Is Bothell, Washington Good for Airbnb Investment?

To start an Airbnb in Bothell, Washington, begin by researching local regulations as Bothell requires short-term rental operators to obtain a business license and comply with zoning restrictions that typically limit rentals to residential zones R-1 through R-4. Contact Bothell's Planning Department at (425) 806-6100 to verify your property's zoning eligibility and obtain the necessary Conditional Use Permit, which costs approximately $1,500-2,000 and requires neighbor notification. Secure a Washington State business license through the Department of Revenue and register for tax collection, as you'll need to collect and remit the state's 6.5% sales tax plus King County's additional lodging taxes. Find a suitable property by focusing on areas near downtown Bothell, the Burke-Gilman Trail, or close to tech companies in nearby Redmond and Seattle, with average nightly rates ranging from $80-150 depending on size and location. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by Washington fire codes. Create your Airbnb listing with professional photos highlighting proximity to outdoor activities, downtown Bothell's restaurants, and easy access to I-405 and SR-522 for Seattle commuters. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and ensuring compliance with Bothell's noise ordinances and parking requirements, while considering property management companies like Vacasa or RedAwning if you prefer hands-off operation.

To identify profitable STR properties in Bothell, Washington, focus on locations within 2-3 miles of major tech companies like Google, Microsoft, and Amazon facilities, as well as properties near the University of Washington Bothell campus and downtown Seattle transit connections via I-405 and SR-522. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, parking, and outdoor spaces that appeal to business travelers and families visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-250/night in Bothell as of 2023) exceeds traditional rental income by 30-40%, while analyzing comparable listings within a 5-mile radius to understand seasonal demand patterns and occupancy rates. Research competition by examining existing Airbnb and VRBO listings in neighborhoods like Canyon Park, Fitzgerald, and Mill Creek, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Redfin or Zillow, while consulting Bothell's municipal code for STR regulations and connecting with local real estate agents familiar with investment properties in King and Snohomish counties to identify emerging neighborhoods with strong rental demand from the region's growing tech workforce.

To obtain an Airbnb/STR permit in Bothell, Washington, you must apply through the City of Bothell's Planning Department by submitting a Short-Term Rental Business License application, which requires a completed application form, proof of property ownership or lease agreement with landlord consent, a site plan showing parking and access, proof of liability insurance (minimum $1 million), a good neighbor agreement, and payment of approximately $200-300 in application fees plus annual renewal fees of around $150-200. The process typically takes 4-6 weeks for review and approval, during which the city will conduct inspections to ensure compliance with zoning requirements, parking standards (minimum 1 space per unit), occupancy limits (2 people per bedroom plus 2 additional), noise ordinances, and safety requirements including smoke and carbon monoxide detectors. Bothell specifically requires STRs to be owner-occupied or have a local contact person within 30 minutes, limits rentals to no more than 30 consecutive days, mandates posting of house rules and emergency contact information, and requires annual renewals with proof of continued insurance and compliance with all city regulations.

Short-term rentals (STRs) are legal in Bothell, Washington, but operate under specific regulations established by the city. Bothell requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential zones while prohibiting them in some single-family neighborhoods. The city has implemented occupancy limits, parking requirements, noise ordinances, and safety standards including smoke and carbon monoxide detectors. Recent changes around 2020-2022 have included stricter enforcement mechanisms and enhanced neighbor notification processes. Properties must meet building and fire codes, and operators are subject to complaint procedures that can result in permit revocation. The city distinguishes between hosted and non-hosted rentals, with different requirements for each category, and maintains a registry system for tracking permitted STR properties within Bothell city limits.

The most promising Airbnb investment areas in Bothell, Washington include the downtown core near Main Street and the Bothell Landing area, which attracts visitors due to its proximity to the Burke-Gilman Trail, McMenamins Anderson School, and various local events and festivals. The neighborhoods near Canyon Park and Mill Creek border are excellent for business travelers working at major tech companies like Microsoft, Google, and Amazon, as Bothell serves as a convenient midpoint between Seattle and the Eastside tech corridor. Areas close to the University of Washington Bothell campus offer strong rental potential from visiting academics, prospective students, and families attending university events. The Sammamish River corridor neighborhoods are attractive for outdoor enthusiasts and families visiting the extensive trail system and parks. Properties near Bothell's growing biotech district, including areas around companies like Seattle Genetics (now Seagen) and other life sciences firms, provide consistent demand from business travelers and consultants in the pharmaceutical industry.

