HomeMy WebLinkAboutItem 8 - AdHoc Sub-Committee RecommendationsADMINISTRATIVE APPEALS BOARD STAFF REPORT
DATE: October 23, 2024
SUBJECT: VACATION RENTAL ORDINANCE UPDATES RECOMMENDED BY THE
ADMINISTRATIVE APPEALS ADHOC SUBCOMMITTEE.
FROM: AdHoc Subcommittee
BACKGROUND:
Recent cases where out of town owners of a vacation rental property had assigned
responsibility for licensing and management of their short-term vacation rental to a
property management company raised some issues, and this sub-committee was asked to
explore possible ordinance changes for board approval and subsequent presentation to
Council. This discussion also prompted a look at the entire administration process, and
we’d like to visit that first.
RECOMMENDATION:
1.Review and discuss the vacation rental ordinance updates presented by the
Administrative Appeals Board Ad Hoc Subcommittee; and,
2.Recommend that the City Council consider the approval of the vacation rental
ordinance updates recommended by the Administrative Appeals Board Ad Hoc
Subcommittee.
BOARD ANALYSIS:
ADMINISTRATIVE PROCESS
Over the previous two-year period, .05% of cases heard were overturned (2 of 35 cases).
While we’re not suggesting the cases upheld were not valid, it does prompt questions
about how well the community understands the ordinances and how they are
administered, especially considering the fee one pays to appeal a case. As a result, the
following process enhancements are put up for discussion for possible recommendation
to Council in order to ensure prospective appellants are more aware.
•Ensure prospective appellants are more aware.
o Ask escrow & title companies to add a document to the buyers closing
package titled “WHAT TO DO IF YOU ARE PLANNING ON RENTING YOUR
PROPERTY” the document will list the two types of rentals; 1- long term 28
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Administrative Appeals Board Staff Report
September 25, 2024 -- Page 2
nights or more with no certificate required, 2- short term less than 28 nights
requires a short term rental certificate – for more information and
requirements on applying for a short term certificate go to the city’s website
at: https://www.palmspringsca.gov/government/departments/special-
program-compliance/vacation-rentals/applying-for-a-vr-certificate . Also,
the document will recommend that the buyer check with their local HOA to
see what type of rentals are allowed: (Long or Short)
o The city of Palm Springs will do an outreach program at the local Realtor’s
MLS meetings – titled “Short Term Rental Requirements” how to be a better
agent to your investors who are thinking of purchasing a property as a rental.
There will be mention of the two types of rentals and their requirements; long
term 28 nights or more no rental certificate required or short term less than
28 nights requiring a short term vacation rental certificate for more click on
the following link
https://www.palmspringsca.gov/government/departments/special-
program-compliance/vacation-rentals/applying-for-a-vr-certificate
o Every quarter the city conducts a public announcement regarding “IS YOUR
SHORT-TERM RENTAL PROPERTY LEGAL”. Suggestions for handling
announcements:
Newspaper ads that explain how to register your property with the city
and the requirements for STRs, i.e., paying TOT taxes, submitting a
contract summary prior to any guest checking into the property.
Invite the reader to visit the city’s website
TV Ad
Seminars held at PS library or City Hall
PROPERTY MANAGEMENT COMPANY ENHANCEMENTS
In addition to property owners, we recommend establishing rules, standards and
guidelines for property management companies (the “Company”):
1.Have property management company that manage units in Palm Springs register
with the City and agree to follow the City’s Short Term Vacation Rental Ordinance
(the “ordinance”). This would exclude internet companies who are only involved in
advertising and booking clients based upon the direction of the Owner/Company.
2.When an Owner registers or renews the Unit’s license, any Company involved in the
rental must be identified and the type of management offered. The following terms
will define how rentals are being managed:
o Owner Management – Owner takes full responsibility for registering the Unit
with the City and for the managing and renting of the property.
o Agent Management – Owner assigns the responsibility for managing all or
part of the Unit to a Company.
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For those Units designated as Agent Management category, the following processes would
apply:
1. Require any Company before placing advertisements for a short-term rental ensure
they obtain a copy of the short-term rental certificate from the property owner.
2. If a Company advertises a Unit that is not licensed, or in full compliance, the
penalty is split between the Company and the Owner. The first violation would be a
$2,500 fine to the owner (in addition to lifetime suspension from operating a short-
term rental). The Company would also be fined $2,500. The second violation on a
property managed by the same Company will be $5,000 and the third and each
subsequent violation will be $10,000 each occurrence
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