Palm Springs, CA Short-Term Rentals: Short-Term Rental Permits (2026)

25) makes registration the gateway to the entire program. Sec. " Certificates cannot go to business entities, and an owner, defined to include natural persons, certain trusts, and small partnerships or LLCs of natural persons, "shall only be issued, and can only maintain, one vacation rental registration certificate at any time" under Sec. 040(b), subject to a grandfather exception for owners holding certificates before January 10, 2017. A copy of the current certificate and the maximum guest count must be posted in the unit and included in every advertisement.

Beyond individual eligibility, the ordinance caps supply neighborhood by neighborhood: Sec. 030 defines the "VR Neighborhood Percentage Cap" and sets it at 20 percent of residential units in a city-recognized neighborhood, and Sec. 045 bars the city from issuing any new certificate, other than a junior certificate, in a neighborhood that has hit or would exceed that 20% cap. Once a neighborhood is capped, pending complete applications queue up and are issued on a "first in time, first in right" basis as the percentage drops back below the cap.

The certificate is annual, tied to a specific owner and property, expires automatically on a change of ownership, and Sec. 040(g) makes clear it is "a privilege, not a right," carrying no vested entitlement.