In Bothell, Washington, Airbnb hosts are subject to multiple lodging taxes including Washington State's 6.5% sales tax, King County's 2.5% lodging tax, and Bothell's local lodging tax of approximately 2-4%. The Washington State Department of Revenue requires hosts to register for a business license and collect the 6.5% sales tax on all short-term rental bookings, with monthly remittance due by the 25th of the following month. King County's 2.5% lodging tax applies to stays under 30 days and must be collected by hosts and remitted quarterly to King County, with registration required through their tax department. Bothell's municipal lodging tax varies but typically ranges from 2-4% and requires separate registration with the city, with quarterly remittance schedules. Airbnb may collect and remit some of these taxes automatically depending on agreements with local jurisdictions, but hosts remain ultimately responsible for compliance. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and some jurisdictions may exempt rentals of primary residences for fewer than a certain number of days per year, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with each taxing authority.

To start an Airbnb in Bothell, Washington, the total estimated costs would be approximately $650,000-$750,000. Property purchase represents the largest expense at around $600,000 based on median home prices in Bothell as of 2023-2024. Furnishing costs typically range from $15,000-$25,000 for a complete setup including furniture, bedding, kitchenware, and electronics. Initial setup costs including professional photography, listing creation, and marketing materials run about $2,000-$3,000. Permits and fees in Washington state, including business licenses and potential city permits, cost approximately $500-$1,500. Insurance specifically for short-term rentals adds roughly $2,000-$3,000 annually. Utilities including electricity, water, gas, internet, and cable average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees (Airbnb charges 3% host fees), and marketing budget total approximately $8,000-$12,000. Additional considerations include property taxes, HOA fees if applicable, and potential property management costs if outsourced, which could add another $5,000-$10,000 to the initial six-month period.

Airbnb properties in Bothell, Washington demonstrate strong profitability potential with average nightly rates ranging from $85-150 for typical 2-3 bedroom homes, generating monthly revenues of $2,500-4,500 depending on occupancy rates of 60-75%. Operating expenses typically include cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance costs ($200-400 monthly), resulting in net profit margins of 25-40% for well-managed properties. Success factors in Bothell include proximity to tech companies like Microsoft and Google campuses (driving business travel demand), access to outdoor recreation areas, and the city's position between Seattle and popular destinations. Properties near the Burke-Gilman Trail and downtown Bothell command premium rates, with some hosts reporting annual profits of $15,000-25,000 on properties valued at $600,000-800,000. The market benefits from consistent demand from tech workers, visiting families, and tourists exploring the Pacific Northwest, though seasonal variations occur with peak performance during summer months (June-September) when occupancy rates can reach 80-90%.

Airbnb investments in Bothell, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near tech corridors and outdoor recreation areas can achieve higher returns of 12-15% annually. The average timeframe to profitability is 18-24 months, considering initial setup costs, furnishing expenses, and market establishment. Vacation rental properties in Bothell benefit from proximity to Seattle's tech industry, with companies like Microsoft and Amazon driving consistent business travel demand, while recreational visitors are drawn to nearby hiking trails and Lake Washington activities. Monthly gross rental yields typically range from $2,500-4,500 for 2-3 bedroom properties, with occupancy rates averaging 65-75% throughout the year. Initial investment requirements including down payment, renovations, and furnishing typically range from $80,000-150,000 depending on property size and condition, with break-even points generally achieved within the first two years of operation when properly managed and marketed.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Bothell, Washington, offering market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in the Bothell area include Windermere Real Estate and John L. Scott, with agents like Sarah Chen at Compass and Mike Rodriguez at RE/MAX who focus on investment properties. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Mashvisor for property analysis and market data, and AirDNA for short-term rental analytics specific to the Seattle metro area including Bothell. Local property management companies like Seattle Short Term Rentals and Puget Sound Property Management offer turnkey Airbnb setup services, while national companies such as AvantStay and RedAwning provide comprehensive investment and management solutions. Additional services include BiggerPockets for networking with local investors, Roofstock for online real estate investing, and local mortgage brokers like Pacific Northwest Lending who understand short-term rental financing in Washington state.