Short-Term Rental Regulations in Palm Springs: An Overview
Successfully Navigating Palm Springs' Evolving STR Landscape
🌵 Palm Springs rewrote the short‑term‑rental playbook.
Tighter noise rules and a 12.5 % TOT keep the peace—without dimming demand.
Open Air Homes follows every regulation, every time, so you earn confidently and stay neighbor‑friendly.
📞 Ready to chat? Book a 15‑minute call with our CEO or fill out the form below, and we’ll reach out.
By The Numbers: 2025
How We Outperform the Market
Our listings draw almost three times the impressions—153% higher— than comparable homes during May ’24 → Apr ’25, according to data collected through Airbnb.
High-impact photography, A/B-tested headlines, and dynamic pricing tools keep us locked above the fold, reaching travelers before they even start filtering.
Airbnb shows our homes on page 1 of search results 55.7% of the time, weighted across 12 months from April 2024 – April 2025.
That means every other guest search in our price bands starts with an Open Air Homes listing—boosting inquiries and brand awareness for every owner in the portfolio.
Out of every 10,000 search impressions, we convert 18 bookings versus the market’s 11—a 60 % uplift on Airbnb.
This efficiency turns views into paid nights, raises annual revenue, and shields owners from slow seasons when every inquiry counts.
Guests stay 9.7 days with us; the market averages 4.8 days according to “similar listings” in Airbnb Insights. That’s 102% longer than the market average.
Longer stays cut turnover costs, boost review volume, and reduce neighborhood churn, creating a sustainable growth loop.
Our Greater PS portfolio of homes booked 41% of available nights versus the cohort’s 37%, as compiled by Airbnb. Amid an oversupplied desert market, we are trending above the market, yet still have room for improvement.
Dynamic pricing, pet-friendly policies, and a focus on longer stays draw more value from every calendar without cutting rates on prime weekends.
Key Regulatory Details to Know:
The 20% Neighborhood Cap
Palm Springs introduced a critical regulation—the 20% cap on STR properties in each neighborhood—to prevent oversaturation. This ensures neighborhoods retain their residential character and tranquility.
Why it Matters:
- Immediate eligibility if your neighborhood is below 20%.
- Waitlist requirement if above, with Month+ rentals as a viable alternative.
- Open Air Homes monitors these caps closely and advises you accordingly.
Check Your Neighborhood’s STR Status Here →
Onboarding and Compliance Inspections
Upon applying for your STR permit, Palm Springs requires a property compliance inspection. Open Air Homes collaborates closely with homeowners throughout the onboarding phase, ensuring your home meets all compliance requirements to smoothly pass inspection and secure your permit without delays.
Why it Matters:
- Simplifies the permit approval process.
- Ensures complete compliance, avoiding fines or delays.
- Positions your rental for long-term regulatory success.
Proactively Managing
Noise and Parking Issues
The two main concerns in Palm Springs neighborhoods regarding STRs are noise and street parking. Palm Springs strictly enforces rules prohibiting outdoor noise and excessive parking congestion.
At Open Air Homes, our approach includes:
- Clear communication of noise and parking rules to every guest.
- Rigorous guest vetting and booking processes.
- Transparent explanation of penalties and fines for violations.
Why it Matters:
- Protects your rental permit and community relations.
- Enhances guest quality and neighborhood harmony.
- Reduces the risk of losing your STR permit due to violations.
Our Track Record:
Protecting Your Investment
Palm Springs employs a strict three-strike policy, revoking STR permits after repeated violations. At Open Air Homes, we proudly maintain an excellent record, having had only a couple of total strikes across our entire portfolio. Many competing properties managed less diligently have lost their permits entirely.
We achieve this by:
- Marketing to families and respectful travelers, not large or rowdy groups.
- Avoiding high occupancy “party house” scenarios.
- Diligently enforcing all STR regulations, safeguarding your home’s long-term rental viability.
Why it Matters:
- Your investment stays protected.
- Ensures continued ability to earn rental income.
- Preserves neighborhood relationships and goodwill.
Alternative Solutions:
Month+ Rentals
If your property is above the STR cap or you prefer to avoid short-term regulations entirely, Month+ rentals offer a fully legal, high-occupancy alternative. Open Air Homes legally manages Month+ rentals, utilizing California Association of Realtors (CAR) forms to secure your property rights and ensure full compliance.
Why it Matters:
- Maintains income stream even without an STR permit.
- Ideal for neighborhoods currently on the STR waitlist.
- Provides flexibility and legal security.
Thinking of Buying a Palm Springs Rental Investment?
Our sister company, OpenAiRE Brokerage, specializes in guiding investors towards properties ideal for Palm Springs’ unique rental market. Whether short-term or Month+ rentals, our combined brokerage and management expertise helps you strategically choose, acquire, and monetize your investment property.
Why it Matters:
- Comprehensive investment advice tailored to Palm Springs market conditions.
- Ensures your investment aligns with regulatory and market realities.
- Provides peace of mind through streamlined brokerage-management integration.
Ready to Maximize Your Palm Springs Rental?
Over a Decade of Excellence
Let Open Air Homes tailor a personalized rental strategy—whether short-term, monthly, or a blend of both—to perfectly match your property and lifestyle goals. Enjoy year-round peace of mind, regulatory clarity, and optimized revenue potential.
💬 Palm Springs STR Regulations FAQ
1. What is the 20% neighborhood cap on STRs in Palm Springs?
Palm Springs limits STR permits to 20% of homes per neighborhood to reduce density and preserve residential character. If your neighborhood is over the cap, you’ll be placed on a waitlist—but you can still earn legally with Month+ rentals.
2. What happens if my home is above the STR cap?
You cannot obtain a short-term rental permit unless a spot opens. However, Open Air Homes can manage your property as a monthly rental, which requires no STR permit and remains fully legal year-round.
3. What’s involved in the STR compliance inspection?
The city requires a home inspection before issuing a permit. Open Air Homes helps prepare your property so it passes easily, covering everything from safety features to layout requirements—avoiding fines or delays.
4. How does Palm Springs enforce STR regulations?
The city operates a strict three-strike policy. Violations—like noise complaints or parking issues—can result in losing your STR permit. Open Air Homes mitigates this risk by vetting guests, setting clear expectations, and maintaining strong neighborhood relations.
5. What are the biggest risks to my STR permit?
The top issues are outdoor noise violations, party house behavior, and street parking problems. Open Air Homes proactively addresses these by targeting respectful guests, limiting occupancy, and communicating rules clearly to avoid complaints.
We also share our centralized texting number with neighbors, and we are in communication with many of them to handle any concerns or suggestions. For example, if the neighbors have an issue with the adjoining fence or would like the palm trees trimmed, we take their requests seriously. Since neighbors realize we are on top of communication and fostering a healthier community, oftentimes if there is a small issue they come to us first before contacting the city so we can resolve immediately.
6. Can I still rent out my home while waiting for a STR permit?
Yes, but only as a monthly (30+ days) rental. We’ll help you pivot to Month+ rentals using CAR lease forms that comply with California real estate laws—keeping your rental income flowing legally while you wait.
7. How much does TOT (Transient Occupancy Tax) impact my income?
Palm Springs charges a 12.5% TOT on short-term stays. Open Air Homes builds this into guest pricing so you don’t absorb the cost—keeping your earnings intact while staying compliant with city tax rules.
8. How does Open Air Homes help protect my permit long-term?
We’ve had only a couple of strikes across our entire Palm Springs portfolio thanks to a screening process, family-focused marketing, SMS texting with neighbors, and consistent rule enforcement. You’ll benefit from a compliance-first approach that is designed to safeguard your investment.