Rental Rift: Palm Springs Voters Will Decide in June Whether to Effectively Ban Vacation Rentals

Vacation rentals are one of the most contentious issues in Palm Springs—and on June 5, voters in the city will decide on a measure that opponents say would effectively ban vacation rentals, if approved.

Measure C is the culmination of a battle that’s been brewing for more than a decade over short-term rentals, or STRs. The housing-market crash during the Great Recession created an STR boom in Palm Springs, as buyers both local and from out of town snapped up foreclosed-property bargains, and later turned them into vacation rentals.

The problem is that these homes—available for weekend getaways and short retreats through Airbnb and other services, and at times the sites of rather raucous parties—are intermingled with homes occupied by full- and part-time residents.

According to Rob Grimm, the campaign manager for Palm Springs Neighbors for Neighborhoods—the group that got Measure C placed on the June ballot—there are 1,986 units registered as vacation rentals and home shares, which hosted an estimated 467,000 visitors in 2017.

“This is an alarming number of strangers to be rotating in and out of unsupervised mini-hotels located in residential neighborhoods,” said Grimm.

However, city officials claim that the STR issue is under control, thanks to strict enforcement of the city’s newish vacation rental compliance ordinance.

“We are one of the only cities in California that has a dedicated Vacation Rental Compliance Department,” said Boris Stark, a vacation-rental code-compliance officer. “Our latest ordinance … was a collaboration among community stakeholders and city leadership. It addresses neighborhood concerns head-on.”

Stark said the department includes eight officers and two vehicles. I personally have seen VRC officers working, often late at night and on weekends, to enforce the city’s ordinance. (I wanted to go on a ride-along with Stark, but City Manager David Ready did not respond to my request.)

The city makes hefty revenues from the STRs.

“For fiscal year 2016-17, total (transient occupancy tax) dollars from vacation rentals was $7.58 million, and for 2017-18, we anticipate the same,” Stark said. “Vacation Rental Compliance issued over 430 citations for various violations in 2017.”

Grimm said no neighborhood in Palm Springs has been unaffected by STRs.

“The city has refused to entertain density limits on the number of STRs allowed in the city,” he said.

Measure C has attracted fierce opposition in the form of a coalition called We Love Palm Springs. According to Jeremy Ogul, the coalition’s media relations coordinator, opposition to the STR ban comes from groups including Vacation Rental Owners and Neighbors of Palm Springs, representing nearly 400 homeowners; the Palm Springs Hospitality Association, with about 200 hotels, restaurants and attraction venues in the city; the Palm Springs Regional Association of Realtors; and the Palm Springs Chamber of Commerce, among other groups.

“We oppose Measure C because of the devastating impact it would have on the Palm Springs economy,” said Nona Watson, CEO of the Palm Springs Chamber of Commerce, in a news release.

While a majority of vacation rentals are owned by people who are not residents of Palm Springs, local entrepreneurs have also invested in STRs. Athalie LaPamuk owns and manages two vacation rentals in the city. She also owns and operates Ice Cream and Shop(pe) at the Arrive Hotel.

“I often meet visitors at my vacation rental who are excited to plan a return trip to stay at the hotel, or guests at the hotel who want to come back and stay in a vacation rental,” LaPamuk said in a news release. “Those are some of the same people who end up moving here and starting businesses here. The point is that our city benefits from all this tourism activity.”

Both sides fervently believe they are acting in the city’s best interests.

“It is time for the residents of Palm Springs to decide what their neighborhoods should look like,” Grimm said.