Buying a Vacation Rental in Lake Chelan

The Rules and Regs Governing Vacation Rentals

The question of where vacation rentals are allowed in the Lake Chelan valley is raised with increasing frequency. The answer depends on whether a home is located inside the City of Chelan or within Chelan County. Each governing area has its own set of rules.

Two Governing Areas - Two Sets of Rules

The image above shows the two governing zones at work in the Lake Chelan Valley.

  1. The City of Chelan is shown in pink.

  2. Chelan County is everything outside of the pink area.

City of Chelan and its Urban Growth Area (UGA)

The City of Chelan offers a very clear definition of where rentals are allowed. The six specific zones in which rentals are allowed are:

  1. Tourist Accommodation (T-A)

  2. Downtown Mixed Use (DMU)

  3. Tourist Mixed Use (TMU)

  4. Waterfront Commercial (C-W)

  5. Highway Service Commercial (C-HS)

  6. Granite Ridge Planned Development (The Lookout)

The City’s zoning map illustrates the exact locations of each zone. A summary image of all zones is offered below.

Chelan County

The areas outside of the City of Chelan fall under the regulation of Chelan County. The County short-term rentals webpage will be the best source of information about regulations. The County regulations use a tiered structure and limit the number of short term rental licenses issued in various areas in the county based on percentage thresholds.

For More Information

For properties within the City of Chelan and its UGA, contact the City of Chelan Planning Department for more information.

For properties within Chelan County, contact Chelan County Community Development.

Also, this companion blog post has information about furnishing your home and the mechanics of reservations and guest services.

Final Thoughts

Vacation rentals will continue to expand in the valley. It is a win-win relationship for owner and guest.  But, problems do exist between rental guests and the full-time neighbors.  Many times this can be a win–lose relationship.

A durable and sustaining governing structure is needed at the County level to minimize conflicts and provide guidance.  If/when this occurs, owners of vacation rental properties should monitor local politics and be a part of the dialogue.

End note:  If you are a vacation rental owner, always work to make sure you and your guests are great neighbors to your non-renting neighbors!


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