# Short-term rental rules in Palm Springs, CA

- Status: **HEAVILY REGULATED**
- Last verified: 2026-07-16 (every legal claim checked against the official sources listed below)
- Canonical page: https://strwatch.ai/palm-springs-ca/

## Summary

Palm Springs allows short-term 'vacation rentals' (unhosted, owner not present) and 'homeshares' (owner present) only as ancillary uses of single-family homes, and only under Chapter 5.25 of the Municipal Code (restated by Ordinance 2075, adopted Nov 28, 2022). A rental is any stay of 28 consecutive days or less; stays of 29+ days are unregulated. Each requires an annual Vacation Rental/Homeshare Registration Certificate, an annual building/fire/safety inspection, proof of at least $500,000 liability insurance, and a $25 Transient Occupancy Tax permit. Per Resolution 25344 (adopted Sept 25, 2025, effective Dec 1, 2025) the annual registration fee is $1,046 for a Vacation Rental, $523 for a Junior Vacation Rental (limited to 6 contracts/year, exempt from the density cap), and $261 for a Homeshare. Annual contract caps: New Permittees (application filed after Oct 17, 2022) are limited to 26 rental contracts per calendar year; Existing Permittees (on/before Oct 17, 2022) are limited to 32, plus up to 4 additional third-quarter contracts (36 max) — Ordinance 2118 (adopted Nov 12, 2025) cancelled a reduction that was to take effect Jan 1, 2026. A 20% neighborhood density cap applies (no new certificate where a neighborhood is already at or above 20% vacation-rental-to-household ratio); roughly 10 of 66 neighborhoods are at the cap. Occupancy is 2 overnight guests per bedroom (1BR=2 up to 6BR=12) plus 2 minors age 12 and under; estate homes (5+ bedrooms) need a Land Use Permit and are capped at 5-6 bedroom use. An owner may hold only one certificate. Taxes are 11.5% Transient Occupancy Tax plus a 1% GPSTBID assessment on stays under 28 days. Operating without a certificate triggers TOT liability plus penalties/interest, a $5,000 administrative fine, and permanent ineligibility to operate a vacation rental in the city.

## At a glance

- Unhosted whole-home rental: Conditional
- Hosted rental (host present): Yes
- Primary residence required: No
- Guest cap: none verified
- Rules apply to stays under: 29 days

Notes: Unhosted whole-home rentals ('Vacation Rentals') are permitted but conditional on obtaining a Vacation Rental Registration Certificate AND the property's neighborhood being below the 20% density cap (PSMC Ch. 5.25 / Ordinance 2075); new certificates are not issued in neighborhoods at or above 20% vacation-rental-to-household ratio. Hosted rentals ('Homeshares', owner present for the entire stay) are permitted with a Homeshare certificate and are exempt from annual contract limits and the Contract Summary Tool. A 'vacation rental' is a rental of a single-family dwelling for 28 consecutive days or less without the owner present; stays of 29 days or more are long-term and not regulated by the ordinance. Only single-family dwellings qualify — rentals in apartments are prohibited. An owner may benefit from only one Vacation Rental or Homeshare certificate at a time. max_guests is bedroom-dependent: overnight occupancy is 2 per bedroom (1BR=2, 2BR=4, 3BR=6, 4BR=8, 5BR=10, 6BR=12) plus two minors age 12 and under; daytime occupancy is overnight +4. Estate Homes (single-family dwellings with 5+ bedrooms) require a Land Use Permit and certificates are issued only for 5- or 6-bedroom use regardless of total bedrooms.

## Requirements

### Vacation Rental Registration Certificate (registration)

- Authority: City of Palm Springs, Department of Special Program Compliance (DSPC)
- Cost: $1,046 per year (new/annual)
- Renewal: Annual, requires passing building/fire/safety inspection
- Official source: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
- Notes: Required for unhosted whole-home short-term rentals under PSMC Ch. 5.25. Fee set by Resolution 25344 (adopted Sept 25, 2025, effective Dec 1, 2025). Subject to 20% neighborhood density cap and annual contract limits (26/year New Permittees; 32 + up to 4 Q3 = 36/year Existing Permittees). One certificate per owner.

### Junior Vacation Rental Registration Certificate (registration)

- Authority: City of Palm Springs, DSPC
- Cost: $523 per year (new/annual)
- Renewal: Annual
- Official source: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
- Notes: Reduced-fee certificate limited to 6 rental contracts per year. Neighborhood percentage (density) caps do NOT apply to Junior certificates. All other operational, TOT, and penalty rules apply. Fee per Resolution 25344 (effective Dec 1, 2025).

### Homeshare Registration Certificate (registration)

- Authority: City of Palm Springs, DSPC
- Cost: $261 per year (new/annual)
- Renewal: Annual
- Official source: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
- Notes: For hosted stays of 28 consecutive days or less where the owner is present during the entire stay. Exempt from annual contract limits and the Contract Summary Tool requirement. Fee per Resolution 25344 (effective Dec 1, 2025).

