Overview: Are Short-Term Rentals Allowed?

No, short-term rentals are effectively banned in Cathedral City, California as of January 1, 2023. Cathedral City has implemented one of the most restrictive short-term rental regulations in the Coachella Valley.

Current Status:

• Complete ban on traditional short-term vacation rentals (STVRs) in residential zones
• Prohibited in all areas except:
  • Properties within a common interest development (HOA) located in the Resort Residential (RR) Zone with explicit HOA approval
  • Primary residence "Home Shares" where the owner occupies the property during all guest stays
  • Pre-existing permits (which all terminated January 1, 2023, except for the above exceptions)

The city implemented a phase-out program that eliminated most existing STVR operations, with enforcement beginning January 1, 2023.

How to Start a Short-Term Rental Business

Given the restrictive nature of Cathedral City's regulations, starting an STVR business requires very specific circumstances:

Eligible Property Types

1. HOA Properties in Resort Residential (RR) Zone

   • Must be located within a common interest development
   • Property must be in the RR Zone
   • HOA must explicitly allow STVRs in their governing documents
   • Written authorization from HOA governing board required

2. Primary Residence Home Shares

   • Must be your primary residence
   • At least one owner must occupy the property during all guest stays
   • Only permitted if the property was built or permitted before January 1, 2020 (for accessory dwelling units)

Application Process

1. Verify Eligibility

   • Confirm property zoning (must be RR Zone for HOAs)
   • Obtain written HOA authorization letter (for HOA properties)
   • Verify primary residence status (for home shares)

2. Submit Complete Application

   • Complete STVR permit application
   • Submit business license application
   • Pay all required fees and inspection costs

3. Maintain Compliance

   • Annual permit renewal required
   • Address any unresolved city liens, code compliance cases, or fines
   • Maintain required insurance coverage

Required Documents, Permits, Licenses, and Guidelines

Mandatory Applications and Permits

1. STVR Permit Application

   • Required for all new permits, home shares, and renewals
   • Must be approved before advertising or renting

2. Business License Application

   • Separate business license required in addition to STVR permit

3. Annual Renewal

   • STVR permits must be renewed annually to remain valid

Required Documentation

1. For HOA Properties:

   • Written authorization letter from HOA governing board
   • Statement that CC&Rs and rules do not prohibit STVRs
   • Proof that property is within RR Zone

2. Insurance Requirements:

   • Commercial insurance with $500,000 per occurrence policy limits
   • Alternative: Residential rider or addendum
   • Note: Airbnb hosts are covered by Airbnb's Host liability insurance and don't need to provide separate proof

3. Visual Documentation:

   • Photograph of property front (minimum 4" x 5") for city identification

4. Mailing Labels:

   • Required for notification purposes

Financial Requirements

• Permit Fee: $1,950.00
• Inspection Fee: $78.00
• Total Cost: $2,028.00 (non-home share)
• Home Share Alternative: $525.00 permit + $78.00 inspection = $603.00 total

Specific Regulations in Cathedral City

Zoning Restrictions

• RR Zone Only: STVRs permitted only in Resort Residential zone
• Residential Zones: Complete prohibition in standard residential zones
• HOA Requirement: Properties in common interest developments must have explicit HOA approval

Operational Requirements

1. Definition:

   • Short-term rentals defined as occupancy for 30 consecutive calendar days or less
   • Portions of calendar days count as full days

2. Permit Renewal:

   • Annual renewal mandatory
   • Permits not renewed if unresolved city liens, compliance cases, fines, or fees exist

3. 24/7 Availability:

   • Owner or authorized agent must be available 24/7 for guest issues
   • Must respond to complaints within 45 minutes

4. Advertising Requirements:

   • Permit number must be included in all advertisements
   • Must comply with city advertising guidelines

Tax Obligations

• Transient Occupancy Tax (TOT): 12% on guest stays of 29 nights or less
• Collection Responsibility: Host responsible for collecting and remitting TOT
• Payment Timeline: Per city municipal code requirements

