Palm Springs treats short-term renting as a regulated privilege rather than a default residential use. This means that if you want to operate here, your license depends on meeting the city’s standards on neighborhood density, annual booking limits, Good Neighbor enforcement, and monthly tax compliance.
It’s also important to verify location from the start. Many homes marketed as “Palm Springs” actually sit outside city limits in unincorporated Riverside County, where a different rulebook applies. Inside city limits, operators falling out of compliance face fines, suspensions, and advertising bans, and the city publicly lists suspended properties, citation numbers, and hotline reports via its Vacation Rentals program hub and the associated Vacation Rental Department Reports pages.
For authoritative guidance, start with the city’s Vacation Rentals program hub maintained by the Special Program Compliance team, which centralizes the program framework, forms, and contacts on the City of Palm Springs website.
In Palm Springs, short-term rentals are legal only if the property holds a valid city certificate, complies with neighborhood caps and annual booking limits, and proactively enforces noise and Good Neighbor rules.
This article will walk you through the short-term rental rules of Palm Springs, including permits, tax rules, noise requirements, and a step-by-step compliance checklist to help you stay compliant.
For the latest city guidance and forms, use the Vacation Rentals program hub alongside the Municipal Code.
Before you model revenue or prepare an application, it’s important to confirm the jurisdiction. Palm Springs city rules don’t apply in unincorporated Riverside County, and vice versa, even within the Coachella Valley.
Inside the City of Palm Springs, you’ll need a city STR certificate, must operate under the neighborhood density cap, comply with booking limits, and meet the Good Neighbor and noise enforcement standards in Chapter 5.25.
But in unincorporated Riverside County, the county program governs STRs with different permit processes and standards. Practically, this means portfolio managers cannot copy-paste policies across the valley and assume they’ll align.
First, verify jurisdiction using the legal street address and parcel number, and confirm boundaries via the city’s Vacation Rentals program hub. Don’t rely on listing platform “location” labels. If you’re planning an acquisition, add jurisdiction checks and eligibility confirmation to your closing checklist before you underwrite STR revenue.
Palm Springs authorizes two STR modes in eligible dwellings: vacation rentals (unhosted stays of 28 or fewer consecutive days) and homesharing (the owner lives on-site during the stay). STRs are an ancillary, secondary use of residential property. The code expressly prohibits STR use in apartments for stays of 28 days or less and bars tenant evictions designed to convert apartments to STRs.
Ownership and transfer rules also matter. Certificates are tied to owners, not properties, and generally expire upon transfer. The code limits how many registrations a single person can hold and restricts issuance to natural persons and qualifying trusts or LLCs comprised solely of up to four natural persons. This reinforces accountability and prevents large-scale entity accumulation of permits under Chapter 5.25.
Palm Springs enforces a neighborhood-level density cap: when STR certificates equal 20% of the total dwelling units in a defined neighborhood, the city stops issuing new standard vacation rental certificates in that area. Applicants can join a waitlist, with certificates issued on a first-in, first-out basis as neighborhoods fall below the cap. Existing certificates are not revoked solely because a neighborhood later exceeds the threshold. Check current saturation on the city’s Vacation Rental Density resources.
Due diligence note: confirm the density cap status and waitlist conditions before acquisition or onboarding.
Booking caps are central to how Palm Springs manages STR activity. The city refers to each booking as a “contract” in Chapter 5.25, and the rules below reflect late-2025 changes.
All permittees, both new and existing, are capped at 26 contracts per calendar year under Palm Springs Municipal Code § 5.25.090(A). The code (§ 5.25.020) defines "contract" broadly to include any qualifying occupancy, paid or unpaid, when the owner is absent and a registration certificate is required.
One booking equals one contract regardless of length, so a two-night stay and a 10-night stay both count as one contract. The definition applies whether the occupancy is compensated or not, which means “friends and family” stays typically count unless the city adopts a temporary emergency exception, such as the wildfire evacuee accommodation carve-out introduced in early 2025.
The city offers a junior vacation rental permit designed as a lower-impact option and a practical alternative when a neighborhood is capped out. Junior permits allow up to six contracts per year, are priced at approximately 50% of the standard fee, and are exempt from the neighborhood density cap calculation.
Palm Springs enforces clear limits that shape booking workflows as well as on-property management.
Overnight occupancy is limited to two persons per bedroom or eight persons total, whichever is lower, with allowances for up to two additional children up to the age of 12. Operators may accommodate up to four additional daytime occupants.
Parking is limited to two automobiles per unit, and the city prohibits advertising or renting multi-home “clusters” or “compounds,” reinforcing the stance against event-style usage.
Monthly tax compliance is a requirement in Palm Springs, even if your revenue is zero.
Transient Occupancy Tax (TOT) is 11.5% on rent and applicable fees for short stays. Operators must collect, remit, and file a return every month, regardless of activity, using the city’s Transient Occupancy Tax (TOT) portal.
The Palm Springs Tourism Business Improvement District (TBID) adds a 1% assessment on STR stays under 28 days, paid alongside TOT as part of the monthly return via the city’s TBID page.
Non-payment or late payment is a primary enforcement trigger in Palm Springs. Failing to remit or file can lead to steep fines and even suspension under Chapter 5.25’s penalty schedule.
Palm Springs has a general noise code measured in decibels, but its STR program imposes a stricter standard designed for residential peace.
