Palm Springs, California Short Term Rental Regulations Guide for Airbnb hosts

Overview: Short-Term Rentals in Palm Springs

Short-term rentals (STRs) are explicitly allowed in Palm Springs, California, but they operate under one of the most comprehensive and strictly regulated frameworks in the United States. The city permits vacation rentals and homesharing as ancillary and secondary uses of residential property, with extensive operational requirements, permitting processes, and neighborhood density restrictions designed to balance tourism revenue with residential community preservation.

How to Start a Short-Term Rental Business in Palm Springs

Step 1: Verify Property Eligibility

Before investing in or converting a property, verify that:

The property is located within Palm Springs city limits (not Riverside County jurisdiction)
The neighborhood has not reached the 20% density cap for vacation rentals
The property is a single-family dwelling unit (apartments are prohibited from STR use)
The property is not currently in escrow (applications cannot be submitted during escrow)

Step 2: Choose Your Registration Type

Palm Springs offers three types of vacation rental certificates:

Vacation Rental Certificate: Full STR operation without owner present (up to 26 rental contracts per year)
Homeshare Certificate: Owner must remain on-site during guest stays (28 days or fewer)
Junior Vacation Rental Certificate: Limited to 6 rental contracts per year (under 29 days each)

Step 3: Complete Application Process

Applications are now processed through an online system provided by GovOS. The process typically takes 30-90 days and includes:

Submit online application with required documentation
Schedule and pass mandatory safety inspection
Obtain required insurance coverage
Pay applicable fees
Register for TOT (Transient Occupancy Tax) certificate

Step 4: Operational Setup

Establish 24-hour local contact person
Create compliant advertising with City ID number
Implement noise management protocols
Set up monthly TOT reporting system

Required Documents, Permits, Licenses, and Guidelines

Primary Registration Certificate

Vacation Rental Certificate: $1,072 annually
Junior Vacation Rental Certificate: $642 annually
Homeshare Certificate: $268 annually
Transfer Fee: $174
Land Use Permit (LUP) for Estate Homes: $453

Safety Inspection Requirements

Mandatory safety inspection covering:

Basic habitability standards
Health and safety compliance
Pool safety (if applicable)
Electrical systems compliance
Fire safety measures

Insurance Requirements

Minimum liability coverage: $500,000 per occurrence
Proof of insurance must be submitted and maintained
Coverage must specifically include short-term rental activities

Tax Registration

Transient Occupancy Tax (TOT) Certificate: Required for all operators
Tourism Business Improvement District (TBID): 1% assessment on stays under 28 days (effective July 1, 2021)
Monthly reporting and payment obligations

Documentation for Each Rental

Written rental contract required for every stay (including friends/family)
Contract must be submitted to city before guest arrival
Monthly summary reports to city
Guest registration information

Specific Regulations for Short-Term Rentals

Density Caps and Neighborhood Limits

Ordinance 2075 (adopted November 28, 2022) established:

Maximum 20% of residential dwelling units per organized neighborhood may operate as vacation rentals
Density caps based on ONE-PS (collective of recognized neighborhood organizations) boundaries
First-come, first-served permit issuance when neighborhoods are under cap
Waitlist system when neighborhoods reach 20% capacity

Occupancy and Usage Restrictions

Contract Limitations:

Standard Vacation Rentals: Maximum 26 rental contracts per year (reduced from 36)
Junior Vacation Rentals: Maximum 6 rental contracts per year
Each contract period cannot exceed 28 days

Guest Occupancy Limits (based on bedroom count):

1 bedroom: 2 adults maximum
2 bedrooms: 4 adults maximum
3 bedrooms: 6 adults maximum
4+ bedrooms: 8 adults maximum
Additional allowance: 2 children age 12 or under (beyond adult limits)

Operational Requirements

Noise Restrictions:

Zero tolerance for outdoor amplified noise/music
All sound must be contained within the property
No outdoor speaker systems permitted

Parking Requirements:

Vehicle limits based on bedroom count (same formula as occupancy)
Vehicles may park in garage, driveway, or on street
Cannot block driveways or mailboxes

24-Hour Local Contact:

Must designate local contact person available 24/7
Contact must be able to respond to complaints within reasonable time
Property manager or designated representative must be within reasonable distance

Advertising Requirements

Must display City ID number in all advertisements
Format: "The City of Palm Springs ID #XXXX"
City ID is different from TOT number
Required on all platforms (Airbnb, VRBO, etc.)

