The city council voted unanimously on three new resolutions that go into effect on October 9, 2020 dealing with short-term vacation rentals (STVRs) related to licensing fees, fines for violation of the STVR ordinance, and complaint protocols.
Beginning October 9th, the cost for the annual STVR license for properties except those considered as “home sharing units” will increase to $1950 in Cathedral City. Home sharing is when the property owner rents a portion of their property such as a bedroom or casita and remains on the property during the rental. Home sharing STVR annual license will be assessed at $525 which includes the cost of inspections, notifications and business licensing. The license fee increase is due to approved STVR enforcement enhancements that will provide 24/7 coverage. Increased enforcement over the next two years is estimated to cost the city $409,888 annually and the increased fees are needed to recover those costs as well as the existing costs the City incurs to manage to STVR program.
STVR owners also face increased fines for violations related to their properties. Any violation of the STVR ordinance, which may include noise, occupancy, trash, and parking will be $1,000 for the first violation, $3,000 for a second violation, $5,000 for a third violation, and suspension of the STVR permit for a fourth violation within a 12-month rolling year.   If an owner operates an STVR without an STVR license, the owner must pay any delinquent Transient Occupancy Tax (TOT) with penalties and interest along with a $5,000 fine for the 1st violation, $10,000 for a second violation, and $15,000 for a third and subsequent violations. The city council also established fines for licensed STVR owners who fail to properly advertise their units for rent with a $2500 fine for the first violation, $5,000 for a second violation and $7,500 for a third violation. Finally, any resident who files a false claim against an STVR property will face a $100 fine for the first violation, $250 fine for a second violation, and $500 fine for a third violation.
Additionally, the city council adopted an STVR complaint protocol for reporting a nuisance vacation rental. Callers should call the STVR Hotline at (760) 553-1031 to report any issue with the following two exceptions:
- The STVR Hotline is not functioning residents then should call the Cathedral City Police Department’s non-emergency number at (760) 770-0300; or
- If it is an emergency, call 9-1-1.
To stay updated on all matters related to STVRs, go to https://www.cathedralcity.gov/services/vacation-rental-information/short-term-vacation-rentals for the latest information.
