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Coachella-Valley-Vacation-Rental-Update

11/11/22 Palm Springs council puts new limits on short-term rentals, including 20% neighborhood cap

The Desert-Sun reported that the Palm Springs City Council voted 4-0 in favor of the new short-term vacation rental rules. Councilmember Christy Holstege was absent from the meeting.

The major changes are:

  • Capping rentals at 20% of the homes in a neighborhood
  • Reducing the number of times a home can be rented per year from 36 to 26, a change that will be effective immediately for new applicants but not until Jan. 1, 2026, for holders of existing permits
  • Allow full-time residents to rent their homes occasionally using a “junior permit” that allows up to six rentals a year. It won’t be subject to the 20% neighborhood cap.

Final adoption is scheduled to happen after a second vote at the next council meeting Nov. 29.

10/18/22 Palm Springs pauses decisions on short-term rental permits through Nov. 29

The Desert-Sun reported that the Palm Springs City Council voted to put a pause on issuing new short-term rental permits until after their meeting on Nov. 29 to catch-up on the backlog of 300 applications and to allow the City Council time to work on a new ordinance to be reviewed at its next meeting on Thursday, Oct. 27.

Possible changes include:

“Council proposed the idea that new permits will be limited to 24 contracts per year, and existing permit holders will be limited to 36 contracts per year through 2024 and then 24 contracts per year thereafter.

The council did not express interest in limiting the total number of days in a year that a permit holder can rent their property.

However, they will entertain the idea of enforcing a minimum number of days that a property owner must reside in any property used as a short-term rental unit — possibly 90 days per year or more. “

9/30/22 Palm Springs council open to short-term rental limits — but won’t decide yet

The Desert-Sun reported that the Palm Springs City Council is asking for more information before making any decisions on capping short-term vacation rentals in Palm Springs.

The 11-member vacation rental work group commissioned by the city is proposing a a citywide cap of 2,500 permits as well as limiting the proportion of homes in each neighborhood that would cap vacation rentals to 10%.

The decision could be made a new city council since three positions are up for re-election and another council person is running for state assembly.

9/23/22 Workgroup recommends city cap vacation rentals at 2,500, limit neighborhood density to 10%

The Palm Springs Post reports that Palm Springs City Council may put a 10% neighborhood density cap on the number of short-term vacation rentals

8/8/2022 La Quinta short-term rental ban would hit economy hard, report finds. Some are skeptical.

The Desert-Sun reports:  “With La Quinta voters set to decide in November whether to prohibit short-term vacation rentals in residential neighborhoods, a new report commissioned by the city says a ban could cost millions in tax revenue and visitor spending, as well as hundreds of jobs.

But proponents of a ban argue the findings — which the city council discussed during its meeting last week — overestimate the potential impacts of the ballot initiative, which would phase out rentals in those areas by the end of 2024.”

7/27/2022 New short-term rental rules in Idyllwild, rest of Riverside County delayed

The Desert-Sun reports that “Short-term rental owners in Idyllwild and other unincorporated parts of Riverside County may soon have to limit their number of overnight guests, install outdoor noise monitors and pay higher fees.”

A possible vote for the proposed changes will be at the 9/13/2022 River County Board of Supervisors meeting.

7/18/2022 Rancho Mirage can implement short-term rental ban before lawsuit is resolved, judge rules

The Desert-Sun reports “Rancho Mirage can implement its ban on short-term vacation rentals, even while a lawsuit against the city continues to make its way through the legal system, a Riverside County judge has ruled.

The lawsuit was filed after the city council in October 2021 adopted an ordinance banning all short-term rentals in Rancho Mirage, including within HOAs. That ban went into effect on Jan. 1, 2022, but active permits did not expire until July 1″

7/15/2022 At mayor’s request, City Council will discuss vacation rental moratorium at end of month

The Palm Springs Post reports “Alarmed by the growth in applications for short-term vacation rental licenses, Palm Springs Mayor Lisa Middleton called for a discussion on a temporary moratorium on the licenses at the next City Council meeting on July 28.”

7/6/2022 Desert Hot Springs short-term rentals getting new rules, but no caps — for now, at least

The Desert-Sun reports that Owners of short-term vacation rentals in Desert Hot Springs will have to follow new rules, including noise limits, under an ordinance tentatively approved Tuesday by the city council.

