Board to consider proposal to boost vacation rental compliance through enhanced outreach

The Palm Springs Administrative Appeals Board is considering updates to the city’s vacation rental ordinance to improve community understanding and compliance. The proposed changes will be discussed at an upcoming meeting and will focus on educating property buyers and real estate agents about short-term rental requirements.

The recommendations, outlined in a report produced by an ad hoc subcommittee of the board, come after a review of appeal cases over the past two years revealed that only 0.05% of cases were overturned. That low rate prompted questions about how well the community understands the ordinances and their administration.

“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,” the staff report states.

At the board’s last regular meeting on Sept. 25, multiple property owners who faced fines and revocation of their vacation rental licenses spoke of receiving either no information or misinformation when they purchased their properties.

Erica Vasco-Mate, owner of a condominium in North Los Felices Road, told the board she was unaware of the regulations when she listed her property on Vrbo.

“Unfortunately, when I talked to Vrbo, I was not informed,” Vasco-Mate said. “They said I can start to advertise the condominium and then get the license from the city.”

In a similar case, Taran Manning appealed a citation for her property on South Via Solita. Manning, who splits her time between New York City and Palm Springs, said she was unaware of the regulations.

“I never in a million years thought that would come down to the regulation,” Manning said. “I remember when I bought my house, my real estate agent had two stacks of paper. One was to show me the value of all the home sharing (money) I could make for buying the house.”

To address the issue of possible miscommunication, the board suggests several outreach initiatives. 

One proposal involves asking escrow and title companies to include a document titled “What to do if you are planning on renting your property” in buyers’ closing packages. The document would outline the two types of rentals: long-term (28 nights or more) and short-term (less than 28 nights).

The board also recommends that the city conduct an outreach program at local Realtor’s MLS meetings. These sessions, titled “Short Term Rental Requirements,” would aim to help agents better serve investors considering purchasing rental properties.

“There will be mention of the two types of rentals and their requirements,” the staff report explains, adding that agents would be directed to the city’s website for more detailed information.

Quarterly public announcements are another suggested measure to raise awareness about legal requirements for short-term rental properties. These could include media ads, TV commercials, and seminars held at the Palm Springs Library or City Hall.

The recommendations extend beyond property owners to include new rules for property management companies. These companies would be required to register with the city and agree to follow the Short Term Vacation Rental Ordinance.

Under the proposed changes, when an owner registers or renews a unit’s license, they must identify any property management company involved and specify the type of management offered. The board suggests two categories: “Owner Management” and “Agent Management.”

For properties under Agent Management, the board recommends stricter oversight. Companies would be required to obtain a copy of the short-term rental certificate from the property owner before advertising a unit.

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