Short-Term Rental Permit Regulations and Guide For Lake Tahoe & Truckee
Lake Tahoe is one of the most beautiful locations on Earth, and every year hundreds of thousands of tourists visit Tahoe from all over the world. It is also one of the most popular vacation destinations in the USA. It’s not a surprise that short-term rental properties on platforms like Airbnb, Booking.com, etc. have gained popularity in this region due to rental income potential. Whether one is a second home buyer or an investor, or someone wanting to enjoy longer vacations but in idle time renting the property on a short-term basis, owning a vacation property in North Lake Tahoe can be a smart investment, especially if you're considering the rental market. But with the increasing number of short-term rentals, there come regulations for operating and obtaining short-term rental permits for the properties.
If you are considering renting out your property on a short-term basis in Tahoe, you have to have a short-term rental permit in order to do so. The varied short-term rental (STR) permit regulations across different counties and towns can be a complex process. This comprehensive guide aims to demystify the process and help you understand where and how you can operate your vacation home rental successfully.
Overview
Lake Tahoe and Truckee are divided into 2 states (Nevada, and California) and five different counties (Washoe, Placer, Douglas, Eldorado, and Truckee), and each of these counties has its own different rules and regulations restricting or governing short-term rentals. That means to operate a short-term rental in the Tahoe or Truckee region, you will need a short-term rental permit from the respective county.
As these different areas have different policies, I rank these areas from the most lenient regulations to the most strict regulations:
Incline Village & Crystal Bay ( Washoe County, NV)
Placer County, CA Areas & Douglas County, NV Areas
Truckee, CA (Nevada County)
El Dorado County, CA Areas (Outside of South Lake Tahoe, CA)
South Lake Tahoe, CA (Areas Subject to Measure T)
Here, I have divided El Dorado County areas into further 2 categories. One is the areas that are outside of South Lake Tahoe and the others are in South Lake Tahoe which are subjected to Measure T ( Measure T is a special policy for some Specific Locations in South Lake Tahoe).
Incline Village & Crystal Bay (Washoe County, NV)
Incline Village and Crystal Bay are a part of Washoe County and are located along the north shore of Lake Tahoe also known as North Lake Tahoe. Currently, there are no restrictions regarding operating a short-term rental in these areas. However, there are rental regulations and a short-term rental permit is essential to operate, which can be obtained from Washoe County.
Keep in mind that many HOAs (Home owner’s associations) do not allow short-term rentals.
Click here to obtain a short-term rental permit in Incline Village or more information
Placer County, CA Areas & Douglas County, NV Areas
Here are the short-term rental regulations for Placer County Areas and Douglas County Areas:
Placer County, CA Areas:
Placer County consists of North Shore Areas (Tahoe City, Kings Beach, Tahoe Vista, Carnelian Bay, Dollar Point, North Star, Palisades Tahoe) and some West Shore Areas ( Homewood and part of Tahoma).
Placer County has put a cap on the total number of short-term rentals and the total number of short-term rentals has been capped at 3,900.
In January 2022, the Placer County Board of Supervisors introduced an ordinance which was adopted in February 2022. According to this, a cap has been introduced to the total number of short-term rental permits. A change in the ownership of the property with a STR permit shall result in the cancellation of the STR permit. The new owner can apply for the STR permit and the permit will be granted in the following order:
1st Priority: Those who need permit renewal.
2nd Priority: Those who were exempt from this new rule in Palisades Tahoe and other unique conditions.
3rd Priority: Those with new applications or applying after this ordinance.
The new STR permit applications, that are received before reaching the total cap of 3,900, will be processed on a first come first serve basis. After the total cap is reached, all the pending applications will be placed on a waitlist. The county will maintain the cap inventory in case the permits are not renewed or revoked. As of May 2024, the cap has not been reached yet, so new applications are being accepted. Condo Hotels are exempt from this short-term rental policy. You can contact Murat Gocmen for more information.
Click here to apply for a STR permit in Placer County or for more information.
Douglas County, NV Areas:
Douglas County is present in the state if Nevada along with the South Shore of Lake Tahoe. Glenbrook, Zephyr Cove, Round Hill, Stateline, and Kingsbury are all included in Douglas County.
Like Placer County, Douglas County has also placed a cap of 600 short-term rental permits within the county limits, effective from July 2021. Another limit is placed on density per neighborhood area. Any new or remaining applications will be placed on a waitlist and will be reviewed on a first-come, first-serve basis. Short-term rental permits are only allowed in the Tahoe Township areas, and the owners of any property being operated or advertised as an unpermitted vacation rental located anywhere in Douglas County is in violation of the Douglas County Code. In order to get a permit, the property will have to pass fire safety inspection.
