HomeMy WebLinkAboutItem 5 - AAB PresentationOFFICE OFSPECIALPROGRAMSVacation Rental Ordinance RecommendationsStaff Review and Clarification ‐8/13/25
OFFICE OFSPECIALPROGRAMSRecommendation Administrative ProcessRecommendation•Ask escrow & title companies to add a document to the buyersclosingpackagetitled"WHATTODOIFYOUAREPLANNINGONRENTING YOUR PROPERTY" the document will list the two types ofrentals;•1‐long term 28 nights or more with no certificate required,•2‐shorttermlessthan28nightsrequiresashort‐term rentalcertificate‐for more information and requirements on applying forashort‐term certificate go to the city's website at:https://www.palmspringsca.gov/government/departments/special‐programcompliance/vacation‐rentals/applying‐for‐a‐vr‐certificate•Also, the document will recommend that the buyer check withtheir local HOA to see what type of rentals are allowed: (Long orShort)Staff Clarification•The City currently has administrative regulation dated 6/29/22•Directs that all residential closing documents for real estate transactions ion the City of Palm Springs must include the City of Palm Springs Vacation Rental Disclosure.
OFFICE OFSPECIALPROGRAMSRecommendation Administrative ProcessRecommendation•The city of Palm Springs will do an outreach program at the localRealtor's MLS meetings‐titled "Short Term Rental Requirements"how to be a better agent to your investors who are thinking ofpurchasing a property as a rental.•There will be mention of the two types of rentals and theirrequirements; long term 28 nights or more no rental certificaterequired or short term less than 28 nights requiring a short termvacation rental certificate for more click on the following linkhttps://www.palmspringsca.gov/government/departments/special‐programcompliance/vacation‐rentals/applying‐for‐a‐vr‐certificateStaff Clarification•The department does hold quarterly Stakeholder meetings to discuss Vacation Rentals. •Local Realtors are educated•Out of town Realtors may not
OFFICE OFSPECIALPROGRAMSRecommendation Administrative ProcessRecommendation•Every quarter the city conducts a public announcement regarding"IS YOUR SHORT‐TERM RENTAL PROPERTY LEGAL". Suggestions forhandling announcements:–Newspaper ads that explain how to register your propertywith the city and the requirements for STRs, i.e., paying TOTtaxes, submitting a contract summary prior to any guestchecking into the property. Invite the reader to visit the city'swebsite–TV Ad–Seminars held at PS library or City Hall.Staff Clarification•The Department sends mailers, online newsletters, and holds educations sessions. •Education sessions are usually not well attended.
OFFICE OFSPECIALPROGRAMSBenefits To Property Owners with No ViolationsRecommendation•We propose providing a benefit to homeowner's who follow therules and have not had a violation.•In 2026, properties that have not had a citation in 2025 will remainat 36 maximum contracts. The same would happen in eachsubsequent year.Staff Clarification•None
OFFICE OFSPECIALPROGRAMSRental Platforms & Property Management CompanyRecommendation•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").Staff Clarification•Senate Bill 346 (SB 346): This bill, also known as the Short‐Term Rental Facilitator Act of 2025, allows California cities and counties to require online rental platforms to provide specific information about short‐term rental properties, such as the physical address and assessor parcel number. This information can be used by local agencies for the enforcement and collection of transient occupancy taxes (TOTs). Local agencies can also impose fines or penalties if platforms fail to provide the required information.
OFFICE OFSPECIALPROGRAMSRental Platforms & Property Management CompanyRecommendation•For individual property management companies, we recommend:•Have property management company that manage units in PalmSprings register with the City and agree to follow the City's Short TermVacation Rental Ordinance (the "ordinance"). This would excludeinternetcompanieswhoareonlyinvolvedinadvertisingandbookingclients based upon the direction of the Owner/Company.•When an Owner registers or renews the Unit's license, any Companyinvolved in the rental must be identified and the type of managementoffered. The following terms will define how rentals are being managed:•Owner Management‐Owner takes full responsibility for registering theUnit with the City and for the managing and renting of the property.•Agent Management‐Owner assigns the responsibility for managing allor part of the Unit to a Company.Staff Clarification•Department will confirm a business license. •Add identifier in the application process
OFFICE OFSPECIALPROGRAMSRental Platforms & Property Management CompanyRecommendation•For those Units designated as Agent Management category, thefollowing processes would apply:•Require any Company before placing advertisements for a short‐termrental ensure they obtain a copy of the short‐term rental certificatefrom the property owner.•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 firstviolation would be a $2,500 fine to the owner (in addition to lifetimesuspension from operating a short‐term rental). The Company wouldalso be fined $2,500. The second violation on a property managed bythe same Company will be $5,000 and the third and each subsequentviolation will be $10,000 each occurrence.Staff Clarification•N/A