Isabella Carter
The City Council of Rancho Mirage, California, has banned all short-term rentals, defined as rentals under 27 days. The city's municipal code prohibits short-term rentals in all public neighborhoods and in any common-interest development imposing such a restriction. Penalties for violating the ban start at a $5,000 citation for the property owner and can escalate to $10,000 for each subsequent occurrence. Rancho Mirage has faced legal challenges from vacation rental property owners, who argue that the ban infringes on their business and that they were not given adequate notice. The city has received around 1,300 complaints and issued 51 citations related to short-term rentals in the first half of 2021. Despite the ban, several vacation rental companies continue to offer accommodations in Rancho Mirage, with prices starting at $100 per night.
| Characteristics | Values |
|---|---|
| Location | Rancho Mirage, California |
| Type of rentals | Short-term rentals, vacation rentals |
| Rental duration | Less than 27 days |
| Rental price | Starting at $100 per night, with an average of $575 per night for house rentals |
| Number of rentals | 1,172 rentals available for booking |
| Amenities | Pool, pets allowed, internet |
| Citations | 51 citations related to short-term rentals in the first six months of 2021 |
| Penalties | $5,000 citation for the property owner, escalating to $10,000 for each subsequent occurrence |
| Legal issues | Sued by vacation rental owners over the ban on short-term rentals in public neighborhoods |
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What You'll Learn
The ban on short-term rentals in Rancho Mirage
In October 2021, the City Council of Rancho Mirage, California, banned all short-term rentals, prohibiting stays of fewer than 27 days. The ban was enacted in response to resident complaints about issues such as garbage, noise, and parking problems caused by vacation rentals. The new regulations also stated that the city would no longer issue new short-term rental permits. Existing permits were extended until June 30, 2022, providing a transition period for affected property owners.
The controversy surrounding short-term rental bans is not unique to Rancho Mirage. Several other cities in the region, including Palm Springs, La Quinta, and Cathedral City, have faced legal challenges and community debates over their short-term rental policies. These cities have implemented various regulations, such as minimum age requirements for renters, increased permit fees, and restrictions on certain zones for short-term rentals.
While the ban aims to address neighbourhood disruptions, it also raises questions about the balance between regulating short-term rentals and supporting the local tourism industry. The outcome of the legal challenges against the ban remains to be seen, and the situation in Rancho Mirage highlights the ongoing tensions and complexities surrounding short-term rentals in desirable vacation destinations.
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The $5000 citation for property owners
The $5,000 citation for property owners in Rancho Mirage, California, is a penalty for violating the city's short-term rental ordinance. This ordinance, known as Ordinance No. 1174, prohibits short-term rentals in most residential neighbourhoods, specifically banning rentals under 27 days.
The ordinance was passed by the Rancho Mirage City Council in November 2020 and came into effect in December of that year. It amended a previous law that allowed vacation rentals within gated communities with homeowner association (HOA) approval. The new regulations prohibit short-term rentals in all public neighbourhoods and any common-interest developments with rental restrictions.
The $5,000 fine is the starting penalty for a violation of this ordinance, and it can be issued to the property owner, property manager, occupants, or any other responsible persons or authorised agents of the property. If the violation occurs again, the fine escalates to $10,000 for each subsequent occurrence, and the city may pursue additional legal remedies such as property liens, civil injunctions, and criminal prosecution.
The short-term rental ordinance in Rancho Mirage has been controversial and prompted legal challenges from vacation rental property owners. The city has received criticism for a lack of notice to property owners, with some stating they had already booked their homes for vacation stays in the following year. However, supporters of the ordinance argue that short-term rentals cause neighbourhood disruptions, including issues with garbage, noise, and parking.
Property owners in Rancho Mirage should be aware of the significant financial and legal consequences that can result from violating the short-term rental ordinance, as outlined above. It is important to stay informed about the latest regulations and any amendments to avoid penalties and ensure compliance with the city's rules regarding vacation rentals.
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The $10,000 fine for subsequent violations
In Rancho Mirage, California, short-term vacation rentals have been a contentious issue, resulting in lawsuits and a ban imposed by the city council. The ban prohibits rentals shorter than 27 days and outlaws short-term rentals in public neighbourhoods. This ban was enacted in response to numerous complaints from residents about issues such as garbage, noise, and parking problems caused by vacation rentals.
The ban has faced legal challenges, including a lawsuit filed by vacation rental owners and neighbours, who argued that the city violated the California Environmental Quality Act (CEQA) when enacting the ordinance. The city's response to violations of the ban includes fines, with penalties starting at a $5,000 citation for the property owner and potentially issued concurrently to the property manager, occupants, or other responsible parties.
