Is Bellevue, Washington Good for Airbnb Investment?

To start an Airbnb in Bellevue, Washington, begin by researching the city's short-term rental regulations, which require a business license and compliance with zoning laws that typically allow short-term rentals in residential areas with restrictions on the number of days per year (usually 90-180 days for non-hosted rentals). Obtain necessary permits including a City of Bellevue business license ($110-200 annually), ensure compliance with Washington State tax requirements by registering for a UBI number, and verify your property meets fire safety codes and has proper smoke/carbon monoxide detectors. Find a suitable property in neighborhoods like Downtown, Crossroads, or near Microsoft campus that attracts business travelers, ensuring it's zoned for short-term rentals and checking HOA restrictions if applicable. Furnish the space with quality furniture, fast Wi-Fi, kitchen essentials, linens, and local amenities guides, budgeting $5,000-15,000 for a complete setup depending on property size. Create your Airbnb listing with professional photos highlighting proximity to tech companies, Bellevue Square, and Seattle (15 minutes away), setting competitive rates around $80-200 per night based on property type and season. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and keeping detailed records for tax purposes while ensuring compliance with Bellevue's noise ordinances and parking requirements that may limit guest vehicles.

To identify profitable short-term rental properties in Bellevue, Washington, focus on locations within 2-3 miles of major tech campuses like Microsoft and downtown Seattle ferry connections, prioritizing neighborhoods such as Downtown Bellevue, Crossroads, and areas near Bellevue Square for business traveler demand. Target 2-4 bedroom properties with modern amenities, parking, high-speed internet, and proximity to light rail stations, as tech workers and visiting executives comprise the primary guest demographic. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $150-300+ per night, with annual revenues of $60,000-120,000, while analyzing comparable listings within a 1-mile radius to understand seasonal demand patterns and optimal pricing strategies. Research competition density using STR Helper and AllTheRooms, avoiding oversaturated areas while identifying underserved pockets near Bellevue College, medical facilities, and shopping centers. Leverage local resources including King County STR regulations, Bellevue city licensing requirements, and partner with Eastside property management companies like RedAwning or Vacasa who understand the market's unique dynamics of serving both leisure tourists exploring the Pacific Northwest and business travelers in the tech corridor.

To obtain an Airbnb/STR permit in Bellevue, Washington, you must apply through the City of Bellevue's Development Services Department either online via their permit portal or in person at City Hall located at 450 110th Avenue NE. Required documents include a completed short-term rental business license application, proof of property ownership or lease agreement with landlord consent, floor plans showing the rental unit, proof of liability insurance (minimum $1 million), emergency contact information for a local representative available 24/7, and parking plans demonstrating adequate off-street parking. The application fee is approximately $200-300 for the business license plus additional fees for inspections totaling around $400-500. You must also obtain a business license from the state of Washington and register with the Department of Revenue for tax collection purposes. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including required inspections for fire safety, building code compliance, and zoning verification. Bellevue-specific requirements include limiting occupancy to no more than 2 guests per bedroom plus 2 additional guests, maintaining a guest registry, posting the permit number in all advertisements, ensuring the property meets all residential building codes, providing adequate parking (typically 1 space per unit), and complying with noise ordinances with quiet hours from 10 PM to 7 AM.

Short-term rentals (STRs) are legal in Bellevue, Washington, but operate under strict regulations implemented in 2019 and updated in 2021. The city requires STR operators to obtain a business license and conditional use permit, with properties limited to a maximum of two unrelated guests at a time and rentals restricted to no more than 30 days per stay. STRs are prohibited in certain residential zones and must maintain specific parking requirements, noise restrictions, and safety standards including smoke and carbon monoxide detectors. The city caps the total number of STR permits and requires operators to designate a local contact person available 24/7 for issues. Recent changes have strengthened enforcement mechanisms and increased penalties for violations, with the city conducting regular inspections and responding to neighbor complaints. Properties must also comply with all applicable building codes, zoning requirements, and tax obligations including the city's lodging tax.

The most promising Airbnb investment areas in Bellevue, Washington include Downtown Bellevue, particularly near the Bellevue Square shopping district and Convention Center, which attracts business travelers from major tech companies like Microsoft, Amazon, and T-Mobile, as well as shoppers and conference attendees. The Crossroads neighborhood offers excellent value with its proximity to Microsoft's headquarters and the growing tech corridor, making it ideal for extended-stay business travelers and contractors. Factoria presents strong potential due to its location near major employers like T-Mobile and easy access to both Seattle and the Eastside, attracting both business and leisure travelers. The Wilburton area is emerging as a prime investment zone with ongoing urban development projects and light rail expansion planned for 2025, positioning it for significant appreciation while currently offering lower entry costs. Meydenbauer Bay provides luxury rental opportunities targeting high-end business executives and tourists seeking waterfront accommodations with views of Lake Washington, particularly during summer months when the area hosts numerous events and festivals.

