Palm Desert

The Future of Short-Term Rentals in Palm Desert


Short Term Rental - Palm Desert, CA Homes for Sale | Redfin

Palm Desert is a popular destination for tourists, snowbirds, and golfers who want to enjoy the sunny weather, scenic views, and world-class amenities. The city offers a variety of accommodation options, including hotels, resorts, and short-term rentals (STRs).

Short-term rentals (STRs) are privately owned residential properties that are rented for less than 27 consecutive days. These rentals can be anything from single-family homes, condos, and apartments, to mobile homes. STRs offer travelers more space, privacy, comfort, and flexibility than traditional lodging options. Furthermore, they provide a significant boost to the local economy by generating revenue, creating jobs, and supporting other businesses.

However, STRs also pose some challenges for the city, such as noise, parking, trash, and safety issues. Some residents and neighborhoods have expressed concerns about the impact of STRs on their quality of life, property values, and community character. The city has been regulating STRs since 2009, and has recently updated its ordinances to address these issues and balance the interests of all stakeholders.

The new STR ordinances, which took effect on January 1, 2023, include the following changes:

1. STRs are only allowed in certain zoning districts, such as residential, commercial, and mixed-use areas. STRs are prohibited in areas designated as low-density residential, hillside residential, and open space.


2.  STRs must obtain a permit from the city and pay a transient occupancy tax (TOT) of 11% on the rental income. The permit fee is $29 per year, and the TOT revenue is used to fund city services and programs.


3. STRs must comply with operational requirements, such as posting a good neighbor brochure, providing contact information of a local representative, limiting the number of guests and vehicles, and following noise and trash rules.


4. STRs are subject to inspections, audits, and enforcement actions by the city. The city has a 24-hour hotline and an online complaint form for residents and visitors to report any problems with STRs. The city can issue warnings, fines, suspensions, and revocations for violations of the STR ordinances.

The city hopes that these new regulations will help preserve the character and livability of Palm Desert, while allowing STRs to operate in a responsible and respectful manner. The city also encourages STR owners and operators to join the Palm Desert STR Association, a voluntary organization that promotes best practices, education, and communication among the STR industry.

The future of STRs in Palm Desert looks bright, as the demand for this type of accommodation is expected to grow in the post-pandemic era. According to a report by Zumper, a rental platform, Palm Desert ranked as the 10th most popular destination for short-term rentals in the US in 2022. The report also found that the average nightly rate for STRs in Palm Desert was $235, and the average occupancy rate was 75%.

STRs offer a unique and affordable way to experience Palm Desert, and the city is committed to ensuring that they coexist harmoniously with the community. By following the rules and being good neighbors, STR owners, operators, guests, residents, and businesses can all benefit from the thriving STR market in Palm Desert.


Homes in PALM DESERT area

Palm Desert offers homes in various architectural styles, custom builds, and even raw land to build your one-of-a-kind dream home. If you want to know more about what’s available to buy in Palm Desert, check out these luxury listings currently on the market with virtual showings.

Homes for sale around the Palm Desert Area

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