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Desert Hot Springs, California

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Desert Hot Springs

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Desert Hot Springs, CA

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STR Regulations for Desert Hot Springs, California

Overview: Are Short-Term Rentals Allowed?

Yes, Short-Term Rentals are allowed in Desert Hot Springs, CA, but they are strictly regulated. The city instituted a permit cap of 4% of total housing parcels (9,025 parcels in 2023) and a 500-foot separation rule between rentals (effective December 7, 2023). Accessory Dwelling Units (ADUs) are prohibited for STR use. All STRs must obtain a City permit and comply with taxes and insurance requirements.

How to Start a Short-Term Rental Business

  1. Verify Zoning & HOA Compliance

    • Check that the property isn’t in a prohibited zone.
    • If in an HOA, obtain written authorization from the HOA board/property manager (use the city’s HOA Authorization Form).
  2. Obtain Required Permits & Licenses

    • Apply for a Vacation Rental Permit (non-transferable if sold).
    • Submit a Business License Application (via Viewpoint Cloud portal).
    • Submit at least 30 days before operating (no leeway for expired permits).
  3. Secure Insurance

    • Minimum $1,000,000 general liability insurance (Airbnb/HomeShare insurance does not qualify).
  4. Register for Taxes

    • Pay 12% Transient Occupancy Tax (TOT).
    • Submit 1% TBID assessment for stays ≤28 days.
  5. Set Up Operations

    • Use city-approved platforms (e.g., Deckard portal for permits/TOT payments).
    • Follow safety codes (e.g., California Pool & Safety Act).

Required Documents, Permits, Licenses, and Guidelines

| Type | Details | Fees | Renewal | |----------|-------------|----------|-------------| | Vacation Rental Permit | 1. General Permit (non-primary/home-share) <br>2. Home Share Permit (owner on-site ≤30 days) <br>3. Primary Residence Permit (owner’s primary home) | $1,241.81 (General) <br>$620.90 (Home Share) <br>$931.75 (Primary) | Annual; renewal window: 60–30 days before expiration | | Business License | Required for all STRs | Varies | Annual | | HOA Authorization | Mandatory if in an HOA | Free | With each permit application | | Insurance | $1M liability coverage | Carrier-specific | Annual | | TOT Registration | Certificate from City | Free | Annual |

Key Forms & Tools:

  • Vacation Rental Permit Application/Renewal
  • TOT Forms & Payments
  • Business License Application

Specific Regulations

  • Permit Cap: 4% of housing parcels (361 permits in 2023; renewals not affected).
  • 500-Foot Rule: No STRs within 500 feet of another active STR (existing rentals exempt from this for renewals).
  • Permit Types:
    • General Permit: Full-time STR (no owner on-site).
    • Home Share: Owner lives on-site during stays ≤30 days.
    • Primary Residence: Owner’s primary home (rental allowed when not living there).
  • ADU Prohibition: ADUs cannot be used as STRs (Municipal Code 17.08.090).
  • Renewals:
    • Must be submitted 60–30 days before expiration.
    • No grace period; late renewals result in permit termination.
  • Waitlist:
    • City will notify waitlist applicants by email only.
    • 10 business days to respond with application; otherwise removed.
  • Appeals: Denials may be appealed within 15 days with a filing fee.

Taxes & Fees

  • TOT (Transient Occupancy Tax): 12% of gross rental revenue for stays ≤28 days.
  • TBID (Tourism Assessment): 1% of gross revenue for stays ≤28 days (paid to City).
  • Penalty: Failure to remit TOT may result in fines/suspension.
  • TOT Forms & Payment Portal

Contact Information

  • Complaints/Non-Emergency: (760) 329-2904, Option 2
  • Vacation Rentals Email: vacationrentals@cityofdhs.org
  • Permit Applications: Desert Hot Springs STR Portal (Deckard)
  • City Website: Vacation Rentals Page
  • Municipal Code: Desert Hot Springs Code

California State-Level Regulations (For Compliance)

  • California Pool & Safety Act: Mandates pools/spas to have specific safety features (e.g., fencing, self-closing gates). Read more here.
  • Local Ordinance: Vacation Rental Regulations Ordinance.

