The city of Palm Springs has long been a Mecca of vacation rental properties. It is a highly desirable area that people flock to every year for many different reasons and as such several vacationers choose the option of renting out short-term vacation rentals in Palm Springs.

Before you purchase a property in hopes to turn it into a short-term vacation rental there are some regulations set by the city of Palm Springs that you should know as a vacation rental owner.

Here are the latest Palm Springs short-term vacation rental regulations as of July 11, 2022

Latest Changes to Regulations

On May 12 of 2022, the City Council of Palm Springs put into effect resolution number 25007 which modified certain regulations addressing user fees and charges for short-term rentals. Specifically stating changes to vacation rentals and home shares. These fees took effect on July 11, 2022.

The new fees include:

• Vacation rental registration fee is now $1009

• The annual renewal fee for vacation rentals is $1009

• The new registration fee and annual renewal fee for home shares is $252

• Land use permits for estate homes are $426

• An appeal fee for the administrative appeals board is $857

• Transfer fees are now $164

Definition of a short-term vacation rental in Palm Springs

A vacation rental or a short-term rental also sometimes referenced as STR is any property with less than four bedrooms available to rent for fewer than 28 days at a time without the owner present on the property.

A home share is any property with less than four bedrooms available to rent for a period of under 28 days while the owner of the property is presently living in a portion of the home throughout the duration of the rental

An estate home is considered a vacation rental with more than four bedrooms

An accessory dwelling unit is also referred to as an ADU and is an attached or detached separate unit providing independent living facilities for a renter and is located on the same lot as the owner's primary residence

All of the above property types except for accessory dwelling units are permissible as short-term rentals in the city of Palm Springs.

Licensing requirements and fees for short-term vacation rentals in Palm Springs

This list of licensing requirements and fees only applies to the first type of rental on the list which is a short-term vacation rental in a home with less than four bedrooms where the property owner is not present. The requirements and fees for these properties in Palm Springs are as follows:

A homeowner is required to have a short-term rental license filed with the city of Palm Springs. The owner of the rental can only have one short-term rental within the Palm Springs city limits

Every short-term rental owner is required to carry short-term rental insurance policies or a personal liability policy during the time that they are using the property as a vacation rental and the time that the property is registered with Palm Springs as a vacation rental. The minimum limit per occurrence is $500,000 coverage.

Owners are required to have a renewal of registration and proof of insurance as well as an up-to-date safety inspection every year to be in compliance with Palm Springs regulations

Owners must submit a one-time transient occupancy tax permit application on every new application

A short-term rental owner can identify up to five persons who may stay in the vacation rental unit at no cost without the presence of the owner during their stay but no more than five

If a short-term rental has a pool the owner and agent of the property must have a licensed electrical professional complete and submit a complaint statement

The city of Palm Springs requires that there be a safety inspection during the initial short-term rental application process and that this be annually renewed

Business entities are not allowed to register short-term rentals in Palm Springs. The city of Palm Springs defines a business entity as a corporation, partnership, any legal entity that is not a natural person, personal or family trusts, and limited liability companies consisting solely of natural persons.

Occupancy Limits

Bill number 210081 which was approved on June 23 of last year went into effect on April 1, 2022. This bill states the occupancy limits for short-term rentals in Palm Springs. Palm Springs short-term rental properties are limited to 32 guest stays with four additional guest stays that might occur during the months of July, August, and September for a total of 36 rental contracts in one calendar year from January 1 to December 31.

Palm Springs also regulates the number of cars allowed to be parked outside of a short-term vacation rental. This limit is one car per bedroom of the property. There is also an occupancy limit for the number of people that can stay in a short-term vacation rental together at the same time depending upon the home's number of bedrooms. These numbers are shown in the table below.

It is always important to know the local rules and regulations around short-term vacation rentals before purchasing a property you hope to rent out to vacationers in any area.

For more information on purchasing real estate in the greater Palm Springs area please contact us anytime.