Prohibited Activities

Vacation rentals in apartment buildings
Outdoor events or parties
Commercial events or weddings
Operating without valid registration certificate ($5,000 fine + permanent ineligibility)

Contact Information for Local Authority

Department of Special Program Compliance - Vacation Rentals Division

Address: 425 N. Civic Dr. Palm Springs, CA 92262

Phone: (760) 322-8382 Vacation Rental Hotline (for active complaints): (760) 322-8383 Email: vacation.rentals@palmspringsca.gov

Administrative Appeals Board Appeal Fee: $911

For Non-Urgent Violations: Request for Review Form

Business Hours: Regular business hours for non-urgent matters; 24/7 hotline for active complaints

Source Links and Additional Resources

Primary City Resources:

Application and Compliance:

Educational Resources:

Third-Party Resources:

This regulatory framework represents one of the most comprehensive STR management systems in California, designed to maintain Palm Springs' appeal as a tourist destination while preserving the character and livability of residential neighborhoods. Compliance with all regulations is mandatory, and violations can result in significant fines and permanent disqualification from operating short-term rentals in the city.

Overview of Palm Springs, CA

Located in the Sonoran Desert of Southern California, Palm Springs is known for its hot springs, stylish hotels, golf courses, and spas. The city serves as a prominent vacation destination, characterized by its mid-century modern architecture and scenic desert landscapes. Palm Springs spans approximately 94 square miles and has a population of roughly 48,000 residents. The nearest major city is Los Angeles, which is around 107 miles to the west, making Palm Springs a convenient getaway for those seeking a retreat from urban life.

Attractions and Landmarks

Palm Springs Aerial Tramway - As the world's largest rotating tramcar, it offers breathtaking views of the entire Coachella Valley. Visitors can travel over 8,500 feet from the desert floor to the alpine wilderness of Mount San Jacinto State Park. For more information, visit Palm Springs Aerial Tramway.
Palm Springs Art Museum - This museum features contemporary and modern art collections, including works by notable artists such as Picasso and Warhol. It provides cultural enrichment through various exhibits, performances, and art education programs. More details can be found on their website: Palm Springs Art Museum.
Indian Canyons - A natural preserve showcasing the rich history of the Agua Caliente Band of Cahuilla Indians. It's a popular spot for hiking, offering trails such as the Murray Canyon and Palm Canyon, renowned for their scenic views and waterfalls. Explore more at Indian Canyons.
The Living Desert Zoo and Gardens - Located a short drive from Palm Springs in nearby Palm Desert, this attraction focuses on desert plant and animal species from around the world. The facility includes a zoo, botanical garden, and wildlife park. More information can be accessed here: The Living Desert.

Appeal for Short Term Rentals

Palm Springs' appeal for short-term rentals is largely driven by its reputation as a premier vacation destination. Its year-round sunny weather and easy access to outdoor activities, along with an array of dining, shopping, and entertainment options, attract tourists from all over the globe. The city's mid-century modern homes and stylish accommodations provide unique and luxurious lodging options for renters. Additionally, Palm Springs hosts several major events, such as the Palm Springs International Film Festival and Coachella Valley Music and Arts Festival, which further boosts the demand for short-term rentals.

Given its mix of natural beauty, cultural venues, and high-profile events, Palm Springs remains a highly desirable location for short-term rentals, catering to a diverse range of visitors from weekend travelers to festival-goers.

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