6/9/2022 La Quinta voters will decide fate of short-term rentals in residential neighborhoods in November

The Desert-Sun reports that La Quinta residents will vote in November whether short-term vacation rentals should be banned from residential neighborhoods.

If passed by voters, the initiative would phase out short-term vacation rentals in residential neighborhoods by Dec. 31, 2024

Short-term vacation rentals are still allowed in Palm Springs, Indio, Coachella, Desert Hot Springs and the Joshua Tree area.

5/20/2022 Desert Hot Springs council focuses on regulating short-term vacation rentals instead of a ban

The Desert-Sun reports that Desert Hot Springs is considering new rules for short-term vacation rentals including dedicated staff to oversee short-term rentals; owners would have to install sound level monitors; possibly a potential cap on the number of vacation rentals plus other changes.

3/29/2022 Palm Springs council wants tactical changes to city’s short-term rental policy but not “radical” ones

The Desert-Sun reports that the Palm Springs City Council met to review the short-term vacation rentals and the impact they have on the city’s housing supply:

“Seven neighborhoods account for 270 of the 410 homes that were permitted as short-term rentals over the last five years. Those neighborhoods are Racquet Club Estates, Tahquitz River Estates, Sunrise Park, Desert Park Estates, Gene Autry, Ranch Club Estates and Vista Norte.”

“The council hopes to address growing concerns about the proliferation of short-term rental properties in what the council said have long been the city’s most affordable neighborhoods and ease the impact of short-term rentals on the city’s housing supply.”

“Current city laws stipulate that homes can be rented for a maximum of 36 different stays during a calendar year. The city’s data shows that 153 homes were rented for at least 33 different stays last year while 280 were rented for four or fewer. “

3/24/2022 Palm Springs short-term vacation rental data: New report shows density, citations, complaints

The Desert-Sun reports that vacation rentals make up 6.6% of housing inventory in Palm Springs per the city’s new short-term vacation rental report.

3/3/2022 Crackdown On Coachella Valley ‘Party Houses’ Underway

The Patch reports about several changes the County of Riverside is proposing for short-term vacation rental in unincorporated areas.

2/10/2022 Cathedral City will no longer issue short-term vacation rental permits in certain zones

The Desert-Sun reported that:  “The city will no longer issue new permits for short-term rentals in single-family and multi-family residential zones, even if the property is located within an HOA.

Mayor Ernesto Gutierrez said the urgency ordinance closes the loophole for short-term rental permits in R1 and R2 neighborhoods with HOAs.

“This does not prevent us from later on revisiting HOAs, which are RR, in the future,” Gutierrez said, referencing how the council may later consider taking action on short-term rentals in resort residential neighborhoods with HOAs. RR refers to resort residential zones, including developments such as Desert Princess Country Club located at 28555 Landau Boulevard and Canyon Shores located at 35200 Cathedral Canyon Drive.”

1/29/2022 Cathedral City considers potential changes to ordinance on short-term vacation rentals now including HOAs

Per the Desert-SunThe council gave the city attorney’s office the green light to draft an urgency ordinance that would restrict new short-term rentals in single-family and multi-family residential neighborhoods, even for HOAs.”

12/2/2021 Indio adopts stricter rules on short-term rentals

Per the Desert-Sun, Indio revised its short-term vacation rental rules:

“The number of guests now allowed on a rental property overnight will be capped at 20 people, regardless of the number of rooms. Previously, the number of overnight guests in a short-term rental could increase if home owners proved the configuration of the house could accommodate more guests.

The new rules also prohibit noise from radios, musical instruments, loudspeakers, sound amplifiers and “any machine, device or equipment” (including phones) that creates sound audible outside of the rental home in the evenings. The noise rule begins at 9 p.m. Sunday through Thursday and 10 p.m. on Friday and Saturday.

Stricter regulation was proposed as far back as October 2020 and the city held a series of meetings on the matter since September, debating limits on the number of guests, parking, and permissible noise levels at short-term rentals. The council also held off on voting on new rules at the start of November, when several residents asked to allow more time for public input.”

9/9/2021 Rancho Mirage Planning Commission recommends ban on short-term vacation rentals

KESQ reports:

“The Rancho Mirage Planning Commission passed a recommendation to the city council to prohibit all short-term vacation rentals activity within the city.

The commission passed the ordinance with a 4 to 1 vote, with Commissioner Shari Stewart being the lone no vote.

