Is Airbnb legal in Palm Springs?

Airbnb Regulations in Palm Springs

Palm Springs has implemented one of the strictest regulatory frameworks for short-term rentals in California, particularly for Airbnb hosts. Here is an overview of the key regulations governing short-term rentals in the city:

Registration and Permitting

1. Mandatory Registration: All short-term rentals must obtain a Vacation Rental/Homeshare Registration Certificate and a Transient Occupancy Tax (TOT) permit to operate legally. The annual fee for the registration is $1,072, and the TOT permit requires separate registration.
2. Types of Rentals: The city recognizes two types - Homeshare (owner-occupied rentals for less than 28 days) and Vacation Rentals (non-owner-occupied rentals for less than 28 days).
3. Single Registration Limitation: Property owners can only hold one registration certificate at a time, prohibiting the rental of multiple properties under this ordinance.

Operational Requirements

1. Insurance and Safety Compliance: Hosts must provide proof of insurance with a minimum liability coverage of $500,000. All rental properties are subject to a safety inspection both at the initial application and upon renewal.
2. Guest Contracts: Property owners are required to have a written contract with guests that includes age requirements (minimum 25 years), guest names and vehicle details, and specific occupancy limits.

Occupancy and Behavior Regulations

1. Occupancy Limits: Rentals are capped at two adults per bedroom, plus an additional two occupants, with a maximum total of ten adults and four children.
2. Noise and Hours: Quiet hours are mandated from 10 PM to 8 AM, during which occupancy is restricted, and guests are expected to adhere to noise regulations.

Advertising and Tax Obligations

1. City ID Requirement: Hosts must include a four-digit City ID number in all advertising, signifying compliance with local regulations.
2. Transient Occupancy Tax: A TOT of 11.5% must be collected from guests and reported monthly to the city. Failure to comply can result in fines.

Penalties for Non-Compliance

Failure to register or adhere to the regulations can lead to severe penalties, including a $5,000 fine and permanent disqualification from operating vacation rentals in Palm Springs.

Conclusion

Investing in Airbnb properties in Palm Springs must be navigated carefully, considering these stringent regulations aimed at maintaining a balance between tourist interests and community well-being. Hosts are encouraged to familiarize themselves with the full scope of the regulations through the city’s toolkit to ensure compliance and avoid harsh penalties.