AIRBNB & SHORT-TERM RENTAL RULES

Desert Hot Springs

,
California

Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Updated
Oct 6, 2026
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ARBITRAGE VERDICT

Red light: permits are capped at 4% of parcels, with a waitlist at the cap

Permits are capped at 4% of the city's housing parcels, which came to 368 on the city's 2025 count.[1] The city says it issues no permits at or above the cap and keeps a waitlist,[2] and we could not confirm whether the cap is full today. Permits go to the owner or the owner's agent, and renting without one carries a $5,000 fine.[3]

Our verdict, based on the sources at the end of this guide.

AT A GLANCE
Non-owner-occupied
Allowed
The general permit type needs no owner on site[3]
Who holds the permit
The owner
The owner or the owner's agent applies; an agent needs a notarized owner letter[3, 4]
City permit
$675.65
General permit fee, non-refundable, valid 1 year[4]
Permit cap
4% of parcels
368 permits on the city's 2025 count[1]
Lodging taxes
13%
12% city tax plus 1% district assessment on stays of 28 days or less[2]
Stays of 30+ days
No permit
The code covers stays of 30 consecutive days or less[3]

Desert Hot Springs caps vacation rental permits at 4% of its housing parcels, and the city says it issues none at or above that cap.[2] Permits go to the owner or the owner's agent and need a city business license, $1,000,000 in liability insurance and a pre-issuance inspection.[3, 4] Amendments adopted January 20, 2026 took effect February 19, 2026. They add mandatory training and cut the spacing rule to 250 feet in most areas.[1] Operating without a permit carries a $5,000 fine.[3]

01

Key requirements

Permit types and fees

A general permit covers a rental where the owner does not live on site.[3] The city lists non-refundable fees of $675.65 for a general permit, $506.74 for a primary residence permit and $337.83 for a homeshare permit.[4]

Who applies

The applicant is the owner or the owner's agent, and an owner who lives 35 driving miles or more away must hire an agent with a separate business license.[3] An agent applies with a notarized letter from the owner, and the owner stays responsible for compliance.[3, 4] A tenant is not the owner of record, so the owner or the owner's agent must be the one on the permit.[3]

If you are the tenant

The code lets the owner's agent apply, so ask the owner to name you in a notarized letter and put you on the permit.[3, 4] Managing a rental for an owner for pay may need a California real estate license, since the state defines a broker as someone who leases, rents or collects rents from real property for another for compensation.[5]

Insurance and paperwork

You need a city business license, a city transient occupancy registration certificate and proof of $1,000,000 combined single limit liability insurance.[3, 4] Platform insurance does not count.[4]

Inspection, training and the cap

New permits need an inspection of the whole structure and exterior before issuance,[3] and since February 19, 2026 owners and agents must finish a city-certified training program first.[1] If the city is at or above the 4% cap it issues no permits, closes applications and reopens them once a year, and waitlisted applicants have ten business days to apply when emailed.[2]

02

Operational and safety standards

Spacing and HOAs

Permits are rejected within 250 feet of another vacation rental in most areas, and within 500 feet in Rolling Hills, DHS 41 and Hacienda Heights.[1] The city code site still shows 500 feet citywide, and a property whose HOA bans vacation rentals gets no permit.[3]

Occupancy and parking

Overnight limits run from 2 guests for a studio to 12 for five or more bedrooms, with a higher daytime limit.[3] Overnight vehicles can't exceed the designated on-site parking spaces.[3]

Noise and response

Install a noise monitoring system that alerts you to noise above 70 decibels.[3] After a complaint you must contact the guest right away and reach the occupant within 30 minutes, and the emergency contact must be reachable 24 hours a day.[3]

Guest rules and advertising

Before each stay, collect the responsible person's ID, vehicle details and a signed acknowledgment, and post the permit and house rules inside.[3] Every ad must show the permit number in the first line of the description, plus maximum occupancy, car limit, the tax rate and a front photo.[3]

