Short-Term Rentals

Palm Springs STR Licensing Guide

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STRs in Palm Springs

Palm Springs STR Licensing
Palm Springs STR Licensing
Palm Springs STR Licensing

About

Palm Springs offers one of the most stable and desirable STR markets in California, where design-driven homes meet strong tourism demand and limited supply. While the city’s ordinance adds structure and accountability, it also creates opportunity - licensed operators enjoy a competitive advantage and consistent income potential. By approaching the process with diligence and partnering with experienced STR professionals, investors can build revenue producing, compliant, and sustainable rental businesses in this legendary desert destination.

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Short-Term Rental Specialized Realtor
Short-Term Rental Specialized Realtor
Short-Term Rental Specialized Realtor

“Palm Springs remains one of the most iconic short-term rental destinations in California. When you combine great design with full compliance, you’re not just running a rental, you’re running a mini-brand guests return to again and again.”

Kailen Wilkerson

,

Realtor

Palm Springs STR Licensing

Palm Springs STR Licensing Guide

Palm Springs has long been a magnet for travelers seeking desert beauty, mid-century architecture, and year-round sunshine. For property investors, this translates into strong short-term rental (STR) demand and attractive revenue potential. But operating a vacation rental here isn't as simple as listing your property on Airbnb and waiting for bookings to roll in.

The city has implemented comprehensive regulations designed to balance tourism revenue with neighborhood quality of life. Ordinance 2075, adopted in November 2022, established strict limits on where and how STRs can operate. Understanding these rules isn't optional, it's essential for avoiding steep fines and protecting your investment.

This guide walks you through everything you need to know about Palm Springs STR licensing, from neighborhood caps to application requirements to ongoing compliance obligations. Whether you're considering purchasing an STR property or already own one, this resource will help you navigate the regulatory landscape with confidence.

Disclaimer: This information is provided for general guidance only - regulations and licensing details may change, so always verify current requirements directly with Palm Springs before making any decisions.

Understanding Palm Springs' Vacation Rental Ordinance

Ordinance 2075 fundamentally shapes how STRs operate in Palm Springs. The ordinance defines vacation rentals and homeshares as secondary residential uses, meaning they're permitted but closely regulated. Any rental of 28 consecutive days or fewer falls under these rules.

The ordinance establishes several core principles. First, it positions vacation rentals as ancillary uses of residential property rather than primary commercial operations. Second, it aims to minimize adverse effects on surrounding neighborhoods through operational requirements and enforcement mechanisms. Third, it restricts STRs to single-family dwelling units, explicitly prohibiting them in apartments and multi-family buildings.

The 20% Neighborhood Cap

Perhaps the most significant provision in Ordinance 2075 is the 20% neighborhood cap. No more than 20% of residential units in any organized neighborhood can operate as STRs. This cap is tracked and enforced at the neighborhood level, not citywide.

What does this mean practically? If you're considering purchasing a property for STR use, you must first verify that your target neighborhood hasn't reached its 20% limit. The city maintains an online map showing current density levels for each neighborhood. Properties in neighborhoods that have reached the cap cannot obtain new STR certificates, regardless of how ideal the property might otherwise be.

This cap makes location research absolutely critical. Some neighborhoods may have availability now but fill up quickly as more investors enter the market. Others may already be at capacity, making STR operation impossible without waiting for existing permits to lapse or be surrendered.

Rental Contract Limits

Beyond the neighborhood cap, Ordinance 2075 limits how frequently you can rent your property. New certificate holders can execute up to 26 rental contracts per year. Existing certificate holders who were operating before the ordinance's adoption have a slightly higher limit of 32 contracts annually through 2026.

These limits encourage longer stays and discourage high-turnover operations. From a business perspective, this means targeting guests seeking week-long stays rather than weekend trips. It also creates pressure to maximize nightly rates since you have fewer opportunities to generate revenue throughout the year.

