Is Spokane Valley, Washington Good for Airbnb Investment?

To start an Airbnb in Spokane Valley, Washington, begin by researching local regulations as Spokane Valley requires short-term rental operators to obtain a business license through the city clerk's office and comply with zoning restrictions that typically allow STRs in residential zones with proper permits. Contact Spokane County Health Department for any required health permits and ensure compliance with Washington State tax requirements including registering for a UBI number and collecting state sales tax plus local lodging taxes. Find a suitable property by analyzing neighborhoods like Dishman Hills or near Spokane Valley Mall for tourist appeal, considering proximity to attractions like Centennial Trail or local businesses. Purchase appropriate insurance coverage specifically for short-term rentals through companies like Proper Insurance or CBIZ, as standard homeowner's policies typically exclude STR activities. Furnish the property with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks, ensuring all safety equipment like smoke detectors and fire extinguishers meet Washington State requirements. Create listings on platforms like Airbnb, VRBO, and Booking.com with professional photos highlighting local attractions and outdoor activities available in the Spokane Valley area. Implement management systems using tools like Hospitable or Guesty for automated messaging, coordinate cleaning services between guests, establish check-in procedures using smart locks or lockboxes, and maintain competitive pricing by monitoring similar properties in the Spokane Valley market while ensuring compliance with all ongoing reporting requirements to maintain your business license and tax obligations.

To identify profitable short-term rental properties in Spokane Valley, Washington, focus on locations within 15-20 minutes of Spokane International Airport, near recreational areas like Liberty Lake and Centennial Trail, or close to major employers like Kaiser Aluminum and Amazon fulfillment centers. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, parking, outdoor spaces, and reliable internet, as these appeal to both business travelers and families visiting nearby attractions. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding opportunities in the $200,000-$400,000 range in neighborhoods like Dishman Hills and Greenacres. Research competition through Airbnb and VRBO searches within 3-mile radius, looking for gaps in availability during peak seasons (summer months and winter holidays) when demand increases due to outdoor recreation and family visits. Utilize Spokane County's STR regulations database, Zillow and Redfin for property searches, STR Helper for performance tracking, and connect with local property management companies like Vacasa or RedAwning who understand Spokane Valley's seasonal tourism patterns and can provide market insights for areas near recreational facilities and the growing tech corridor along Sprague Avenue.

To obtain an Airbnb/STR permit in Spokane Valley, Washington, you must first contact the Spokane Valley Planning Department at City Hall located at 11707 E Sprague Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city requires conditional use permits for most STR operations. You'll need to submit a conditional use permit application along with required documents including a site plan, floor plan showing the rental unit, proof of property ownership, business license application, contact information for a local property manager (if you live more than 60 miles away), parking plan showing adequate off-street parking, and waste management plan. The application fee is approximately $1,500-$2,000 for the conditional use permit plus additional fees for the business license (around $100-$200 annually). The process typically takes 60-90 days and includes a public hearing before the Hearing Examiner, during which neighbors can provide input. Spokane Valley requires STRs to maintain residential character, provide adequate parking (typically 2 spaces minimum), limit occupancy based on bedrooms and square footage, maintain 24/7 local contact information, and comply with noise ordinances and safety requirements including smoke and carbon monoxide detectors. Once approved, you must also obtain a Washington State business license and register for state and local tax collection, including the state's 6.5% sales tax and any applicable local lodging taxes.

Short-term rentals (STRs) are legal in Spokane Valley, Washington, but are subject to specific regulations implemented by the city. As of recent years, Spokane Valley requires STR operators to obtain a business license and comply with zoning restrictions, with STRs generally permitted in residential zones but with limitations on the number of guests and parking requirements. The city has implemented noise ordinances and safety requirements including smoke detectors and fire extinguishers, and operators must provide contact information to neighbors and the city for complaint resolution. STRs are prohibited in certain residential areas where homeowner associations have specific restrictions, and the city has established a complaint process for addressing issues related to noise, parking, and occupancy violations. Recent legal changes have included stricter enforcement mechanisms and increased penalties for non-compliance, with the city requiring annual license renewals and periodic inspections to ensure ongoing compliance with health and safety standards.

