Short-Term Rental Regulations in Palm Springs: An Overview
Successfully Navigating Palm Springs’ Evolving STR Landscape
Since the early boom from 2012–2020, Palm Springs emerged as a global destination for short-term rentals. Initially, the industry flourished with limited regulation, which led to widespread issues around noise complaints and neighborhood disruptions.
Responding proactively, the Palm Springs City Council has attempted to implement balanced and fair regulations aimed at protecting community interests while supporting tourism—a critical source of revenue for the city through its 12.5% Transient Occupancy Tax.
Today, Palm Springs strives to maintain equilibrium between homeowners, visitors, and long-term residents, creating an environment where responsible hosting and neighborly respect go hand in hand.
Open Air Homes has and always will play by the rules in the cities we operate.
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.
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.
🌴 Ask Us Anything
Ready to Maximize Your Palm Springs Rental?
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.
Contact us today to start the conversation and unlock the full potential of your Palm Springs property.
- Tailored solutions aligned to your goals.
- Expert guidance navigating Palm Springs’ STR regulations.
- Dedicated support for ongoing compliance and revenue optimization.
Fill out the form, and let’s get started.