Short-Term Rentals in Palm Springs, CA

Palm Springs maintains 154 local ordinances across all categories, and 10 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Palm Springs falls on the strict-to-permissive spectrum compared to other cities.

Taxes & Fees

Registering a Palm Springs vacation rental costs a city council-set fee capped at the city's actual administration cost under Sec. 5.25.060(b). Owners must also file a monthly transient occupancy tax return every month, rented or not, under Sec. 5.25.070(q), and late fees or charges under the chapter draw an added penalty plus interest.

Key details: Registration fee basis: Cost-recovery only, set by council resolution. TOT return: Monthly, filed even if unrented that month. TOT reference: Municipal Code Chapter 3.24, Sec. 3.24.080. Late payment penalty: Set by council resolution, plus interest. TOT non-payment consequence: 12-month certificate suspension.

Failure to pay any fee or charge required by Chapter 5.25 within the required time draws a penalty in an amount set by city council resolution, plus interest from the due date until payment, under Sec. 5.25.090(g). Separately, failing to remit transient occupancy tax after written notice to do so results in a 12-month suspension of the vacation rental registration certificate under Sec. 5.25.090(b), independent of the general three-strikes suspension that applies to other chapter violations.

Short-Term Rental Permits

Renting a Palm Springs home for 28 days or less without a city registration certificate is prohibited outright. Municipal Code Sec. 5.25.040(a) requires the certificate before any vacation rental or homeshare use, owners may hold only one at a time, and Sec. 5.25.045 blocks new certificates once a neighborhood hits its 20% Vacation Rental Neighborhood Percentage Cap.

Key details: Registration: Certificate mandatory before any vacation rental use. Owner limit: One registration certificate per owner. Neighborhood cap: 20% of units per neighborhood (VR Neighborhood Percentage Cap). New certificates: Blocked once neighborhood cap is met or exceeded. First violation fine: $500 administrative citation.

Operating a vacation rental or homeshare without a registration certificate is a misdemeanor for each day of unpermitted use and draws a $500 administrative citation for a first violation and $1,000 for each subsequent one under Sec. 5.25.090(a). A person who rents without ever obtaining a certificate faces a $5,000 administrative fine plus permanent ineligibility to operate a vacation rental in the city, rising to $10,000 for continued operation, under Sec. 5.25.090(c). A third violation of any provision within twelve months triggers a mandatory two-year suspension of the certificate under Sec. 5.25.090(b).

This is not one of those rules that cities tend to ignore. Palm Springs actively enforces its short-term rental permits requirements.

Insurance Requirements

Palm Springs vacation rental owners must carry commercial insurance covering the short-term use of their property. Municipal Code Sec. 5.25.070(u) requires the owner to "procure, maintain, and pay premiums" for a policy meeting minimum limits the city manager sets, and proof of that coverage is a required part of the registration application under Sec. 5.25.060(a)(9).

Key details: Insurance mandate: Commercial policy covering short-term rental use. Minimum limits: Set administratively by the city manager. Proof required at: Registration application, Sec. 5.25.060(a)(9). Also required: Executed indemnification/hold-harmless agreement. Coverage scope: Each registered vacation rental separately.

Failing to procure or maintain the required commercial insurance is a violation of the chapter's operational requirements under Sec. 5.25.070(u) and exposes the owner to the general Chapter 5.25 penalty structure: an administrative citation of $500 for a first violation and $1,000 for each subsequent violation under Sec. 5.25.090(a), and a third violation of any provision within twelve months triggers a mandatory two-year suspension of the registration certificate under Sec. 5.25.090(b).

Palm Springs authorizes homesharing, renting a room while the owner remains on the property, under Section 5.25.078(a) if the owner holds a homesharing registration certificate, remits transient occupancy tax, actively prevents nuisance activity, and complies with all health, safety, building and fire laws.

Key details: Registration: separate homesharing certificate required. Tax duty: owner must remit transient occupancy tax. Nuisance duty: owner must prevent nuisance activity. Compliance duty: all health, safety, building, fire laws. Loses status if: owner off-site and unresponsive (Sec. 5.25.078(b)).

Operating a homeshare without a valid registration certificate, or without meeting the six conditions in Section 5.25.078(a), triggers the same penalties as any unregistered vacation rental under Section 5.25.090: a misdemeanor for each day of violation, a $500 citation for a first offense and $1,000 after, and a mandatory two-year suspension on a third violation within 12 months.

Host Presence Rule

A Palm Springs homeshare owner must either live on-site or be able to respond to complaints within 30 minutes under Section 5.25.078(b). If neither condition is met, the unit is legally deemed a full vacation rental and must comply with all of Chapter 5.25, including the annual contract caps.

Key details: On-site requirement: owner must live on-site to keep status. Response window: 30 minutes to complaints. If missed: unit reclassified as full vacation rental. Reclassified units need: standard VR certificate, not homeshare. No-certificate fine: $5,000, then $10,000.

