The annual Coachella Valley Music And Arts Festival is approaching, with festivities start April 11, 2025. Coachella is one of the biggest and most profitable music festivals in the world. Annually, the festival generates more than $100 million. Each year, people from around the country come to see their favorite artists perform their biggest hits. While the festival is always a fun time for attendees, a looming problem has developed regarding where to stay for tourists and has sparked controversy among the locals.
As Coachella nears, thousands of festivalgoers are turning to short-term rental platforms like Airbnb for accommodations. With hotel rooms in high demand, homeowners in Desert Hot Springs see an opportunity to capitalize on the influx of visitors by listing their properties as vacation rentals. However, recent city regulations may limit their ability to do so. For homeowners looking to list their properties for short-term stays, a vacation rental permit is required for rentals lasts fewer than 30 days. The cost of these permits varies based on the rental type:
- General rental fee: $1,241.81
- Primary residence vacation rental fee: $931.75
- Homeshare vacation rental fee: $620.90
These permits, which must be renewed annually, are non-transferable. Any vacation rental permit renewal applications must be submitted no earlier than 60 days and no later than 30 days before the expiration date. For those renting their homes fewer than 10 nights per calendar year, only a business license is required. Similarly, long-term stays (30 days or more), hotels, and motels are exempt from the vacation rental permitting process.
Short-term rentals in Desert Hot Springs are subject to a 12% Transient Occupancy Tax (TOT) for any rental of 28 consecutive days or fewer. Additionally, prospective hosts must ensure compliance with homeowners association (HOA) rules, lease agreements, and other community regulations before listing their properties.
The growing popularity of Airbnb and other short-term rental platforms has raised concerns about housing availability in Desert Hot Springs. Some residents worry that an increase in short-term rentals could drive up housing prices and limit the number of long-term rental options for locals. On the other hand, property owners see Airbnb as an opportunity to generate income, particularly during high-demand events like Coachella and Stagecoach.
Desert Hot Springs resident, Daniel Fuentes said, “I think the regulations are a good thing for the residents and homeowners. Too many Airbnb’s in our neighborhoods cause disruption and also affect people trying to buy a home.”
City officials have stated their commitment to working with residents and businesses to ensure that short-term rentals do not negatively impact the community. According to the city website, “as of December 7, 2023, Desert Hot Springs has instituted a cap on vacation rental permits, limiting them to four percent (4%) of the total housing parcels containing completed housing units. With 9,025 completed housing parcels in the city, only 361 vacation rental permits are allowed. This restriction may impact potential Airbnb hosts hoping to profit from festival-driven tourism.”
With Coachella on the horizon, homeowners interested in listing their properties on Airbnb must navigate the city’s new regulations carefully. While short-term rentals remain a lucrative option, compliance with permitting rules and tax requirements is essential. As Desert Hot Springs continues to balance tourism and housing needs, the impact of these regulations on both residents and visitors will be closely watched in the coming months.
For more information, visit the Desert Hot Springs short-term rental homepage.
