Council Approves Restrictions On 'Party Houses'

The Palm Desert City Council approved an ordinance Thursday that cracks down on short-term rentals sometimes known as “party houses.”

In a 3-2 vote, the council passed an ordinance amendment that requires conditional use permits for residential properties that are rented for periods of less than 30 days. The CUP restricts rentals to a two-day, three-night lease at the minimum.

Hal Reynolds, who lives on Tamarisk Street in Palm Desert, said one of his Canadian neighbors bought a vacation home on his street, but quickly began renting it out.

“We didn’t think we had a problem,’’ Reynolds told commissioners last month. “We go to San Diego and come home to find a football game on the street.”

He said he poked his head over the wall and saw about 20 young men in the pool.

"We live on a quiet cul-de-sac,'' he said. "(Short-term rentals) need to be permitted."

The Conditional Use Permit restricts the number of days a home could be rented, the number of occupants in the home, parking and noise levels. The permit also requires owners to provide contact information to neighbors and the city.

Violations could lead to the revocation of the conditional use permit, according to city spokesman David Hermann.

In an extreme case, a noise complaint could lead to jail time, said Tony Bagato, the city's principal planner.

The price to get a CUP will be $500. It is currently $2,915, which some residents said was too high and might encourage home owners to skirt the requirement.

According to the Bagato, there are 151 short-term rentals in the city that are not in gated communities.

The proposed regulations would not apply to properties within gated communities. Any property already leasing a home as a short-term rental with a business license will have 90 days to register the property with the Community Development Department.