Seattle, WA Short-Term Rentals: Extended Home Share (2026)
Key Facts
- Grandfather cutoff
- Operating before September 30, 2017
- Initial cap under exception
- Up to 2 units, no primary-residence need
- After 1-year renewal
- 3rd unit allowed if primary residence
- Proof required
- Tax certificate, remittance records, 2017 registry
- License fee
- $75 per dwelling unit annually
- First violation penalty
- $500 civil citation
Summary
Seattle normally caps a short-term rental operator license at one unit, or two if one is the operator's primary residence. A grandfather clause in SMC 6.600.040.B.1 lets operators who were already renting short-term before September 30, 2017 keep licensing up to two units, then add a third after one year of renewal if it's their primary residence.
1.An operator who offered or provided a short-term rental outside of the locations described in subsections 6.600.040.B.2 or 6.600.040.B.3 prior to September 30, 2017, may obtain a short-term rental operator license allowing that operator to continue to operate up to two dwelling units for short-term rental use, subject to the requirements of subsection 6.600.040.B.4. Upon renewal of the license after one year of operations, the operator may obtain a license allowing that operator to: continue to operate the two units; and add a third dwelling unit if the unit is the operator's primary residence.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 44 Update 1).
Full Breakdown
B). Because that cap would have forced many existing hosts to shut down units overnight, the Council wrote in a transition rule. 1, an operator who was already offering a short-term rental outside the Downtown Regional Center and First Hill/Capitol Hill exception zones before September 30, 2017 can obtain a license covering up to two dwelling units even without either one being a primary residence. After one full year of operating under that license, the operator may renew into a license covering those same two units plus a third dwelling unit, but only if that third unit is the operator's own primary residence.
4 requires the applicant to hand the SDCI Director a business license tax certificate showing the short-term rental use predated September 30, 2017, records of local, state, and federal tax remittance for the prior 12 months, a dated registry of short-term rental use for that same period, and, if the applicant is a renter rather than an owner, certification that the property owner authorized the tenant to run the short-term rental. 3 apply to operators who were inside the Downtown Regional Center or in certain post-2012 First Hill/Capitol Hill multifamily buildings before the same cutoff date; those tracks were most recently amended by Ordinance 127375 in 2025. B and must be renewed every year.
Violations & Fines
Claiming the grandfather exception without the required 2017-era tax certificate, tax-remittance records, or use registry, or misrepresenting any fact in the license application, is a violation of SMC 6.600.120.A.3. The SDCI Director can issue a civil citation to the Hearing Examiner; a first violation carries a $500 penalty, and any second or subsequent violation within five years carries $1,000 per violation.
Frequently Asked Questions
Who qualifies for Seattle's short-term rental grandfather clause?
How many units can a grandfathered operator eventually license?
What documents does SDCI require to claim the exception?
Sources & Official References
Other rules in Seattle
Compare Seattle to another location·View the Washington short-term rentals overview
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Extended Home Share in Nearby Cities
How other cities in King County handle extended home share.