Spokane Valley council asks staff to map short-term rentals, consider revenue and software options

Spokane Valley — The City Council on April 15 directed staff to begin work to identify short-term rental (STR) operators in Spokane Valley, review how lodging tax and other revenues are being collected, and evaluate software options and outreach before considering new regulation.

Council action followed public comment from both local hoteliers and STR owners and a staff briefing that outlined options including registries, business licensing and third‑party software tools. City Manager John Holman told the council staff can research “potential software to identify the short term rentals and then look at the revenue picture” and return with a work plan. He said any further steps would be driven by what that research shows.

The issue drew several public speakers. Derek Baziotis, local government affairs manager for the Washington Hospitality Association, told the council hotels “follow strict regulations like safety codes, licensing requirements, occupancy rules, and tax collection” and asked the city to “move this issue forward” toward parity between lodging businesses. STR owner Kim Killam described operating a rented bedroom in her home, stressing that many STRs are small, family-oriented operations and urging the city to include a “very diverse group” in discussions.

Holman outlined trade-offs that the council asked staff to explore: whether to require a registry or business license; whether the city is already collecting all lodging tax revenue due; and whether to buy or subscribe to software that scrapes listing platforms to identify operators. He noted one vendor the council had heard about, Granicus, provides such services but cautioned about recurring costs and staff time to operate and maintain additional software.

Council members expressed different starting points. Deputy Mayor Hatenberg said she wants staff to “know more about how many rentals we have,” while Council Member Merkel suggested a stakeholder roundtable of hoteliers and STR owners. Council Member Yeager urged broad outreach, noting that STRs are highly varied and that any outreach should prioritize STR operators’ participation. Council Member Padden preferred staff first compile counts and revenue information before convening a roundtable.

Holman said the city would not immediately add staff for this task and that initial work would focus on identification and revenue analysis, plus outreach to stakeholder groups. The council’s direction was procedural rather than prescriptive: staff should return with information and a recommended next step rather than an ordinance draft.

The council did not vote on any regulation at the meeting; Holman said staff will prepare a work plan and follow up once the data and options are clearer.

Quotes in this article are drawn from city staff and public commenters recorded in the meeting transcript.