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What to know about city and business licensing requirements for rental properties around Seattle Metro Area RD House Property Manager Helps

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Real Estate Broker/Owner with Real Estate Marketing Experts &Trusted Senior Advisors on Property Management services, Rentals Leasing, Landlord Tenant

 

What to know about city and business licensing requirements for rental properties around Seattle Metro Area RD House Property Manager Helps

 

This is a common question we get- do I need a business license if I have rental property? 

The short answer is- yes.  Most, if not all, jurisdictions require either a city or a Washington State business license (in some cases, both) for individuals or entities who own property which is rented and generates income.  Licenses generally run between $50 and $100, depending on the specific city or jurisdiction, and in almost all cases can be procured online (there are exceptions)

Note, RD House Real Estate Property Management cannot give legal or tax advice- this information is for reference only.  Owners should work wither their attorney and/or CPA for legal, business entity and tax information.

Here is a summary of licensing requirements for the major jurisdictions we service, with applicable links for each.

 

Seattle    

 

Seattle is the most clear and definitive about business licensing for rental property.  They state that “All persons engaging in business activity in the City of Seattle are required to obtain a business license”, and further define “Engaging in business activity” to include ”Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City, in connection with a business activity;”  Information can be found here: http://www.seattle.gov/rca/licenses/Licmain.htm

 

It’s worthy of note that Seattle is trying to implement requirement to register housing for inspections- tentatively by 7/1/14 for properties with 10 or more units; 12/31/14 for properties with 5-9 units, and 12/31/16 for properties with 1-4 units.  This legislation has not been finalized and continues to develop- we will provide updates here as they occur.

 

Bellevue     

 

Bellevue also specifically requires that all persons engaging in business activity in the City of Bellevue are required to obtain a business license.  However, licensing is done via the State of Washington business licensing process, and they don’t provide many additional specifics about licensing for operation of rental property.

 

Kirkland      

 

Kirkland also specifically requires that all persons engaging in business activity in the City of Kirkland are required to obtain a business license.  However, they require a Washington State Business License via the State of Washington business licensing process in addition to a City of Kirkland license.  Also, for a business that has gross revenue less than $12,000, you can obtain a business registration, at a lower cost than a full license.  And, similar to Bellevue, and they don’t provide many additional specifics about licensing for operation of rental property.  Their licensing information is available here.

 

Burien      

 

Also specifically requires a license for a “rental housing facility”, and calls out fees for 4-24 units of $100 and 25+ units of $200.  We haven’t found specific information for single family properties, and are waiting for clarification from Burien as of this writing.  Their licensing information is online here.

 

Tukwila   

 

As of January 2011, all residential rental property owners must obtain an annual Residential Rental Business license and complete a periodic inspection of each unit. In fact, Tukwila is the first local jurisdiction to require such inspections.  This applies to all multi-family units (2 or more units) and to condominiums, single-family, and accessory dwelling units occupied by tenants who pay rent.  Units occupied by a Section 8 tenant are exempt from the required inspections but owners must still obtain an annual license.  Their licensing and inspection information is online here.

 

 

 

Conclusion

 

It’s important that rental property owners check with the city in which their rental property is located to understand licensing requirements, and to keep their license current.  Most owners choose to manage this directly, and keep their license information with their property rental, LLC or other business records.  For our owners who would rather not worry with it, RD House offers a license management addendum to our management contracts.

 

 

 

 

 

 

 

 

 

 

About RD House Real Estate Property Management

 

 

 

RD House is a Seattle property management company that specializes in property management for residential homes and small apartment buildings in the Seattle metro area, with fees starting at 5%. We work smarter to be a team you can trust to manage all the aspects of your real estate property management the right way, and our mission is simply to provide better results with residential, multifamily, commercial and association property management.  We call it Simply better Property Management.

 

 

 

RD House Real Estate Property Management

 

6322 Fauntleroy Way SW, Seattle, WA 98136  |  (206) 728-6063    |  www.rd-house.com

 

 

 

 

 

 

 

 

Comments (2)

Anonymous
Seattle Investor

This is very useful information. My read of the regulations is that an entity is required to obtain a business license in Seattle if the entity owns and rents out property within the city limits, but the entity is exempt from the business license tax on the rental revenue under SMC 5-530. I did not see that mentioned here, so I was wondering if that was your read as well.

 

Oct 06, 2013 10:13 AM
#1
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

It should be easy but it isn't:

Buy rental properties. Survive tenants for twenty years. Retire with great cash flow and vast equity.

Nov 12, 2017 07:20 AM