Short Term Rental Ordinances | Lake Tahoe

cabin in woods

Home values in the Lake Tahoe basin have more than doubled in the last decade. A lack of affordable housing for the local workforce has led to more scrutiny on short term rentals.

When a property is rented for a period of 30 days or less, it is considered a short term rental. Some Lake Tahoe landlords are ski and summer leasing their homes to get around this restriction.

Vacation destinations across the US are facing the same issue and many counties and towns have enacted short term rental ordinances to address it.

Local Occupancy Rising

Just since 2019, home values in the Tahoe basin have risen 24%. During the pandemic, many second homeowners also relocated full time to the Truckee and Lake Tahoe. This huge migration of Bay Area remote workers has made it almost impossible for locals to find long term rentals.

The state of California has begun loosening zoning restrictions to actually promote the construction of Accessory Dwelling Units. Even homes in HOA’s like Tahoe Donner are now able to construct these dwellings. New state law changes take precedence over any HOA restriction.

The Town of Truckee has also begun a deed restriction process, where homes can remain in a pool that is only available to the local workforce.

Permits for Short Term Rentals

However, the biggest measure to address the lack of housing is the short term rental ordinance.

Both Placer County and the town of Truckee implemented short-term rental ordinances at the beginning of 2022. The Town of Truckee is an incorporated city within Nevada County. The North Shore of Lake Tahoe is in Placer County. The ordinances are slightly different between the two areas.

It is important to note that commercial lodging, such as hotels, motels, condo-hotels and timeshares are exempt. In both Placer County and the Town of Truckee, permits are required when renting your property as a short-term vacation rental.

The ordinances are also meant to control the nuisances that can arise from short term rentals. There are new regulations for trash, parking, occupancy limits and noise. Nuisances can now be reported to a phone number and homeowners will face increased penalties for not complying.

Additionally, to obtain a permit, homes must comply with building and fire codes.

As of March 31, 2022, the total number of short-term vacation rentals in Placer County is now capped at 3,900 units. For the town of Truckee, the cap is currently at 1,255 units and 301 applications are on wait-list status.

Truckee Short Term Rental Ordinance

Truckee has a one-year waiting period after any new home purchase, prior to seeking a short-term rental permit. They require a $100 non-refundable deposit due at the time of application submission.

Once the application is reviewed, they will notify the applicant of approval and waitlist status via email. There is no need to re-apply each year. Certificates are issued when a spot opens up. The $100 deposit is applied to the registration fee.

Mobile and Manufactured homes are prohibited from renting short term. Homes without a Certificate of Occupancy cannot be on the wait list until it is received.

For more information click here.

Placer County Short Term Rental Ordinance

In Placer County, existing STR permits in good standing are given priority and can be renewed prior to the expiration date. Beginning with the 2023 permit cycle, if a property owner or agent fails to submit an application for renewal prior to the expiration date of the permit, the application will be treated as a new permit and processed on a first come first serve basis.

In order to bring all existing STR units under this new permitting process, Placer County also created a grace period to allow for compliance. All new STR permit applications will be issued on a first come, first serve basis. Any change in ownership will automatically terminate the prior STR permit. The new homeowner will need to apply for a new STR permit.

For more information, click here.

Listing Watch
Listing Watch

Listing Watch

Sign up to receive instant email notifications when properties meeting your search criteria come on the market.

Home Valuation
Home Valuation

My Home Valuation

Selling your home? We can give you a professional assessment of your home's current market value.

Market Stats
Market Stats

Market Stats

Get a neighborhood snapshot of current listings, average sales prices and current days on market.