Community Development releases new short-term rental statistics
After reviewing hundreds of short-term rental applications from existing operations, Chelan County Community Development has a better picture of which areas of the county have hit caps set on short-term rentals and which areas still have room for growth.
The Short-Term Rental Code, passed last year, established caps in most areas of the county’s unincorporated and urban growth areas (UGA). Most caps are set at 6 percent of the total housing stock. The exception is in the Manson UGA, which has a 9 percent cap. The caps apply only to residential zoning districts.
“The caps were a key discussion point with the Short-Term Rental Task Force, which met in 2021 to help us develop the code. The task force was made up of short-term rental owners and people representing the interests of residential neighborhoods and housing affordability in our county,” said Chelan County Commissioner Tiffany Gering. “The caps were included in the new code to strike a balance between the two interests now and into the future.”
By March 15 of every year, Community Development must determine the share of short-term rentals to the overall housing stock and whether any new short-term rental applications will be accepted for the following year in each zip code and urban growth area where the cap is not exceeded, according to the code.
The numbers show that all of the 98826 zip code area (Leavenworth, Lake Wenatchee and Plain) is over the cap as well as the urban growth area of Peshastin. Numbers also show that the Manson and Manson UGA area, which have 6 percent and 9 percent caps respectively, still have room for new short-term rentals.
The current numbers, which will be updated monthly, are posted on the county’s website.
Community Development has granted 657 provisional permits so far and has about a dozen more applications from existing businesses that are in the partial phase of being approved for a provisional permit, said Kirsten Ryles, manager of the Short-Term Rental Division for the department. In addition, the department is reviewing about 185 new applications that have been submitted so far, she said.
“By June 30, we expect to have full reviews completed of those provisional permits and the new Tier 1 applications,” Ryles said. “The provisional permits are not a guarantee that a business will be permitted, so those numbers in each of the areas may change, potentially opening up spots in some areas.”
In those areas where the cap is exceeded, an operation that was classified as “existing” during the provisional phase will continue to be allowed to operate, as long as they meet final permitting criteria.
New applicants who have applied to an area where the cap has been reached can re-apply in 2023 for a 2024 permit if room opens in that area. If room opens in an area that has reached its cap, Community Development will open an application window annually June 1-July 31. Applications from this year will not be rolled over to the new year.
The provisional permits also show that the majority of applicants, more than 80 percent, are categorized as Tier 2. As a reminder:
Tier 1: These short-term rentals are owner-occupied, are allowed no more than 8 people and do not fall under any caps. They also are not counted in any caps.
Tier 2: These short-term rentals are non-owner occupied, are allowed no more than 12 people and are subject to the limits set in some areas.
Tier 3: These short-term rentals can be owner or non-owner occupied, are allowed no more than 16 people and are subject to the limits set some areas.
In other short-term rental news, Community Development recently hired a code enforcement liaison who will work with the Short-Term Rental Division. The new office employee begins April 1.
Last Updated: 03/24/2022 08:46 AM
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Assessor's Office Community Meeting: Leavenworth and Lake Wenatchee
Posted by: Chelan County Assessor
Chelan County Assessor Wes Cornelius invites property owners and all interested parties to attend one of four community meetings scheduled this spring throughout the county.