Short Term Rental Rules around Lake Tahoe
Will your Lake Tahoe property be a vacation rental?
(Updated on September 24th, 2021)
Many people dream about owning a second home in Lake Tahoe. But for many, having a home sitting empty when they are not using it, is not a good option. When buyers look to purchase a property in Lake Tahoe, they don't want just a second home, they are simultaneously looking for an investment. They wish to rent the property when they are not using it in order to offset some costs. So why not purchase a home and turn it into a VHR (Vacation Home Rental) by renting it out through websites like AirBnB and VRBO? If you, like many other buyers, ever had this thought, please be sure to do your home work very well. Because there are five different counties around the Lake, and every county has a different regulation when it comes to STR (Short Term Rentals). Almost everyday we receive questions like "Is this property located in an area that allows short term rentals?". That's why we decided to put together this information about vacation rental rules all around the Lake.
South Shore California
- South Lake Tahoe (City neighborhoods) - In November 2018, Measure T was implemented and since then, vacation rentals have been banned from the city of South Lake Tahoe. Measure T also says that current permit holders won't be allowed to renew their permits in 2021. So every homeowner who currently has a vacation rental permit, will lose their permit by the end of the year. To know what area vacation rentals have been banned, see below a map of the city of South Lake Tahoe. Vacation rentals have been banned within the area that's outlined in red.
- Tourist Core (South Lake Tahoe) - The tourist core area is located within the city limits of South Lake Tahoe, but the area is zoned for commercial and tourism. Vacation rentals are still allowed in the Tourist Core area. There's only a handful of single-family homes in that area and they rarely come up for sale. Besides that there are a few condo complexes that are located in the Tourist Core and therefore exempt from Measure T (such as Lakeland Village, Sierra Shores and Zalanta).
- South Lake Tahoe (County neighborhoods) - Go back to the map of South Lake Tahoe city at the top... All the South Lake Tahoe neighborhoods outside of the area highlighted in red are considered county neighborhoods. Vacation rentals are still allowed in the county, but there are some restrictions. They have implemented a cap to limit the amount of vacation rentals in the area. The cap amount is 900 and it has been reached. We don't know what the waiting time will be for more permits to become available and be distributed. Also they are talking about implementing a system where you wouldn't be allowed to apply for a permit if there's already a vacation rental property within 500ft radius of your house. This hasn't been approved yet, but it could be implemented in the near future.
South Shore Nevada
Lake Tahoe Nevada (within Douglas County) - This is the area that incorporates neighborhoods such as Stateline, Zephyr Cove and Glenbrook. They have implemented a cap to limit the amount of vacation rentals in the Tahoe Township area. This new ordinance went into effect on July 15th. Douglas County will establish a list of property owners who will be randomly selected to qualify to apply for the remaining permits available under the 600 permit cap. The remaining applicants will be placed on a waitlist to qualify to apply for future available permits. Each year the waitlist applications will be accepted through July 1st through July 31st of the calendar year ONLY.
Incline Village Nevada (East Shore)
Incline Village Nevada (aka East Shore) is part of Washoe County. There are currently no rental restrictions in Incline Village. Although there are rental regulations and a rental permit must be obtained from the county.
North Shore/West Shore CA
The North Shore area (Tahoe City, Tahoe Vista, Kings Beach, Carnelian Bay, Squaw Valley and Northstar) and some areas on the West Shore (Homewood and part of Tahoma) are located in the Placer County. On August 31, 2021, the Placer County Board of Supervisors approved an extension to the Urgency Ordinance moratorium until March 31, 2022. During the extension period, the following are exempt from this moratorium: A short term rental with a valid permit that complies with all provisions of Article 9.42, has no outstanding fees or violations may apply to renew the same. A short term rental that had a valid permit for the 2020 permit cycle and that complied with all provisions of Article 9.42, had no outstanding fees or violations during that period may apply to renew the same. A short term rental with a valid permit that expired solely due to a change in ownership and that complied with all provisions of Article 9.42, had no outstanding fees or violations prior to said change may apply and be processed as a renewal for the new owner(s).
Truckee is part of Nevada County. On September 29, 2021, Town Council approved an Urgency Ordinance 2021-06, establishing a 45-day moratorium on the issuance of new Short-Term Rental registration certificates.
The following categories are exempt from the moratorium:
1) Complete applications that were received by the Town prior to the adoption of the Urgency Ordinance on Sept 29th.
2) New owners of a property which was in escrow in connection with a pending sale at the time the Urgency Ordinance was adopted IF a transient occupancy registration certificate was in effect for a property immediately prior to the close of escrow.
3) Registration renewals for the 2022 calendar year.
To recap, STR's are not allowed in South Lake Tahoe city neighborhoods, except on properties located in the Touristic Core. STR's are allowed in South Lake Tahoe county neighborhoods and South Shore Nevada, however these areas are subject to a cap and there will be an unknown amount of waiting to obtain a permit. North Lake Tahoe and part of West Shore have a moratorium on the issuance of new rental permit applications that was extended until March 2022. If you purchase a home in the area that currently has a rental permit, you could still apply for a permit. Truckee has a 45 day moratorium that started on September 29th and they are not issuing permits during the moratorium period. STR's are still allowed in Incline Village Nevada (East Shore).
Please feel free to contact us if you have any questions about Lake Tahoe Real Estate or local regulations. We would love to have the opportunity of guiding you through the process of purchasing your Lake Tahoe Home.