Overview: Are Short-Term Rentals Allowed?

Yes, Short-Term Rentals are allowed in Desert Hot Springs, CA, but they are strictly regulated. The city instituted a permit cap of 4% of total housing parcels (9,025 parcels in 2023) and a 500-foot separation rule between rentals (effective December 7, 2023). Accessory Dwelling Units (ADUs) are prohibited for STR use. All STRs must obtain a City permit and comply with taxes and insurance requirements.

How to Start a Short-Term Rental Business

1. Verify Zoning & HOA Compliance

   • Check that the property isn’t in a prohibited zone.
   • If in an HOA, obtain written authorization from the HOA board/property manager (use the city’s HOA Authorization Form).

2. Obtain Required Permits & Licenses

   • Apply for a Vacation Rental Permit (non-transferable if sold).
   • Submit a Business License Application (via Viewpoint Cloud portal).
   • Submit at least 30 days before operating (no leeway for expired permits).

3. Secure Insurance

   • Minimum $1,000,000 general liability insurance (Airbnb/HomeShare insurance does not qualify).

4. Register for Taxes

   • Pay 12% Transient Occupancy Tax (TOT).
   • Submit 1% TBID assessment for stays ≤28 days.

5. Set Up Operations

   • Use city-approved platforms (e.g., Deckard portal for permits/TOT payments).
   • Follow safety codes (e.g., California Pool & Safety Act).

Required Documents, Permits, Licenses, and Guidelines

| Type | Details | Fees | Renewal | |----------|-------------|----------|-------------| | Vacation Rental Permit | 1. General Permit (non-primary/home-share) <br>2. Home Share Permit (owner on-site ≤30 days) <br>3. Primary Residence Permit (owner’s primary home) | $1,241.81 (General) <br>$620.90 (Home Share) <br>$931.75 (Primary) | Annual; renewal window: 60–30 days before expiration | | Business License | Required for all STRs | Varies | Annual | | HOA Authorization | Mandatory if in an HOA | Free | With each permit application | | Insurance | $1M liability coverage | Carrier-specific | Annual | | TOT Registration | Certificate from City | Free | Annual |

Key Forms & Tools:

• Vacation Rental Permit Application/Renewal
• TOT Forms & Payments
• Business License Application

Specific Regulations

• Permit Cap: 4% of housing parcels (361 permits in 2023; renewals not affected).
• 500-Foot Rule: No STRs within 500 feet of another active STR (existing rentals exempt from this for renewals).
• Permit Types:
  • General Permit: Full-time STR (no owner on-site).
  • Home Share: Owner lives on-site during stays ≤30 days.
  • Primary Residence: Owner’s primary home (rental allowed when not living there).
• ADU Prohibition: ADUs cannot be used as STRs (Municipal Code 17.08.090).
• Renewals:
  • Must be submitted 60–30 days before expiration.
  • No grace period; late renewals result in permit termination.
• Waitlist:
  • City will notify waitlist applicants by email only.
  • 10 business days to respond with application; otherwise removed.
• Appeals: Denials may be appealed within 15 days with a filing fee.

Taxes & Fees

• TOT (Transient Occupancy Tax): 12% of gross rental revenue for stays ≤28 days.
• TBID (Tourism Assessment): 1% of gross revenue for stays ≤28 days (paid to City).
• Penalty: Failure to remit TOT may result in fines/suspension.
• TOT Forms & Payment Portal

Contact Information

• Complaints/Non-Emergency: (760) 329-2904, Option 2
• Vacation Rentals Email: vacationrentals@cityofdhs.org
• Permit Applications: Desert Hot Springs STR Portal (Deckard)
• City Website: Vacation Rentals Page
• Municipal Code: Desert Hot Springs Code

California State-Level Regulations (For Compliance)

• California Pool & Safety Act: Mandates pools/spas to have specific safety features (e.g., fencing, self-closing gates). Read more here.
• Local Ordinance: Vacation Rental Regulations Ordinance.

Critical Notes for Investors

• Permits are Non-Transferable: New owners must reapply.
• HOA Power: HOAs can block STR permits entirely.
• Safety Compliance: Follow ASME/ASTM standards for pools/spas (linked on city site).
• Tax Collection: Use city-approved platforms (e.g., Deckard) for TOT/TBID remittance.

Links to Source Pages:

1. City Vacation Rentals Hub
2. Regulation Update (Cap/Separation Rules)
3. Vacation Rental Permit Application (Deckard)
4. Municipal Code (Title 3, Chapter 3.20 - TOT)
5. California Pool & Safety Act
6. Airbnb Desert Hot Springs Guide

This guide synthesizes Desert Hot Springs’ STR framework for investors, focusing on actionable compliance steps. Always consult city portals for the latest updates.