The short-term rental (STR) industry is booming, and vacation rental properties are now in high demand. Are you considering investing in homes for sale in La Quinta, CA so you can start a vacation rental business? If so, there are particular vacation rental laws that you should be aware about to operate your venture successfully.
Vacation rentals are required to have a STR permit
La Quinta requires STR owners to register their property and obtain an STR permit. Likewise,
STR platforms such as Airbnb or Vrbo must first confirm that a property has an STR permit from the city. If the property doesn’t have the required permit or if the permit is suspended, the property cannot be rented out to clients through their respective sites.
There are no new STR permits for residential communities in La Quinta
The La Quinta city council recently imposed an indefinite ban on STR permits for vacation homes within residential neighborhoods, including communities with homeowner’s associations that allow them. Prior to the ban, owners of STRs inside HOA communities were able to secure an STR permit by first obtaining an authorization letter from their HOA. With the ban now in place, new STR investors will not be able to operate a vacation rental property even if their HOA allows it.
New STR permits are still being issued for vacation rentals within designated tourist and commercial zones, as well as those inside districts covered by the SilverRock Resort plan.
The ban began on April 20, 2021 and is still in effect. However, the city council promises to periodically review the effects of the ban and discuss its potential lifting in the future.
STR permits must be renewed 30 days before they expire
Here’s another recent update to the city’s vacation rental ordinance: STR permit renewals must now be submitted within 60 to 30 days before they expire. Prior to this update, permit renewal applications were allowed to be submitted 30 days after expiry.
Property managers and contact persons must be easy to reach
Individuals listed as the property manager or contact person for the STR property are responsible for addressing and following up on tenant issues. This means they must make themselves available at all times and be on call 24/7/365. They are also required to be present at the location within 30 minutes of being contacted by law enforcement or judicial authorities.
Bedroom renovations must be approved by the city council
Bedrooms of vacation rentals must meet specific building codes related to size, access and egress, lighting, electric outlets, and HVAC systems. Likewise, any plans for bedroom renovation must first be sent to the city council for review. Once approved, the city will issue a new permit that reflects the approved number of bedrooms. The city will not renew the permit if the owner’s application doesn’t accurately list the number of bedrooms in a vacation rental.
STR permits are non-transferable
The sale of a vacation property automatically terminates an existing permit. Vacation rental property owners must notify the city council about the sale of their property. If the new owner decides to continue using the property as a vacation rental, the new owner will have to apply for a new STR permit.
Find your next investment with the help of La Quinta Realtors. Allow me, Kathleen O’Keefe Galigher, help you navigate the La Quinta, CA real estate market with ease. Let my expertise help you find the best La Quinta homes to invest in. Call me today at 760.567.7822 or contact me here to get started.