Local, full-service Airbnb, VRBO, and short-term rental management for homeowners in Redmond — including what the city's brand-new short-term rental license law (effective January 2026) actually requires, and what it doesn't.
Redmond changed the game in January 2026: every short-term rental now needs a city business license (the small-landlord exemption is gone), at roughly $150–160, plus a 1% city hotel/motel tax on stays. Microsoft-driven weekday demand meets light-rail connectivity. We track the new rules so you don't have to — start with a free property report.
Redmond pairs some of the region's highest-value, most travel-heavy employers with genuine leisure draws — and that's what keeps a well-run short-term rental booked in both segments, not just in summer. Microsoft's global headquarters sits in Redmond and anchors an estimated 50,000+ Puget Sound jobs, generating year-round corporate travel, relocations, contractors, and visiting-team housing demand that has nothing to do with tourist season. A few miles down the road, Nintendo of America's headquarters and SpaceX's Starlink factory — where the company designs, builds, and tests its satellites — add a steady stream of their own business travelers and industry visitors to the same corridor.
On the leisure side, Marymoor Park draws more than 3 million visitors a year to Washington State's only velodrome, an off-leash dog park, a climbing rock, and the Marymoor Live outdoor concert series. Redmond's own summer festival, Derby Days, brings a parade, carnival, live music, and a drone show downtown every mid-July, and Sound Transit's 2 Line — which reached Downtown Redmond Station in May 2025 — gave the city its first direct rail connection to Bellevue and Seattle, a real draw for car-free business and leisure guests alike.
Yes — Redmond's short-term rental ordinance is brand new (effective January 1, 2026), so we'd rather walk you through exactly what it requires before you spend a dollar.
Redmond City Council passed Ordinance No. 3239 on December 2, 2025 by a unanimous 5-0 vote; Mayor Angela Birney signed it December 5, and it took effect January 1, 2026. Before it, Redmond's general business-license code exempted small residential landlords (four or fewer units at one location) without ever naming short-term rentals — so a small STR operator could arguably have claimed that exemption. The table below shows the actual before/after.
| What | Before Jan. 1, 2026 | After Jan. 1, 2026 |
|---|---|---|
| Small-operator exemption | Could arguably claim the small-landlord exemption (4 or fewer units at one location) — no license | Exemption now explicitly excludes STRs (RMC 5.04.130(A)(4)) regardless of unit count |
| Who needs a license | Unclear for small operators; STRs weren't named in the code | Every STR: one per operator (multifamily/mixed-use) or per addressed unit (single-family, ADUs) — RMC 5.04.040(D) |
| Safety Checklist | Not a submittal requirement | Signed checklist required at application and every renewal — RMC 5.04.070(E) |
| Tenant Rights posting | Not a submittal requirement | Photo proof of posting required at application and every renewal — RMC 5.04.070(F) |
The city's stated reasons: conformance with state short-term rental law (RCW 64.37), clearer transparency standards, and the tourism bump expected from the 2026 FIFA World Cup at nearby Lumen Field.
Closing the licensing loophole above is a separate question from whether you have to live in the home — and the answer there hasn't changed. Redmond has no owner-occupancy mandate on whole-home rentals. The only occupancy-related carve-out exempts a narrower, hosted scenario from the short-term-rental definition entirely: an owner who lives in the home at least 6 months of the year and rents fewer than 3 rooms at a time. That's a home-share exemption, not a requirement on whole-home operators. You may have seen a "185-day" rule cited for Redmond online — we traced that claim and couldn't find it in any Redmond city document; it's actually neighboring Kirkland's real 245-day owner-occupancy rule, misattributed to Redmond by several SEO blogs. We didn't want to repeat someone else's error.
Here's a case where we'd rather show you two numbers that disagree than pretend one is gospel.
| Item | Amount | Notes |
|---|---|---|
| City business license (annual) | $153–$160 | City's own STR guide says $153; the current general fee schedule (RMC 5.04.080(F)) sets a $160 minimum for 2026, and STR hosts are directed to that minimum. Confirm with Redmond Finance, 425-556-2900. |
| WA State application fee | $50 new / $5 renewal | Paid to WA DOR as part of the shared state/city application |
| Small-business exemption | Fee waived | If gross Redmond STR revenue is $4,000/year or less — you still have to register |
| Operating without a license | 100% of the fee due | Penalty under RMC 5.04.110(B), assessed per day of unlicensed operation |
| Redmond Hotel/Motel Excise Tax | 1% | RMC 3.36.010 — on top of state retail sales tax and lodging tax |
Under state law (RCW 64.37.030(3)), incorporated into Redmond's enforcement approach, a first consumer-safety violation gets a warning letter from the city or county attorney — not an immediate fine. Only a second violation after that warning becomes a class 2 civil infraction under RCW 7.80. That's a more forgiving structure than most cities we track.
Operating without the required city business license at all is a separate matter under RMC 5.04 — a violation for every day of operation, a penalty of 100% of the license fee due, and grounds for the city to pursue it as a misdemeanor or a civil penalty up to $1,000. The city can also deny, suspend, or revoke a license for things like fraud, a safety or zoning violation after a warning, or past-due city taxes; you'd get 10 days' notice by mail before it takes effect, with the right to request a hearing before Redmond's City Hearing Examiner. We'd rather keep your license current than test any of this.
Last reviewed July 2026, verified directly against the signed text of Ordinance No. 3239, Redmond Municipal Code Chapter 5.04, and Washington's short-term rental statute. Redmond's own short-term rental guide and its currently codified general fee schedule state two different license fees ($153 vs. a $160 minimum) — we've flagged that rather than pick one. This is a summary of our research, not legal advice; we confirm current requirements directly with the city as part of onboarding. Primary sources: City of Redmond — Short-Term Rentals, Ordinance No. 3239 (signed text), the Redmond Short-Term Rental Guide, RMC Chapter 5.04, RCW 64.37, RMC 3.36.010 (Hotel/Motel Excise Tax), WA DOR — Personal Home Rentals, and the WA Dept. of Revenue Q2 2026 lodging tax rate table.
Most Redmond owners never find out what their home could earn between Microsoft's corporate travel calendar and Marymoor Park's weekend crowds — and every month is money that could be left on the table. We won't invent a figure for you — get a free report with real comparable listings for your exact address.
Because Redmond's short-term rental law only took effect January 1, 2026, most owners haven't caught up with it — and most SEO blogs are actively getting it wrong. We handle the City of Redmond business license application, the Safety Checklist, the Tenant Rights notice, dynamic pricing tuned to Microsoft's corporate calendar and Marymoor Park's event weekends, guest messaging, cleaner scheduling, and lodging tax remittance.
Whole-home, ADU, or a room in your primary residence — Redmond doesn't force you into a single model the way Everett does. On the call, we'll tell you which setup makes sense for your property.
See exactly what's included →Get a free property report emailed to you — real comparable listings, an honest read on the new license law, and what it'd take to get started. It's free, and it doesn't commit you to anything.