Pools and ADUs

Pools and spas need a posted "swim at your own risk" sign, a rescue pole, door exit alarms and two of the listed drowning-prevention features.[3] Accessory dwelling units can't be used as short-term rentals.[2]

03

Tax obligations

City tax

The city transient occupancy tax is 12% of the rent charged by the operator.[2] You must file the monthly return even in a month with no bookings.[3]

Tourism district assessment

Owners must also remit a 1% Greater Palm Springs Tourism Business Improvement District assessment on gross rental revenue of stays of 28 days or less, in effect since July 1, 2021.[2]

Booking platforms

A platform that books stays in the city must collect and remit the tax and assessment in place of the owner, and it can't complete a booking without a valid permit number.[3] Failing to pay the tax or assessment is a ground to deny or revoke your permit.[3]

State platform law

California's SB 346, approved October 13, 2025, lets a city require platforms to report each rental's address and to show the local license number and tax certificate in listings.[6] The law states it does not stop a city from adopting different rules.[6]

04

Enforcement

No permit

Operating without a valid permit costs $5,000, and the city collects past transient occupancy tax for the period state law allows.[3]

Violations of the rules

Occupancy, noise and parking violations cost $1,000 for the first, $2,000 for the second and $3,000 for the third.[3] A separate offense occurs for each day a violation continues.[3]

Suspension

Two complaints that lead to administrative citations for the same property trigger an immediate six-month summary suspension.[3] Hazardous conditions or criminal activity can also trigger one, and you have 10 days to ask for a hearing.[3]

Denial and revocation

The city can revoke a permit for exceeding the cap or spacing rule, legal violations, unpaid tax or assessment, a public nuisance or zoning violations.[3] A denial can be appealed within 15 calendar days, with a filing fee.[2, 3]

Platform takedowns

Platforms must remove a listing within 24 hours of city notice that its permit is invalid, expired or revoked.[3]

Bottom line for arbitrage

Not STR Friendly
|Our take

Don't plan on a new permit here. Ask the city whether the cap is open before you sign anything.

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        Sources

        The bracketed numbers in this guide point here. All sources checked
        Oct 6, 2026
        .
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        General information, not legal advice. Rules change often, so confirm with the city before you sign a lease.
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        Not STR Friendly
        Amended Vacation Rental Regulations, in effect as of February 19, 2026 | City of Desert Hot Springs | https://www.cityofdhs.org/amended-vacation-rental-regulations-in-effect-as-of-february-19-2026/ Vacation Rentals (page and FAQ) | City of Desert Hot Springs | https://www.cityofdhs.org/vacation-rentals/ Desert Hot Springs Municipal Code, Chapter 5.44 Vacation Rentals | City of Desert Hot Springs (eCode360) | https://ecode360.com/43986057 Vacation Rental Permit Application, requirements and fees | City of Desert Hot Springs permit portal | https://desert-hot-springs-ca-str.deckard.com/apply-str-license/requirements California Business and Professions Code, Section 10131 | California Legislature | https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10131 SB 346, Local agencies: transient occupancy taxes: short-term rental facilitator (Chapter 751, Statutes of 2025) | California Legislature | https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB346
        A general permit type exists for rentals where the owner is not on site[3] The spacing rule fell to 250 feet in most areas on Feb 19, 2026[1] Booking platforms must collect and remit the city tax and assessment[3] Stays of 31 days or more fall outside the vacation rental permit[3]
        Permits are capped at 4% of parcels, and the city issues none at or above the cap[1, 2] A sale or transfer of the property ends the permit[1] Two citations for the same property mean a six-month suspension[3] Accessory dwelling units and HOA-banned properties can't get a permit[2, 3]
        Ask the city whether applications are open and where the waitlist stands, since we could not confirm it.[2] Get a notarized letter from the owner naming you as agent, and agree who carries the $1,000,000 insurance.[3, 4] Check the owner's HOA rules and the 250 or 500 foot spacing before you commit.[1, 3] Budget the $675.65 permit fee, a noise monitor and the city training.[1, 3, 4]
        Oct 6, 2026
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