### Annual Building, Fire and Safety Inspection (inspection)

- Authority: City of Palm Springs, DSPC
- Cost: not verified
- Renewal: Required at each new application and annual renewal
- Official source: https://www.palmspringsca.gov/home/showpublisheddocument/87996/638466182387670000
- Notes: DSPC schedules and conducts an annual safety inspection; owner, agent, or representative must be present. First step in a multi-department permit approval process. Verified from the official Vacation Rental FAQ PDF (dated 11.5.25).

### Liability Insurance (insurance)

- Authority: City of Palm Springs, DSPC
- Cost: not verified
- Renewal: Must be maintained for the full term of the certificate
- Official source: https://www.palmspringsca.gov/home/showpublisheddocument/87996/638466182387670000
- Notes: Owner must carry a short-term rental or personal liability policy with a minimum limit of $500,000 per occurrence. City need not be named as additional insured. Evidence required at application. Verified from official VR FAQ PDF and the Vacation Rental Certificate page.

### Transient Occupancy Tax (TOT) Permit (permit)

- Authority: City of Palm Springs, Finance & Treasury
- Cost: $25 (one-time, non-refundable)
- Renewal: One-time
- Official source: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals/applying-for-a-vr-certificate/vacation-rental-certificate
- Notes: A separate TOT permit is required to register for and remit transient occupancy tax. Verified from the official Vacation Rental Certificate application page and FAQ PDF.

### Estate Home Land Use Permit (permit)

- Authority: City of Palm Springs, DSPC / Planning
- Cost: $647 (one-time)
- Renewal: One-time (with addendum requirements)
- Official source: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
- Notes: Required for Estate Homes — single-family dwellings with 5 or more bedrooms. Certificates issued only for 5- or 6-bedroom use. Fee $647 per Resolution 25344 (effective Dec 1, 2025); note the VR Certificate page separately lists $453 for this permit (see needs_review).

### Contract Summary Tool filing (per stay) (other)

- Authority: City of Palm Springs, DSPC
- Cost: not verified
- Renewal: Filed in advance of each guest stay
- Official source: https://www.palmspringsca.gov/home/showpublisheddocument/87996/638466182387670000
- Notes: Vacation Rental operators must submit a Contract Summary in advance of each guest stay using the online tool (requires City ID number and TOT number). Used to enforce annual contract caps. Does NOT apply to Homeshares. Verified from official VR FAQ PDF.

## Taxes

- **Transient Occupancy Tax (TOT)**: 11.5% — applies to Vacation rentals and homeshares (transient stays of 28 days or less); 13.5% rate applies only to Group Meeting hotels; platform collects: not verified. Source: https://www.palmspringsca.gov/government/departments/finance-treasury/transient-occupancy-tax-tot
- **Greater Palm Springs Tourism Business Improvement District (GPSTBID) Assessment**: 1% — applies to Gross rental revenue on vacation rental and homeshare short-term stays of less than 28 days (assessment effective since July 1, 2021); platform collects: no. Source: https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals/vacation-rental-tot-information

## Enforcement

- Penalties: Operating a vacation rental without a valid registration certificate makes the operator liable for transient occupancy tax under PSMC Ch. 3.24 (including penalties and interest), a $5,000.00 administrative fine, and permanent ineligibility to operate a vacation rental in the City (per PSMC Ch. 5.25 and the official VR FAQ). Statewide, California SB 60 (2021, Chapter 307; Gov. Code 25132 & 36900) caps fines for health-or-safety-infraction violations of an STR ordinance at $1,500 (first), $3,000 (second within a year), and $5,000 (each additional within a year).
- Platform liability: California SB 346 (2025, Chapter 751; signed Oct 13, 2025, effective Jan 1, 2026) authorizes cities/counties to require short-term rental facilitators (Airbnb, Vrbo, etc.) to report property data (physical address incl. 9-digit ZIP, and if needed APN/listing URL) no more often than quarterly, to include any local license number and TOT certification in listings, and imposes administrative fines and audit authority for non-compliance.
- Notes: Enforcement administered by the Department of Special Program Compliance (DSPC). A 24/7 Vacation Rental Hotline ((760) 322-8383) handles active complaints. Operational standard conditions include no outside amplified music/noise, one car per bedroom, and trash/screening rules. HOA properties may register only with a letter from the HOA board/management confirming STR use does not violate the CC&Rs.