An owner who claims homesharing status but doesn't live on-site or can't meet the 30-minute response window is operating a vacation rental without the correct certificate, which under Section 5.25.090(c) carries an administrative fine of $5,000, escalating to $10,000 for continued operation, plus permanent ineligibility to operate a vacation rental in the city.

Repeat Violator Strikes

A third Chapter 5.25 violation within any 12-month period forces the Palm Springs city manager to suspend a vacation rental registration certificate for two years under Section 5.25.090(b). Unpaid transient occupancy tax after written notice draws its own separate 12-month suspension.

Key details: 3rd violation in 12 months: 2-year certificate suspension. Unpaid TOT after notice: 12-month suspension. No certificate at all: $5,000 fine, then $10,000. Advertising/contract violations: $2,500 fine + 6-month suspension (1st). Appeal path: Chapter 2.50 hearing process.

Three strikes in 12 months is a hard two-year suspension with no city manager discretion under Section 5.25.090(b); unpaid transient occupancy tax after notice draws a separate 12-month suspension. Each individual violation still carries its own misdemeanor exposure and a $500-to-$1,000 escalating administrative citation under Section 5.25.090(a), and owners can appeal any suspension through the Chapter 2.50 hearing process.

Compared to other cities, Palm Springs takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

Short-Term Rental Parking Rules

Palm Springs caps vacation rental parking at one automobile per bedroom under Section 5.25.070(c) and bars advertising or renting units together as a cluster or compound. Every rental contract must also list each guest's vehicle and license plate under Section 5.25.070(h)(6).

Key details: Parking cap: one automobile per bedroom. Bedroom count source: assessor/building records or inspection. Cluster/compound rentals: prohibited. Vehicle disclosure: guest plate list required in contract. Citation fines: $500 first, $1,000 each later one.

Allowing more vehicles than the one-per-bedroom limit, or renting units as a cluster or compound, violates Chapter 5.25: a misdemeanor for each day it continues, with an administrative citation of $500 for a first offense and $1,000 for each later one under Section 5.25.090(a). A third violation within 12 months brings a mandatory two-year suspension of the registration certificate under Section 5.25.090(b).

Night Caps

Palm Springs Municipal Code Section 5.25.070(b) limits how many rental contracts a vacation rental may sign in a calendar year: 26 for permits issued after Ordinance 2075 took effect, 32 for existing permittees (plus four bonus third-quarter contracts), and just six for junior vacation rental certificates. Any paid or unpaid occupancy by non-owner guests counts as a contract.

Key details: New permittees: 26 contracts per year. Existing permittees: 32 contracts (+4 in Q3). Junior certificate holders: 6 contracts per year. Owner-designated free guests: up to 5 exempt from cap. First administrative citation: $500.

Exceeding the cap or otherwise violating Chapter 5.25 is a misdemeanor for each day of violation and draws an administrative citation of $500 for a first offense and $1,000 for each subsequent one under Section 5.25.090(a). A third violation within any 12-month period brings a mandatory two-year suspension of the vacation rental registration certificate under Section 5.25.090(b), appealable through the Chapter 2.50 hearing process.

Noise Rules

Palm Springs requires vacation rental sound, radios, speakers and amplified music, to stay inside a fully enclosed unit and be inaudible at the property line under Section 5.25.070(g). Owners or their local contact must respond to a hotline noise complaint by phone within 15 minutes and in person within 30 minutes.

Key details: Sound devices: confined to enclosed unit only. Audibility limit: not audible at property line. Phone response: within 15 minutes of hotline complaint. In-person response: within 30 minutes of repeat complaint. Citation fines: $500 first, $1,000 each later one.

Failing to control noise or respond to a hotline complaint in time is a Chapter 5.25 violation: a misdemeanor for each day it continues and an administrative citation of $500 for a first offense, $1,000 for each later one, under Section 5.25.090(a). Three violations within 12 months trigger a mandatory two-year certificate suspension under Section 5.25.090(b), and ignoring a police officer's order results in outright revocation under Section 5.25.090(e).

Occupancy Limits

Palm Springs caps vacation rental overnight occupancy at two persons per bedroom and eight total, plus up to two children age 12 or under, under Section 5.25.070(c). Owners may also host four extra daytime guests, and estate homes can add two more bedrooms for up to 12 total guests under Section 5.25.070(d).

Key details: Overnight cap: 2 persons/bedroom, 8 total. Minor add-on: up to 2 kids age 12 and under. Daytime cap: 4 extra guests allowed. Estate home exemption: up to 12 guests, 2 extra bedrooms. Citation fines: $500 first, $1,000 each later one.

Exceeding the posted occupancy limit is expressly a Chapter 5.25 violation under Section 5.25.070(o)(6), punishable as a misdemeanor for each day it continues plus an administrative citation of $500 for a first offense and $1,000 for each later one under Section 5.25.090(a). A third violation within 12 months triggers a mandatory two-year suspension of the registration certificate under Section 5.25.090(b).

The Bottom Line

Palm Springs is tougher than many cities when it comes to short-term rentals. Out of the 10 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Palm Springs, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Palm Springs's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.