Under Chapter 5.25, any sound-producing device must be operated inside a fully enclosed rental and must not be audible at the property line. The city treats “no amplified outdoor music” as a practical baseline. This standard is enforceable at all hours and is stricter than decibel-only frameworks used elsewhere. Operators must also:
Enforcement is real-time. Police and code enforcement regularly use sound meters and other tools.
First administrative citations are typically in the mid‑hundreds of dollars, with subsequent violations rising into the low thousands, and three violations within any 12‑month period can trigger a multi‑year suspension of the STR certificate. Operating without a certificate carries significantly higher fines and can lead to permanent ineligibility. Advertising without a certificate number, operating without the required guest contract or pre‑occupancy contract summary, or failing to remit TOT can result in substantial fines and suspension or revocation of the certificate. For precise amounts and terms, look into the rental provisions in Chapter 5.25 and the city’s current administrative penalty schedule for precise amounts and terms.
For operators, the takeaway is clear: be proactive with noise prevention. Communicate rules clearly before every arrival, monitor for disturbances without invading guest privacy, and respond within minutes when issues arise.
Palm Springs requires visible Good Neighbor information inside the home, a designated 24/7 local contact, and cooperation with city inspection or enforcement requests. The ordinance also requires operators to keep the city registration certificate and maximum guest count posted inside the home and to maintain a written rental agreement with guests, along with whatever booking information or summaries the city may require as part of its vacation rental program.
If you operate outside the City of Palm Springs, confirm inspection and safety requirements with the local governing agency. County-level programs often have their own inspection regimes, safety standards, and minimum-stay rules that differ from city ordinances, which can affect your pricing assumptions, staffing model, and turnover scheduling.
Historically, some managers assumed that the burden of compliance fell entirely on owners, but Palm Springs’ code closes that gap. Operators and their agents have explicit responsibilities around advertising and documentation, and every advertisement must include the city registration certificate number. The city can issue administrative penalties for advertising without a certificate, operating without required contracts or filings, and failures to remit taxes. Penalties can include substantial fines, multi‑month suspensions, and even revocation of the STR certificate under Chapter 5.25 and the city’s current administrative citation guidance.
For property management companies, the practical upshot is twofold. First, implement an internal registration check that verifies every listing you advertise has a valid certificate. Second, maintain a paper trail for guest contracts, contract summaries, tax filings, and response logs.
Many single-family neighborhoods are eligible for STR activity within the city’s framework, but some residential zones and subdivisions carry additional constraints. Always cross-check base zoning, the vacation rental density map, and certificate eligibility before you buy or onboard. The city’s density resources and vacation rental information hub provide links to neighborhood boundaries and waitlist policies so you can verify eligibility early in your process via the Vacation Rentals program hub.
California periodically updates statewide business registration and reporting rules that can intersect with local STR programs. While Palm Springs remains the primary regulator inside city limits, portfolio operators should monitor state-level developments that may add registration or reporting steps on top of the city’s requirements. Plan to update your compliance calendar when Sacramento acts, and always confirm that your local obligations under Chapter 5.25 remain your baseline in Palm Springs.
Palm Springs’ short-term rental laws reward professional, proactive operators. The city’s neighborhood cap has reshaped placement strategy, annual contract limits make planning and yield management central to underwriting, and the “not audible at the property line” noise standard has turned sound mitigation into a core operational competency.
The good news is that managers who embrace the program’s intent — respect for neighbors, predictable tax compliance, and verifiable documentation — see fewer citations across the board, as the city’s own reporting shows via the Vacation Rentals program hub. If you’re scaling in Palm Springs, build your plan around Chapter 5.25, verify eligibility before you invest, and hard-wire Good Neighbor compliance into your guest journey and after-hours coverage. That is how you protect your certificate, your revenue, and your reputation in one of the country’s most closely watched STR markets.
Disclaimer: This article is provided for general informational purposes and does not constitute legal, tax, or compliance advice. Regulations change, and local enforcement practices evolve. Always consult the City of Palm Springs’ official resources and the municipal code for current requirements.
The city enforces a 20% cap on vacation rental certificates by neighborhood. When a neighborhood reaches 20%, the city stops issuing new standard STR certificates and maintains a waitlist until the ratio falls below the cap. Check current status via the city's density resources.
New and existing permittees are limited to 26 contracts per calendar year under Chapter 5.25 § 5.25.090(A). One booking equals one contract regardless of length, and the definition includes qualifying "friends and family" stays.
Rather than fixed “quiet hours,” the STR program uses a 24/7 standard: any sound-producing devices must be operated inside a fully enclosed rental and must not be audible at the property line.
Yes. Operators and agents face penalties for advertising without a valid certificate number, operating without required documentation, or failing to remit TOT. Penalties include fines and suspensions under Chapter 5.25 and the city's administrative citation program.
A junior vacation rental permit allows up to six contracts per year at roughly 50% of standard fees and is not counted toward neighborhood caps. It’s ideal for hosts who rent occasionally or for operators in capped neighborhoods seeking a lower-impact path to market, as provided in Chapter 5.25.
Palm Springs issues administrative citations for STR noise violations. Multiple violations within 12 months can trigger certificate suspension. Police and code enforcement use real-time measurements and complaints under Chapter 5.25 and current enforcement guidance.
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