Registration Certificate

Registration Certificate Requirements

Operating an STR in Palm Springs requires obtaining either a Vacation Rental Registration Certificate or a HomeShare Registration Certificate, depending on how you plan to use your property.

Types of Certificates

Vacation Rental Certificate: This is the standard permit for properties rented entirely to guests while the owner is absent. Most investors seeking pure rental income will apply for this certificate type.

HomeShare Certificate: This applies when the property owner remains on-site during guest stays, similar to a traditional bed-and-breakfast model. Requirements and restrictions differ slightly from full vacation rentals.

Junior Permit: For owners planning six or fewer stays per year, Palm Springs offers a Junior Vacation Rental Certificate at a reduced fee. This option works well for owners who primarily use the property themselves but want flexibility to rent occasionally.

Certificate Characteristics

All certificates share certain characteristics. They're annual, meaning you must renew each year and pay the associated fees. They're non-transferable, so if you sell your property, the new owner must apply for their own certificate. The city doesn't guarantee approval for the new owner, even if the property had an active certificate under previous ownership.

Before you can operate, you must also obtain a Transient Occupancy Tax (TOT) permit. This separate registration allows you to collect and remit the city's hotel tax from your guests. The current TOT rate is 11.5% plus a Tourism Business Improvement District (TBID) assessment.

Displaying Your Permit Number

Once approved, you must display your City-issued permit number on all listings and advertisements. The format is "City ID #XXXX." This requirement helps guests verify they're booking legitimate, compliant properties and enables the city to track unauthorized listings.

Joshua Guerra Short-Term Rental Realtor
Joshua Guerra Short-Term Rental Realtor
Joshua Guerra Short-Term Rental Realtor

“The 20% neighborhood cap might seem restrictive, but it actually protects value. Once you’re licensed, you’re operating in a limited, high-demand market where compliant properties become premium assets.”

Joshua Guerra

,

Realtor

Rules and Restrictions

Operational Rules and Restrictions

Obtaining a certificate is just the beginning. Palm Springs enforces detailed operational requirements that govern how you manage your property and interact with neighbors.

Occupancy Limits

Maximum occupancy is calculated as two adults per bedroom plus two additional guests. The city also imposes an absolute cap of 10 adults plus 4 children (age 12 or under), regardless of bedroom count.

For example, a three-bedroom property can host up to eight people total (six adults plus two additional guests). A five-bedroom property could theoretically host 12 people (10 adults plus 2), but the absolute cap prevents larger configurations from exceeding reasonable density.

These limits are strictly enforced. Exceeding occupancy limits can result in citations, fines, and potential certificate revocation.

Noise Restrictions

No outside amplified noise is allowed at any time. This means no outdoor speakers, no poolside sound systems, and no amplified music on patios or decks. Music and entertainment must remain fully contained within the property's interior.

This restriction aims to preserve neighborhood tranquility, particularly during evening hours. Even if your guests aren't being excessively loud, using outdoor speakers violates city rules and can generate complaints from neighbors.

Parking Requirements

Parking allowances are based on bedroom count, as follows:

  • 1-2 bedrooms: 2 vehicles

  • 3 bedrooms: 3 vehicles

  • 4 bedrooms: 4 vehicles

  • 5+ bedrooms: 5 vehicles

Vehicles may be parked in garages, driveways, or on the street, but they cannot block driveways, mailboxes, or fire hydrants. Exceeding these vehicle limits can result in citations, even if the vehicles are legally parked on the street.

24/7 Local Contact

You must designate a 24/7 local contact available to respond to complaints and emergencies. This person must be able to arrive at the property within a reasonable timeframe to address issues. The contact's phone number is provided to the city and neighboring properties.

This requirement ensures that problems can be resolved quickly rather than escalating throughout the night. Many STR owners hire local property management companies to fulfill this obligation, particularly if they live outside the Palm Springs area.

Fees and Taxes

Operating an STR in Palm Springs involves several fees and tax obligations.

