensure safety and community compatibility:

Step 1: Verify Zoning Compliance

Before proceeding, confirm your property is located in an approved zone. STRs are permitted in:

Residential zones (R1-R4)
Multi-family zones (MR1, MR2, MF1-MF3)
Mixed residential areas (ARC)
Neighborhood commercial zones (NC1, NC2)
Transit-oriented development (TOC)
Central business district (CBD)

Step 2: Secure Required Permits and Licenses

STRs are regulated as a Type II administrative decision by the Planning and Public Works Department. This process requires public noticing but results in an administrative decision rather than a public hearing.

Step 3: Complete Inspection Requirements

All STRs must undergo inspection by both the City and Fire District to ensure compliance with building and fire code requirements. Deficiencies must be corrected before the structure can be rented.

Step 4: Implement Operational Requirements

Install required postings, ensure 24-hour contact availability, and establish good neighbor compliance procedures.

Required Documents, Permits, and Licenses

Primary Permits and Licenses

STR Permit (Type II administrative procedure)
City Business License (mandatory, must be renewed annually)
Rental Housing Safety Program (RHSP) Registration

Required Application Documentation

Completed STR permit application
Verified statement of property ownership or written consent from all owners
Written description of proposed STR operation
Location description for STR operation
Number of off-street parking spaces provided for guest use
Completed good neighbor policy form
STR permit fee (per City Council fee schedule)

Annual Renewal Requirements

Annual business license renewal application
Signed and notarized affidavit confirming compliance with general regulations (form approved by Director and City Attorney)

Specific Regulations for Lakewood, WA

Zoning and Location Requirements

STRs permitted in most residential and mixed-use zones
Prohibited in commercial, industrial, and certain institutional zones
Must comply with all zoning district performance standards

Safety and Inspection Requirements

Initial Inspection: Free inspection upon registration with RHSP
Ongoing Inspections: Properties must be inspected once every five years
Re-inspection Fees: Apply if initial inspection fails
Code Compliance: Must meet all building and fire code requirements

Operational Requirements

Contact and Availability

STR permittee or designee must be available to respond within one hour to complaints, guest concerns, and inquiries
24-hour contact information must be posted in a visible location within the main living space
Contact information must be clearly displayed in all advertising and listings

Good Neighbor Policy Requirements

The Good Neighbor Policy must be posted in a visible location within the main living space and cover:

24-hour contact information and emergency procedures
General respect for neighbors and property
Noise restrictions and quiet hours
Maintenance and garbage disposal procedures
Pet policies and leash laws
Parking and traffic safety requirements
Event restrictions (no banquets, parties, or commercial gatherings)
Tenant responsibility and compliance enforcement

Parking Requirements

All off-street parking required for the primary use of the site must be made available to guests
On- or off-premises signs advertising the STR are not permitted
Guests must park responsibly and utilize designated off-street spaces

Occupancy and Use Restrictions

Maximum occupancy regulated per Lakewood Municipal Code Title 15 (Buildings and Construction)
No commercial gatherings or events for direct or indirect compensation
Non-commercial gatherings allowed if they don't infringe on neighbors' peaceful enjoyment
STRs must not manifest characteristics of a business incompatible with residential enjoyment

Advertising and Listing Requirements

STR permit number must be posted on every listing advertising the STR
City of Lakewood business license must be posted on every listing
This includes all online platforms such as Airbnb, VRBO, and others

Tax and Fee Obligations

Transient lodging tax collection and remittance required
Fee adjustments for STRs planned in the 2025-2026 City Master Fee schedule
All local, state, and federal tax requirements must be met

ADU-Specific Considerations

The city has been considering allowing STRs in Accessory Dwelling Units (ADUs), with the Planning Commission recommending approval in 2024. This would provide additional investment opportunities but with specific requirements to be determined.

State-Level Washington Regulations

While Lakewood provides the primary regulatory framework, Washington State has enacted legislation supporting ADU development and regulating STRs:

House Bill 1337: Requires cities to allow ADUs in single-family residential zones and addresses parking restrictions near transit
State law alignment: Lakewood is updating STR definitions and regulations to align with state requirements

Contact Information for Local Authorities

Planning and Public Works Department

Address: 6000 Main St SW, Lakewood, WA 98499
Phone: (253) 512-2261
Office Hours: Tuesday-Thursday, 9am-12pm (Planner of the Day)
Website: www.cityoflakewood.us/planning-and-public-works

