What is a Short-Term Rental?

• A short-term rental unit means a privately-owned residential dwelling unit, or portion thereof unless otherwise prohibited, including a casita, that is offered or provided to a guest by an operator for twenty-seven consecutive nights or less. 

Can I apply for a Short-Term Rental Permit now?

• Through the City’s online portal, Deckard Rentalscape, link: https://portal.deckard.com/ca-riverside-city_of_palm_desert-str-portal/

Who needs to apply for a Short-Term Rental Permit?

• Any property owner who wishes to rent a residential property for less than twenty-seven consecutive nights or less, must apply for a Short-Term Rental Permit. Failure to register will be the property owner's sole responsibility, and administrative fines will be issued.

How much does a STR Permit cost?

• The cost is $29.00 for new and renewed STR permits. The permit is renewed annually.

Can I pay by credit card?

• Yes, a bank processor fee is assessed on all payments processed through the online portal. This processing fee is not a city fee; it is collected directly by the merchant services provider to cover the cost of online ACH and credit/debit card processing.

• STRIPE collects the fees, and the amounts are calculated for you and broken down:

• Fee for credit card payments is 2.9% + $.30.
• The fee for ACH payments is .8% with a $5.00 cap.

Does my STR Permit apply to all my properties?

• No. You must obtain a separate permit for each property.

Do I have to obtain a letter of approval from my HOA every year?”

• Yes. The approval letter must include the current date, the owner's name, and the property address, along with a statement confirming that short-term rentals are permitted in the community. Each year, the HOA letter must be updated with the current date to verify that no changes have been made to the CC&Rs.

What is an “On-Site Owner?”

• “On-Site Owner” means a short-term rental unit where an owner who is living and present within the main unit during the rental duration rents one or more bedrooms (s). This is their primary residence.

When do I need to renew my STR Permit?

• A STR permit shall be valid for one (1) year and must be renewed annually to remain valid. Renewal of a STR permit shall be submitted 30 calendar days before the permit’s expiration date. Failure to submit a renewal application at least 30 days before the permit’s expiration date may result in the short-term vacation rental permit being terminated.

What if I do not get a STR Permit?

• Operating a STR without a valid STR Permit with the City of Palm Desert will result in a fine of $5,000 for the first violation and each additional citation (PDMC 5.10).  The city has the right to refuse to issue any new or renewed short-term rental permit for the cited property and/or to the owner and operator anywhere within the city.

What is Transient Occupancy Tax (TOT)?

The City's Transient Occupancy Tax (TOT) is 12%.

• 11% for lodging stays of certain lengths including residential short-term rentals (STR).
• 1% goes toward Greater Palm Springs Tourism Business Improvement District (GPSTBID).

• Beginning July 1, 2021, STRs will be included in the Greater Palm Springs Tourism Business Improvement District (GPSTBID). There is a 1% assessment (in addition to the City's 11% TOT tax) on gross rental revenue of short-term stays. The GPSTBID, not the City, assesses this tax, but for convenience, it will be collected as part of your remittance to the City with the TOT tax return.

• The City will then remit payment to the GPSTBID. Currently, platforms like Airbnb or VRBO, will not collect it for you, even if they remit the 11% TOT directly to the City on your behalf.

When is the TOT due?

• The tax imposed under Section 3.28.030 is due and payable to the tax administrator on the first day of the month following the close of each calendar month and becomes delinquent on the first day of the second succeeding calendar month following the close of each calendar month.

Do I still have to file a monthly TOT report even if I did not rent my property?

• If your short-term rental property was not rented for a particular month, you must submit your monthly TOT Return. If a long-term stay occurred, 28 consecutive nights or more, both the TOT Return form and Exemption report are required for monthly submittal.

Does the online portal allow for TOT bulk submittal for online payment and reporting?

• Yes.

Is my STR permit transferable to another property manager, or if I sell my property to a new owner?

• No. The new property manager and/or property owner must submit a new application.

Do I have to display my permit, STR rules, and the Good Neighbor brochure, and when?

• The STR permit and the Good Neighbor Brochure must always be posted conspicuously within the STR unit.

Can I rent my Accessory Dwelling Unit (ADU)/Junior Accessory Dwelling Unit (JADU) as a short-term rental?

