68700 Avenida Lalo Guerrero, Cathedral City, CA 92234

Ordinance to Phase Out Short-Term Vacation Rentals Goes into Effect on October 9th

The City Council voted unanimously on an ordinance to phase out short-term vacation rentals (STVR) in residential neighborhoods by the end of 2022 with two main exceptions:

  1. Homes located in neighborhoods governed by Homeowners Associations (HOAs a.k.a. Common Interest Developments) that permit such use and;

2. Home sharing vacation rentals.  Home sharing means that the home is the owner’s primary or principal residence and rents out a portion of the property.  Rules include that the owner may only have one primary or principal residence and the owner of the home is onsite during the rental period.  Typically, home sharing is where the owner rents out a room or casita on their property.

This decision came after more than a year of public input, the creation of a short-term vacation rental task force, and much deliberation.

The council believed the STVR phase out was needed to restore the quality of life back into residential neighborhoods and that no amount of enforcement can properly address the complaints by adjacent neighbors who are faced with unruly STVR renters.

Highlights of the ordinance include the following:

  • The ordinance will go into effect on October 9, 2020.
  • Current STVRs located outside of Common Interest Developments that permit STVRS and not part of home sharing will have a base year to operate.  Following the base year, current STVRs will have a year to operate under a hardship provision along with a three-month grace period.  Current STVRs with those exceptions will cease operations on December 31, 2022.
  • Fines and penalties for violating the ordinance will be instituted through council resolution.
  • Complaint protocols will be handled through council resolution.
  • All STVRs must maintain commercial property insurance.
  • A property that contains an STVR and is sold, the owner must notify the city, cancel the STVR permit and stop advertising within 7 days.  The new owner will have to apply for an STVR permit, if eligible.
  • The minimum duration of an STVR rental shall be 4 days and 3 nights.
  • 2 overnight guests per bedroom is permitted up to a maximum of 10 total guests.
  • Require the responsible person of the guest(s) sign the “Guest Agreement Acknowledgement” form provided by the city acknowledging all rules and regulations.
  • Neighboring properties within 300 feet of an STVR shall be notified of the suspension or revocation of an STVR permit and any appeal hearing.
  • Guest check-ins must be done in person or via video technology.
  • Outdoor amenities such as pools and spas must be closed between the hours of 10 pm and 8:00 am.
  • All rental agreements must be filed with the City prior to occupancy or within 24 hours of execution of the contract by the STVR occupants.
  • Four violations at the same STVR property within a 12-month period will cause the suspension of the permit.

The ordinance also confirms that no new STVR permits are allowed with the exceptions of HOA neighborhoods that explicitly allow STVRs and home sharing.