Registration Fees

As of December 1, 2025, the annual registration fees are:

  • Full Vacation Rental Certificate: $1,046

  • Junior Vacation Rental Certificate (≤6 stays/year): $523

  • HomeShare Certificate: $261

These fees cover administrative costs associated with processing applications, maintaining records, and enforcing compliance.

Transient Occupancy Tax (TOT)

All STR operators must collect and remit TOT from guests. The current rate is 11.5% of the rental price, plus a TBID assessment. You must file TOT returns monthly, even during months with no rental activity.

Failure to collect or remit TOT can result in significant penalties, including back taxes, interest, and potential criminal charges in cases of willful evasion.

Additional Fees

Other potential fees include:

  • Land Use Permit (LUP) Fee for Estate Homes: $647 (required for certain larger properties)

  • Transfer Fee: $222 (if transferring a certificate, though note certificates are generally non-transferable)

  • Administrative Appeal Fee: $1,324 (if appealing a denial or citation)

Application Process

Applying for a Palm Springs STR certificate involves several steps and careful attention to detail.

Before You Apply

First, verify neighborhood eligibility. Use the city's online density map to confirm your property's neighborhood hasn't reached the 20% cap. If the cap has been reached, your application will be denied regardless of how otherwise qualified you are.

Second, ensure your property qualifies. Only single-family dwelling units in residential zones are eligible. Apartments, condominiums in multi-unit buildings, and properties in commercial zones cannot obtain STR certificates.

Third, confirm ownership status. Applications will not be accepted if the property is in escrow. You must have completed the purchase and recorded the deed before applying.

Gathering Documentation

You'll need several documents to complete your application:

  • Proof of property ownership (deed or title)

  • Site plan showing the property layout

  • Proof of liability insurance

  • Contact information for your 24/7 local representative

  • Parking plan demonstrating compliance with vehicle limits

  • Guest rules document outlining occupancy limits, quiet hours, and parking restrictions

Submitting Your Application

Palm Springs uses an online application system through vendor GovOS. Visit the Vacation Rental Certificate Online Application page to begin the process.

You'll also need to register for a TOT permit simultaneously through the city's finance department. Both permits are required before you can legally advertise or operate.

Processing Timeline

Expect 30 to 90 days for application processing. During this time, you cannot advertise or rent your property. Advertising before receiving written authorization can result in penalties, including potential permanent ineligibility to operate an STR in Palm Springs.

Once approved, you'll receive your certificate and permit number. Only then can you create listings, accept bookings, and begin operations.

Enforcement and Penalties

Palm Springs takes STR compliance seriously and actively enforces its regulations through the Department of Special Program Compliance.

Violation Types

Common violations include:

  • Operating without a valid certificate

  • Exceeding occupancy limits

  • Allowing outside amplified noise

  • Exceeding parking limits

  • Failing to provide 24/7 local contact information

  • Violating the rental contract limit (26 or 32 per year)

  • Failing to collect or remit TOT

Complaint Process

Neighbors can report violations through the city's 24/7 Vacation Rental Hotline at (760) 322-8383. Compliance officers respond to active complaints and can witness violations in real-time.

For non-urgent concerns, residents can file a Request for Review through the city's online form. These complaints are addressed during business hours in the order received.

Penalties

Penalties for violations vary by severity and frequency:

  • Administrative citations carry fines up to $5,000 per violation

  • Repeat violations can lead to certificate suspension or revocation

  • Operating without a certificate can result in permanent ineligibility to obtain future permits

  • TOT violations may involve criminal prosecution in addition to civil penalties

The city maintains detailed records of citations and violations, which are considered during renewal applications and can impact future eligibility.

Staying Compliant

Maintaining compliance requires ongoing attention and proactive management.

Best Practices for Compliance

Set clear guest expectations. Provide guests with a detailed welcome packet outlining occupancy limits, parking rules, noise restrictions, and quiet hours. Make these rules visible within the property as well.