In Bellevue, Washington, Airbnb hosts are subject to multiple lodging taxes including the Washington State Lodging Tax of 0.2%, King County Lodging Tax of 2.8%, and Bellevue's Local Lodging Tax of 8%, totaling approximately 11% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions. Hosts must register with the Washington State Department of Revenue and obtain a business license, then remit taxes monthly by the 25th of the following month using the state's online filing system. King County requires separate registration and monthly remittance through their tax portal. Bellevue requires hosts to obtain a short-term rental permit and business license, with taxes remitted monthly to the city. Exemptions typically include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays. Additionally, hosts must collect and remit Washington State sales tax of 6.5% plus local sales taxes totaling approximately 10.25% on the lodging charges, with some jurisdictions offering streamlined filing processes for small operators earning less than $12,000 annually.

Starting an Airbnb in Bellevue, Washington requires significant upfront investment with property purchase being the largest expense at approximately $1,200,000 for a median-priced home in 2024. Furnishing costs typically range from $15,000-25,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, West Elm, and Amazon. Initial setup costs including professional photography, listing creation, and basic supplies total around $2,000-3,000. Permits and fees in Bellevue include a short-term rental license ($200-400 annually), business license ($100-200), and potential HOA approval fees ($100-500). Insurance costs increase by $1,000-2,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, gas, water, internet, and cable average $300-500 monthly. First six months operating costs encompass cleaning services ($100-150 per turnover), restocking supplies ($50-100 monthly), Airbnb host fees (3% of bookings), property management software ($20-50 monthly), and maintenance reserves ($200-400 monthly), totaling approximately $3,000-5,000. The complete startup investment ranges from $1,225,000-1,240,000, with ongoing monthly operational costs of $800-1,200 beyond mortgage payments.

Airbnb properties in Bellevue, Washington demonstrate strong profitability potential with average daily rates ranging from $120-180 for typical 1-2 bedroom units, generating monthly revenues of $3,600-5,400 assuming 70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($50-80 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs. Successful hosts in Bellevue's tech corridor, particularly near Microsoft and Amazon facilities, report net profit margins of 25-35% annually, with properties near downtown Bellevue Square and light rail stations commanding premium rates. A case study from 2023 showed a 2-bedroom condo near Bellevue Transit Center generating $68,000 annual revenue with $42,000 in expenses, yielding $26,000 net profit (38% margin). Success factors include proximity to tech campuses, professional staging, responsive communication, and strategic pricing during peak business travel periods and summer months when outdoor activities drive leisure demand. Properties with parking, modern amenities, and walkability to restaurants consistently outperform the market average by 15-20%.

Airbnb investments in Bellevue, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Bellevue near tech companies like Microsoft and Amazon command premium nightly rates of $150-250, while suburban areas average $100-180 per night. Initial profitability usually occurs within 12-18 months for well-positioned properties, with break-even points accelerated by Bellevue's strong business travel demand and proximity to Seattle attractions. The market benefits from year-round occupancy rates of 65-75%, driven by corporate travelers, conference attendees, and tourists visiting the Pacific Northwest. Investment properties typically require $80,000-150,000 down payments for condos or single-family homes, with total acquisition costs ranging from $400,000-800,000 depending on location and property type. Net monthly cash flow after expenses, mortgage, and platform fees generally ranges from $800-2,200 per property, with higher-end properties in Bellevue Square area achieving premium returns due to luxury amenities and walkability to shopping and dining.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Bellevue, Washington. Local real estate agents like those at Windermere Real Estate and John L. Scott specialize in investment properties in the Bellevue market, with agents such as Sarah Chen at Compass and Michael Rodriguez at RE/MAX Metro Realty having expertise in Airbnb investment properties. National services include Mashvisor, which provides rental property analytics, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties. Local property management companies like RedAwning and Vacasa offer full-service Airbnb management, while Seattle-based firms such as HostGenius and Puget Sound Property Management extend services to Bellevue investors. Additional resources include BiggerPockets for networking with local investors, Roofstock for online real estate investing, and local investment groups like the Seattle Real Estate Investors Association that frequently discuss Eastside markets including Bellevue.