Short-term rentals in Palm Springs, explained properly.

Only single-family dwellings (including "estate homes" with 5+ bedrooms) may register as vacation rentals or homeshares. Apartments and other multifamily housing units cannot be used as short-term rentals under any certificate type.

The city will not accept a vacation rental certificate application for a property that is currently in escrow (i.e., mid-sale), which affects timing for buyers hoping to operate a short-term rental immediately after purchase.

Any rental of 28 consecutive days or less (the code still says "days"; a 2025 appeals-board proposal to change this to "nights" had not been adopted as of Ordinance 2133 in July 2026) triggers vacation rental regulation. An ongoing month-to-month tenancy is exempt from these rules.

The Vacation Rental Compliance Department typically takes 30 to 90 days to process a certificate application. Owners cannot begin advertising or renting until they receive written authorization; doing so beforehand triggers violations and can result in permanent ineligibility.

A building, fire, and safety inspection is required before a certificate is issued and again at each annual renewal. Owners must maintain commercial liability insurance covering the rental use.

Palm Springs's certificate system applies only within city limits. A property in unincorporated Riverside County (even with a Palm Springs mailing address) needs a separate short-term rental permit from Riverside County's Transportation and Land Management Agency (TLMA).

Overnight parking is limited to one guest vehicle per bedroom. Two additional guest vehicles are allowed during the day.

Sound equipment must be used only within fully enclosed structures, and outdoor amplified sound cannot be audible at the vacation rental's property line.

Every booking requires a written contract naming a responsible renter who is at least 25 years old. The owner must also get the responsible party and all adult guests to sign a statement of the city's rules and regulations, and must post a copy of the registration certificate and conditions at the property. The owner remains responsible for guest conduct and code compliance during the stay.

A first violation draws a $500 administrative citation, escalating to $1,000 for each subsequent violation. Operating an unregistered vacation rental carries a $5,000 fine plus permanent ineligibility for a certificate, and continuing to operate afterward can bring a $10,000 fine. A third violation within 12 months triggers a 2-year certificate suspension; unpaid TOT (after notice) triggers a 12-month suspension. Every online listing must show "The City of Palm Springs Account #" followed by the property's City Account Number; advertising without it brings a $2,500 fine and a 6-month suspension on a first offense, and a $5,000 fine and revocation on a second.

Palm Springs Municipal Code Chapter 3.24 sets an 11.5% TOT on the rent charged for most transient stays, including vacation rentals; a higher 13.5% rate applies specifically to a "group meeting hotel" classification not typically applicable to short-term rentals.

A 1% TBID assessment on gross rental revenue for stays under 28 days has applied since July 1, 2021, paid monthly alongside the TOT return.

A TOT return must be filed every month regardless of whether the property was actually rented during that period; all due dates and delinquency penalties are enforced.

California has no statewide sales tax or lodging tax on short-term stays; the Transient Occupancy Tax is authorized under Revenue & Taxation Code § 7280 and set entirely by each city or county, with rates commonly ranging from about 8% to 15% statewide.