Overview: Are Short-Term Rentals Allowed in Zephyr Cove?

Yes, short-term rentals are allowed in Zephyr Cove, Nevada, but with significant restrictions. Zephyr Cove is located within Douglas County, Nevada, which permits vacation home rentals (VHRs) through a strict regulatory framework. However, investors should be aware that Douglas County has implemented a permit cap system and there is currently an initiative seeking to eliminate all vacation rentals in residentially zoned areas over a three-year phase-out period.

How to Start a Short-Term Rental Business in Zephyr Cove

Step 1: Verify Property Eligibility

Before purchasing or listing a property, verify its eligibility using Douglas County's GIS mapping system. Zephyr Cove properties are subject to:

• 15% cap on STRs in detached-residence communities
• 20% cap in tourist/multi-residence communities
• Overall county permit cap of 600 active permits
• Potential waitlist requirements depending on neighborhood saturation

Step 2: Obtain Required Permits

• Apply for a Vacation Home Rental (VHR) permit through Douglas County Community Development
• Ensure compliance with Douglas County Code Title 20.622 VHR Ordinance 2024-1635
• Complete the permitting process through the official county channels

Step 3: Ongoing Compliance

• Maintain active permit status with annual renewals
• Adhere to operational guidelines and community standards
• Monitor regulatory changes as Douglas County continues to evaluate STR policies

Required Documents, Permits, Licenses, and Guidelines

Essential Requirements:

1. VHR Permit: Primary authorization from Douglas County Community Development
2. Property Compliance: Adherence to Title 20.622 VHR Ordinance 2024-1635
3. Insurance: Liability coverage appropriate for short-term rental operations
4. Business Registration: If applicable under Nevada state requirements
5. Fire/Safety Compliance: Meet all local fire and safety codes

Documentation Process:

• Submit application through Douglas County's official permitting system
• Provide property documentation and ownership verification
• Complete any required inspections or compliance checks
• Maintain records for ongoing regulatory compliance

Specific Regulations for Short-Term Rentals

Douglas County (Zephyr Cove) STR Regulations:

Operational Definition:

• Short-term rentals defined as rentals of 28 days or less
• Properties rented longer than 28 consecutive days considered long-term rentals

Permit System:

• 600 total permit cap implemented July 15, 2021
• 15% cap in detached-residence communities
• 20% cap in tourist/multi-residence communities
• Waitlist system for neighborhoods that have reached capacity (effective June 15, 2023)
• Permits are non-transferable and become null upon property sale

Buffer Requirements:

• Specific buffer zone requirements apply (details vary by zone)

Enforcement:

• Active code enforcement through Douglas County Community Development
• Complaint-driven enforcement system in place
• Violations can result in permit suspension or revocation

Regulatory Risk:

• Active initiative to eliminate all VHRs in residentially zoned areas over 3-year phase-out period
• Potential for future regulatory tightening

State-Level Context:

Nevada state law provides local jurisdictions broad authority to regulate STRs, with Douglas County exercising comprehensive oversight of the Zephyr Cove market.

Contact Information for Local STR Authority

Primary Contacts:

Douglas County Community Development - VHR Permitting

• Phone: (775) 782-6200, then select option 5 for Code Enforcement and VHRs
• Email: [email protected]
• Address: 1594 Esmeralda Ave., Minden, NV 89423
• Mailing Address: P.O. Box 218, Minden, NV 89423
• Website: www.douglascountynv.gov/government/departments/community_development/vacation_home_rentals

VHR Complaint Line

• Phone: (775) 783-6027 (24/7 hotline with third-party answering service nights/weekends)
• Email: [email protected]

Douglas County Sheriff's Office (Non-Emergency)

• Phone: (775) 782-5126
• Purpose: Public parking and noise complaints during incidents

VHR Advisory Board

• Function: Hears enforcement appeals, considers special use permits, advises on policy changes
• Meeting Information: Available through county website

Source Links

Official Government Resources:

• Douglas County VHR Main Page: www.douglascountynv.gov/government/departments/community_development/vacation_home_rentals
• VHR GIS Mapping Tool: douglasnvgis.maps.arcgis.com/apps/webappviewer/index.html?id=2d2becd62941413da23745a7cf235e5a
• Neighborhood Waitlist Status: www.douglascountynv.gov/cms/One.aspx?portalId=12493103&pageId=17804436
• VHR Ordinance 2024-1635: Available through county code documentation
• VHR Advisory Board Meetings: douglascountynv.granicus.com/ViewPublisher.php?view_id=1

Additional Resources:

• Douglas County General Website: www.douglascountynv.gov/
• County Staff Directory: Available through main county website

Investment Considerations for Zephyr Cove STR Market

Market Dynamics:

• High-demand location with consistent year-round tourism
• Premium pricing potential due to Lake Tahoe location
• Supply constraints through permit cap system create competitive market
• Regulatory uncertainty due to phase-out initiative

Risk Factors:

• Regulatory change risk with active elimination initiative
• Non-transferable permits affect property values
• Neighborhood-specific caps and waitlists limit expansion opportunities
• Increasing regulatory scrutiny and enforcement

Due Diligence Recommendations:

• Verify current permit availability for specific property
• Review HOA restrictions and community covenants
• Confirm compliance with all local regulations before purchase
• Monitor ongoing regulatory developments
• Consider professional property management familiar with local requirements

This guide provides essential information for STR investors considering Zephyr Cove properties. However, given the evolving regulatory landscape and ongoing policy discussions, investors should verify current requirements with Douglas County before making investment decisions.