The Desert-Sun reports “The Board of Supervisors on Tuesday approved a 45-day moratorium on the issuance of short-term rental certificates in Thousand Palms and the nearby Coachella Valley community known as B Bar H Ranch to give Riverside County Transportation & Land Management Agency staff time to draft regulations that address problems stemming from house parties and other activities in the locations.”
The moratorium takes effect immediately until April 25 but it can be extended.
The Palm Springs Posts reports that the “The Palm Springs Administrative Appeals Board is considering updates to the city’s vacation rental ordinance to improve community understanding and compliance.”
If you are thinking about buying a home or a condo in the Coachella Valley and you want to short-term rent it for less than 30-days, it is very important to do your research to make sure the home or condo can be rented.
Most of the cities in the Coachella have either banned short-term rentals and/or passed major rental restrictions.
Most HOA’s do not allow rentals less than 30-days.
The Coachella Valley Independent reports that Palm Desert is downsizing some 3-bedroom condos to 2-bedrooms since “certain floor plans that seemed to incorrectly identify an atrium-adjacent living space as a third bedroom, which put it in conflict with California state building standards. According to those regulations, atrium-adjacent spaces with no direct egress available via a door or window to the outside of the property could not be utilized legally as a bedroom.” This affects several HOA’s in Palm Desert such as Monterey Country Club, The Lakes and Chaparral Country Club.
Yes, as reported in the SFGate, the short-term rental market has changed in Palm Springs and the Coachella Valley. Buyers need to be aware of rental restrictions, density caps (especially for future resale for the next buyer to get a permit) and if financing with the current interest rates, realize that the rental fees may not cover all the ownership expenses.
The Palm Springs Post reports “Between December 2022 and January 2024, registrations rose by 279, but this figure includes applications paused due to a fall 2022 moratorium. Once the moratorium ended and the backlog was cleared, the data reveals a more modest increase of just 81 applications in the 10 months up to this past January.”
The City of Palm Springs makes it easy to look up an address to determine if a home can be short-term rented:
Vacation Rental Neighborhood Percentage Information
The Los Angeles Times reported that 10 of the 66 organized neighborhoods in Palm Springs have exceeded the short-term vacation rental density ordinance of 20%. Sellers in these neighborhoods are having challenges selling because a new buyer is not eligible for a new short-term rental permit. Some sellers may have to face selling at a loss if they want to exit the market.
Despite the article’s headline, prices are remaining steady – check out the Coachella Valley Housing stats!
The Desert-Sun reported that the Riverside County Board signed off on new short-term rental regulatory framework for unincorporated communities. The number of rentals in Idyllwild-Pine Cove are limited to a total of 500. There are already 474 in operation.
The amended ordinance also includes a 500-foot separation requirement, that mandates that any newly certificated STRs have a 500-foot separating requirement from the nearest residence.
Also guests now, in addition to owners, can be held liable for nuisance because of parties or other disturbances.
The Desert-Sun reported that “Following a lengthy and sometimes emotional hearing on proposed amendments to Riverside County’s short-term rental ordinance, the Board of Supervisors on Tuesday directed staff to return with a series of proposed adjustments before taking a final vote on the revised regulatory system later this month.
Tuesday’s hearing on proposed alterations to Ordinance No. 927 spanned roughly five hours, with upwards of 60 speakers addressing the board to express their concerns or satisfaction with what Transportation & Land Management Agency staff had brought forward regarding limitations on short-term rental permits in Idyllwild-Pine Cove and the Temecula Valley Wine Country.”
The Desert-Sun reported that “A year after La Quinta residents narrowly voted to keep short-term rentals in residential neighborhoods, the city council decided Tuesday to open the door for new home shares — rentals where a property owner must remain on site during a guest’s stay. Residents will be able to get a new home share permit even in areas where other new short-term rental permits are currently banned.”
Also “The council adjusted a few of its other short-term rental rules, including a new provision allowing owners of larger properties to request an exemption to the ban on new rental permits, pending further council approval.”
News Channel 3 reported that “The Board of Supervisors voted unanimously today to extend a moratorium on the issuance of new short-term rental permits in the Temecula Valley, as well as the Idyllwild-Pine Cove area, giving county staff additional time — beyond the year they’ve already had — to apply finishing touches to a revised ordinance.”
The Desert-Sun reports on the occupancy changes in the Palm Springs short-term vacation rental market:
“Vacation rental tax revenue for the city government was down about 11% so far in the 2022-2023 fiscal year compared to the prior one.”