Phase-Out and Enforcement

• Effective Date: January 1, 2023
• Zero Tolerance Policy: Strict enforcement with significant penalties
• Prohibited Activities: Advertising, booking, or rental occupancy after phase-out date
• Guest Checkout: Guests allowed until 11:00 AM on January 1, 2023 (after this, violations apply)

Fines and Penalties

• Minimum Fine: $5,000 for operating without permit
• Violation Categories: Unpermitted operation, advertising violations, permit non-compliance
• Enforcement: Active enforcement with citation authority

Contact Information

Primary STVR Program Contact

• Phone: 760-770-0324
• Email: STVRProgram@cathedralcity.gov
• Address: 68700 Avenida Lalo Guerrero, Cathedral City, CA 92234

Complaint Hotline (24/7)

• Phone: 760-553-1031
• Purpose: Report noise, occupancy, parking, trash, or other violations
• Availability: 24 hours per day, 7 days per week, 365 days per year

Additional Contacts

Transient Occupancy Tax Inquiries:

• Contact: Kevin Reza-Ayala
• Email: KReza-Ayala@cathedralcity.gov
• Phone: 760-770-0353

General City Information:

• Phone: 760-770-0340
• Email: info@cathedralcity.gov

Police Department:

• Non-Emergency: 760-770-0300
• Emergency: 911

State-Level Regulations (California)

While Cathedral City has its own restrictive ordinances, California state law provides some baseline requirements:

Consumer Protection

• Health and Safety Standards: Properties must meet basic habitability standards
• Fair Housing: Must comply with fair housing laws
• ADA Compliance: Public areas must be accessible

Tax Requirements

• Transient Occupancy Tax: Local jurisdictions may impose TOT (Cathedral City: 12%)
• Income Reporting: Rental income must be reported on state tax returns

Insurance Considerations

• Liability Coverage: Recommended minimum $500,000 coverage
• Business vs. Personal: Short-term rentals may require commercial coverage

Links to Source Pages

1. Cathedral City STVR Governance Ordinances & Resolutions: www.cathedralcity.gov/departments/vacation-rental-information/short-term-vacation-rental-governance
2. Cathedral City Vacation Rental Information: www.cathedralcity.gov/departments/vacation-rental-information
3. Airbnb Cathedral City Hosting Guide: www.airbnb.com/help/article/3228
4. Phase-Out Notice (Discover Cathedral City): www.discovercathedralcity.com/important-notice-cathedral-city-short-term-vacation-rental-phase-out-january-1-2023/
5. Coachella Valley STVR Rules Overview: www.geoffreymoore.com/blog/stvr-rules-in-the-coachella-valley.html
6. Cathedral City Police STVR Information: www.cathedralcitypolice.com/information/short-term-vacation-rentals/
7. STVR Permit Application: www.cathedralcity.gov/home/showpublisheddocument/10651/637855336744470000
8. Business License Application: www.cathedralcity.gov/home/showpublisheddocument/10625/637812060629900000
9. Cathedral City Municipal Code 5.96: www.cathedralcity.gov/home/showpublisheddocument/10337/637546777043470000
10. Resolution 2022-14 (Penalties & Fines): www.cathedralcity.gov/home/showpublisheddocument/11047/638081713986870000

Investment Considerations

Given the restrictive nature of Cathedral City's STVR regulations, potential investors should carefully consider:

• Limited Opportunities: Very few properties qualify under current regulations
• Enforcement Risk: Significant penalties for non-compliance
• Regulatory Changes: City's demonstrated willingness to strengthen restrictions
• Market Impact: Reduced competition may benefit compliant properties, but overall market is severely restricted

Recommendation: Investors should thoroughly verify property eligibility before purchasing and consult with local legal counsel familiar with Cathedral City's specific ordinances.