Click here to apply for a STR permit from Douglas County or for more information.
Click here for a map of density by neighborhood area.
Truckee, CA (Nevada County)
Truckee is present in the Nevada County. In April 2022, a new ordinance was adopted with some modifications by the Town Council regarding regulations for short-term rentals (STR). According to this:
A registration certificate cap of 1,255 was placed (which has already been reached)
Phase out STRs in Accessory Dwelling Units (ADUs) and Multi-Family Dwelling Units: Properties with existing permits will be allowed to renew their permits, if not renewed the homeowner will be unable to apply. No new registrations will be issued for such properties.
365-day waiting period after a home dale before the new owner can apply for a STR permit.
Increased penalties for the violation of the ordinance up to $5000.
Two-part Waitlist Application Process including a $100 non-refundable deposit.
El Dorado County, CA Areas (Outside of South Lake Tahoe, CA)
All the areas located outside of South Lake Tahoe (which is highlighted in red in the map below) are known as county neighborhood. STRs are still allowed in these areas but there are some restrictions:
They have a 900 permit cap, which has been reached. But you can always check because it can change.
If you want to buy property in Eldorado County, always check the buffering map first. If your property is in a 500-foot buffer zone of the permitted property, it is not eligible for a Vacation Home Rental permit. You will be added to a waitlist until there are no properties within 500ft of your location that holds an active permit.
Rental permits are not transferable (e.g. when a house changes ownership)
Click here to apply for a permit in El Dorado County or for more information.
South Lake Tahoe, CA (Areas Subject to Measure T)
What is Measure T? Why Vacation Home Rentals are banned in the areas subjected to Measure T?
Measure T is a citizen-initiated ballot measure that amended the city regulations on vacation home rentals (VHR) in South Lake Tahoe. In November 2018, Measure T was implemented and vacation rentals were banned in the city. Moreover, homeowners who had vacation rental permits, lost their permits as Measure T says that current permit holders will not be allowed to renew their permits. Please see the map of South Lake Tahoe below, vacation rentals have been banned from the area that is highlighted in red color.
Click here for more information about the rental restriction in South Lake Tahoe due to Measure T.
What is Tourist Core in South Lake Tahoe? Vacation Home Rentals are permitted in Tourist Core.
The tourist core area is located within the city limits of South Lake Tahoe. Measure T does not affect the VHRs in non-residential areas of South Lake Tahoe as the tourist core is zoned for commercial and tourism. However, the VHR permits are not allowed anywhere in the city for multi-family properties. There are very few single-family houses in the tourist core and they rarely come up for sale. Other than that there are few condo complxes that are exempted from Measure T and are located in the Tourist Core.
Click here for more information about the Tourist Core in South Lake Tahoe.
Click here to see a map of permitted areas for vacation home rentals in South Lake Tahoe.
Is there any other way to rent my entire home in South Lake Tahoe?
Measure T allows the properties to rent within the residential zone, whose owner is a permanent resident of the city of South Lake Tahoe, for up to 30 days (consecutive or non-consecutive) total per one-year permit period.
Click here for a qualified vacation home rental application. Proof of primary residence property tax exemption is also required.
Can a portion of the house be rented in South Lake Tahoe?
In November 2020, the Council of South Lake Tahoe adopted an ordinance allowing qualified homeowners or tenant to rent a portion of their home.
Summary
For a recap, STRs do not have any restrictions in Washoe County in which the areas of Incline Village and Crystal Bay are included as you can see in the map. You just have to get the permit from the Washoe County.
STRs in Placer County have a cap of 3,900 and the permit will be granted on a first come first serve basis. In Douglas County, the cap is 600 on the STRs.
In the Truckee region which is a part of Nevada County, the cap on registration is of 1,255. If a permit is not renewed, another permit will not be assigned to that property. And if you are selling a property, there will be a 365-day gap before the new owner can apply for a STR.
In Eldorado County, the area outside of the city of South Lake Tahoe, there is a permit cap of 900, and if you are buying a property in this county, make sure to check the buffer map.
In the city of South Lake Tahoe vacation rentals are banned due to Measure T. But VHRs are allowed in the Tourist Core. But it is very difficult to buy property in Tourist Core if you are thinking about buying it for rental purposes.
Please feel free to contact us any time, if you need more information regarding buying property or renting out a property on short terms, or any other information.