What is considered short-term rental in Palm Springs? How does Palm Springs, CA define a short-term (Airbnb) rental (STR)? A single-family dwelling with less than four bedrooms that is rented for periods of 28 days or less at one time with no owner present.
Here is a summary of the rules and regulations from The City of Palm Springs website:
On November 28, 2022, the City of Palm Springs City Council adopted an Ordinance amending and reinstating Chapter 5.25 regarding Vacation Rentals. This Ordinance establishes Neighborhood-based caps on Vacation Rental Registration Certificates issued. The ordinance establishes a cap of twenty percent (20%) of all residential dwelling units located within a particular Neighborhood. The ordinance would also allow this percentage to be modified, from time to time, by City Council resolution. Below is the Neighborhood Percentage Map as of 1/26/24. This map is subject to change based on the the application process.
The Neighborhood-based cap will not affect any existing certificates that have already been issued by the City, even in Neighborhoods that exceed the percentage cap. However, the City will not, under the ordinance, issue any additional VR certificates within that Neighborhood, unless and until the number of permits is lower than the percentage cap. If and when that happens, certificates will be issued based on a “first in time, first in right” basis, based on the date that complete applications were submitted to the City.
The City Council also agreed to limit the number of rental contracts that STVR owners can implement to rent their homes per year, going from 36 times down to 26. This change is now in effect for new applicants, but for existing STVR permits, this change will go into effect on January 1, 2026.
Council Members have also agreed to create a new “junior permit,” which will have a reduced annual fee and only be for 6 rental contracts (for under 29 days) per year. These permits cost 50 percent of the regular registration fee. These permits will not get factored into the neighborhood 20 percent cap per neighborhood. These are intended help anyone waiting in line for a full permit and will assist locals to earn some income during peak periods.
What does this mean for current Vacation Rental Certificate holders? Do you currently have a Vacation Rental Registration Certificate? The Neighborhood-based cap will not affect any existing certificates that have already been issued by the City, even in Neighborhoods that exceed the percentage cap.
What does this mean for someone that wants to apply for a Vacation Rental Registration Certificate? Are you interested in applying for a Vacation Rental Registration Certificate? Under the new Ordinance, the City will not issue any additional VR certificates within a Neighborhood that is at or above the Neighborhood Percentage cap of 20%. Your application will be returned. Unless and until the number of permits is lower than the percentage cap, If and when that happens, certificates will be issued based on a “first in time, first in right” basis, based on the date that complete applications were submitted to the City.
What does this mean for applications currently in process for a Vacation Rental Registration Certificate? Are you currently in process to obtain a Vacation Rental Registration Certificate?If your application was received completed and on file on or before October 17, 2022, you will not be effected by the proposed Ordinance as it relates to Neighborhood Percentage caps.
For more information and updates on vacation rentals in Palm Springs, visit: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
