Board refines proposed vacation rental regulation changes to focus on management companies

The Palm Springs Administrative Appeals Board is continuing to refine potential updates to vacation rental regulations, with a focus on improving oversight of property management companies and clarifying definitions within the ordinance.

During their regular monthly meeting May 7, board members discussed challenges in enforcing vacation rental regulations, particularly since many property owners live outside Palm Springs.

“The majority, I would say, don’t live in Palm Springs, but there are some that live in the Coachella Valley or have a secondary home in Palm Springs as well,” said Patrick Clifford with the city’s Department of Special Program Compliance, which oversees the city’s vacation rental program.

The geographic disconnect creates challenges for educating property owners about local regulations, prompting the board to consider more effective communication strategies.

The board reviewed recommendations from its ad hoc subcommittee, including potential new requirements for property management companies. One proposal would require these companies to register with the city, though board members debated whether this should involve a special permit or license.

“We do have processes where someone would have a business license plus a permit,” Clifford explained, citing examples like pedicab operations and valet services in the city that require both.

Board members requested that staff research how other municipalities handle property management companies to determine the most effective approach.

The board also discussed clarifying the definition of vacation rentals in the municipal code. Currently, the code defines a vacation rental as a property rented “for a period of 28 consecutive days or less,” but board members suggested changing this to “28 consecutive nights” to eliminate confusion.

“This has come up a couple times since I’ve been on this board,” said Board Member Lauren Hein. “Let’s make it nights or less. Because a day is … what if it’s 20? Do you count the day you move in? Do you count the day of checkout?”

Clifford noted that the city’s transient occupancy tax code defines a transient as someone occupying a property “for a period of 28 consecutive calendar days or less, counting portions of a calendar day as a full day.” The board requested clarification on how these definitions align.

The board received public comments from a representative of VRON (Vacation Rental Owners and Neighbors of Palm Springs), who supported the board’s efforts to update regulations but offered suggestions for improvement.

Another public comment addressed a proposal to reward compliant vacation rental owners by exempting them from the upcoming reduction in the number of allowed rental days per year. Currently, the city plans to reduce the maximum number of rental days from 36 to 26 in January 2026.

After discussion, the board decided to withdraw this proposal, with members noting that maintaining a license without violations should be reward enough.

The board also discussed challenges in educating new property owners about vacation rental regulations. Staff explained that while there is an administrative regulation requiring disclosure during property purchases, it’s unclear whether this information is consistently provided to buyers.

“We have in the past mailed out a flyer a few years back really stressing the point that a vacation rental certificate was required in the city of Palm Springs,” Clifford said. “And we sent out quite a bit, a lot of flyers, in the thousands.”

The board voted unanimously to have legal counsel make the discussed adjustments to the proposed ordinance updates and bring the revised document back for review at a future meeting, likely at its next regular meeting, currently scheduled for June 18.

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