Is Alki, Washington Good for Airbnb Investment?

To start an Airbnb in Alki, Washington, begin by researching Seattle's short-term rental regulations since Alki is part of Seattle, which requires hosts to obtain a Short-Term Rental Operator License through the Seattle Department of Construction and Inspections, costing approximately $75-150 annually with renewal required every two years. You must also register for a Seattle business license ($110-125) and collect the 10.25% combined city and state lodging tax. Find a suitable property in the Alki Beach area, ensuring it meets zoning requirements for short-term rentals and considering proximity to the beach, restaurants, and public transportation. Obtain necessary permits including a rental housing inspection if required, and ensure the property has proper safety equipment like smoke detectors, carbon monoxide detectors, and fire extinguishers as mandated by Seattle fire codes. Furnish the space with beach-appropriate amenities, quality linens, kitchen essentials, WiFi, and consider adding beach chairs, umbrellas, or bicycles to attract visitors to this waterfront neighborhood. Create your listing on Airbnb and other platforms like VRBO, highlighting Alki's beach location, skyline views, and proximity to downtown Seattle, using professional photography to showcase the space and neighborhood attractions. For management, establish check-in procedures, maintain regular cleaning schedules, respond promptly to guest inquiries, and consider hiring a local property management company familiar with Seattle's regulations if you live elsewhere, while keeping detailed records of income and expenses for tax purposes and regulatory compliance.

To identify profitable short-term rental properties in Alki, Washington, focus on properties within 2-3 blocks of Alki Beach with water views or beach access, as these command premium rates year-round averaging $200-350 per night compared to $120-180 for inland properties. Target 2-4 bedroom single-family homes or condos built after 1990 with parking, outdoor spaces, and modern amenities like updated kitchens and WiFi, as families and groups visiting Seattle's premier beach destination prefer these features. Analyze pricing using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically achievable with 65%+ occupancy rates during peak summer months (June-September) when daily rates can reach $400-500 for waterfront properties. Research competition by monitoring active Airbnb and VRBO listings within a 0.5-mile radius, noting that successful properties often differentiate through beach equipment rentals, fire pits, or proximity to the Alki Trail, while avoiding oversaturated blocks with 5+ existing STRs. Utilize Seattle's short-term rental licensing database to ensure compliance with the city's owner-occupancy requirements and 90-day annual limit for non-primary residences, and leverage local tools like the King County Assessor's website for property values, Walk Score for walkability ratings to beach amenities, and Facebook groups like "Alki Real Estate" for market insights from local investors who report average annual returns of 12-18% for well-positioned beach properties.

To obtain an Airbnb/STR permit in Alki, Washington (part of Seattle), you must apply through the Seattle Department of Construction and Inspections (SDCI) online portal at seattle.gov. Required documents include a completed short-term rental operator license application, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), emergency contact information, and a business license from Seattle. The application fee is approximately $150 for the initial license plus $75 annual renewal, with additional inspection fees of around $200-300 if required. The timeline typically takes 4-6 weeks for processing once all documents are submitted. Specific Alki/Seattle requirements include limiting rentals to primary residences only (owner must live there at least 9 months per year), maximum 8 guests, mandatory 24/7 local contact person within 60 minutes of property, compliance with noise ordinances, posting of house rules and emergency procedures, and adherence to zoning restrictions that may limit STRs in certain residential areas. Properties must also pass safety inspections including smoke and carbon monoxide detectors, and operators must collect and remit Seattle's lodging tax of 18.4%.

Short-term rentals (STRs) are legal in Alki, Washington, which is part of Seattle, but operate under Seattle's comprehensive STR regulations established in 2017 and updated through 2023. The city requires STR operators to obtain a Short-Term Rental Operator License, limits rentals to primary residences only (owner must live there at least 9 months per year), caps rentals at 90 days annually for entire units, and mandates compliance with safety requirements including smoke detectors and emergency contact information. Seattle prohibits STRs in certain multifamily buildings where homeowner associations have banned them, requires operators to collect and remit city taxes, and maintains a registry of all licensed operators. Recent changes include stricter enforcement mechanisms, increased penalties for unlicensed operators (up to $500 per day), and enhanced neighbor complaint processes implemented in 2022-2023. The Alki area, being primarily residential with some condominiums and single-family homes, sees active STR operations particularly during summer months, though operators must navigate both city regulations and any additional building-specific restrictions that may apply to waterfront properties and condominiums common in this West Seattle neighborhood.

