If you have a vacation home at Lake Tahoe, chances are you’ve considered its rental income potential. Tahoe is a year-round destination, and short-term rentals at the lake have their appeal. We’ve already covered necessary considerations for turning your vacation home into a vacation rental, but here, we’re diving into what you need to know about short-term rental regulations at Lake Tahoe.

It’s… Complicated

There’s no question that short-term rentals have a direct effect on local economies and residents, and different communities have different ways of managing these scenarios. Lake Tahoe is no exception. Depending on where you buy on the lake, you’ll have a specific set of regulations and policies that outline what exactly you can legally do with your property.

North and West Shore — Washoe, Placer, and Nevada Counties

Here’s what to expect in Incline Village, communities like Tahoe City, Tahoe Vista, Kings Beach, Carnelian Bay, Olympic Valley, and parts of Homewood and Tahoma.

• In Incline Village, there are no current rental restrictions from the county, though there are regulations in place, including permitting requirements. The challenge in Incline is often with homeowner’s associations — most in this area don’t allow short-term rentals.
• In North Shore communities, including Kings Beach over to Tahoma, permits are required and issued in a specific order based on an extension to a 2021 moratorium that capped prenatal permits at 3,900. If you don’t currently have a permit, you can hop on a wait list that will open for application process beginning July 1, 2022
• In Truckee, as of February 2022, short-term rental registration certifications have been capped, with a waitlist that has yet to be established for hopeful renters. The city is phasing out short-term rentals in multi-family units and accessory dwelling units, but current certification holders in these properties can renew their certificates. A one-year waiting period has been established after a property sells before it’s eligible to register as a short-term rental.

South Shore — El Dorado and Douglas Counties

• In South Lake Tahoe city limits, short-term rentals have been banned. Any permits expired in 2021, and there is renewal process at this time. However, homes in the so-called tourist core — an area zoned for commercial and tourism — can be vacation rentals. The catch, of course, is the very limited number of single-family homes and condos in this part of town.
• County neighborhoods in South Tahoe permit vacation rentals, but issues permits are capped at 900. At this time, that number has been met, which means prospective permit holders are in a holding pattern. And before you ask — transfers are not available. If a home sells, any permits in good standing become mull and void
• In Douglas County, home to communities like Stateline, Zephyr Cove, and Glenbrook, a 600-permit cap is in effect as of July 2021. Waitlist applications are available each year during the month of July only.

Learning More

When it comes to vacation homes and short-term rentals in Lake Tahoe, every property and experience is a little bit different. If you have specific questions that apply to your situation, I’m happy to troubleshoot.