“City tax revenue from home bookings has dropped by about 13% over the past year, hotel tax revenues are up by about 1.5%. Combined revenue from the two types of stays — known as transit occupancy tax — is down by about 3%.”
“From the start of 2022 through the end of April, the number of licensed vacation rental properties in the city grew from 2,316 to 2,881, a nearly 25% increase.”
While there are no changes in the Palm Springs short-term vacation rental ordinances, this opinion article has some valid points.
A few key excerpts from the article:
“First – and most obvious – is the impact on tourism. Decrease the available lodging and you have a decrease in tourism. “
“This, in turn, has significant ramifications for local retailers.”
“Lastly, it hasn’t been sufficiently demonstrated that limiting STRs would open the door to more affordable housing.”
Read more in The Desert Sun.
The Desert-Sun reported the latest update on the La Quinta short-term vacation rental market. For now there is no change on the moratorium for new permits.
Z107FM reported that Yucca Valley approved density cap of 10% for short-term vacation rentals.
The Desert-Sun reported for La Quinta that “Measure A — a proposal to phase out short-term vacation rentals by the end of 2024, except in a few exempt areas — was narrowly defeated in last month’s election, with 51% of city voters opposed and 49% in favor.”
If you are thinking about buying a home in La Quinta, be sure to review city’s short-term vacation rental page for updates!
The City of Palm Springs is supposed to release an official summary but in the meantime, here are the three changes most relevant if you are considering buying a home to short-term vacation rent:
Existing/renewing permits and new permit applications received by October 17, 2022 will play by the old rules through 2025. The new rules will apply to applications received October 18, 2022 or later.
Use this City website link to find a table of current neighborhood percentages and an organized neighborhood map. As of the table dated 11/23/22, the neighborhoods already at or above 20% density are: Desert Park Estates, El Mirador, El Rancho Vista Estates, Gene Autry, Movie Colony East, Racquet Club Estates and Sunmor. No new permits will be issued in these neighborhoods until they fall below 20%.
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:
Final adoption is scheduled to happen after a second vote at the next council meeting 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. “
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.
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
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.”
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.
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″
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.”
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.
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.
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.
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. “
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.
The Patch reports about several changes the County of Riverside is proposing for short-term vacation rental in unincorporated areas.
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.”
Per the Desert-Sun: “The 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.”
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.”
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.”
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.
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.
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.”
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.”
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.”
“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.”
“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.”
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
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.
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.
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 governments, Riverside County and San Bernardino.
If an investor is buying in an HOA community, it is very important to review the CCR’s and Rules & Regulations for potential restrictions and realize that these rules can change too.
| City | Short-Term Rentals Permitted? | Other Info |
|---|---|---|
| Palm Springs | Yes | The three changes most relevant if you are considering buying a home to short-term vacation rent: (1) Reduction in maximum allowed short term rental contracts (reservations of less than 28 nights) from 36 to 26 per year; (2) Introduction of a 20% (of total residences) cap on number of permits in any neighborhood (using the 51 organized neighborhoods); (3) Introduction of the "Junior Permit": with a maximum allowed number of short term rental contracts per year of six, and not subject to neighborhood caps. |
| Cathedral City | No, 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 Mirage | No | On 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 Desert | No except certain zoned areas and a few select HOAs. | STRs are prohibited within the R1 and R2 zones, excluding On-Site Owner STR Permits. Some HOA’s do allow short-term rentals in Palm Desert, including Palm Valley Country Club, Desert Falls and Monterey Country Club. |
| La Quinta | Moratorium 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 Wells | No except limited exceptions. | Around the PNB Paribas tennis tournament in March, certain permitted/ licensed STRs are allowed a 7-night minimum. |
| Indio | Yes | Indio Short-Term Rental Ordinance Code |
| City of Coachella | Yes | City of Coachella Short-Term Rental Ordinance Code |
| Bermuda Dunes | Yes | Unincorporated Bermuda Dunes is regulated by the County of Riverside. The Bermuda Dunes Country Club HOA does not allow short-term rentals. |
| Desert Hot Springs | Yes | 7/5/2022 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 Area | Yes | |
| Yucca Valley | Yes | The Town of Yucca Valley currently regulates short-term vacation rentals and it has a density cap for short-term rentals too. |
| Idyllwild | Yes | Idyllwild is regulated by the County of Riverside. |
Information updated as of July 2024 and is subject to change.
For additional information, please click on each city above to review the specific short-term vacation rental requirements including:
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Kevin Stanley
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Bennion Deville Homes
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Kevin@KevinStanley.Net
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