Board set to advance vacation rental ordinance changes to City Council

Palm Springs city staff presented updates Aug. 13 on implementing new recommendations to strengthen vacation rental regulations, addressing gaps in current enforcement and education efforts that may allow violations to go undetected.

Members of the Department of Special Program Compliance outlined progress on recommendations made by the city’s Administrative Appeals Board during a rare August meeting at City Hall. The recommendations focus on improving disclosure requirements, expanding outreach efforts and strengthening oversight of vacation rental operations.

Staff revealed that required disclosure documents for vacation rental regulations may not be reaching all real estate transactions as intended. An administrative regulation from June 2022 directs that disclosure information be included in all residential closing documents, but officials acknowledged uncertainty about whether the requirement is being followed consistently.

“Whether those documents are being used or not, really, it’s in the hands of the realtors that might be doing the operations here in the city,” said Patrick Clifford, a city compliance official, during the presentation.

The city has shared the disclosure requirements with local realtors and the state, but concerns remain about reaching real estate professionals from outside the Palm Springs area who may be unfamiliar with local vacation rental rules.

Staff reported conducting quarterly stakeholder meetings via Zoom that typically draw about 30 attendees, including current vacation rental owners and interested residents. The meetings are advertised through an email list and the city website, but officials noted the need to expand outreach beyond current subscribers.

Board members suggested the city resume attending local Multiple Listing Service meetings and visit individual real estate offices to distribute information about vacation rental requirements. The city has conducted such outreach in the past but acknowledged it has been some time since the last efforts.

State legislation may soon provide additional tools for local vacation rental enforcement. Senate Bill 346, which has passed the legislature, is expected to give local agencies more authority to require online platforms like Airbnb and VRBO to provide specific property information, including addresses and registration status.

The city is also considering requiring business licenses for vacation rental property management companies as part of the application process. Currently, the city does not verify whether property managers hold the required business licenses, though they must obtain tax permits.

“I think that’s good direction as far as how we can kind of help us enforce more towards an agency compared to just all on to the individual owner themselves,” Clifford said.

The recommendations will be included in a staff report to the City Council this fall as part of proposed vacation rental ordinance amendments. The appeals board developed the recommendations to help reduce violations that could be prevented through better education and disclosure at the point of property purchase.

City staff said the quarterly stakeholder meetings and educational materials are archived on the city website for public access. The next Administrative Appeals Board meeting is scheduled for Sept. 17.

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