The shortage of available inventory for sale in Lake Tahoe and Truckee drove an increase in home values upwards of 24% since 2019. Additionally, the pandemic led many second homeowners to relocate from the Bay Area to live in Lake Tahoe and Truckee.
This migration has created a shortage of rentals for the local work-force. While home values have escalated, wages have not. This has made it almost impossible for locals to purchase a home in the Lake Tahoe basin.
To address this issue, both Placer County and the town of Truckee implemented short-term rental ordinances. The North Shore of Lake Tahoe is in Placer County, while Truckee is incorporated as its own town and located in Nevada City. The ordinances are slightly different between the two areas.
A short-term rental is a residential unit that is rented for 30 days or less, typically referred to as a vacation rental. Commercial lodging, such as hotels, motels, condo-hotels and timeshares are exempted from these ordinances. Permits are required when renting your property as a short-term vacation rental.
In addition to addressing the housing shortage, these ordinances also seek to preserve the community’s unique character and to prevent the nuisances that can come from the constant turnover of vacation renters. They have implemented new regulations for noise, trash, parking, and occupancy limits, with increased penalties and phone numbers to report any nuisance. All short-term rentals also need to comply with building and fire codes.
At the beginning of 2022, both Placer County and Truckee implemented these ordinances, which are currently in effect. Effective March 31, 2022, the total number of short-term vacation rentals in Placer County is now capped at 3,900 units. For the town of Truckee, the cap is currently at 1,255 units and applications are now on wait-list status.
Truckee Short Term Rental Ordinance
In Truckee, there is also a one year waiting period after any new home purchase, prior to seeking a short-term rental permit. Additionally, no new certificates will be issued for Accessory Dwelling Units (ADU) such as granny flats and guest houses, and multi-family units such as apartments and multi-family dwelling units.
Truckee requires a $100 non-refundable deposit due at the time of application submission. The application will be reviewed and they will notify the applicant of approval and waitlist status via email. Once the application is approved, there is no need to re-apply each year. A certificate will be issued when a spot opens up. The $100 deposit will be applied toward your registration fee.
Placer Short Term Rental Ordinance
In Placer County, existing STR permits in good standing can be renewed prior to the expiration date of the permit, and they are given first priority. Beginning with the 2023 permit cycle, if a property owner or agent fails to submit an application for renewal prior to the expiration date of the permit, the application will be treated as a new permit and processed on a first come first serve basis.
In an effort to bring all existing STR units under this new permitting process, Placer County also created a grace period to allow for this compliance. All new STR permit applications will be issued on a first come, first serve basis. Any change in ownership will automatically terminate the prior STR permit. The new homeowner will need to apply for a new STR permit.
As of this writing, there are openings in Placer County to obtain a STR permit. Contact me today for more information. These permits are not expected to last!
Ski/Summer leases
This is a great option to avoid any permits and the 13.25% transient occupancy tax (TOT). These types of leases come with less wear and tear to your home which creates less maintenance cost and cleaning fees. Monthly rents are typically higher than your average long term renter and homes come furnish for easy move in for your renters. Contact me today for more
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