Is Wedgwood, Washington Good for Airbnb Investment?

To start an Airbnb in Wedgwood, Washington, begin by researching Seattle's short-term rental regulations since Wedgwood falls under Seattle jurisdiction, which requires hosts to obtain a Short-Term Rental Operator License ($75-150 annually) and limits rentals to primary residences with a maximum of two units per property. Contact the Seattle Department of Construction and Inspections to ensure compliance with zoning laws and obtain necessary permits, including potential fire safety inspections for multi-unit properties. Find a suitable property in Wedgwood's residential neighborhoods, focusing on single-family homes or condos near Green Lake or local amenities, with purchase prices typically ranging $600,000-900,000 as of 2023. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks highlighting Wedgwood's proximity to the University District and Green Lake. Create your Airbnb listing with professional photos showcasing the neighborhood's tree-lined streets and family-friendly atmosphere, setting competitive rates around $80-150 per night based on local market analysis. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, file quarterly tax reports with Seattle, and consider using property management companies like RedAwning or Vacasa if you prefer hands-off operation, while ensuring compliance with Seattle's 90-day annual limit for non-primary residence rentals.

To identify profitable short-term rental properties in Wedgwood, Washington, focus on properties within walking distance of Green Lake Park and the Wedgwood neighborhood's tree-lined residential streets, as these areas attract tourists seeking Seattle's outdoor recreation and quiet neighborhood charm. Target 2-3 bedroom single-family homes or duplexes built between 1940-1960 with original hardwood floors, updated kitchens, and private parking, as these features appeal to families and groups visiting the University of Washington area just south of the neighborhood. Conduct pricing analysis by researching comparable Airbnb listings in nearby Ravenna, Roosevelt, and Maple Leaf neighborhoods, aiming for properties that can command $120-180 per night based on 2023-2024 market rates. Research competition using AirDNA and Mashvisor to analyze occupancy rates and revenue potential, noting that Wedgwood has lower STR density compared to downtown Seattle, creating opportunity for well-positioned properties. Utilize Seattle's Department of Construction and Inspections website to verify STR licensing requirements, Zillow and Redfin for property acquisition analysis, and STR-specific tools like Rabbu and PriceLabs for revenue optimization, while considering that Wedgwood's proximity to major employers like the University of Washington and Amazon's South Lake Union campus via the future light rail expansion makes it attractive for extended business stays.

To obtain an Airbnb/STR permit in Wedgwood, Washington (assuming this refers to the Wedgwood neighborhood in Seattle), you must apply through the Seattle Department of Construction and Inspections (SDCI) online portal or in person at their offices at 700 5th Avenue. 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 payment of applicable fees. The operator license fee is $150 annually, plus a $20 application processing fee, and if your property requires inspections, additional fees may apply ranging from $200-400. The timeline typically takes 4-6 weeks for processing once all documents are submitted, though inspections may extend this period. Specific Seattle requirements include limiting rentals to primary residences only (you must live there at least 9 months per year), maximum occupancy of 8 guests, maintaining a 24/7 local contact person within 60 minutes of the property, providing neighbors with contact information, ensuring compliance with noise ordinances, and registering with the Washington State Department of Revenue for tax collection purposes. Properties in certain zones may have additional restrictions, and you must also comply with any homeowner association rules and obtain proper business licensing through Seattle's Business License system.

Short-term rentals (STRs) are legal in Wedgwood, Washington, but operate under Seattle's comprehensive STR regulations since Wedgwood is a neighborhood within Seattle city limits. As of 2023, Seattle allows STRs in residential zones but requires hosts to obtain a Short-Term Rental Operator License, limit rentals to primary residences only (no investment properties), maintain a maximum occupancy of 8 guests, and comply with safety requirements including smoke and carbon monoxide detectors. The city implemented these regulations around 2018-2019 following community concerns about housing availability and neighborhood character, with enforcement becoming stricter in recent years. Hosts must also pay applicable taxes, maintain liability insurance, and cannot operate STRs in certain multifamily buildings unless specifically permitted, while the city continues to monitor and adjust regulations to balance tourism benefits with residential neighborhood preservation in areas like Wedgwood.

