Thinking about a Langley getaway that helps pay for itself? You are not alone. Vacation rentals in 98260 can be rewarding, but the rules are strict and returns can be tight if you do not plan carefully. In this guide, you will learn how Langley’s licensing works, what income to expect, when bookings peak, and the exact steps to take before you write an offer. Let’s dive in.
Start with rules and permits
Before you fall in love with a home, confirm you can legally rent it short term. Langley requires a city short‑term rental license plus a business license, and licenses are issued to the owner or operator, not to the property. Transfer rules vary by type, which means a seller’s license may not carry over to you. You can review the city’s STR licensing framework and enforcement details in the municipal code and license pages. City of Langley STR license and code overview.
Langley divides STRs into four types with different approval paths and limits. Type IV covers non‑hosted, whole‑home rentals and has the most restrictions. The STR types and operational standards are laid out in Langley Municipal Code Chapter 18.22. Langley STR types and standards.
Here is the headline you need to know: Type IV whole‑home licenses are scarce. In 2024, the City reduced new Type IV licenses to 15 per year and capped the number of ADUs used as STRs at 30. That scarcity affects buyers who plan a non‑hosted rental. Local coverage summarizes the change. Langley limits new whole‑home STR licenses.
Plan for safety and operations too. Langley requires smoke and CO detectors, posted egress maps, proof of a recent building inspection or a life‑safety self‑assessment, and a 24/7 local contact within a 20‑minute drive for non‑hosted homes. Applications must include on‑site parking plans. Quiet hours in residential zones run 9 p.m. to 9 a.m., and outdoor amplified sound is prohibited. Violations can trigger penalties up to $500 per violation per day and even license suspension. City of Langley STR license and code overview.
Taxes, insurance, and state rules
Washington state law sets baseline standards for all short‑term rentals. Operators must meet consumer safety posting requirements and maintain primary liability insurance with at least a $1,000,000 aggregate limit, or they must transact through a platform that provides at least that coverage. Review the full statute before you launch. Washington RCW 64.37 short‑term rentals.
Short‑term lodging is taxable retailing activity in Washington. Expect sales tax and applicable lodging or special taxes. Some platforms collect and remit certain taxes, but you are still responsible for registering and confirming your reporting with the Department of Revenue. Use DOR’s lodging guidance and Tax Rate Lookup to estimate the combined rate for your property’s location. Washington DOR lodging guidance.
When bookings peak in Langley
Langley draws weekend and short‑stay visitors thanks to easy access from the mainland. The Mukilteo–Clinton ferry crossing typically takes 18 to 20 minutes and supports steady weekend demand from the Seattle area. Check schedules and vehicle policies when planning high‑season turnover. Mukilteo–Clinton ferry overview.
Seasonality matters here. Gray whale season in March and April brings a clear shoulder‑season bump, and the town’s “Welcome the Whales” festivities and the Langley Whale Center presence help drive spring interest. Southern Resident orcas and other sightings add surprise demand at other times. Market your proximity to shore viewing and events to lift shoulder‑season bookings. Langley Whale Center information.
What returns look like in 98260
Set expectations with data. Market snapshots show mid‑market Langley STRs around 54% occupancy and about $39,000 in annual gross revenue. Treat this as a starting point and get paid, property‑specific comps for current monthly ADR and occupancy before you buy. Langley STR revenue and occupancy snapshot.
Home values in Langley are high relative to typical STR revenue. Recent snapshots have listed the median sale price near $819,500. That acquisition cost can compress returns unless you outperform on ADR and occupancy or buy at a discount.
Quick math example
Use these simple formulas:
- Gross annual revenue ≈ ADR × 365 × occupancy rate.
- Gross yield = Gross annual revenue ÷ purchase price.
- Net operating income (NOI) = Gross revenue minus all operating expenses.
Illustrative scenario using market benchmarks:
- Purchase price: $819,500.
- Gross revenue: $39,175 at roughly 54% occupancy, implying about $200 ADR.
- Typical expense assumptions: platform fees ≈ 3%; full‑service management often 15–30%; cleaning about 5–12%; utilities, maintenance, insurance, and reserves often 8–15% combined; plus property taxes and insurance.
- Property tax context: Island County effective rates often run about 0.6% to 0.75% of assessed value, which is several thousand dollars per year on a $700k–$900k home. Island County property tax trend context.
Example outcome (rounded):
- Gross revenue: $39,175.
- Less platform fee at 3%: $1,175.
- Less professional management at 25%: $9,794. Full‑service fees commonly fall in the 15–30% range. Typical STR management fee ranges.
- Less cleaning at about 10%: $3,918.
- Less utilities and small repairs at about 5%: $1,959.
- Less maintenance reserve at about 5%: $1,959.
- Less insurance estimate: $1,500.
- Less property tax at about 0.65% of $819,500: $5,327.
Total expenses in this example are about $25,632, leaving an estimated NOI near $13,543. That equates to a cap rate of roughly 1.7%. If you self‑manage, removing the 25% fee lifts NOI to about $23,337 and the cap rate to about 2.8% before mortgage costs.
The takeaway: Langley can be a lifestyle play first and an investment second. To improve returns, focus on standout features, strong shoulder‑season marketing, and precise pricing by month. Always replace these sample numbers with paid, current comps for the specific property.
What to check before you offer
Do a focused due‑diligence sweep so you do not waste time or money.
