Executive Overview: STR Status in Placerville

Short-term rentals are NOT allowed in residential zones within the City of Placerville. This is a critical finding for investors: Placerville has adopted one of the most restrictive STR ordinances in California, prohibiting STRs entirely in residential areas while limiting commercial-zone STRs to a maximum of 10 permits citywide.

STRs are permitted exclusively in commercial zones: Central Business District (CBD), Commercial (C), and Highway Commercial (HWC) zones, where they are classified as commercial lodging facilities rather than residential uses.

How to Start a Short-Term Rental Business in Placerville

Step 1: Verify Zoning Eligibility

Before proceeding, confirm your property is located in one of the permitted commercial zones:

• Central Business District (CBD)
• Commercial (C)
• Highway Commercial (HWC)

Properties in residential zones are ineligible for STR permits regardless of other qualifications.

Step 2: Secure Required Pre-Application Items

• Transient Occupancy Tax (TOT) Certificate: Obtain before applying for STR permit
• Proof of El Dorado County Fire Life and Safety Inspection: Must be current and passing
• Active El Dorado Disposal account for garbage collection, including green waste/food waste

Step 3: Submit STR Application

Applications are submitted to the Development Services Department on the second floor of City Hall (3101 Center Street, Placerville). The application review is ministerial, meaning staff either approve or deny based on objective criteria rather than discretionary judgment.

Step 4: Complete Required Inspections

Following application submission, you must complete:

• El Dorado County Fire Inspection with submitted checklist
• City of Placerville Building Official Inspection
• City of Placerville Planning Division Inspection

All corrections must be completed within 60 days of accepted application.

Required Documents, Permits, and Licenses

Primary Permits and Licenses

1. STR Permit ($200 for first unit, $100 for each additional unit on same parcel)
2. City Business License (active and current)
3. Transient Occupancy Registration Certificate
4. TOT Registration (Transient Occupancy Tax compliance)

Application Submission Requirements

• Signed and dated STR Application Form
• Proof of Ownership (Grant Deed)
• Site Location Map(s)
• Site Plan(s)
• Floor Plan(s)
• Copy of required interior and exterior signage
• Payment of STR Application Fee
• Paved parking meeting occupancy requirements
• Fire Life and Safety inspection compliance
• El Dorado Disposal service account proof

Annual Renewal Requirements

• Complete STR application form
• Proof of compliance following annual inspections by City staff and Fire District
• Payment of renewal fees ($200 annual renewal including inspection)
• Updated documentation if property changes occurred

Specific Regulations for Placerville STRs

Permit Limitations

• Annual cap: Maximum 10 STR permits issued citywide per calendar year
• Parcel limitation: Up to 5 units per parcel (separate application required per building)
• Permit transferability: Non-transferable; permits issued only to property owners

Occupancy Standards

Maximum occupancy is determined by the lesser of:

• Number of bedrooms (see occupancy table)
• Available paved parking spaces

Bedroom-Based Occupancy Limits:

• Studio: 4 persons
• 1 bedroom: 6 persons
• 2 bedrooms: 8 persons
• 3 bedrooms: 10 persons
• 4 bedrooms: 12 persons
• 5 bedrooms: 14 persons

Parking-Based Occupancy Limits:

• 1 parking space: 4 persons
• 2 parking spaces: 8 persons
• 3 parking spaces: 12 persons
• 4 parking spaces: 16 persons
• 5 parking spaces: 20 persons

Signage Requirements

Interior Signage Required:

• Maximum occupancy
• Excessive noise prohibited 10:00 PM - 8:00 AM
• 24-hour contact (name and number)
• City of Placerville Police non-emergency number: (530) 642-5210
• High fire risk area information and RAVE signup directions
• Transient Occupancy Registration Certificate

Exterior Signage Required:

• Permit number (STR XX-XX)
• Maximum occupancy
• Excessive noise prohibited 10:00 PM - 8:00 AM
• 24-hour contact information
• City of Placerville Police non-emergency number: (530) 642-5210
• Complaint email: pv.planning@gmail.com

Operational Requirements

• Responsible party availability: Must be available 24/7 and onsite within one hour
• Noise restrictions: Quiet hours 10:00 PM - 8:00 AM
• Fire safety compliance: Current Defensible Space certification required
• Parking: Must be paved and sufficient for maximum occupancy
• Garbage service: Active El Dorado Disposal account required

Permit Revocation Conditions

STR permits may be revoked by the Development Services Director if:

• Permit has expired
• Property not current on TOT payments
• Violation of permit conditions
• Hazardous condition as determined by Fire District or City
• Property constitutes a nuisance to surrounding properties

Hosted STRs in Residential Zones - Proposed Changes

Important Note: As of the latest available information, hosted STRs remain prohibited in residential zones. However, Placerville is considering allowing hosted STRs in single-family residential zones under the following proposed conditions:

Proposed Hosted STR Standards (Not Yet Adopted):

• Owner-occupied single-family residences only
• Maximum 2 persons per permitted bedroom (children 5 and under don't count)
• No standard or efficiency kitchens allowed in rented rooms
• Maximum 2 guest vehicles
• In-person check-in and review of performance standards required
• TOT certificate and compliance mandatory
• Proposed fines: $1,500 first violation, $3,000 second violation within one year, $5,000 for additional violations

Investors should note: These regulations are under consideration but not yet adopted. Current law prohibits all STRs in residential zones.

State-Level Context: California STR Regulations

While Placerville has its own municipal ordinances, California state law provides the overall framework:

State Tax Requirements

• Transient Occupancy Tax (TOT): Most California cities and counties levy TOT on STRs lasting less than 30 days
• State income tax: STR income is subject to California state income tax
• Sales tax: May apply to certain charges depending on local ordinances

State Regulatory Framework

• Cities and counties have broad authority to regulate STRs
• Local ordinances can be more restrictive than state minimums
• Hosted vs. unhosted distinctions often made at local level

Contact Information for Local Authorities

City of Placerville Development Services Department

Physical Address: Development Services Department
Second Floor, City Hall
3101 Center Street
Placerville, CA 95667

Phone:

• Planning Division: (530) 642-5252
• Building Department: (530) 642-5240
• Code Compliance: (530) 642-5579

Email:

• Planning Division: pv.planning@gmail.com
• Code Enforcement: Contact through main Development Services number

Office Hours:

• General: Monday-Friday (specific hours not provided in documents)
• Applications submitted during regular business hours

Key Contact Numbers

• City of Placerville Police Department (Non-Emergency): (530) 642-5210
• El Dorado County Fire Districts: Contact information varies by district
• El Dorado County VHR Division (for unincorporated areas): (530) 642-4888

Sources and Links

1. City of Placerville STR FAQ Document
2. El Dorado County Vacation Home Rentals Division
3. City of Placerville Development Services Memorandum - Hosted STRs
4. Airbnb Community Discussion - Placerville STRs

Investment Implications

Placerville's restrictive STR ordinance presents significant challenges for residential STR investors:

1. Limited opportunities: Only 10 permits annually citywide
2. Commercial zone requirement: Eliminates most residential investment properties
3. High regulatory burden: Multiple inspections, permits, and ongoing compliance requirements
4. Enforcement: Active tracking and fining of non-compliant residential STRs

For investors interested in the broader El Dorado County area, note that unincorporated county areas have different, more permissive VHR regulations. However, within Placerville city limits, STR investment opportunities are severely limited to commercial-zone properties.

Recommended Action: Consult with local commercial real estate professionals and verify current zoning before considering any STR investment within Placerville city limits.