Chelan County Short-Term Rental Rules: What Hosts Need to Know (2025)

Navigating STRs in Chelan County: What Hosts Need to Know

First Things First: What is an STR in Chelan County

In Chelan County, a short-term rental (STR) is defined as a residential dwelling or part of one that is rented on a nightly basis to guests for less than 30 days. This can be a whole house, a guesthouse, an accessory dwelling unit (ADU), or even just a room. co.chelan.wa.us+1

Because STRs are considered a commercial use under county law, they’re subject to land-use and regulatory rules, even when located in residential zones. co.chelan.wa.us+1

County-Wide Requirements & Purpose of Regulation

The rules for STRs in Chelan County were codified under Chelan County Code 11.88.290, adopted by the county commissioners on September 27, 2021. co.chelan.wa.us+1

The code aims to:

• Protect neighborhood character and quality of life for year-round residents. co.chelan.wa.us+1

• Minimize negative impacts (noise, garbage, traffic, events, over-occupancy) that can arise from STRs. co.chelan.wa.us+1

• Ensure STRs don’t displace or reduce housing availability for long-term residents, maintaining affordable housing stock. co.chelan.wa.us+1

Tier System: What Kind of STR Are You?

Chelan County uses a tiered permit system based on occupancy type and whether the owner is present during the stay. co.chelan.wa.us+1

Zones, Caps & Where STRs Are Allowed

• STRs are allowed only in certain zoning districts defined under the code. codepublishing.com+1

• For Tier 2 and Tier 3 STRs: there is a maximum share (cap) of STRs allowed per ZIP code, sub-area, or urban growth area (UGA). For many areas, that cap is 6% of the total housing stock. co.chelan.wa.us+1

• Some zones (rural commercial, certain commercial-zoned UGAs, master-planned resorts) may have different rules or be exempt from cap limitations. codepublishing.com+1

Because of the cap, certain hot-spot areas like popular vacation zones may be “full”: no new STR permits will be issued until existing permitted STRs drop below cap. Icicle Creek Homes+1

Permits, Fees & Compliance Requirements

To legally operate an STR in Chelan County (outside city limits):

• You must apply for a land-use STR permit under the county code. co.chelan.wa.us+1

• Permits expire annually (end of calendar year), and applicants must renew between Sept 1 - Oct 31 to stay compliant. co.chelan.wa.us+1

• Fees: For Tier 1 and Tier 2 around US$600 for annual/renewal permit; for Tier 3 higher occupancy STRs - US$900. Late renewals incur double or triple fees depending on timing. co.chelan.wa.us+1

• There’s a limit of one STR per parcel - owner cannot run multiple units (e.g. both a primary residence STR and separate ADU STR). codepublishing.com+1

• If your property is a previously existing (non-conforming) STR from before the code was adopted, you may continue to operate but still need to meet updated compliance standards (safety, tax, permit, insurance) to maintain legal status. co.chelan.wa.us+1

Operational Rules & Host Responsibilities

Owners/hosts must adhere to various operational and community-impact standards, including:

• Meeting liability insurance requirements (per relevant state law) for transient lodging. co.chelan.wa.us+1

• Collecting and remitting all required state and local lodging/sales taxes for stays < 30 days. dor.wa.gov+1

• Compliance with noise, garbage, parking, occupancy limits, event restrictions, and “good neighbor” conduct guidelines. Excessive disturbances (for example, two verified public-disturbance violations within six months) can trigger permit revocation. co.chelan.wa.us+1

• Maintaining a local contact or “responsible party” who can be available typically required to respond within a certain timeframe to guest or neighbor issues. Avalara+1

Special Note: STRs in City Limits (e.g. City of Chelan)

If your property is within the formal city limits of City of Chelan (or another incorporated city within the county), you’ll need to follow city-specific STR license requirements in addition to state-level obligations. cityofchelan.us+1

For example:

• The city STR license requires an initial fee of US$500 per unit, and annual renewal cost is US$250 per unit (with late-renewal penalties) under city code. cityofchelan.us+1

• A separate State business license (UBI) is also required by the state Department of Revenue for any STR lodging business. The Offer Sheet+1

• The listing must display the STR license number (e.g. “STR-OPLI-##-######”) on all public listing platforms. cityofchelan.us+1

• STR operators must pass health & safety inspections, meet zoning and occupancy rules, and be ready to address neighbor/complaint issues (noise, trash, parking, etc.). cityofchelan.us+1

Because city and county rules differ (especially in zoning, licensing, and permit caps), it’s important to confirm your property’s jurisdiction before assuming county rules apply.

What It Means for Potential STR Investors or Hosts

If you’re considering buying a vacation-rental or listing a property as an STR in Chelan County:

• Check zoning and permit caps - if the area is at the 6% cap for non-owner STRs, getting a new permit or buying an existing STR may be very difficult.

• Budget for permit + annual renewal fees - non-trivial and should be included in your financial projections.

• Plan for compliance obligations - insurance, taxes, maintenance, neighbor relations, occupancy/parking/noise restrictions.

• Expect inspections and ongoing oversight - there is active enforcement, including permit revocation for repeated disturbances.

• If inside a city (e.g. City of Chelan) - be prepared for extra licensing, rules, and a separate permit framework beyond the county code.

Conclusion: Operating Legally & Responsibly in Chelan County

Chelan County’s STR regulations strike a balance between allowing property owners to benefit from tourism and protecting local community character, housing supply, and resident quality of life. The tier system, permit caps, operational standards, annual renewals, and compliance requirements aim to prevent over-saturation, nuisance impacts, and uncontrolled growth of STRs.

If you’re thinking of listing a property, or buying one as an investor or vacation-rental operator make sure to consult the latest county (and city, if applicable) documents, apply for the proper permits, follow zoning and occupancy rules, register and pay taxes, carry required insurance, and be ready to act as a responsible host.