Short-term rentals (STRs), commonly referred to as vacation rentals in the City of Palm Desert, California, are legal but regulated by the city’s specific ordinances. Owners are required to obtain a permit and adhere to rules including the payment of Transient Occupancy Tax (TOT) of 11%. STRs thrive primarily in residential zones that permit such activities, typically in single-family homes or condominiums, catering largely to tourists seeking vacation accommodations due to the area’s appeal as a desert getaway. The market is predominantly tourist-driven, with significant demand during peak seasons and events, although some properties also attract business travelers. The City of Palm Desert Planning Department is responsible for overseeing the regulations surrounding short-term rentals, which include guidelines on operation, environmental impact, and zoning restrictions. For detailed regulations and requirements, visit the official city website at City of Palm Desert - Short-Term Rentals or Short-Term Rental Ordinance.