Federal Way, WA Short-Term Rentals: Short-Term Rental Permits (2026)
Short-term rental permit rules in Federal Way, WA, also called Airbnb permits, vacation rental licenses, or STR registration, list the application steps, fees, and operating requirements for hosting.
Key Facts
- State License
- WA DOR BLS required
- City Endorsement
- Federal Way required
- Renewal
- Annual
- Local Contact
- Required by RCW 64.37
- Platform Display
- License number often required
Summary
Federal Way STR operators must register with WA DOR through the Business Licensing Service, obtain a Federal Way business endorsement, and register local contact info under RCW 64.37.
A short-term rental operator must maintain primary liability insurance to cover the short-term rental dwelling unit in the aggregate of not less than one million dollars or conduct each short-term rental transaction through a platform that provides equal or greater primary liability insurance coverage. Nothing in this section prevents an operator or a platform from seeking contributions from any other insurer also providing primary liability insurance coverage for the short-term rental transaction to the extent of that insurer's primary liability coverage limits.
Full Breakdown
Operating a short-term rental in Federal Way requires layered registrations. First, operators secure a Washington state business license through the Department of Revenue Business Licensing Service (BLS), which also establishes tax accounts. Second, they add a Federal Way city endorsement via BLS when applying or renewing. Third, RCW 64.37 requires operators to provide a local contact for emergency and complaint response, and to post that contact and safety information within the rental unit. Platforms such as Airbnb and VRBO commonly request a valid UBI number or license identifier. Renewal is annual and fees vary based on gross receipts. Operators should also confirm through FWRC Title 19 that their property is in a zone where transient lodging is allowed.
Violations & Fines
Operating without required registrations can result in business license penalties, back taxes, and platform delisting. Fines typically start at 250 dollars plus any assessed taxes and interest.
Frequently Asked Questions
How do I register my Federal Way short-term rental?
Do I need to display my license?
Sources & Official References
Other rules in Federal Way
How Federal Way compares: Most Airbnb-Friendly Cities in America·Compare Federal Way to another location·View the Washington short-term rentals overview
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Short-Term Rental Permits in Nearby Cities
How other cities in King County handle short-term rental permits.