The vacation rental (VR) industry was invented by my broker and business owner, Mike West, some 35 years ago as a way of justifying the price of buying a second home here. Everyone now knows that with the income from a vacation rental, marketed through a local company like Destination Leavenworth, or AIRBNB and VRBO. And unlike a monthly rental home, you get to use your vacation home whenever you want, while at the same time bringing in as much income as you would on a monthly rental, without being locked out, and without the upkeep of a monthly rental.
The graph provided by the City located in my Market Reports page clearly shows the consistent business income growth in the city, setting records every year since 2009. So, Leavenworth is the place to spend your real estate investment dollars.
VR’s fall into a unique category. They are not a business, so no business license or business tax requirements. No sales tax, no use tax, or transient accommodation taxes to pay because a single family residential lease (SFRL) is not “transient accommodations”. No more than required of a monthly rental single family residence, because a Vacation Rental is no more or less than a SFRL. Washington courts declare that the length of stay makes no difference. It could be for a year of an hour, a SFRL is a SFRL, then end.
Regardless of local government saber rattling to the contrary, there is no authority in cities or counties in Washington state to enforce the state Landlord/Tenant Act, which is what VR’s fall under, and they cannot change the nature of an apple by defining it as a skunk. Which is exactly what they’ve done in their quest to weasel control over VR’s. An illegitimate ploy to fear owners into compliance with their illegal desires. Which works for the most part. People generally avoid confrontations, and in the process give up their rights, but for those owners that do stand firm, there’s a great reward in the extra income, the increased value of the property, and the resale demand for a home that helps carry it’s weight.
Having lived beside a VR home, I’d much rather have VR guests staying than non-resident owners. You can’t do anything with discourteous owners breaking the noise curfew, but guests violate their lease agreement when they do and can be thrown out on their ear by calling the rental manager. VR guests come in with an attitude of knowing they are using someone else’s home in a neighborhood that is not theirs under a contract to pay for damage and so are more sensitive to disturbing the neighborhood.
So call me for more information on the benefits of owning a VR and let me help you purchase one for yourself.