The Seattle City Council passed a new set of regulations involving Airbnb that would effectively restrict property owners on the number of units they can rent out. According to the ordinance, property owners are permitted to rent out up to a maximum of 2 dwelling units. In addition, hosts are required to obtain licenses before they’re eligible to list their home for rent.
The new changes were introduced in an effort to prevent property owners from turning their Airbnb rentals into a “hotel business”.
The new regulations also apply to other short-term rental platforms including HomeAway, Flipkey, VRBO, and more.
These new laws were come shortly after the council passed short-term rental tax laws back in November.
Airbnb Liability Insurance: An Important Requirement for Seattle Residents
In addition to new regulations, Seattle requires Airbnb liability insurance. Because homeowner’s insurance does not cover liability issues that occur as a result of property rentals, it’s legally required for owners to obtain adequate coverage. Many property owners are unaware that they can be held personally liable if their guest is injured – even if it’s not the property owners fault. A separate liability plan helps protect both the homeowner and guest.
While separate liability insurance may be costly, property owners can save money by obtaining a short-term rental insurance plan that covers both your home and liability. This allows property owners to cancel their current homeowner’s insurance instead of managing multiple plans.
Residents of Seattle can find the new requirements on the Seattle government website here.