What is a short term rental in Palm Springs?

Within Palm Springs, ordinance 2075 defines a “short term rental” as a single-family dwelling, or any portion thereof, utilized for occupancy for dwelling, lodging, or sleeping purposes without the Owner being present for a period of twenty-eight (28) consecutive days or less, other than ongoing month-to-month tenancy granted to the same renter for the same unit, occupancy of a time-share bases, or a condominium hotel as defined in Section 91.00.10 of this Code. The term “vacation rental” is synonymous with “short term rental” and “transient use” and does not include home sharing.

What determines whether I can use a property as an STR in Palm Springs?

You will need to apply for and be approved for a “Vacation Rental Registration Certificate” with the city of Palm Springs. You will also need to comply with the rules and regulations for operating a short term rental.

Permits are issued to a specific owner and are generally non-transferrable. This means that when a home is sold, the new owner will need to apply for a new permit (i.e., the existing permit is NOT transferrable).

The neighborhood will need to have a “VR Neighborhood Percentage Cap” below 20%. Ordinance 2075 states that the city will not issue permits in any Neighborhood in which the VR Neighborhood Percentage Cap has been exceeded or would, with the issuance of any such Certificate, be exceeded.

If the VR Neighborhood Percentage Cap is exceeded for a particular neighborhood, new applications will enter a waitlist and will be issued in order of the date on which complete applications were filed with the City.

Some neighborhoods have existing high percentages (greater than 20%) as some rental permits issued before October 17, 2022 are grandfathered in for the specific owner. If that home were to change ownership, the new owner would be required to file a new permit and would enter the waitlist.

Also importantly, you as an investor/buyer will need to confirm that a particular HOA will allow STRs. Every HOA has different rules and in practice, they do change on a regular basis.

City of Palm Springs Vacation Rental Page
Percentage Table (VR Neighborhood Percentage Cap)
Neighborhood Identification Tool

Are there other types of permits available?

Yes:

(1) Homeshare: An Owner of a property may apply for a Homeshare Short Term Vacation Rental Certificate. This means that the owner is hosting guest stays of 28 consecutive days or less and is present during each entire stay. There are other specific requirements for Homeshare.

(2) Junior: A new “Junior” Vacation Rental Registration Certificate is available for a reduced fee in the City’s Vacation Rental Program. The amount of Vacation Rental contracts per year allowed under this certificate is 6. Vacation Rental Percentage Caps do not apply to Junior Certificates. All other regulations of vacation rentals, including application requirements, operational requirements, TOT obligations, and penalties for violations apply.

(3) Estate: An Estate Home means a single family dwelling with 5 or more bedrooms. There is a separate Addendum and other specific requirements when applying as an Estate Home that an owner must complete; and a one‐time fee1 is required to obtain the required Land Use Permit. Registration Certificates will only be issued to an Estate Home for use of 5 or 6 bedrooms, regardless of a greater number of bedrooms that may exist or how many bedrooms the owner plans to rent.

Palm Springs Vacation Rental FAQs

Links to Official Palm Springs Resources

City of Palm Springs Vacation Rental Page
Percentage Table (VR Neighborhood Percentage Cap)
Neighborhood Identification Tool
Full Text of Ordinance 2075
Palm Springs Vacation Rental FAQs

The information presented above is deemed reliable, but not guaranteed. Most information was acquired from the City of Palm Springs, CA Vacation Rentals Page. Information and regulation concerning short term rentals can change quickly. HOA rules and requirements can also change quickly. Buyer is advised to independently confirm any planned uses for a property with the city, HOA, or any other stakeholder entity.