A New Washington State Proposal: Raise the Annual Property Tax Growth Cap to 3%?!

Recently, the Washington Policy Center published an article about House Bill 1334, which could significantly affect property owners in Washington State.

What would this bill change?

1. Change the calculation method so taxes can increase faster

Currently, property tax increases are limited to a maximum of 1% per year.

HB 1334 proposes using the Consumer Price Index, or CPI, to calculate inflation. This index is typically higher than the existing calculation, meaning property taxes could increase more.

2. Add population growth to the calculation, with a maximum annual increase of 3%

This could allow property taxes to increase by 5%–6%, depending on CPI and population growth.

The annual growth cap is 3%, and increases cannot exceed that limit.

From the analysis article on House Bill 1334 mentioned above

Notably, Senator Pederson, a Democrat, introduced Senate Bill 5570 last year in an attempt to eliminate the 1% property tax growth cap, but it did not pass the Senate.

This time, HB 1334 aims to raise the property tax growth cap indirectly by changing the inflation calculation and adding population growth.

Owners’ reactions:

In our WeChat discussion group for mutual support among short- and mid-term rental owners, one member urged everyone to participate in a vote opposing the proposal after hearing the news.

Other members said a combination of factors was reducing rental property profits, increasing owners’ burdens and leaving them in an increasingly weak position.

An increase in property tax rates would not only raise annual tax bills but also force owners to raise short-term rental prices, affecting bookings, rental income and more.

What do you think? We welcome your thoughts!

If you are still deciding whether to invest in property and then become a short-term rental host, consider the experience we have summarized:

Real estate investment is a classic cyclical industry: Low interest rates send the market soaring, while high interest rates dampen transactions.

High rates are currently expected to persist for several years, making a return to the previous frenzy of surging home prices unlikely in the short term.

Over the long term, however, real estate is still worth investing in. A cooling market offers a buying window with greater negotiating power and no need to join bidding frenzies. After that, you simply need to wait patiently for rate cuts.

When rates fall, do not rush to sell. A smart approach is to refinance, which can lower borrowing costs and let you cash out some gains. Crucially, you do not have to pay capital gains tax, saving a substantial sum!

The next two years may be difficult, of course. But if we do not act now, we may miss our opportunity to buy when rate cuts arrive.

If you:

Hope to increase rental income through short-term rentals;

Cannot spare a great deal of time to handle the small details;

Occasionally need to use the home yourself, making it unsuitable to empty out the furniture for a long-term rental;

Then:

Snowball Rentals’ management team is your best choice.

From pre-launch vacation-rental styling, big-data analysis and online marketing to tenant screening, dynamic pricing, customer service and sales, cleaning and repairs, Snowball Rentals provides everything as one complete service for your home.

This Week’s Booking Results

Through long-standing relationships with insurers, assignment companies and technology companies, Snowball Rentals rents homes for medium- and long-term durations at short-term rates, then gives owners a rebate of 5% in management fees to maximize their income.

As the weather gets cooler, Seattle’s short-term rental low season is approaching again.

Short-term rentals in peak season and mid-term rentals in low season: this is the new strategy we have repeatedly emphasized and tried this year! Some recent large bookings have been like a ray of sunshine. Homeowners, let us support one another and face the approaching low season with confidence.

The detached Kirkland home below can be found on Zillow, where its estimated long-term monthly rent is about $3,000.

With the owner’s trust and support, we carefully furnished the home and immediately began short-term rental operations. Fortunately, because the home’s condition and location are both good, short- and mid-term bookings have continued to come in.

As shown in the booking screenshot below, a guest recently rented this home from February 2 to February 28, a total of 26 nights, for total rent of $5,421.

In summary, after Snowball Rentals began operating this property, its monthly rental income increased from $3,000 to $5,421, almost doubling. .

Securing such a large booking in low season is no easy feat!

As noted above, this 26-night booking runs from February 2 to February 28, covering almost a month of the short-term rental low season, September through March of the following year. We believe it can perform even better when the peak season arrives!

For homeowners, combining short- and mid-term rentals in this way can earn more in peak season and help them get through low season smoothly. Even if the low-season rental figures look less dramatic, they still outperform long-term rentals and give homeowners a strong sense of financial security.

More importantly, the owner does not have to worry about maintenance or cleaning. When something needs to be discussed with guests, we also help with communication and oversight.

Here, we again thank the owner for placing trust in the Snowball Rentals team!

After nearly two years of Airbnb’s downturn, we at Snowball Rentals hope to help owners make steady progress in low season, navigate the challenges safely and lay a better foundation for next year’s peak season.

Once again, heartfelt thanks to our homeowners for their trust and support. Whether the market is strong or weak, Snowball Rentals will stand with you and look for ways to increase your income!

Some homeowners will surely ask the hard question: was a large booking like this just a stroke of luck? What if the home does not rent? A long-term rental is more stable—even earning less is better than earning nothing!

Our answer is: the outcome depends on what we do.

Vacation-Rental Styling

Competition on Airbnb is becoming increasingly intense. The days of piecing together secondhand furniture, taking phone photos and earning easy money on Airbnb are over. Airbnb hosts have moved toward professional operations.

Careful design and furnishing before launch, followed by professional short-term rental operations, will be the only choice for a rental that continues to generate high income.

Here is another of Snowball Rentals’ core services: vacation-rental styling!

Let us look at the home introduced earlier:

When choosing a short-term rental on Airbnb, would this home’s appearance attract you?

If you would also like to make your home more attractive and earn more rent, please contact us at any time!

We also share practical vacation-rental styling plans and creative ideas to help you achieve more with less spending!

Keep rental income growing!

Referral Rewards

If you are already a Snowball Rentals homeowner, you receive a US$500 referral fee for each referral.

If you are not yet a Snowball Rentals homeowner, you receive a US$250 shopping voucher for each referral.

Snowball Rentals Management

1. Full service — We provide pre-launch rental design, furniture procurement, furnishing, professional photography, online marketing, copywriting, tenant service and sales, cleaning, supply purchasing and property repairs. You only need to be a hands-off owner; we handle the rest.

2. Multi-platform promotion — We promote the home on Airbnb, VRBO, HomeAway and other mainstream platforms for maximum exposure.

3. Dynamic pricing — Using big data, we adjust prices every day according to seasonal demand, holidays, last-minute vacancy offers, weekends and local activities, maximizing the owner’s income.

4. Income-improvement SOP — We follow 44 secrets for maximizing short-term rental income, optimizing each property’s online marketing, on-site operations and other aspects to work toward maximum income.

5. Flexible owner stays — Owners can flexibly choose when to stay themselves. This is especially suitable for owners with multiple residences around the world.

6. Terminate at any time — Management does not require an annual commitment. The owner can end the agreement with one month’s advance notice.

7. Corporate housing — In addition to nightly rentals, we work with insurers and assignment companies to provide executives with hotel-style managed accommodation for stays 30 days or more.

8. Transparent fees — For rentals 30 days or more, we charge 15% of accommodation revenue. For nightly rentals 30 days or less, we charge 20% of accommodation revenue.