The best areas for Airbnb investment in Wedgwood, Washington include the neighborhoods closest to major transportation corridors like 35th Avenue NE and NE 85th Street, which provide easy access to the University of Washington (attracting visiting families, prospective students, and academic travelers), and properties near the Burke-Gilman Trail that appeal to outdoor enthusiasts and cyclists visiting Seattle. The southern portion of Wedgwood near the Ravenna and Roosevelt neighborhoods offers strong potential due to proximity to the university district and the upcoming Roosevelt Light Rail station (opening 2021-2024), making it attractive for business travelers and tourists seeking affordable alternatives to downtown Seattle hotels. Areas near Wedgwood Rock and the residential streets between 25th and 30th Avenue NE are ideal for families visiting the region, as they offer quiet, safe neighborhoods with easy access to Green Lake, the zoo, and other family attractions. The western edge of Wedgwood, closer to I-5, provides convenience for business travelers working in South Lake Union tech companies like Amazon and Microsoft, while still offering the charm of a residential neighborhood at lower costs than central Seattle accommodations.

Airbnb properties in Wedgwood, Washington are subject to multiple lodging taxes including Washington State's 6.5% sales tax, King County's 2.5% lodging tax, and Seattle's 14.25% lodging tax which combines the city's general sales tax and specific accommodation taxes. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018 for most Washington jurisdictions. Hosts may still need to register with the Washington State Department of Revenue and potentially with King County and Seattle tax authorities, depending on their rental volume and location specifics. Remittance is generally handled by Airbnb quarterly to the respective tax authorities, though hosts should verify their registration requirements and may need to file returns even when Airbnb collects taxes. Exemptions are rare but may apply to stays exceeding 30 consecutive days, which are typically considered residential rather than transient lodging, and certain government or non-profit travelers may qualify for exemptions with proper documentation.

To start an Airbnb in Wedgwood, Washington, the total costs would be approximately $875,000-$950,000. Property purchase represents the largest expense at $750,000-$800,000 based on median home prices in this Seattle neighborhood as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations or improvements total around $3,000-$5,000. Seattle requires a short-term rental license costing approximately $150 annually, plus potential HOA approval fees of $200-$500. Insurance for short-term rentals runs $2,000-$3,500 annually, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, gas, water, internet, and cable average $300-$400 per month. First six months of operating costs including utilities ($2,400), cleaning services between guests ($1,800), supplies and maintenance ($1,200), platform fees to Airbnb and VRBO ($3,000 assuming 60% occupancy), property management software ($300), and marketing expenses ($500) total approximately $9,200. Additional considerations include potential property taxes of $8,000-$12,000 annually and a recommended emergency fund of $10,000-$15,000 for unexpected repairs or extended vacancy periods.

Airbnb properties in Wedgwood, Washington typically generate annual revenues between $35,000-$55,000 for entire homes, with average daily rates ranging from $95-$140 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-250/month), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$15,000 per property. Key success factors include proximity to University of Washington (driving consistent demand from visiting families and academics), competitive pricing during peak seasons like graduation and football games, professional photography, and maintaining super-host status through consistent 4.8+ ratings. Properties within walking distance of local amenities like restaurants on 35th Avenue NE and easy access to I-5 command premium rates, while those offering unique features like gardens or updated kitchens see 10-15% higher occupancy rates than basic listings, with the most successful operators achieving 65-75% annual occupancy compared to the neighborhood average of 55-60%.

Airbnb investments in Wedgwood, Washington typically generate annual ROI of 12-18% based on the neighborhood's proximity to University of Washington and strong rental demand from students, faculty, and Seattle visitors. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-220 per night depending on size and amenities. Most investors achieve profitability within 18-24 months, with single-family homes and basement units performing particularly well due to Wedgwood's quiet residential character and easy transit access to downtown Seattle. The market benefits from consistent year-round occupancy rates of 70-85%, driven by university schedules, medical professionals at nearby hospitals, and tourists seeking alternatives to expensive downtown accommodations. Properties purchased in 2020-2022 have shown stronger performance due to increased remote work trends and Seattle's housing shortage, with some investors reporting ROI as high as 22% when factoring in property appreciation alongside rental income.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Wedgwood, Washington, offering comprehensive market analysis and property recommendations. Local real estate agents like those at Windermere Real Estate and John L. Scott Real Estate have extensive knowledge of the Wedgwood market and can identify properties with strong Airbnb potential. Mashvisor provides national coverage with detailed analytics for short-term rental investments, while AirDNA offers market data and revenue projections specific to the Seattle metro area including Wedgwood. RedAwning and Awning.com provide property management and investment advisory services for short-term rentals in the Pacific Northwest region. Local property management companies such as Seattle Oasis Vacation Rentals and Stay Alfred (acquired by Sonder in 2019) offer full-service management for Airbnb properties in the area. BiggerPockets connects investors with local real estate professionals experienced in short-term rental investments, while Roofstock and Arrived Homes provide turnkey investment opportunities in the Seattle market. Additionally, local real estate investment groups and meetups in Seattle often have members specializing in Airbnb property acquisition in neighborhoods like Wedgwood.