The Alki Beach area itself is the prime district for Airbnb investment in West Seattle, particularly properties within 2-3 blocks of Alki Avenue SW, as this waterfront strip attracts year-round tourists seeking beach access, stunning views of downtown Seattle and the Olympic Mountains, and proximity to popular restaurants like Salty's and Marination Ma Kai. The Admiral District, located on the hill above Alki, offers excellent investment potential due to its panoramic city views, quieter residential feel, and easy access to both the beach and downtown Seattle via water taxi, appealing to business travelers and tourists wanting a more upscale experience. The Junction area around California Avenue SW presents opportunities for investors targeting longer-term stays and business travelers, as it's the commercial heart of West Seattle with restaurants, shops, and transit connections, plus it's experiencing gentrification that's driving property values up. Lincoln Park vicinity properties perform well due to proximity to the large waterfront park, ferry terminal access to Vashon Island, and appeal to families and outdoor enthusiasts visiting for hiking, beach activities, and the Fauntleroy ferry connection.

Airbnb properties in Alki, Washington are subject to multiple lodging taxes including Washington State's 6.5% sales tax, King County's lodging tax, and Seattle's lodging tax which totals approximately 18.4% (including a 7% general lodging tax and additional tourism promotion taxes). The Washington State Department of Revenue requires hosts to register for a business license and collect state sales tax on all rental income, with monthly remittance required for those collecting over $1,200 annually. King County imposes its lodging tax on stays under 30 days, collected by the host and remitted quarterly to the county. Seattle requires short-term rental operators to obtain a business license and collect the city's lodging taxes, with remittance typically due monthly or quarterly depending on volume. Airbnb may collect and remit some of these taxes automatically through their platform for participating jurisdictions, but hosts remain ultimately responsible for compliance. Properties rented for 30 consecutive days or more to the same guest are generally exempt from lodging taxes but still subject to regular sales tax. Hosts must maintain detailed records of all bookings and tax collections, and failure to properly collect and remit can result in penalties and interest charges from the respective tax authorities.

Starting an Airbnb in Alki, Washington requires approximately $850,000-$950,000 in total initial investment. Property purchase costs around $750,000-$850,000 based on median home prices in the Alki Beach area of West Seattle. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including beds, sofas, dining sets, kitchenware, linens, and decor to create an attractive rental space. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Seattle requires a short-term rental license costing $250 annually plus potential Master Use Permit fees of $1,000-$3,000 depending on zoning. Insurance including liability and property coverage specifically for short-term rentals runs $2,000-$3,500 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $1,500-$2,500. First six months of operating costs including utilities ($800/month), cleaning services ($150 per turnover), property management software ($50/month), supplies and maintenance ($300/month), and marketing expenses ($200/month) total approximately $9,000-$12,000, assuming 60-70% occupancy rates typical for the Alki Beach market.

Airbnb properties in Alki, Washington, demonstrate strong profitability potential with average nightly rates ranging from $150-300 for waterfront units and $80-150 for inland properties, generating annual revenues of $35,000-75,000 for well-managed listings with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($50-80 per turnover), property management (15-25%), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance costs, resulting in net profit margins of 25-35% for successful operators. Key success factors include proximity to Alki Beach, professional photography showcasing water views, responsive guest communication, and seasonal pricing optimization that capitalizes on Seattle's peak tourism months from May through September. Properties within two blocks of the beach consistently outperform inland units by 40-60% in both occupancy and nightly rates, with some waterfront condos achieving $400+ nightly rates during summer weekends. The market benefits from Seattle's strong tourism economy, limited hotel inventory in the immediate beach area, and consistent demand from both leisure travelers seeking beach access and business travelers preferring alternatives to downtown accommodations, though success requires active management and adherence to Seattle's short-term rental regulations implemented in 2019.

Airbnb investments in Alki, Washington typically generate annual ROI of 12-18% based on the area's strong tourism demand from Alki Beach visitors and proximity to downtown Seattle. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak summer months (May-September) and $100-180 during off-season periods. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $600,000-$900,000 in the Alki area. The beachfront location commands premium rates with occupancy rates typically reaching 70-85% during summer and 50-65% in winter months. Properties within 2-3 blocks of Alki Beach consistently outperform the Seattle metro average by 15-25% due to the unique waterfront appeal and limited inventory of vacation rental properties in this specific micromarket.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering market analysis and property recommendations in Alki, Washington. Local Seattle-area real estate agents like those at Windermere Real Estate and John L. Scott have experience with investment properties in the Alki Beach area, while Keller Williams and RE/MAX agents often work with investors seeking vacation rental opportunities. National services include BiggerPockets for investor networking and deal analysis, Mashvisor for rental property analytics and ROI calculations, and AirDNA for short-term rental market data and performance metrics. Local property management companies such as RedAwning and Vacasa can assist with both property acquisition advice and subsequent management, while investment-focused brokerages like eXp Realty have agents specializing in Airbnb properties throughout the Puget Sound region. Additional services include Roofstock for turnkey rental properties, though their Airbnb-specific inventory varies, and local real estate investment groups through meetups and Facebook groups focused on Seattle-area short-term rental investments.