Olympia, WA Short-Term Rentals: Host Presence Rule (2026)

Olympia splits short-term rentals into two types, and the host-presence rule belongs to only one of them. The definitions in the code describe a short-term rental homestay as a type where rooms are rented within a dwelling unit that is occupied by a property owner or long-term rental tenant residing in that dwelling unit. A vacation rental is the type where an entire dwelling unit or portion of it is rented and there is no property owner or long-term tenant residing there.

Paragraph (JJ)(2) of OMC § 18.04.060 applies to homestays only. Under (JJ)(2)(a), the property owner, or a long-term rental tenant, must reside in a residence offered as a short-term rental homestay as their primary residence, including whenever a guest is residing in the homestay. The residency is not a one-time showing: it must hold on every night a guest is present. Under (JJ)(2)(b), no land use permit is required for a homestay, which is the trade-off for the live-in requirement.

The home occupation section repeats the rule at § 18.04.060(L)(3)(e), pointing back to subsection JJ. That section also loosens several ordinary home occupation limits for homestays. The 25 percent and 500 square foot floor-area limit does not apply to short-term rental homestays, the 7:00 a.m. to 9:00 p.m. customer-hours window excludes them, and the bar on persons other than resident family members taking part in the occupation does not apply to them.

The host also counts toward capacity. Paragraph (JJ)(1)(b) includes the property owner or long-term rental tenant in the count of the maximum number of overnight guests, and the all-rentals rules still demand a business license, a local contact within 15 miles or within Thurston County, and a posted City of Olympia business license.