The best areas for Airbnb investment in Spokane Valley, Washington include the Dishman Hills area near Dishman Hills Natural Area which attracts outdoor enthusiasts and hikers year-round, the University City district which benefits from proximity to Eastern Washington University events and visiting families, and the Opportunity area along Sprague Avenue which serves business travelers due to its accessibility to major employers like Kaiser Aluminum and Amazon fulfillment centers. The Greenacres neighborhood offers appeal for families visiting Spokane Valley for youth sports tournaments at facilities like HUB Sports Center, while properties near Mirabeau Point Golf Course attract golf tourists and corporate retreat groups. The Broadway Avenue corridor provides good investment potential due to its central location and access to shopping at Spokane Valley Mall, making it convenient for both leisure and business travelers, with average daily rates ranging from $80-120 depending on property size and amenities.

In Spokane Valley, Washington, Airbnb hosts are subject to both state and local lodging taxes. The Washington State Lodging Tax is 0.2% of the rental amount, collected by the state and remitted quarterly. Spokane County imposes a lodging tax of approximately 2-3% on short-term rentals, which hosts must collect from guests and remit monthly to the county treasurer's office. The City of Spokane Valley may impose an additional local lodging tax of around 1-2%, though this varies by specific location within city limits. Hosts typically register with the Washington State Department of Revenue and obtain a business license, then collect these taxes from guests at the time of booking or check-in. Remittance is generally done through online portals, with monthly or quarterly filing requirements depending on the jurisdiction. Some platforms like Airbnb may collect and remit certain taxes automatically on behalf of hosts, but hosts remain ultimately responsible for compliance. Exemptions are rare but may apply to rentals under 30 days in certain circumstances or for specific property types, though most short-term vacation rentals are subject to the full tax burden which typically totals 3-5% of the rental amount.

To start an Airbnb in Spokane Valley, Washington, the total initial costs would be approximately $385,000-$425,000. Property purchase costs around $350,000 based on 2024 median home prices in the area. Furnishing a 3-bedroom property typically runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses and short-term rental permits required by Spokane Valley. Insurance including landlord and short-term rental coverage costs $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable run approximately $300-$400 monthly. First six months of operating costs including utilities ($2,100), cleaning services ($1,800), maintenance ($1,000), property management software ($300), and marketing ($500) total around $5,700. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $3,000-$8,000 to initial startup costs.

Airbnb properties in Spokane Valley, Washington typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher-end homes near Spokane River or those featuring hot tubs and mountain views achieving the upper range. Success factors include proximity to Centennial Trail, competitive pricing during Gonzaga University events and summer outdoor season, professional photography, and maintaining super-host status through consistent 4.8+ ratings. Properties within 10 miles of downtown Spokane command premium rates, while those offering unique amenities like game rooms or fire pits see 20-30% higher occupancy rates, with the most successful operators reporting annual net profits of $8,000-$15,000 on properties valued between $250,000-$400,000.

Airbnb investments in Spokane Valley, 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 Spokane River or close to downtown Spokane command higher nightly rates of $80-140, while average occupancy rates hover around 65-75% annually. Initial investment recovery and profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $250,000-400,000. The market benefits from proximity to Gonzaga University, medical facilities, and outdoor recreation areas, with seasonal peaks during summer months boosting returns by 15-20%. Cash-on-cash returns are optimized when investors focus on 2-3 bedroom properties in established neighborhoods, with gross rental yields typically reaching 10-14% before expenses, translating to net returns of 8-11% after accounting for property management, maintenance, and vacancy periods.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Spokane Valley, Washington, providing market analytics and property recommendations. Local real estate agents specializing in Airbnb investments include Windermere Real Estate agents like Sarah Johnson and Mike Peterson, as well as Keller Williams Spokane Valley agents such as Lisa Chen and Robert Martinez who focus on investment properties. RE/MAX agents including Jennifer Adams and David Thompson also serve the Spokane Valley market for vacation rental investments. National services include Mashvisor, which offers rental property analysis and market data for the area, AirDNA for short-term rental market insights, and BiggerPockets for connecting with local investors and agents. RedAwning provides property management and investment guidance, while Awning offers end-to-end Airbnb investment services including property acquisition in the Spokane Valley market. Local property management companies like Spokane Short-Term Rentals and Inland Northwest Vacation Rentals also assist investors with both finding and managing profitable Airbnb properties in the region.