Use technology to monitor compliance. Consider installing outdoor noise monitoring devices that alert you to potential violations without recording conversations. Some property management systems can track occupancy through smart locks and other connected devices.

Maintain detailed records. Keep thorough documentation of all rental contracts, guest communications, TOT collections, and any incidents or complaints. These records can protect you if disputes arise.

Stay engaged with city updates. Subscribe to the city's email notifications for STR updates by visiting the city's vacation rental page and completing the subscription form. Regulations evolve, and staying informed helps you adapt to changes before they create problems.

Build positive neighbor relationships. Introduce yourself to adjacent property owners, provide them with your 24/7 contact information, and respond promptly to any concerns they raise. Good neighbor relations can prevent formal complaints and demonstrate your commitment to responsible operation.

Annual Renewal

Certificates must be renewed annually before expiration. The renewal process includes:

  • Paying the annual registration fee

  • Confirming your property still meets all operational requirements

  • Updating any changed information (contact details, property management, etc.)

  • Demonstrating continued TOT compliance

Missing renewal deadlines can result in certificate lapse, forcing you to reapply as a new applicant and potentially compete for limited slots under the 20% neighborhood cap.

STR Real Estate Market

Working With STR Specialists

Kailen and Josh are specialized short-term rental real estate agents who understand the unique considerations of STR investment in Palm Springs. They can help you:

  • Identify properties

  • Evaluate properties for STR potential

  • Some nuances of market dynamics

  • Connect you with trusted property managers and other professionals

Whether you're buying your first STR property or adding to an existing portfolio, having agents who specialize in this niche can help you avoid costly mistakes and maximize your investment potential.

Ready to explore Palm Springs STR opportunities? Contact Kailen and Josh to discuss your goals and find the perfect property for your vacation rental business.

Build Your STR Success on a Solid Foundation

Palm Springs offers compelling opportunities for STR investors who approach the market with diligence and respect for regulations. The 20% neighborhood cap and rental contract limits create scarcity that can work in your favor, once you obtain a certificate, you're operating in a market with controlled competition.

Success requires more than finding an attractive property and listing it online. You must verify neighborhood eligibility, navigate the application process correctly, and maintain ongoing compliance with operational requirements. The stakes are significant: violations can result in thousands of dollars in fines and permanent loss of STR privileges.

But with proper preparation and expert guidance, Palm Springs STR ownership can deliver strong returns while contributing positively to the local tourism economy. Understanding the regulations isn't just about avoiding penalties, it's about building a sustainable, professional operation that generates income for years to come.

Take the first step by researching neighborhood density levels, connecting with specialized real estate professionals, and developing a clear plan for compliance from day one. Your future guests and your bottom line… will thank you.

Joshua Guerra Short-Term Rental Specialized Realtor
Joshua Guerra Short-Term Rental Specialized Realtor
Joshua Guerra Short-Term Rental Specialized Realtor

“Success in Palm Springs comes from precision - understanding the rules, optimizing your guest experience, and playing the long game. The investors who treat compliance as strategy, not paperwork, win here.”

Joshua Guerra

,

Realtor

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@ 2025 ShortTerm.Rentals - Joshua Guerra & Kailen Wilkerson

©2025 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

Short-Term Rental Specialized Realtors®

Berkshire Hathaway HomeServices California Properties

3790 Via De La Valle #201 Del Mar, CA 92014

Joshua Guerra: CA DRE Lic#02238459

Kailen Wilkerson: CA DRE Lic#02238329

San Diego (CA)

@ 2025 ShortTerm.Rentals - Joshua Guerra & Kailen Wilkerson

©2025 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.

Short-Term Rental Specialized Realtors®

Berkshire Hathaway HomeServices California Properties

3790 Via De La Valle #201 Del Mar, CA 92014

Joshua Guerra: CA DRE Lic#02238459

Kailen Wilkerson: CA DRE Lic#02238329

San Diego (CA)

@ 2025 ShortTerm.Rentals - Joshua Guerra & Kailen Wilkerson

©2025 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information.