## Pending changes

- Ordinance 2118 (adopted Nov 12, 2025) amended PSMC 5.25.070(b) to REMOVE a scheduled reduction in the annual vacation-rental contract cap for 'Existing Permittees' that would otherwise have taken effect Jan 1, 2026 — the cap remains 32 contracts/year plus up to 4 additional third-quarter contracts (36 maximum). (passed-not-effective, 2025-11-12) — https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
- City Council considering amendments to the ordinance addressing co-owned housing units (e.g., Pacaso-style fractional ownership) relative to the vacation rental program. (proposed, 2024-2025) — https://thepalmspringspost.com/city-considers-slight-rule-changes-for-ordinance-focused-on-co-owned-housing-properties-like-pacaso/

## Not yet verified (we say so instead of guessing)

- Vacation Rental annual registration fee: the main VR program page cites $1,046 per Resolution 25344 (effective Dec 1, 2025), but the Vacation Rental Certificate application page lists $1,072 (and Estate Home Land Use Permit at $453 vs $647 on the program page). Could not reconcile which figure is currently charged — the $1,046/$647 figures have a clear resolution and effective date so were used as primary; verify against the live Comprehensive Fee Schedule.
- Municipal code section text (ecode360.com / library.qcode.us) could not be fetched directly — both portals return HTTP 403 to non-interactive requests and render section text via JavaScript. Contract caps, occupancy limits, definitions, and penalties were verified from official City program pages and the official Vacation Rental FAQ PDF rather than from the primary code section text itself; recommend a manual read of PSMC 5.25.070 (operational requirements) and 5.25.060 (application) to confirm exact statutory wording.
- Fetch-method note (CEO review 2026-07-16): palmspringsca.gov blocks all non-interactive access (Akamai 403, incl. headless browser), so city-page claims were verified against Internet Archive captures of the exact official URLs — program page snapshot 2026-05-10, VR FAQ PDF snapshot 2026-04-26 (both post-date the Dec 1, 2025 fee change). Review pass independently re-fetched both archives and confirmed fees ($1,046/$523/$261/$647), contract caps (26; 32+4 Q3), Ordinance 2118, 20% density cap, 28-day definition, $500K insurance, $5,000 penalty, 11.5% TOT, and the occupancy chart verbatim. SB 60/SB 346 verified live on leginfo.legislature.ca.gov. Re-verify against the live pages when the watch pipeline or a browser session can reach them.
- Whether platforms (Airbnb/Vrbo) directly collect and remit the 11.5% TOT for Palm Springs listings could not be confirmed from an official source; owner/operator is the responsible remitter of record.
- Exact current count of neighborhoods at or above the 20% density cap (reported as ~10 of 66) is from secondary sources; the official Vacation Rental Density webpage/map should be consulted for the live count.

## Sources

- Vacation Rentals — City of Palm Springs (program page; Ordinance 2075/2118, fees, contract caps, 20% density cap) (official, accessed 2026-07-16): https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals-1098
- Vacation Rental FAQ's (official PDF, 11.5.25) — definitions, occupancy chart, Junior/Homeshare/Estate Home, inspection, insurance, penalties (official, accessed 2026-07-16): https://www.palmspringsca.gov/home/showpublisheddocument/87996/638466182387670000
- Vacation Rental Certificate — City of Palm Springs (application requirements, insurance, TOT permit, fees) (official, accessed 2026-07-16): https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals/applying-for-a-vr-certificate/vacation-rental-certificate
- Transient Occupancy Tax (TOT) — City of Palm Springs Finance & Treasury (11.5% VR rate) (official, accessed 2026-07-16): https://www.palmspringsca.gov/government/departments/finance-treasury/transient-occupancy-tax-tot
- Vacation Rental TOT and TBID Information — City of Palm Springs (1% GPSTBID on stays under 28 days) (official, accessed 2026-07-16): https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals/vacation-rental-tot-information
- PSMC Chapter 5.25 Vacation Rentals (municipal code portal) (official, accessed 2026-07-16): https://ecode360.com/42991918
- PSMC Chapter 3.24 Transient Occupancy Tax — 3.24.020 Definitions (municipal code portal) (official, accessed 2026-07-16): https://library.qcode.us/lib/palm_springs_ca/pub/municipal_code/item/title_3-division_i-chapter_3_24-3_24_020
- Vacation Rental Neighborhood Percentage (Density) Information — City of Palm Springs (official, accessed 2026-07-16): https://www.palmspringsca.gov/government/departments/special-program-compliance/vacation-rentals/vacation-rental-density
- California SB 60 (2021, Chapter 307) — STR ordinance maximum fines (official CA Legislature) (official, accessed 2026-07-16): https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB60
- California SB 346 (2025, Chapter 751) — STR facilitator data sharing (official CA Legislature) (official, accessed 2026-07-16): https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB346
- With rental numbers falling, City Council keeps 36-contract cap for older vacation rental permits — The Palm Springs Post (news, accessed 2026-07-16): https://thepalmspringspost.com/with-rental-numbers-falling-city-council-keeps-36-contract-cap-for-older-vacation-rental-permits/
- City leaders move to update ordinance focused on co-owned housing (Pacaso) — The Palm Springs Post (news, accessed 2026-07-16): https://thepalmspringspost.com/city-considers-slight-rule-changes-for-ordinance-focused-on-co-owned-housing-properties-like-pacaso/

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Educational information, not legal advice. Published by STRWatch (Laniakea Technologies LLC).