For subsequent violations, the fine increases to $10,000 per occurrence, and the city may pursue additional legal actions, such as property liens, civil injunctions, and criminal prosecution. This steep fine serves as a strong deterrent to discourage repeat offences and encourage compliance with the short-term rental ban.
While some have challenged the ban, citing a lack of notice to property owners, the city has maintained its position, arguing that short-term rental permits are renewed annually, and any amended rules adopted during that year will be applied at the time of renewal. The city also highlights that there is no vested legal right for property owners to engage in short-term rental businesses indefinitely.
Rancho Mirage is not the only city in the region to face legal challenges over short-term rental policies. Nearby cities like Palm Springs, La Quinta, and Cathedral City have also grappled with similar issues, underscoring the complexities of regulating short-term rentals in desirable vacation destinations.
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The lawsuit filed by vacation rental owners
In December 2020, the City of Rancho Mirage passed Ordinance No. 1174, which prohibits short-term rentals in most residential neighbourhoods in the city. The ordinance was enacted in response to resident complaints about neighbourhood disruptions, such as garbage, noise, and parking issues, caused by short-term rentals. The new rules ban rentals under 27 days and prohibit short-term rentals in all public neighbourhoods and any common-interest developments with such restrictions.
In response to this ordinance, a group of vacation rental owners and neighbours of Rancho Mirage, including Allicia Louisa Davis, Scott Shanstrom, Mary Pavlica, and RM Vacation Rentals LLC, filed a lawsuit against the city in January 2021. The lawsuit, known as Vacation Rental Owners v. City of Rancho Mirage, challenged the constitutionality and validity of Ordinance 1174. The petitioners argued that the municipal defendants violated the California Environmental Quality Act (CEQA) when enacting the ordinance. They also claimed that the city failed to provide adequate notice to property owners, many of whom had already booked their homes for 2021 vacation stays.
The lawsuit resulted in a preliminary injunction issued by the court, requiring the City of Rancho Mirage to process certain residential property owners' applications for short-term rental certificates based on the law prior to Ordinance 1174. The municipal defendants appealed the order modifying the preliminary injunction and moved to strike the petitioners' claims under the anti-SLAPP statute, which protects against strategic lawsuits against public participation. However, the trial court denied their motion.
The lawsuit filed by the vacation rental owners in Rancho Mirage highlights the ongoing tensions between short-term rental regulations and the rights of property owners. While the city aims to address resident complaints and maintain neighbourhood peace, the vacation rental owners argue for their vested interests and the economic benefits brought by short-term rentals to the region.
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The city's response to the lawsuit
In response to the lawsuit filed by Vacation Rental Owners and Neighbors of Rancho Mirage, the City of Rancho Mirage and its city council (collectively referred to as the municipal defendants) denied the claims made by the petitioners. The municipal defendants argued that the court did not have the authority to meet the plaintiffs' demands and that any changes sought by the group would need to come from a modification of the city ordinance.
The City of Rancho Mirage also appealed the trial court's decision to modify a preliminary injunction, which required the city to process certain residential property owners' applications for short-term rental certificates based on the law prior to the enactment of Ordinance 1174. The municipal defendants claimed that the court's order to modify the preliminary injunction was incorrect, and they requested that the original injunction be upheld.
Additionally, the municipal defendants moved to strike the petitioners' claims under the anti-SLAPP statute, arguing that the lawsuit was a strategic lawsuit against public participation. The trial court denied this motion, and the municipal defendants appealed the order.
The City of Rancho Mirage maintained that its short-term rental ban was a response to resident complaints about neighbourhood disruptions, including garbage, noise, and parking issues. The city also highlighted that short-term rental permits are renewed annually, and any amended rules adopted by the council during the year would be applied at the time of renewal.
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Frequently asked questions
Citations for short-term rentals in Rancho Mirage start at $5,000 and can be issued to the property owner, manager, occupants, or other responsible persons.
Penalties for violating the short-term rental ban in Rancho Mirage include citations starting at $5,000, escalating to $10,000 for each subsequent occurrence, and other legal remedies such as property liens, civil injunctions, and criminal prosecution.
The City Council of Rancho Mirage, California, has banned all rentals under 27 days, defining them as short-term rentals.
Yes, there have been several legal challenges to the short-term rental ban in Rancho Mirage. The city has been sued multiple times, with cases titled "Vacation Rental Owners v. City of Rancho Mirage, No. E077462" and "Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage, No. E077118".
Yes, there are still some options for short-term rentals in Rancho Mirage despite the ban. Evolve, for example, offers 8 vacation rentals in the area, some of which are kid-friendly and pet-friendly.
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