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Mountlake Terrace

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Mountlake Terrace, WA

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STR Regulations for Mountlake Terrace, Washington

Overview

Short-term rentals (less than 30 days) are explicitly allowed in Mountlake Terrace, WA. The city's Residential Rental Business License and Inspection Program (MTMC 15.45) applies to all residential rental housing units, including those used for short-term rentals. There are no city-specific bans or additional restrictions on short-term rentals beyond the standard licensing and inspection requirements for all rental properties.

1. Starting a Short-Term Rental Business in Mountlake Terrace

Process:

  1. Acquire Property: Ensure the property is zoned for residential use. Accessory Dwelling Units (ADUs) are exempt from licensing.
  2. Obtain License: Apply for a Residential Rental Business License from the Community and Economic Development Department before renting.
  3. Complete Inspection: Conduct an inspection by a Qualified Rental Housing Inspector (RHI) to obtain a Certificate of Compliance.
  4. Renew Annually: Renew the license before expiration (December 31st) and update inspection certificates as required.
  5. Display Requirements: Provide the license and certificate to tenants (single-family) or post in common areas (multifamily).

2. Required Documents, Permits, Licenses, and Guidelines

Key Requirements:

  • Residential Rental Business License Application (to the Community & Economic Development Department):
    • List all rental units by address
    • Pay applicable fees
  • Certificate of Compliance:
    • Issued by a registered RHI after inspection
    • Valid for 3 years + 90 days
  • Qualified Rental Housing Inspector (RHI) Registration (if using private inspector):
    • Annual registration fee
    • Pass RHI exam
    • Possess valid credentials (e.g., ICC Property Maintenance Inspector)
  • Business License (City): Requires a separate city business license.
  • Display Requirements:
    • Single-family: Provide license/certificate to tenants at lease signing.
    • Multifamily: Post license/certificate in common areas.

3. Specific Regulations (City, County, State)

City of Mountlake Terrace:

  • License Scope: Applies to all rental units (long-term and short-term) except:
    • Owner-occupied units
    • ADUs
    • Hotels/motels
    • Government-owned properties
    • Subsidized housing with equivalent inspections
  • Inspection Requirements:
    • Sample inspections allowed for buildings with 10+ units (max 20% sampled).
    • City inspects if hazards are reported.
    • Covers minimum standards: sanitation, structural integrity, ventilation, smoke detectors, etc.
  • Penalties:
    • $150/day for first 10 days of non-compliance
    • $500/day thereafter
    • $1,000 fine for falsified inspections

State of Washington:

  • Residential Landlord-Tenant Act (RCW 59.18): Governs tenant rights, security deposits, and eviction procedures for rentals exceeding 30 days. Short-term rentals (<30 days) fall under hotel/motel regulations (RCW 19.48) and are exempt.
  • Sales Tax: STR operators must collect and remit Washington state sales tax (6.5% + local rates).

Snohomish County:

  • No additional STR-specific regulations identified in the provided content.

4. Local Authority Contact Information

Primary Contact:

Key Contacts for Inspections:

  • Qualified Rental Housing Inspectors: Contact the department for a list of registered private RHIs or city inspectors.

5. Source Links

Key Notes for STR Investors

  • No STR-Specific Rules: The city does not differentiate between short-term and long-term rentals in its licensing/inspection program.
  • ADU Advantage: ADUs are fully exempt from licensing, making them ideal for STR use.
  • Tax Compliance: Ensure Washington sales tax remittance for rentals <30 days.
  • Inspection Costs: Private inspections required unless the city conducts them (no cost to owner).

What do Airbnb hosts actually earn in Mountlake Terrace?

Mountlake Terrace hosts earn a median $35,641/year with $173 ADR and 64% occupancy.

Top performers pull in $46,946+ per year.

See the full Mountlake Terrace market breakdown

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Mountlake Terrace

Market Saturation Score

036912
Mild Saturation
2/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Mountlake Terrace

Overview of Mountlake Terrace

Mountlake Terrace is a suburban city of roughly 21,000 residents in Snohomish County, Washington, sitting just north of the King County line and about 12 miles north of downtown Seattle. Set between the I-5 corridor and the Puget Sound shoreline, the city has the feel of a quiet, family-friendly residential community with a growing Town Center and an easy commute into the Seattle metro. It is best known as a small but well-connected bedroom community that serves as a convenient gateway to both Seattle and the broader North Sound, with quick access to Edmonds, Lynnwood, Mukilteo, and Everett.

One of the city's most popular outdoor features is Lake Ballinger, a roughly 100-acre freshwater lake that straddles the Mountlake Terrace–Edmonds border. The city maintains Lake Ballinger Park on its shoreline, which offers a swimming area, walking paths, a small boat launch, picnic sites, and views of the surrounding watershed. From most points in town, the park is only a short drive, typically under five minutes, making it a frequent choice for casual outings and a recognizable local landmark.

Just a few minutes south of Mountlake Terrace lies Edmonds, a waterfront city known for its downtown, marina, and the historic Edmonds–Kingston ferry crossing. Visitors can stroll the harbor, browse the local shops and restaurants along Main Street, or take in views of the Olympic Mountains and Puget Sound from the fishing pier and Sunset Avenue. The drive from Mountlake Terrace is usually under 10 minutes, which makes Edmonds a natural day-trip extension for travelers staying in the area.

To the north, about 20 minutes by car, the city of Everett is home to the Future of Flight Aviation Center and the Boeing Tour, one of the Pacific Northwest's signature attractions, where visitors can walk above a working assembly line. Closer to home, the Interurban Trail, a regional multi-use path that follows the historic electric railway corridor, passes directly through Mountlake Terrace, providing an easy way to walk or bike south into Shoreline and north toward Lynnwood and beyond.

Mountlake Terrace makes a compelling base for short-term rentals because it offers a calm, suburban setting with quick access to the full range of Puget Sound experiences. Travelers can spend the day in downtown Seattle, catch an evening ferry from Edmonds, or explore Snohomish County's coastal and inland attractions, all while returning to a quieter neighborhood with parks, trails, and a small-town feel of its own.

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