• No. If your ADU/JADU contains full living amenities, including a bedroom, kitchen, bathroom, and entrances separate from the primary home, the property cannot be rented for STR.

Can I rent my apartment as a short-term rental?

• No.  

Can I use my timeshare as a short-term rental?

• No.
  

What is the minimum number of days and nights for my property?

• The minimum duration of a short-term rental unit is three days and two nights.

Once I obtain my STR permit, can I be issued admin fines?

• Yes. Please make sure you review the City’s Short-Term Rental Ordinance and become familiar with the rules. Starting fines are $1,000.

How many people can stay in my rental?

• The maximum number of overnight guests and residents for a short-term rental unit shall not exceed two persons per bedroom. Additional daytime guests are allowed between the hours of seven a.m. and ten p.m., with the additional maximum daytime guests not to exceed two persons per bedroom with a maximum of twenty guests allowed for five bedrooms or more. The following table illustrates the maximum number of occupants. If the use is on-site owner short-term rental, the owner shall be deemed to occupy at least one bedroom, which shall diminish the number of bedrooms for overnight guests accordingly:

I need to close my account. What do I do?

• Please email a statement confirming you will no longer operate a short-term rental, and include the property address and your contact information. Send it to: strpermit@palmdesert.gov.

How do I change the User Email Address or Phone Number on a Property?

• Log into Deckard’s online portal, https://portal.deckard.com/ca-riverside-city_of_palm_desert-str-portal/and select “Update Permit Information” to update the email address and phone number.
• If you do not remember the email address associated with the STR Permit or property address, email staff at strpermit@palmdesert.gov to assist you in obtaining the email address.  Staff will not update email addresses through the phones. 

Prior to occupancy of an STR unit, the operator must comply with the following:

• Meet and greet the renter on-site and obtain his or her name, address, and a copy of a valid government-issued identification.
• Provide the renter with a copy of the Good Neighbor Brochure.
• Provide the renter with information about the STR regulations.
• Require the renter to execute a formal acknowledgment in the form acceptable by the City that he or she is legally responsible for compliance of all occupants of the STR unit and their guests, with all applicable laws, rules and regulations pertaining to the use and occupancy of the STR unit. Provide the Responsible Person with the Operator’s 24-hour availability information.

On January 10, 2021, the above amendments and Ordinance No. 1360 went into effect. The City’s new STR ordinance is a compromise that attempts to balance the interests of stakeholders on both sides of this important topic and preserve the qualities that make Palm Desert desirable to residents and visitors alike.

The City recognizes that despite the new ordinance, STRs will continue to impact our community in ways both good and bad. We are committed to doing what we can to reduce negative impacts while respecting the rights of home and property owners and preserving the neighborhoods that help make up the fabric of our community.

For more information about what the City is doing to regulate STRs, please contact strpermit@palmdesert.gov or you can call the Planning Department at (760) 862-6905. To report an unpermitted STR, please call the hotline (760) 776-6360. To find out the status of a STR application or renewal permit, please visit this webpage.

Enforcement and Penalties

Fines for operating or advertising a short-term rental:

• An owner must obtain a short term rental permit prior to advertising or renting any privately-owned residential dwelling for a period of less than twenty-seven consecutive days.
• Fines for operating an STR without a valid permit is $5,000 for the first citation and each additional citation for every day the property is being rented or advertised. The City has the right to refuse the issuance of any new or renewed STR permit for the cited property and/or to the cited owner and/or operator anywhere else within the City.  

Operational Violations

• Exceeding the maximum number of occupants
• Parking on a public street
• Trash and refuse left in public view
• Noise related complaints
• Owner/operator failing to respond to a complaint within 30 minutes
• Failing to post the current short-term rental permit number on any advertisement that promotes the availability of the property.

Fines for Operational Violations

• First citation is $1,000.
• Second citation for the same offense within a 12-month period of the date of the first offense is $3,000.
• Third citation within a 12-month period of the date of the first offense is $5,000 and an immediate revocation of the STR permit for a period of two years. 

All Property Management Companies managing three or more short-term rental properties are required to have an active business license before applying for new or renewing their STR permits.

Business licenses are processed through an online business license portal, supported by the company HdL. For information on Palm Desert business licenses please click here and to apply for or renew a business license visit our City's HdL portal at: https://palmdesert.hdlgov.com.