- STR license type and transferability. Confirm whether the seller has a current city STR license and what type it is. Many Type IV licenses are nontransferable or very restricted. If you need to apply for a new Type IV, remember the 15‑per‑year cap. City of Langley STR license and code overview.
- Zoning and density. Verify that your intended STR type is allowed in the zone and that the property meets density caps, including ADU limits.
- On‑site parking. Langley ties required parking stalls to guest bedrooms. Properties that cannot provide on‑site stalls risk conditions or denial. Langley STR types and standards.
- Septic and water. If the home is on septic or a private well, request a septic performance evaluation and Island County health approvals. Septic capacity can limit rentable bedrooms. City of Langley STR license and code overview.
- Building and life safety. Plan for smoke and CO detectors, fire extinguisher, posted egress maps, and either a building inspection within five years or a documented self‑assessment. City of Langley STR license and code overview.
- Noise and neighbor impact. Quiet hours are 9 p.m. to 9 a.m. Avoid amplified outdoor sound and manage parking and occupancy to reduce complaints. Langley STR types and standards.
- Guest experience. Proximity to downtown Langley, whale‑watching spots, and the ferry will help weekend bookings. Views can justify higher ADR if marketed well.
Your step‑by‑step plan
- Clarify your STR model. Decide between a hosted room setup and a non‑hosted whole‑home rental. Your choice drives which license you need and how scarce it will be. City of Langley STR license and code overview.
- Ask for documents before you write an offer. Request the current city STR license, city business license, building inspection or life‑safety self‑assessment, Island County health approvals if applicable, septic reports, and proof of required parking. City of Langley STR license and code overview.
- Time your application. Type IV renewals and new applications follow city windows, and new slots are processed after renewals. Demand can exceed the cap, which may trigger selection procedures. City of Langley STR license and code overview.
- Order paid comps. Get month‑by‑month ADR and occupancy from a reputable analytics provider or a local STR manager. Use those comps to build a pro forma with realistic seasonality. Langley STR revenue and occupancy snapshot.
- Confirm taxes and registrations. Contact the Washington DOR to verify your registration and reporting, and use the Tax Rate Lookup to estimate combined rates. Washington DOR lodging guidance.
- Compare management options. Interview two or three local managers for fees, services, and expected occupancy uplift, then compare to self‑management. Full‑service fees commonly fall in the 15–30% range. Typical STR management fee ranges.
- Structure your offer with smart contingencies. Include inspection, septic or health approvals if applicable, and a regulatory‑compliance contingency if you need a license transferred or issued. Get transferability in writing. City of Langley STR license and code overview.
- Meet state insurance rules. Ensure your policy meets RCW 64.37 minimums or confirm your platform’s coverage. Washington RCW 64.37 short‑term rentals.
Risks to plan around
- Licensing scarcity. With only 15 new Type IV slots per year, you should not assume you can run a non‑hosted, whole‑home rental year‑round. Langley limits new whole‑home STR licenses.
- Compliance and taxes. Even if a platform collects some taxes, you remain responsible for registrations, reporting, and safety compliance. Washington DOR lodging guidance.
- High prices, modest yields. Acquisition costs in Langley are high relative to mid‑market gross revenue, which can compress net returns without standout ADR or occupancy. Langley STR revenue and occupancy snapshot.
- Policy shifts. Island communities revisit STR rules. Stay close to city updates and maintain strong community relations through clear house rules and guest communication. Langley limits new whole‑home STR licenses.
Ready to explore options and run the numbers on a specific home in 98260? Our veteran‑led team knows the rules, the neighborhoods, and how to position lifestyle properties for success. Reach out to Better Homes and Gardens McKenzie Realty to start a focused search and a realistic STR plan.
FAQs
What license do you need to run a vacation rental in Langley?
- Langley requires a city STR license plus a business license, with four STR types that have different limits and processes; Type IV whole‑home licenses are the most restricted. City of Langley STR license and code overview
Are whole‑home vacation rentals limited in 98260?
- Yes. The City capped new Type IV whole‑home STR licenses at 15 per year and limited ADU STRs to 30, which makes new whole‑home licenses scarce. Langley limits new whole‑home STR licenses
Does Washington require special insurance for STRs?
- Yes. State law requires at least $1,000,000 aggregate primary liability insurance or coverage provided by the platform you use. Washington RCW 64.37 short‑term rentals
How are Langley short‑term rentals taxed?
- Short‑term lodging is taxable retailing activity that includes sales and lodging taxes; confirm registration, rates, and remittance with the Washington DOR. Washington DOR lodging guidance
What income can you expect from a Langley STR?
- Market snapshots show about 54% occupancy and roughly $39,000 in annual gross revenue for mid‑market listings; use paid, property‑specific comps before you buy. Langley STR revenue and occupancy snapshot
What operational rules should you plan for in Langley?
- Plan for smoke and CO detectors, posted egress maps, proof of inspection or self‑assessment, on‑site parking, quiet hours from 9 p.m. to 9 a.m., and a local 24/7 contact within 20 minutes. City of Langley STR license and code overview
When is Langley’s booking season strongest?
- Late spring through summer is busiest, with a shoulder‑season bump in March–April tied to gray whale viewing and local events. Langley Whale Center information
How does ferry access affect demand for Langley rentals?
- The short Mukilteo–Clinton ferry crossing supports strong weekend and short‑stay traffic from the Seattle area, which helps occupancy. Mukilteo–Clinton ferry overview
