South Lake Tahoe caps short-term rentals at 900 in residential districts

South Lake Tahoe, California, has set new rules for short-term rentals (STRs), including capping the number of permits allowed in residential areas to a maximum of 900 and eliminating a requirement that STRs must be spaced at least 150 feet apart. Under the new rules, operators must also make it clear to guests that they’re staying in a residential neighborhood by stating in the listing that the STR is subject to stricter rules aimed at preventing disturbances and preserving neighborhood character.

Key takeaways

1. South Lake Tahoe is tightening the rules while keeping the door open. The city capped residential STR permits at 900, added stricter guest and operational requirements, but also expanded eligibility to condos and removed the old spacing requirement.
2. South Lake Tahoe hosts are on the hook for taxes. Unlike some California cities, Airbnb and Vrbo don't remit lodging taxes in South Lake Tahoe, meaning operators must register, collect, and remit taxes themselves or risk losing their permits.
3. Local regulations rule in California. There’s no statewide approach: South Lake Tahoe is refining its rules, Riverside County has paused new permits in some areas, and San Bernardino has banned STRs altogether.

Other changes to South Lake Tahoe’s STR regulations include:

• Guests must be at least 25 years old to rent an STR.
• Condominiums are now eligible for STR permits, unless prohibited by homeowners associations.
• STR operators must report the number of nights the property is rented when submitting transient occupancy tax (TOT).
• Permits may now transfer into a family trust for estate planning purposes.
• Permit denial appeals will now be heard by an independent hearing officer instead of the planning commission.

The latest amendments modify a law that went into effect in July 2025. Rules include:

• Operators are required to obtain a Vacation Home Rental (VHR) permit.
• The permit number must be included in all listings and advertisements.
• The number of guests allowed is limited according to the number of paved parking spaces and number of bedrooms on the property.
• Commercial activities such as weddings and large parties are prohibited.
• Guests must follow noise, garbage, and parking rules.
• STR operators with three violations within a 24-month period can permanently lose their permit.

In residential neighborhoods outside the tourist core, STR operators must use a local property manager to check in guests and go over the rules, ensure compliance with operating conditions, receive real-time indoor sound monitoring and outdoor video monitoring, and respond to complaints in person 24/7.

An older STR ordinance, Measure T, was overturned by the El Dorado County Superior Court in March 2025. Measure T, approved by voters in 2018, phased out existing STRs in prohibited areas over a period of three years. The ordinance applied to properties rented for 30 days or fewer outside the city’s tourist core and required operators in those areas to cease offering short-term rentals after December 31, 2021. An exception allowed permanent residents to rent their properties on a short-term basis for up to 30 days a year.

In 2021, the South Lake Tahoe Property Owners Group filed a lawsuit against the measure, arguing that it discriminated against property owners who are not full-time residents. The measure was upheld by an appeals court in 2023. However, the 2025 ruling from the El Dorado County Superior Court struck down the entire ordinance, stating that the permanent resident exception was unconstitutional and discriminatory.

In southern California, communities are also changing STR rules. Riverside County has extended a moratorium on issuing new STR permits in Thousand Palms and B-Bar H Ranch to give the county more time to study the effect of STRs, especially during big events such as the Coachella music festival. The moratorium, issued April 14, could last up to 10 months.

The county defines STRs as stays of less than 30 consecutive days and requires STR operators in unincorporated areas to obtain a Short Term Rental Certificate, follow occupancy limits, install outdoor noise monitors, and observe quiet hours between 10:00 p.m. and 7:00 a.m. 

The rules also require hosts with properties under five acres in size to notify neighbors within 300 feet that they will be operating a short-term rental, as well as post an outside sign offering contact information. Guests are required to follow rules on noise, parking, trash, and pets, and operators or an agent must respond within an hour to emergencies or complaints. Violations of the law can result in up to $5,000 in fines.

Riverside County STR operators are also required to collect TOT from guests and remit it to county tax authorities. While Airbnb collects transient taxes in Riverside County, Vrbo doesn’t. Hosts are responsible for any taxes that aren’t collected on their behalf.

In San Bernardino, California, the City Council voted to ban all STRs due to concerns about noise, parking problems, and property damage. The ordinance goes into effect May 15. Violations can result in a $1,000 fine, and the city is considering hiring an outside firm to track illegal STRs. More than 100 STRs are operating in San Bernardino, according to a city report, but they aren’t regulated.

Avalara MyLodgeTax can help automate and simplify tax compliance for STR operators. For more on lodging taxes in California, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.

FAQs

How many STR permits are allowed in South Lake Tahoe?

The city has capped permits in residential areas at 900.

What happens if I don't pay lodging taxes?

The South Lake Tahoe City Manager has the authority to revoke your Vacation Home Rental permit for failing to stay current on transient occupancy tax (TOT) payments.

Can I still operate an STR in San Bernardino or Riverside County?

It depends. San Bernardino has banned all STRs effective May 15, with fines up to $1,000 for violations. Riverside County has paused new permits in Thousand Palms and B-Bar H Ranch for up to 10 months while studying STR impacts.