Deputy Director Sarah (Sarafy) Allen and economic development staff briefed the council on proposed short-term rental (STR) code amendments at the Oct. 28 study session and recommended adoption of a code chapter that mirrors the state definition and adds local operational standards ahead of a major international tournament next year.

Kim Dietz (economic development) told the council the recommended amendments would: 1) align definitions with state law (identifying short-term rental stays as fewer than 30 consecutive nights and excluding units occupied by an owner for at least six months of the year that rent fewer than three rooms); 2) require Redmond business licensing for STR operators; 3) implement consumer-safety, transparency and communication protocols; and 4) establish operational standards for ongoing engagement with online platforms and owners. Dietz said the state definition narrows the number of units subject to the local rules.

Staff cited AirDNA market data showing 237 short-term rental listings in Redmond in 2024 (across multiple platforms), representing roughly 0.6% of housing units. The city’s GIS analysis showed listings distributed across centers, apartment buildings and single-family neighborhoods. Staff noted the dataset may include duplicate listings across platforms and the figure is a measure of listings rather than unique hosts.

Council members asked about caregiver housing and tenant protections. Deni Shenoda in finance and staff said caregivers who do not charge a fee to the property owner typically would not be captured by the STR definition, and that staff plan to require posting of tenant-rights materials in accessible locations (for example building lobbies or other areas where tenants can readily view them) as part of the licensing procedures. Council member Stewart pressed staff to ensure the city’s posting would include links to city FAQs and state resources.

Staff confirmed the proposed annual registration fee is currently $153 and noted any fee changes require council approval. The city intends to return the code changes for council action at the Dec. 2 business meeting, with staff preparing implementation materials and an issues matrix response for council review.

No formal action was taken at the Oct. 28 study session.