Again? A New Washington State Bill Proposes a Short-Term Rental Tax—Airbnb Pushes Back!

According to a report this Wednesday, the 19th, by Seattle local outlet GreekWire, the Washington State Legislature has recently been considering a controversial new bill proposing a 6% tax on short-term rentals, including listings on platforms such as Airbnb and VRBO, to raise funds for affordable housing in the state.

I. The bill’s main provisions

According to GeekWire’s report, the Washington State bill has two main elements:

• Tax change: The bill proposes a 6% tax on short-term rental bookings, with the revenue going directly to affordable housing projects statewide.

(Screenshot from GeekWire’s report)

• Use of funds: Lawmakers believe the rapid expansion of short-term rentals has put some pressure on the long-term rental market, making affordable housing harder for local residents to find. Additional taxes are therefore needed to help address the problem.

The bill also considers how to calculate and collect the tax. The report discusses this in detail, but the overall aim is to increase local government revenue for housing construction and community improvements.

II. Airbnb pushes back strongly

Airbnb responded quickly to the proposal:

• Forming a political action committee, or PAC: Airbnb established Airbnb Helps Our State Thrive, abbreviated HOST, and contributed US$1 million to oppose taxation of short-term rentals.

• A full-page appeal: The PAC ran a full-page advertisement in The Seattle Times urging the public to “say no to a vacation tax.”

According to GeekWire, Airbnb stated:

“We support policies that increase housing supply statewide, but taxing Washington residents who rely on home sharing to make a living may put them at an unfair competitive disadvantage.”

This statement shows that Airbnb believes the bill would disadvantage hosts who live on short-term rental income, weakening the competitiveness of the broader sharing-economy platform.

III. Views from different sides

Owners’ views:

The Washington Hosts Collaborative Alliance, or WHCA, speaking for more than 16,000 hosts, is concerned that additional taxes would increase operating costs and further compress profits, particularly amid current high interest rates and economic uncertainty.

Lawmakers’ response:

Senator Liz Lovelett said she understood owners’ concerns, but emphasized that the expansion of short-term rentals had indeed worsened housing shortages in some areas.

She believes the tax would provide much-needed funding for affected communities, helping balance tourism development with residents’ housing needs.

Last week, we shared “A New Washington State Proposal: Raise the Annual Property Tax Growth Cap to 3%?!” This week brings a short-term rental tax. Since the new year began, life has certainly been unsettled for owners!

What do you think? We welcome your thoughts!

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 Seattle home below can be found on Redfin, where its estimated long-term monthly rent is about $6,746.

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 had recently booked this home from February 28 to April 30, a total of 61 nights, at an average monthly rent of $11,048.

In summary, after Snowball Rentals began operating this property, its monthly rental income increased from $6,746 to $11,048, an increase of 63%.

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

As noted above, this 61-night booking runs from February 28 to April 30, covering more than one 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.