By Michael Edwards

Homeowners should be aware of a number of issues before renting their homes to short-term guests. First and foremost: taxes. Homeowners are required to pay state and local retail sales tax on income from renting to tenants occupying a unit for less than a month. They may also be required to pay Washington’s B&O tax. These taxes are ultimately the homeowner’s responsibility, even if a rental company promises to withhold them on their behalf.

Homeowners should also consider city ordinances. Many Washington cities are revisiting their short-term rental laws, so they are in flux. And homeowners should make sure that short-term rentals are not prohibited by any covenants or homeowners’ association restrictions that affect their property. Finally, they’ll need to comply with the rental company’s website terms of service, and should speak to their homeowner insurance provider to ensure they have adequate coverage.