Are Short Term Rentals allowed in South Lake Tahoe?

Question

Hi Everyone,

I'm looking into purchasing a short term rental in South Lake Tahoe. I know some tourist locations are cracking down on how many short term rentals are allowed... does anyone have some insight into the current outlook in Tahoe?

Thanks!

Ben Howard · Answer

Hello @Kia Grine here are a few notes:

On Tuesday, August 24th, 2021, the 
Board of Supervisors adopted a new VHR Ordinance adding a 500-foot 
buffer around all active VHR permits.

This ordinance change is County Wide - not just within the Tahoe Basin.

VHR changes adding the 500-foot buffer went into effect on October 1st, 2021. 
 If you currently have a VHR permit and are in good standing, this will 
not affect your property.   Please use the VHR map on this page to 
research properties within the County.

Another change in the Ordinance applied to properties that have been
renting WITHOUT a valid/issued VHR Permit. If you are cited by Code
Enforcement after January 1, 2021, you will not be able to apply for a
VHR Permit for One (1) year from the date of the violation. This
includes VHR Permits that were not submitted for renewal prior to the
expiration date of the permit.

On December 2, 2020, the El Dorado County Board of Supervisors voted to
approve amendments to the Vacation Home Rental Ordinance. One of the
changes was to limit the number of permits in the Tahoe Basin portion of
the County to 900 permits which were reached on Monday, May 24th.

Source: https://www.eldoradocounty.ca.gov/Services/My-Property/Vacat...

Also, this El Dorado County vacation home buffer map is helpful:

https://see-eldorado.edcgov.us/portal/apps/webappviewer/inde...

South Lake Tahoe has it's own MLS, South Tahoe Association of Realtors MLS (STAR), and I would suggest working with an agent that is affiliated with that MLS as they will be more current on the rules. Those of us who don't practice real estate in the north or south Lake Tahoe areas, usually are members of Metrolist, which serves lower elevations. Also, many agents elect to specialize in either the north or south shores, just like some focus on the California or Nevada sides.

Kia Grine · Answer

Thank you @Richard Goore! Appreciate the information. You've helped me rule out SLT, knowing that it's easier to get into other areas.

Richard Goore · Answer

If you are looking in/around the Tahoe area, the CA side of the lake would be your easiest route.

There are very limited locations in SLT and as others have mentioned for STR units.   I own a STR unit at Northstar and managing the permitting process has been pretty easy.  As of today (6/27/24) there are still 433 permits available.  This makes it easier for investors when there are still such a large number available as you can't apply for a permit until you are the owner of the property.  Permits are also NOT transferable.  There are discussions of lowering the permit quantity but nothing definitive yet.

There are some things you will want to think about before purchasing in the area - insurance, fire mitigation, etc.  Happy to talk further if you have more questions. LMK

Craig Jones · Answer

I’ll also mention that both Incline Village (NV) and the Placer County (CA) part of Tahoe have basically the same thing going on with permissive STR permitting.  Both are unincorporated places without local control and STR rules set by the county.  And both have county governments that are elected mostly by population centers that are pretty far away — Reno for Washoe County and Sacramento suburbs for Placer County.  I suspect that preserving the occupancy tax cash cow weighs on county officials more than the concerns of their constituents up at the lake.

Don’t get me wrong, I’m not complaining.  The year round demand with two peaks (ski season and lake / beach season) combined with a lower regulation threat make them pretty good places to own an STR.

Bradley Buxton · Answer

@Kia Grine

They are still allowed.  There are 5 counties, one incorporated city (SLT) around Tahoe and 2 states Each county has it's own STR regulations. There are still ways to operate, it's more hoops to jump through. City of South lake has a ballot initiative for a vacancy tax to be voted on in November. I live on the north side of the lake in Incline Village and there are some of the easiest to navigate.  Happy to connect and be a resource.

Kia Grine · Answer

Thanks for your replies. It seems fairly difficult to get into something there but I may reach out in the future @AJ Wong if we decide to move forward.

I don't live in the area so it wouldn't be a hosted rental situation @John Mason but it's good to know about that option.

Andrew Faukner · Answer

This November, residents of South Lake Tahoe will also be voting on a "Vacation Home Tax". If the property is not occupied for 6 months out of the year, (and you will have to prove that) then you will have to pay $3,000. From the second year onward, you will have to pay $6,000 per year that your property is not occupied for 6 months out of the year. The value of the home does not matter. The local measure will be "Measure N".

Kia Grine · Answer

Yes, seems like a great place to have an STR year round. Thanks for the details about the permits that's super helpful. Appreciate your insight @Craig Jones!

Craig Jones · Answer

The west side of the lake from Homewood all the way up to the Nevada state line is all unincorporated Placer County on the California side.  They have a cap of 3900 STR permits with about 500 still available.  All the housing that’s around the Palisades and Northstar ski resorts is also unincorporated Placer County.

Kia Grine · Answer

Thanks, @Bradley Buxton! I'd only really been looking on the California side. Good to know that Incline Village might be an easier option to get into.

Are Short Term Rentals allowed in South Lake Tahoe?

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