Guide to South Lake Tahoe's Vacation Home Rental Permit Process

Great news for South Lake Tahoe property owners! With the recent overturning of Measure T by the El Dorado County Superior Court, the landscape for Vacation Home Rentals (VHRs) in residential areas (within city limits) has shifted. The City of South Lake Tahoe has now adopted Ordinance 2025-1200, establishing a clear path for obtaining and managing VHR permits.

A Brief History of VHRs in South Lake Tahoe

South Lake Tahoe's approach to Vacation Home Rentals (VHRs) has evolved over the years. In November 2018, voters passed Measure T, an initiative designed to phase out VHRs in residential zones. However, this measure faced legal challenges, and most recently, the El Dorado County Superior Court overturned Measure T entirely. This pivotal decision has reopened the possibility for VHRs to operate in residential areas. In response, the City of South Lake Tahoe has adopted Ordinance 2025-1200, creating a new, structured framework for VHR permits.

Understanding the Application Journey

The new ordinance outlines a structured application process designed to ensure all VHRs meet city standards. Here's what you need to know:

1. Initial Application Submission

• Application and Fee: You'll need to submit a complete VHR application along with the required fee, as set forth in the city's master fee schedule.

• Completeness Review: The City Manager will review your application for completeness. If anything is missing, you'll be notified within 30 calendar days and will have another 30 days to submit the missing information.

• Processing Order: Once your application is deemed complete, it will be reviewed and processed in the order it was filed.

• Permit Cap: The city will issue no more than 150 VHR permits per month, so timely and complete submission is key!

  
  

2. The All-Important Inspection

For initial VHR permits (outside the Tourist Core Area Plan), an inspection of your dwelling unit is a critical step. This ensures your property meets all necessary safety and operational standards.

• What Inspectors Look For:

  • Compliance with Codes: Your property must conform to all plan area statements and building code standards that were in effect at the time of construction.

  • Health and Safety: No health and safety violations that could threaten guests, neighbors, or the community.

  • Defensible Space: Compliance with California Public Resources Code section 4291 for defensible space requirements (fire safety).

  • Operational Requirements: Verification of items like:

    • Parking Areas: Ensuring sufficient paved parking spaces as declared in your application.

    • Signage: Required interior and exterior signage (more on this below).

    • Monitoring Devices: Installation and operation of required noise and video monitoring devices.

• Making Improvements: You'll have 45 days after the inspection to make any required changes or improvements to your property.

  
  

3. Key Criteria for Permit Issuance

To be issued a VHR permit, your application and property must meet specific criteria:

• Complete Application: As mentioned, your application must be complete and all submittal requirements met.

• Successful Inspection: Your property must pass the inspection, demonstrating compliance with all safety, code, and operational requirements, including defensible space, verified parking, proper signage, and functional monitoring devices.

• Compliance History: Your property (or you as the applicant) must not have received three or more upheld citations for city code violations within any 24-month period, and there should be no outstanding fines.

• Sufficient Parking: Your property must have enough paved parking spaces to accommodate the maximum number of occupants.

• Anti-Clustering Requirements: Your property must comply with anti-clustering rules. Generally, outside the Tourist Core Area Plan, a VHR cannot operate within 150 feet of another VHR. Condominiums are exempt from this buffer zone requirement.

  
  

Important Operational Conditions to Be Aware Of

While the above focuses on getting your permit, it's vital to understand that certain operational conditions are tied directly to your permit and will be checked during inspection, especially for properties outside the Tourist Core Area Plan:

• Maximum Occupancy: Occupancy is limited to 2 guests per legal bedroom and no more than 4 guests per paved parking space. Your property's total maximum occupancy will be the lesser of these two calculations. For vacation home rentals with one or more bedrooms, up to five children aged 13 and under do not count towards the maximum occupancy. For studios, up to two children aged 13 and under do not count towards the maximum occupancy.

• Property Manager: Owners are required to designate and maintain a property manager who is available 24/7 to respond to violations within 60 minutes.

• Good Neighbor Contract & Check-in: The property manager must meet occupants (in person or virtually) at check-in to verify identities and have them sign a "good neighbor contract" summarizing operational conditions.

• Noise & Video Monitoring Devices: You'll need indoor noise and outdoor video monitoring devices to immediately alert your property manager of potential violations (noise, trash, parking). These are crucial for preventing nuisances.

• Signage:

  • Interior: A clearly visible notice near the front door with property manager contact (24/7, text-enabled), maximum occupancy/vehicles, snow removal parking rules, trash pickup info, and warnings about citations.

  • Exterior: A visible sign from the right-of-way with property manager/owner contact (24/7), maximum occupancy/vehicles, police VHR hotline, and a reference to the City Code section.

• Trash Management: Strict rules apply to trash storage (bear boxes or animal-resistant containers) and removal to prevent wildlife issues and maintain cleanliness.

• No Commercial Activities: VHRs cannot be used for commercial activities like weddings or large parties.

  
  

How Holland CoHost Can Help You Get Started

Navigating these new requirements can be complex, especially with the detailed inspection criteria and ongoing operational demands. That's where Holland CoHost comes in!

As experienced real estate professionals and short-term rental property managers in the South Lake Tahoe area, we are intimately familiar with these new regulations. We specialize in helping vacation home owners like you successfully obtain their VHR permits and manage their properties for ongoing compliance and profitability.

We can help you:

• Understand the Ordinance: Provide clear explanations of how the new rules apply to your specific property and answer your questions.

• Prepare Your Application: Ensure your application is complete and accurate, helping to minimize delays and streamline the submission process.

• Get Ready for Inspection: Guide you through the necessary steps to make sure your property meets all inspection requirements, from ensuring defensible space to advising on proper signage and monitoring device installation.

• Ongoing Management: Once permitted, Holland CoHost can manage your property to ensure continuous compliance with all operational conditions, handling everything from guest check-ins and noise monitoring to trash management and providing that essential 24/7 local contact.

  
  

Our goal is to take the stress out of the VHR permit process and property management, allowing you to enjoy the benefits of your investment in South Lake Tahoe.

Ready to get your South Lake Tahoe vacation rental permit and start welcoming guests? Contact Holland CoHost today for a personalized consultation!