HomeMy WebLinkAboutItem 6 - AdHoc Sub-Committee RecommendationsADMINISTRATIVE APPEALS BOARD STAFF REPORT
DATE: February 26, 2025
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.
We recommend the following approaches:
1.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 nights or more with
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Administrative Appeals Board Staff Report
February 26, 2025 -- Page 2
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)
2. 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
3. Every quarter the city conducts a public announcement regarding “IS YOUR
SHORT-TERM RENTAL PROPERTY LEGAL”. Suggestions for handling
announcements:
i. 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
ii. TV Ad
iii. Seminars held at PS library or City Hall.
BENEFITS TO PROPERTY OWNERS WITH NO VIOLATIONS
We propose providing a benefit to homeowner’s who follow the rules and have not had a
violation.
In 2026, properties that have not had a citation in 2025 will remain at 36 maximum
contracts. The same would happen in each subsequent year.
RENTAL PLATFORMS & PROPERTY MANAGEMENT COMPANY
ENHANCEMENTS
In addition to property owners, we recommend establishing rules, standards and
guidelines for rental platform sites (AirBNB, VRBO, etc), and property management
companies (the “Company”).
The city of Palm Springs is currently working with the Attorney to have a “online
advertisement” ordinance so we can force the listing requirements of a permit ID for any
and all platforms, not just specific to vacation rentals. Other municipalities, such as
LaQuinta are currently holding the platform responsible to do this.
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Administrative Appeals Board Staff Report
February 26, 2025 -- Page 3
For individual property management companies, we recommend:
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.
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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