Specific Contact Emails

Permit Center: permits@cityoflakewood.us
Rental Housing Safety Program: rentals@cityoflakewood.us
Business Licensing: businesslicensing@cityoflakewood.us
Engineering: publicworksengineering@cityoflakewood.us
Planning: planning@cityoflakewood.us

For RHSP Inspection Scheduling

Email: rentals@cityoflakewood.us
Link: Available through city website

City Phone Main Line

Phone: (253) 589-2489

Links to Source Pages

Lakewood Planning Division STR Brochure: cityoflakewood.us/wp-content/uploads/2025/02/P4-Short-Term-Rentals-Pro-Tip.pdf
Lakewood Municipal Code - STR Regulations: lakewood.municipal.codes/LMC/18A.40.090
Good Neighbor Policy Worksheet: cityoflakewood.us/wp-content/uploads/2025/01/GOOD-NEIGHBOR-POLICY-WORKSHEET.pdf
City Planning Website: www.cityoflakewood.us/planning-and-public-works

Market Context

As of November 2023, Lakewood had 136 active short-term rentals with a median nightly rate of $96. The market has experienced significant growth, with a 45% increase in units within the last calendar year. The presence of Joint Base Lewis-McChord provides steady demand from military personnel and families, while proximity to Mount Rainier National Park and Tacoma attractions adds to the visitor base.

The city's enforcement challenges primarily relate to identifying and monitoring STR compliance, particularly given the dispersed nature of residential STRs. This creates opportunities for compliant operators while highlighting the importance of thorough regulatory adherence.

Compliance Enforcement

Non-compliance with STR regulations is enforced through:

Lakewood Municipal Code enforcement procedures
Title 18B (Downtown Development Code) and Title 18C (Station District Development Code) enforcement
Title 15 (Buildings and Construction) enforcement
Title 5 (Business Licenses and Regulations) enforcement
Administrative fines and permit revocation for violations

The city's approach emphasizes voluntary compliance through clear requirements, public noticing procedures, and regular inspection schedules rather than punitive measures for compliant operators.

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Ask the AI Advisor about Lakewood

Lakewood is a mid-sized city in Pierce County, Washington, home to approximately 63,000 residents. Located about 35 miles south of Seattle and just southwest of Tacoma, the city sits in the heart of the Puget Sound region, offering a suburban character that blends residential neighborhoods with significant military, retail, and natural features. Lakewood is best known as the home of Joint Base Lewis-McChord, one of the largest military installations on the West Coast, and it serves as a convenient base for visitors exploring the greater Tacoma area and the South Sound.

One of the most prominent attractions in Lakewood is Chambers Bay, a public-links golf course dramatically situated on the bluffs overlooking Puget Sound. Famous for hosting the 2015 U.S. Open, Chambers Bay is renowned for its sweeping views, walking-only format during certain seasons, and unique fescue-grass design. The course is roughly a 10-minute drive from central Lakewood and continues to draw golf enthusiasts from around the world. Adjacent trails and the surrounding Chambers Creek Regional Park extend the appeal for hikers, beachcombers, and casual visitors who want to experience the Puget Sound shoreline without straying far from the city.

Just a few minutes from downtown Lakewood, Lakewold Gardens offers a quieter but equally memorable experience. This historic estate garden, originally developed in the early twentieth century, features formal English-style landscaping, mature rhododendrons, towering Douglas firs, and ornamental lakes. The property provides guided tours and seasonal events, creating a peaceful setting that contrasts with the city's busier commercial corridors. Its proximity to the city center makes it a popular destination for visitors seeking a slower pace, particularly during spring bloom season.

Outdoor recreation in Lakewood also centers on Fort Steilacoom Park, one of the largest green spaces in the region. The park encompasses more than 340 acres of open fields, athletic facilities, walking trails, and a small lake, and it borders the campus of Pierce College. It hosts community events throughout the year and is a favorite for picnics, disc golf, and dog walking. Just to the north, the city edges up against the American Lake shoreline, a long, popular destination for fishing, boating, and lakeside walks.

Beyond its own attractions, Lakewood's appeal for short-term-rental guests is amplified by its proximity to Tacoma. The museums and waterfront of Tacoma, including the Museum of Glass, the Washington State History Museum, and Point Defiance Park, are all within a 15- to 20-minute drive. Travelers can reach downtown Seattle in about 45 minutes via Interstate 5, while the state capital of Olympia lies roughly 30 miles to the south. With its mix of military heritage, Pacific Northwest scenery, and easy access to both urban centers and natural escapes, Lakewood offers short-term-rental owners a versatile base for year-round visitors, from business travelers connected to Joint Base Lewis-McChord to leisure guests exploring the South Sound.