The Palm Desert City Council will likely be conducting a comprehensive review of regulations of Short Term Rentals (STR) within the City. Any changes to City’s regulation of STRs may apply to existing permits, including permits issued pursuant to new applications submitted after January 9, 2017. The City may decide to severely limit or eliminate STR activity, and may decide not to renew STR permits on an annual basis.
Effective January 1, 2017, the Transient Occupancy Tax increased from 9% to 11%
On March 22, 2012, the Palm Desert City Council established new regulations for the licensing of all residential short-term rentals within the City. Each property being rented for 27 days or less is required to have a Short-term Rental Permit whether it is operated by a property owner or by a property management company. The application fee is $25 per property. Permits must be renewed annually by the anniversary date on the permit. ADDITIONAL FEE - State Revolving Mandated Disability access and Education Revolving fund fee of $1.00 per property.
The new ordinance takes effect April 23, 2012, after which permits must be obtained.
A new enforcement program will identify and potentially fine anyone renting a residential property on a short-term basis who does not have a short-term rental permit, and who is not collecting and remitting Palm Desert’s eleven percent (11%) Transient Occupancy Tax to the City.
The new regulations specify the minimum number of days (three days and two nights) that a short-term rental property can be occupied, and the maximum number of daytime and overnight guests (two people per bedroom.)
On-site parking is required for all overnight guests as well as compliance with the City’s Noise Ordinance including a prohibition on use of stereos and other noisy equipment outdoors between 10 p.m. and 10 a.m.
Property owners also must inform their renters about all of the City’s requirements and provide a round-the-clock contact person who can respond to the property within 60 minutes. Violations of these rules can result in the short-term rental permit being modified, suspended, or revoked as well as fines up to $5,000.
Neighboring residents who wish to report a problem with a short-term rental are encouraged to call the City’s Code Compliance Department during business hours at 760-346-0611 or a new after-hours hotline 760-833-7998
The new rules are intended to ensure that short-term rentals are convenient to register, compatible with surrounding uses, and not disruptive to the neighborhoods in which they are located. For more information, please call 760-776-6335