There was about an hour-and-a-half of public comment about this issue, with most speaking out against the ban.

The city already prohibits STVRs in areas that are not a common interest in development.

If the city council adopts the expanded STVR ban, it would go into effect on June 30, 2022.”

5/29/2021 Palm Springs Area Cities Paying Companies To Root Out Short-term Rentals

Thinking about short-term vacation rentals without a permit or in a city that doesn’t allow them?  Think again, the Desert-Sun is reporting that several of the desert cities now employ companies who use technology to find vacation rentals operating illegally where they are not allowed, without permits and not paying transient occupancy tax (TOT).  Palm Springs employees its own employees who search the various internet sits to find short-term vacation rentals that are operating illegally.

4/7/2021 Cathedral City is eliminating all non-HOA vacation rentals by January 1,  2023.

La Quinta will impose an indefinite stay on new permits for short-term vacation rentals, except in specially zoned areas per the Desert-Sun.

Palm Desert and Rancho Mirage are all reviewing their short-term vacation rental policies to the point they may not allow any short-term vacation rentals in their cities.

Palm Springs maybe the only resort city in the Coachella Valley that allows short-term vacation rentals.

If you are thinking of buying a home to rent as a short-term vacation rental,  be sure to check with the local city government for the latest update on its short term vacation rental policies.  

4/7/2021 No More Vacation Rental Permits in La Quinta

The Desert-Sun reported: “La Quinta will impose an indefinite stay on new permits for short-term vacation rentals, except in specially zoned areas. The stay is set to go into effect on May 20, and will replace a moratorium on new permits that’s set to expire on June 2.

Existing permits will continue to be renewed, providing they are in good standing. New permits also may be administered in tourist-commercial and village-commercial zoned districts, as well as areas covered by the SilverRock Resort specific plan.”

3/18/2021 Cathedral City Short-Term Vacation Rentals

NBC Palm Springs reports:  “The Riverside County Voter of Registrars office has finalized the Cathedral City election on short-term vacation rentals.

The Yes on Measure B supports keeping Ordinance 842 which will phase out some short-term vacation rentals by January 1, 2023. The No on Measure B supported removing new regulations on short-term vacation rentals in Cathedral City.”

3/16/2021 La Quinta Short-Term Vacation Rentals

The Desert-Sun reports:  “The La Quinta City Council is close to adopting an ordinance that indefinitely prohibits the issuance of any new short-term vacation rental permits in residential neighborhoods, except in gated communities where allowed by the HOAs and those in tourism-commercial zones.

The council on Tuesday directed staff to draft the ordinance to be introduced for a first vote at its April 6 meeting.

The council likely will vote during that meeting to temporarily extend the current moratorium on new permits to allow for the required first and second readings and votes on the ordinance.

It would then go into effect 30 days after the second vote to approve. As with the moratorium, existing short-term rental permits in good standing can be renewed under the stay, but are not transferrable if a property is sold.”

10/15/2020 Rancho Mirage Short-Term Vacation Rentals

“Rancho Mirage is moving toward a ban on short-term vacation rental homes in non-gated neighborhoods, effective Jan. 1.

The council voted 5-0 on Thursday in favor of an amendment to the city’s current short-term rentals ordinance after more than four hours of council discussion, and public comments from about 35 residents, short-term rental owners and property managers — all but four of whom spoke against the ban.”

10/16/2020 Palm Desert Short-Term Vacation Rentals

“A moratorium on new short-term rental permits within all non-gated planned residential zoning districts in Palm Desert has been extended up to six months.”

Read more about short-term vacation changes in these articles in these:   

No new short-term rental permits in La Quinta as council approves indefinite ‘stay

Rancho Mirage to ban STRs in non-gated residential neighborhoods by end of year

Palm Desert extends moratorium on new short-term rental permits in area not included under ban

La Quinta headed toward indefinite ‘stay’ on new short-term vacation rental permits

Yes on Measure B in Cathedral City

HOA/Condo Short-Term Rentals

Buying in an HOA or a planned community subdivision?  Be sure to review the Covenants, Conditions & Restrictions (CC&Rs) for any rental restrictions.  Most HOA’s restrict vacation rentals to 30 days or longer.  

There are several HOA’s that allow short-term rentals less than 30 days in the Coachella Valley but if you are financing the purchase, be sure to review with your lender. Due to Fannie Mae and Freddie Mac underwritng guidelines changing, some of these HOA’s are Non-QM (non-qualifying mortgage). You will need a non-conventional loan with a higher down payment and higher interest rate.