Critical Notes for Investors

  • Permits are Non-Transferable: New owners must reapply.
  • HOA Power: HOAs can block STR permits entirely.
  • Safety Compliance: Follow ASME/ASTM standards for pools/spas (linked on city site).
  • Tax Collection: Use city-approved platforms (e.g., Deckard) for TOT/TBID remittance.

Links to Source Pages:

  1. City Vacation Rentals Hub
  2. Regulation Update (Cap/Separation Rules)
  3. Vacation Rental Permit Application (Deckard)
  4. Municipal Code (Title 3, Chapter 3.20 - TOT)
  5. California Pool & Safety Act
  6. Airbnb Desert Hot Springs Guide

This guide synthesizes Desert Hot Springs’ STR framework for investors, focusing on actionable compliance steps. Always consult city portals for the latest updates.

What do Airbnb hosts actually earn in Desert Hot Springs?

Desert Hot Springs hosts earn a median $36,953/year with $317 ADR and 51% occupancy.

Top performers pull in $71,489+ per year.

See the full Desert Hot Springs market breakdown

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Desert Hot Springs

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Desert Hot Springs Market Analysis

Photos of Desert Hot Springs

Overview of Desert Hot Springs

Desert Hot Springs is a small desert city in Riverside County, California, anchored at the northern gateway to the Coachella Valley. With a population of approximately 30,000, it has a laid-back, sun-drenched character shaped by its namesake natural hot mineral springs, which have drawn visitors for decades. The city is best known for its concentration of small resorts, motels, and spas that channel the geothermal waters into private pools and tubs, giving it a distinct wellness-focused identity within the region. It sits roughly 10 miles north of Palm Springs and functions as a quieter, more affordable alternative for travelers exploring the broader Coachella Valley and the high desert beyond.

Just outside town to the east and northeast lies Joshua Tree National Park, one of Southern California's most celebrated natural landscapes. Famous for its otherworldly rock formations, sprawling stands of twisted juniper and yucca trees, and some of the darkest night skies in the region, the park's nearest entrances are roughly 30 to 40 miles from Desert Hot Springs, typically a 45-minute to one-hour drive depending on which entrance visitors use. The park is a major draw for hiking, rock climbing, stargazing, and scenic driving, and its proximity makes Desert Hot Springs a practical base for guests who want to pair a soak in the mineral pools with a day exploring the high desert.

About 15 to 20 minutes south, the neighboring city of Palm Springs offers a full complement of mid-century modern architecture, restaurants, and shopping along Palm Canyon Drive and the surrounding streets. From there, visitors can ride the Palm Springs Aerial Tramway, which climbs nearly 6,000 feet from the desert floor up into the cool pine forests of the San Jacinto Mountains. The tramway is one of the area's marquee attractions, and on clear days the summit offers sweeping views of the valley below, the Salton Sea to the south, and the snowcapped peaks of the surrounding ranges in winter.

Roughly 30 miles to the southeast, the city of Palm Desert is home to The Living Desert Zoo and Gardens, a sprawling botanical garden and wildlife park focused on the deserts of the world. The drive from Desert Hot Springs takes approximately 40 to 50 minutes, and visitors typically spend a half day or more wandering its shaded trails, viewing giraffes, wolves, and cheetahs, and exploring model desert villages and native plant collections that showcase the region's natural heritage.

Together, these offerings position Desert Hot Springs as an appealing base for short-term rental owners. Guests can return from a hike among the Joshua Trees, a tram ride into the alpine forests, or an afternoon at the zoo to a private hot mineral pool of their own, all within a short drive and at price points generally more accessible than those of Palm Springs to the south.

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