The short-term rental market in Leavenworth, Washington, is thriving, with a median occupancy rate of 60%, an average daily rate of $202, and an average annual host income of $47,000, indicating a highly stable and profitable investment opportunity.
Thriving Short-Term Rental Market in Leavenworth, Washington
Leavenworth, Washington, is experiencing a robust and profitable short-term rental market. With a median occupancy rate of 60%, indicating strong demand, hosts are seeing significant returns on their investments. The average daily rate for short-term rentals in Leavenworth stands at $202, contributing to an average annual host income of $47,000. This performance is bolstered by lenient local regulations, which have not strictly enforced licensing requirements, allowing for a more flexible and lucrative hosting environment. The combination of high occupancy rates, substantial daily rates, and favorable regulatory conditions makes Leavenworth an attractive and stable destination for short-term rental investors.
Short-Term Rental Regulations in Leavenworth, Washington for 2024
City of Leavenworth Regulations
- Prohibition in Residential Areas: Short-term rentals are prohibited in residential neighborhoods, including RL6, RL10, RL12 zoning, and multi-family zoning.
- Allowed in Commercial Zones: Short-term rentals are permitted in commercial zones such as Central Commercial, General Commercial, and Tourist Commercial, primarily located along or south of Highway 2.
- Physical Alterations and Licensing: Properties in commercial zones that become rentals may require physical alterations (e.g., fire sprinkler systems, parking improvements) and must obtain city licensing.
- Bed and Breakfast Rules: Bed and breakfasts are allowed if they are the primary residence of the owner and have a conditional use permit (CUP).
Chelan County Regulations (Applicable to Unincorporated Areas)
- Permit Requirements: All short-term rentals must be permitted, and no new permits are being issued in areas like Leavenworth due to exceeded caps.
- Zoning Restrictions:
- Tier 1 rentals (owner on-site): Allowed in most zones.
- Tier 2 rentals (owner off-site): Permitted on rural residential/resource properties with lot sizes of 5 acres or more, but banned on smaller lots in certain zones (RR2.5, RW, RV).
- Tier 3 rentals (more than 12 guests): Require a Conditional Use Permit and are subject to similar zoning restrictions as Tier 2.
- Occupancy Limits: Limits on the number of guests, including daytime occupancy. Current discussions consider excluding children under two years from occupancy limits, but this is still under review.
- Caps on STRs: The total number of short-term rentals is capped at 6% of the total housing stock in most areas, with exceptions for Manson’s Urban Growth Area (9%) and Peshastin’s Urban Growth Area (0%).
- Grandfathering Existing Rentals: Existing rentals can continue to operate for 2-5 years in areas where they would otherwise be banned.
- Recycling Requirements: Properties must provide recycling receptacles where curbside recycling is available.
State-Level Considerations
- Proposed 10% Tax: State lawmakers are considering a bill that would allow cities and counties to implement a 10% excise tax on short-term rentals to address affordable housing issues.
Neighborhoods Generating the Most Airbnb Revenue in Leavenworth, Washington
1. Downtown Leavenworth
Downtown Leavenworth is a top revenue generator due to its proximity to the town's central attractions, including shops, restaurants, and festivals. Properties like "The Family Suite @ The Suites on Main" and "The Hideout" are highly rated for their easy access to town amenities and the unique Bavarian architecture of the area.
2. Icicle Village and Surroundings
This area is popular for its resorts and condos, such as those at Icicle Village Resort, which offer amenities like pools, hot tubs, sport courts, and easy access to outdoor activities. Guests appreciate the combination of comfort and proximity to nature, with options like the "GroundFloor+Pool+King Bed+HotTub+Skiing" condo.
3. Leavenworth Golf Course Area
Properties near the Leavenworth Golf Course, such as the "Park @ Condo & walk to town, Winter Hot Tubs, View" and "Walk to Town * Views * Winter Wonderland" condos, are favored for their scenic views, golf course access, and walking distance to the village. These condos often include amenities like pools, hot tubs, and tennis courts.
4. Icicle River and Wenatchee River Areas
Cabins and homes along the Icicle River and Wenatchee River, such as the "Waterfront Cabin, Hot-Tub, Mtn views, Sauna & Wifi" and "Beach House in Leavenworth Has River Beach Access," attract guests with their private riverfront access, hot tubs, and scenic mountain views. These properties offer a blend of natural beauty and modern comforts.
