Overview: Are Short-Term Rentals Allowed in Spokane Valley?

Yes, short-term rentals are explicitly allowed in Spokane Valley, WA. Currently, Spokane Valley operates under a light regulatory framework for short-term rentals, making it a relatively business-friendly market for STR investors. As of 2024, the city has approximately 167 unique short-term rentals operating within its boundaries, with the majority being entire-home rentals serving leisure and extended-stay visitors.

Important Jurisdiction Note: Spokane Valley is a separate jurisdiction from the City of Spokane. While Spokane City has comprehensive STR regulations requiring permits, inspections, and specific zoning compliance, Spokane Valley currently maintains minimal direct STR oversight beyond basic business licensing and state tax requirements.

How to Start a Short-Term Rental Business in Spokane Valley

Market Analysis

• Current Inventory: Approximately 167 unique STRs identified by monitoring services
• Median Nightly Rate: $120 per night
• Property Types: 71% single-family homes, 28% multifamily units, 1% undetermined
• Rental Structure: 91% entire-home rentals, 9% partial-home rentals
• Market Dynamics: Growing market with ongoing discussions about potential future regulations

Business Launch Strategy

1. Property Acquisition/Preparation

   • Verify zoning compliance for STR use (currently no specific restrictions)
   • Ensure adequate parking and access
   • Plan for safety features and insurance coverage

2. Platform Registration

   • List on major platforms: VRBO, Airbnb, Expedia, Booking.com, TripAdvisor, Vacasa
   • Focus on the 25 key platforms identified for optimal exposure

3. Compliance Setup

   • Obtain required business license
   • Set up tax collection systems
   • Establish liability insurance coverage

Required Documents, Permits, Licenses, and Guidelines

Spokane Valley Requirements (Current)

1. Business License (Required)

• Fee: $25 annually
• Authority: Spokane Valley Municipal Code 5.05.010
• Requirement: Any individual owning, renting, leasing, using, or maintaining a place of business within the city
• Application: City of Spokane Valley business license registration
• Note: Less than 10 STR operators currently licensed, but compliance is required

2. State-Level Requirements (Washington State)

• Liability Insurance: Minimum $1 million primary liability coverage per RCW 64.37.050
• Consumer Safety Compliance: Post emergency information, floor plans, occupancy limits per RCW 64.37.030
• Tax Registration: Washington State Department of Revenue registration
• Tax Collection: State and local lodging taxes (detailed in regulations section)

Documentation Required for Operation

Insurance Requirements:

• Primary liability insurance minimum $1 million aggregate coverage
• Property damage coverage
• Optional: Platform-provided coverage (if equal or greater than $1 million)

Safety Documentation:

• Emergency contact information for guests
• Floor plans showing fire exits and escape routes
• Maximum occupancy limits
• Carbon monoxide alarm compliance per state building codes

Specific Regulations for Short-Term Rentals

Spokane Valley (City-Level) Current Regulations

Business Licensing:

• Annual business license required ($25 fee)
• No separate STR permit currently required by city ordinance
• No zoning restrictions specifically targeting STRs
• No occupancy inspections required

Tax Collection Requirements: STR operators must collect and remit the following taxes:

• State Sales and Use Tax: 4.5%
• Local City/County Sales and Use Tax: 2.2%
• Hotel/Motel Tax: 2%
• Special Hotel/Motel Tax: 1.3%
• Public Facility District Tax: 2%

Total Combined Lodging Tax Rate: 12.0%

Tourism Promotion Area (TPA):

• $4 per room, per night fee on lodging businesses with 40+ rooms
• STR Impact: Generally does not apply to individual STRs due to room requirement

Spokane County Context

• Spokane Valley operates as an incorporated city within Spokane County
• County-level STR regulations are handled at the municipal level
• Unincorporated county areas may have different requirements

Washington State Regulations (RCW 64.37)

Consumer Safety Requirements:

• Provide contact information to guests during stay
• Carbon monoxide alarm compliance per RCW 19.27.530
• Post conspicuous information in each dwelling unit:
  • Street address
  • Emergency contact information
  • Floor plan with fire exits and escape routes
  • Maximum occupancy limits
  • Operator contact information

Platform Obligations:

• Platforms must register with Department of Revenue
• Platforms must inform operators of tax obligations
• Platforms must provide insurance notification requirements

Tax Compliance:

• Operators must remit all applicable taxes unless platforms collect on their behalf
• Platform tax collection does not absolve operator registration requirements

Potential Future Regulations

City Council Discussion (March 2025): Industry representatives urged Spokane Valley to adopt:

• STR permitting process tied to business license
• Annual renewal requirements
• Posted permit numbers on listings
• "Good neighbor" policies
• Enhanced tax compliance requirements
• Responsive contact availability within one hour

Implementation Timeline: No ordinance adopted as of March 2025; staff directed to return with details and cost estimates.

Contact Information for Local Authority

Spokane Valley Tourism and Marketing Department

Primary Contact:

• Name: Lesli Brassfield, Tourism and Marketing Manager
• Phone: (Contact through city main number)
• Email: Available through city administration
• Address: City of Spokane Valley, 10210 E. Sprague Avenue, Spokane Valley, WA 99206

Spokane Valley Main Administration

• Phone: (509) 720-5000
• Website: www.spokanevalleywa.gov
• Business License Department: Contact through main administration

Washington State Department of Revenue

• Phone: (360) 902-7100
• Website: dor.wa.gov
• Business Licensing Service: bls.dor.wa.gov

Source Pages

1. Spokane Valley STR Analysis: Granicus Summary Brief
2. Hotel Industry Recommendations: Citizen Portal Article
3. Spokane City STR Regulations (Reference): City of Spokane Projects Page
4. Spokane Municipal Code: SMC 17C.316.040
5. Washington State STR Laws: RCW 64.37
6. Airbnb Host Guidelines: Spokane, WA Help Article
7. Avalara STR Updates: Spokane STR Enforcement Article

Investment Recommendation: Spokane Valley currently presents a business-friendly environment for STR investment with minimal regulatory barriers. However, the market appears to be at a regulatory inflection point, with industry pressure for increased oversight. Investors should monitor city council developments closely and consider the potential for future compliance costs in investment calculations.