Palm Springs Is Open For Vacation Rentals!

Thinking about buying a home to vacation rent?  Be sure to review the City of Palm Springs Vacation Rental Policies.   Keep up to date on the latest vacation rental news with Vacation Rental Owners and Neighbors of Palm Springs (VRON-PS) and We Love Palm Springs.

What is the best city in the Coachella Valley to own a Short-Term Vacation Rental?

As as investor evaluates a potential location, it is important to review and understand the local laws, required permits, taxes and amenities of a city for a short-term vacation rental investment property in the Coachella Valley (Palm Springs area) and Joshua Tree, Pioneertown and Yucca Valley or up in the mountains in Idyllwild.   

Some areas such as Bermuda Dunes, Joshua Tree and Pioneertown area in the High Desert and Idyllwild in the mountains are governed by the local county government. 

If an investor is buying in an HOA community, it is very important to review the CCR’s and Rules & Regulations for potential restrictions.

Short-Term Vacation Rental Guidelines by City

CityShort-Term Rentals Permitted?Other Info
Palm SpringsYes11/11/22 - The Desert-Sun reported that the Palm Springs City Council voted 4-0 in favor of the new short-term vacation rental rules. Councilmember Christy Holstege was absent from the meeting. The major changes are: Capping rentals at 20% of the homes in a neighborhood; Reducing the number of times a home can be rented per year from 36 to 26, a change that will be effective immediately for new applicants but not until Jan. 1, 2026, for holders of existing permits; Allow full-time residents to rent their homes occasionally using a "junior permit" that allows up to six rentals a year. It won't be subject to the 20% neighborhood cap; Final adoption is scheduled to happen after a second vote at the next council meeting Nov. 29.
Cathedral CityNo, except a few select HOAs.2/2/2022 Cathedral City will no longer issue permits for short-term vacation rentals in single-family and multi-family residential zones. The city is phasing out short-term vacation rentals by 2023, due to an ordinance that was approved in 2020 and went into effect on March 18, 2021, after a referendum. Short-term rentals are still allowed at a select few HOA's.
Rancho MirageNoOn October 21, 2021, the Rancho Mirage City Council adopted Short-Term Rental (“STR”) Ordinance 1189 which prohibits short-term rental activity in all zones of the City, and on November 20, 2021 the Ordinance went into effect.
Palm DesertNo except certain zoned areas.STRs are prohibited within the R1 and R2 zones, excluding On-Site Owner STR Permits.
La QuintaMoratorium on new permits.In November 2022, La Quinta residents will vote to eliminate short-term vacation rentals in residential neighborhoods by Dec. 31, 2024, allowing them only in home shares – where the property owner remains on site throughout the rental – and in designated areas, such as those zoned tourist commercial.
Indian WellsNo except limited exceptions.Around the PNB Paribas tennis tournament in March, certain permitted/ licensed STRs are allowed a 7-night minimum.
IndioYesIndio Short-Term Rental Ordinance Code
City of CoachellaYesCity of Coachella Short-Term Rental Ordinance Code
Bermuda DunesYesUnincorporated Bermuda Dunes is regulated by the County of Riverside. The Bermuda Dunes Country Club HOA does not allow short-term rentals.
Desert Hot SpringsYes7/5/2022 Owners of short-term vacation rentals in Desert Hot Springs will have to follow new rules, including noise limits, under an ordinance tentatively approved Tuesday by the city council.
Joshua Tree & Pioneertown AreaYes
Yucca ValleyYesThe Town of Yucca Valley currently regulates short-term vacation rentals.
IdyllwildYesIdyllwild is regulated by the County of Riverside.

Information updated as of November 2022 and is subject to change. 

For additional information, please click on each city above to review the specific short-term vacation rental requirements including:

  • Permit fees and Transient Occupancy Tax rates (TOT)
  • Landlord to keep records of all stays for taxes, business licenses and safety purposes.
  • Tenants must receive a copy of the “good neighbor” brochure from the Landlord that outlines the rules for renters.
  • If the rental is located in a community’s homeowner association (HOA), some cities may require an approval letter from the  HOA.

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Kevin Stanley

Kevin Stanley
CCIM | REALTOR®
Bennion Deville Homes
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760 285 6211
Kevin@KevinStanley.Net