5. Neighborhoods Adjacent to Leavenworth Adventure Park
Areas close to the Leavenworth Adventure Park, like the "Little Bit of Norway" condo, are appealing due to their walkable location to the park, new Leavenworth Adventure Park, and other outdoor activities. Guests enjoy the modern amenities, such as new kitchens and guaranteed parking, along with the scenic mountain views.
These neighborhoods are highly appealing to guests due to their combination of:- Proximity to Central Attractions: Easy walking distance to shops, restaurants, and festivals.- Scenic Views and Natural Beauty: Mountain and river views, along with access to outdoor activities.- Modern Amenities: Pools, hot tubs, fully equipped kitchens, and other comforts.- Accessibility to Outdoor Activities: Golf courses, hiking trails, and adventure parks.- Unique Local Architecture: Bavarian-themed buildings and cozy cabin retreats.
Creating an Inviting Airbnb in Leavenworth, Washington: Design and Furnishing Tips
Embrace the Bavarian Charm
- Incorporate elements of Leavenworth's Bavarian architecture and theme into your decor. Use traditional German-inspired colors, patterns, and furnishings to create a cohesive and authentic atmosphere.
Lighting Control
- Invest in adjustable lighting options such as lamps and dimmer switches to provide guests with the ability to customize the lighting to their preferences.
Comfortable Living Areas
- Design the living room to evoke conversation and comfort. Include soft, clean blankets, pillows with various fill options, and occasional tables to ensure each guest has a place to put their drinks and belongings.
High-Quality Bedding
- Offer luxurious bedding options, including multiple layers for different preferences. Store extra bedding layers in the closet for easy access and to minimize turnover work.
Functional and Stylish Furniture
- Choose furniture that is both stylish and durable. Consider pieces that reflect the natural beauty and rustic charm of the surrounding area, such as wood and stone elements.
Temperature and Blackout Control
- Ensure each bedroom has temperature control options like ceiling fans and blackout shades to cater to different sleep preferences.
Modern Amenities
- Include modern amenities such as high-end bedding, contemporary kitchen appliances, and technological features like USB ports and wireless charging in bedside lamps.
Outdoor Spaces
- If possible, enhance outdoor spaces with features like hot tubs, decks, and patios that offer views of the surrounding landscape. These amenities significantly enhance the guest experience.
Guest Convenience
- Provide a well-equipped kitchen with essentials like coffee makers, teas, and basic kitchen supplies. Also, include a custom guest book with important instructions, local recommendations, and emergency contacts.
Attention to Detail
- Pay close attention to detail to create a luxurious and pampered experience. This includes offering services like guided excursions, airport transfers, and reservations at local restaurants and events.
Neighborhood Integration
- Ensure your Airbnb reflects the unique vibe of its neighborhood. Leavenworth's downtown area and waterfront locations offer distinct experiences that should be highlighted in your design and amenities.
Discover Leavenworth, Washington: Local Attractions and Insider Tips
Adventure and Outdoor Activities
- Leavenworth Adventure Park:
- Features the Tumwater Twister Alpine Coaster, the first in Washington State, along with an Alpine Ascent Climbing Wall, Bavarian Bungee Bounce Trampoline, and Gems of The Enchantments Mining Sluice.
- Location: 9342 Icicle Road, Leavenworth WA 98826
Insider Tip: Check the park's schedule and plan your visit to avoid peak hours.
River Floating and Rafting:
- Enjoy tubing or SUP on the Wenatchee River. Rent equipment from Leavenworth Outdoor Center, which offers shuttle services and other amenities.
Insider Tip: For a DIY float, park at the Leavenworth Fish Hatchery and follow the crowds to the exit point.
Hiking:
- Hike to Colchuck Lake, a 35-minute drive from downtown Leavenworth. Arrive early to secure parking.
Explore the Enchantments, a series of high-altitude alpine lakes, but be prepared for a demanding hike and limited parking.
Winter Sports:
- Ski at Stevens Pass, offering various trails and lifts that convert to bike carriers in the summer.
- Enjoy sledding, tubing, and snowmobiling in the winter months.
Museums and Cultural Experiences
- Leavenworth Nutcracker Museum:
- Displaying over 9,000 nutcrackers, this museum is a unique experience. Open daily from 11am-5pm.
- Location: 735 Front Street, Leavenworth WA 98826
Insider Tip: Allow at least 30 minutes for viewing before closing time.
Greater Leavenworth Museum:
- Learn about Leavenworth's history, from its railroad and timber town roots to its transformation into a Bavarian village. Open daily from 11am-4pm.
- Location: 735 Front Street, 2nd Floor, Leavenworth WA 98826
- Insider Tip: Check out the new hands-on family activities and the expanded p'squosa exhibit.
