Short-Term Rentals in Lakewood, WA

If you live in Lakewood or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Lakewood has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Taxes & Fees

A Lakewood, Washington short-term rental permit is not free: LMC 18A.40.090(B)(2)(f)(vii) requires the application to include the STR permit fee set by the Lakewood City Council, and LMC 18A.40.090(B)(2)(i)(xii) separately requires the operator to meet every local, state and federal license and tax obligation for as long as it operates.

Key details: Permit fee: set by Lakewood City Council. Application type: Type II procedure, LMC 18A.20.080. Business license: required before and during operation. Ongoing duty: all local, state, federal taxes. Annual renewal: notarized compliance affidavit required.

Failing to pay the required STR permit fee or letting a required tax or license obligation lapse breaches LMC 18A.40.090(B)(2), and LMC 18A.40.090(B)(2)(iii) makes the permit invalid once the associated business license no longer exists. Beyond permit invalidation, LMC 18A.20.105(B) treats a Title 18A violation as a Class 2 civil infraction under LMC 1.48.010, carrying up to a $500.00 penalty per day and location.

Short-Term Rental Parking Rules

Lakewood, Washington requires a short-term rental applicant to disclose its off-street parking under LMC 18A.40.090(B)(2)(f)(v), and once permitted, LMC 18A.40.090(B)(2)(i)(vi) requires 'all off-street parking required for the primary use of the site' to actually be made available to the guests renting the STR.

Key details: Application requirement: disclose off-street spaces for guests. Operating condition: all required off-street parking must serve guests. Substitution: no on-street parking substitute allowed. Related standard: shoreline/zoning performance standards also apply. Max penalty: $500 Class 2 civil infraction.

Diverting an STR's required off-street parking away from guests, or applying for the permit without disclosing the parking under LMC 18A.40.090(B)(2)(f)(v), violates the general regulations in LMC 18A.40.090(B)(2)(i). LMC 18A.20.105(B) makes a Title 18A violation a Class 2 civil infraction under LMC 1.48.010, punishable by up to $500.00, and the permit itself can be invalidated for noncompliance.

Occupancy Limits

Lakewood, Washington does not print a flat guest-count cap for short-term rentals; instead LMC 18A.40.090(B)(2)(i)(x) requires 'maximum occupancy shall be regulated consistent with LMC Title 15,' which adopts the 2021 International Building Code occupant-load rules by reference under LMC 15.05.020(A).

Key details: Guest cap: no flat number, tied to IBC occupant load. Governing adoption: LMC 15.05.020(A), 2021 IBC. Cross-reference: LMC 18A.40.090(B)(2)(i)(x). Pre-opening check: inspected by City and Fire District. Max penalty: $500 Class 2 civil infraction.

Exceeding the occupant load the International Building Code sets for the specific STR structure violates LMC 18A.40.090(B)(2)(i)(x) and LMC Title 15's adopted building code. LMC 18A.20.105(B) treats the violation as a Class 2 civil infraction under LMC 1.48.010, carrying up to a $500.00 penalty, and the fire and building inspection required under (B)(2)(c) can flag an over-occupied unit before it is ever rented.

Host Presence Rule

Lakewood, Washington requires every short-term rental to have a live point of contact: LMC 18A.40.090(B)(2)(i)(iii) requires the STR permittee or a designee to 'always be available and able to respond in person, or by telephone, within one (1) hour' to complaints, guest concerns and inquiries.

Key details: Response window: 1 hour, in person or by phone. Who it covers: permittee or a named designee. Contact info: posted in the STR's main living space. Good neighbor policy: must also be posted. Max penalty: $500 Class 2 civil infraction.

Failing to respond within the required one hour, or failing to post the required contact information under LMC 18A.40.090(B)(2)(i)(iv), violates the STR's general operating regulations. LMC 18A.20.105(B) makes a Title 18A violation a Class 2 civil infraction under LMC 1.48.010, up to $500.00 per day, and repeated failures can trigger the permit revocation process at LMC 18A.20.105(C).

Noise Rules

Lakewood, Washington bars paid parties at short-term rentals: LMC 18A.40.090(B)(2)(i)(viii) says STR guests 'are not permitted to host banquets, parties, or other gatherings for direct or indirect compensation,' while allowing noncommercial gatherings that do not infringe on neighbors' peaceful occupancy of their homes.

Key details: Paid parties/banquets: prohibited for STR guests. Noncommercial gatherings: allowed if not disruptive. Business-character standard: no outward business appearance. Good neighbor policy: form must be posted. Max penalty: $500 Class 2 civil infraction.

Hosting a paid banquet, party or gathering at a Lakewood STR, or running the unit so it manifests business-like characteristics that disturb neighbors, violates LMC 18A.40.090(B)(2)(i)(viii) and (ix). LMC 18A.20.105(B) makes the violation a Class 2 civil infraction under LMC 1.48.010, carrying up to a $500.00 penalty, and can support revocation of the STR permit under LMC 18A.20.105(C).

Short-Term Rental Permits

Short-term rentals in Lakewood, WA appear to require that the listed property be a primary residence based on available information. Operators must also obtain a Washington State business license and comply with applicable Lakewood zoning and licensing requirements. Verify current requirements with the City of Lakewood.

Key details: Primary Residence: Appears required. WA State License: Required. Local Verification: Contact Lakewood City Hall. Topic: Permit Requirements.

The Bottom Line

Lakewood's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Lakewood is broadly strict or permissive.

Keep in mind that Lakewood can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.