Coachella Valley STVR Rules Guide | Geoffrey Moore

The Coachella Valley is a popular vacation destination. People come for the sunny weather, world-class golf courses, unique culture, and more. That can make investment properties in Palm Springs and other Coachella Valley cities attractive to real estate investors. However, investors must know the rules for short-term vacation rental (STVR) properties. This post will explore STVR rules in the Coachella Valley.

General Requirements for STVRs in the Coachella Valley

Permits and Business Licenses

You need a city permit to rent a property for short-term stays in the Coachella Valley. Most rental owners will also need a business license.

Transient Occupancy Tax (TOT)

Short-term vacation rental operators must pay a Transient Occupancy Tax for guest stays to support local services. Hosts are responsible for collecting and remitting this tax, which varies by city. Failure to pay can lead to penalties.

Advertising Rules

Include the city permit number in your short-term vacation rental advertisement. That ensures transparency and allows potential guests to verify the property's legal registration.

No Events Without Special Permits

Short-term vacation rentals usually do not allow events like weddings or conferences. If you want to host an event, you must apply for a separate event permit. These rules help maintain the property's primary function as a vacation rental and reduce disturbances to the neighborhood.

24-Hour Contact for Complaints

Hosts must provide a 24-hour contact number for guests to report issues like noise or maintenance problems. They should respond within one hour to ensure immediate assistance and address neighbor complaints.

Specific City Regulations in the Coachella Valley

The general rules apply across the Coachella Valley, but each city has regulations. Here's a summary of how they differ:

Palm Springs

Palm Springs regulates short-term vacation rentals with limits of 26 or 36 rentals per year, depending on the area. A "junior permit" allows up to six rentals at a lower cost. Ordinance 2075, updated in November 2022, addresses over-tourism. Visit Palm Springs's official website for details.

Palm Desert

Palm Desert caps short-term rentals at 27 nights or fewer. You may need additional approvals if your property is in a Homeowners Association (HOA). For details, visit Palm Desert's official website.

La Quinta

In La Quinta, property owners must obtain a short-term vacation rental permit and a business license. Operators must also display a "Good Guest Brochure" for guests. For more details, visit La Quinta's official website.

Cathedral City

In February 2022, Cathedral City banned short-term vacation rentals in residential areas, allowing them only in the Resort Residential zone. For more details, visit the Cathedral City website.

Indian Wells

Indian Wells has stopped issuing new short-term vacation rental permits. Only existing properties can operate as STVRs. Potential hosts should check their permit status on the Indian Wells website.

Indio

Indio requires annual automatic permit renewals and a business license for short-term vacation rentals. The permit fee is currently $1,633, along with other business licenses and tax fees. For detailed guidelines, visit the official Indio website.

Desert Hot Springs

In Desert Hot Springs, property owners need a vacation rental permit for short-term rentals. Only a business license is required if booked for fewer than 10 nights a year. For details, visit the Desert Hot Springs website.

Rancho Mirage

Rancho Mirage banned short-term rentals as of July 1, 2022. You cannot rent a property for less than 30 days, even if it's vacant. Please check the official Rancho Mirage website for more information.

Are you looking to invest in a short-term vacation rental in the Coachella Valley? Contact Geoffrey Moore, your local Realtor®. He can help you find short-term rental homes for sale and provide updates and insights on local rules.