Festivals and Seasonal Events
- Oktoberfest:
- Experience the multi-weekend German-inspired party with outdoor beer gardens, costumes, music, and keg-tapping. Check the festival calendar for exact dates.
Insider Tip: Plan ahead as central streets and Highway 2 can get crowded during festivals.
Village of Lights: Christmastown:
- Enjoy the festive atmosphere with over half a million Christmas lights illuminating the town from the end of November through February.
- Insider Tip: Read insider tips to avoid crowds and make the most of your visit.
Other Attractions
- Leavenworth Reindeer Farm:
- Interact with a herd of reindeer, feeding and petting them. Advanced reservations required.
- Location: 10395 Chumstick Highway, Leavenworth WA 98826
Insider Tip: Book online in advance to secure your spot.
Scenic Hot Springs:
- Soak in the natural hot springs, but plan ahead as it requires a permit and a 50-minute drive from Leavenworth.
- Insider Tip: Ensure you have the necessary permits and plan for the full day.
Insider Tips for Getting Around
- Leavenworth Shuttle and Taxi:
- Use this service for group transportation or direct taxi service, especially during busy times when parking is limited.
- Insider Tip: Check WSDOT for road conditions updates on Stevens Pass, Blewett Pass, and Snoqualmie Pass.
Local Favorites
- Local Beer and Distilleries:
- Leavenworth is known for its beer and distilleries. Enjoy a stein of local brew or explore the region’s finest distilleries.
Insider Tip: Visit during off-peak hours to avoid crowds and enjoy a more relaxed experience.
Shopping and Dining:
- Explore the Bavarian Village for unique shopping and dining experiences. Don’t miss the Gingerbread Factory and The Bubblery for local treats and products.
- Insider Tip: Check local festival calendars to plan your shopping and dining outings around festive events.
Practical Tips to Run a Successful Short Term Rental Business in Leavenworth, Washington
To ensure a smooth and profitable short term rental business in Leavenworth, Washington, several key practices are essential. First, it is crucial to comply with the city's noise regulations by informing guests about quiet hours, typically after 10pm, to avoid any potential issues. Creating both digital and physical house manuals is also vital; these should include detailed instructions, Wi-Fi passwords, and other essential information to make the guests' stay convenient and stress-free.
A simplified check-in process can significantly enhance the guest experience. Utilizing smart locks eliminates the need for physical key exchanges, and providing clear parking instructions accompanied by photos helps guests navigate the property easily. Additionally, ensuring that all necessary permits and licenses are in place, such as a business license from the City of Leavenworth and compliance with zoning regulations, is critical to avoid any legal complications. By focusing on these practical tips, you can ensure a positive experience for your guests and maintain a successful short term rental business in Leavenworth.
Here is a brief list of house cleaning, repair, or maintenance providers in Leavenworth, Washington:
House Cleaning Services
- Love Leavenworth Vacation Rentals: Offers mid-stay cleaning services including fresh linens, bathroom freshening, and kitchen tidy-up for vacation rentals.
- Care.com House Cleaning: Lists various local house cleaning services starting at $17.00/hr, with options to search by rates, reviews, and experience.
- Turno's Airbnb Cleaners: Provides a marketplace of vetted and experienced cleaners for Airbnb properties.
- Angi's Top House Cleaners: A list of top-rated house cleaners in Leavenworth, WA, with real reviews and ratings.
Specialized Cleaning and Maintenance
- Clean Connection: Offers carpet cleaning, tile and grout cleaning, upholstery, oriental rug cleaning, duct cleaning, and dryer vent cleaning for both residential and commercial properties.
These services cover a range of cleaning and maintenance needs in Leavenworth, WA.
Short-Term Rental Management Fees in Leavenworth, Washington: A Comprehensive Guide
In Leavenworth, Washington, managing a short-term rental property involves a range of fees that can vary significantly based on the level of service provided. Typically, management fees for short-term rentals range from 10% to 30% of the rental revenue. Full-service management companies, which handle everything from guest communication and marketing to maintenance and property upkeep, tend to charge on the higher end of this spectrum, often starting at around 15% of revenue.
On the other hand, basic services that may only include listing optimization, guest screening, and minimal support can be found at the lower end, sometimes as low as 8% to 10% of revenue. Additionally, property owners may incur extra fees for services such as cleaning, repairs, and interior design, which can further impact the overall cost of management. Understanding these fee structures is crucial for property owners to maximize their rental income while ensuring their properties are well-managed and compliant with local regulations.