Updated December 19th 2023
Lake Tahoe has long been viewed as an extremely desirable year-round vacation destination, and for good reason. There are plenty of reasons why buyers choose to invest in property in Lake Tahoe/Truckee. It’s an idyllic, natural playground with sunshine 300+ days a year, stunning landscapes, and endless opportunities for outdoor sports and adventure. Although visitor numbers peak around major holidays during summer and winter, there is a steady stream of out-of-town traffic nearly every week. This provides an excellent opportunity for those who wish to own Lake Tahoe property, while mitigating some of the costs of prime real estate ownership.
With vacationers aplenty year round, Lake Tahoe is a popular choice for those looking for a reliable short-term rental income flow.
Setting up a short-term rental (STR) arrangement can have its obstacles. Due to its impact on the local economy and resident lifestyle, each community has a different set of regulations in place. If you are considering buying property in Lake Tahoe for the purpose of short-term rental income, make sure you are aware of local policy regarding these properties. This guide serves as a reference and may not be up-to-date or accurate. Please use the corresponding county websites to validate current regulations, as these are constantly being changed. This information does not serve as legal advice.
Since the implementation of what is called "Measure T" in 2018, short-term rentals have been banned within the city limits of South Lake Tahoe, although there are a few exceptions- See below for eligible areas.
The Tourist Core is exempt from the Measure T regulation mentioned above. Although it is located within the city limits of South Lake Tahoe, it is an area zoned for commercial and tourism, so vacation rentals are permitted. Buyers beware, there is a limited number of single-family homes and condo complexes (such as Lakeland Village, Sierra Shores and Zalanta) located within this area.
Currently, In The Tahoe Basin permits are still available as the 900 cap has not been reached | West Slope Area Does Not Have A Cap- There must Also be 500-feet between rentals in El Dorado County.
All the South Lake Tahoe neighborhoods outside of the area highlighted in red are considered county neighborhoods. Vacation rentals are still allowed in the county but are restricted to a 900 permit cap and also have a 500-ft buffer zone around each VHR/STR property.
Currently, The Tahoe Basin is still accepting applications and the West Slope area does not have a cap. Note: Properties that have an active permit when a house changes ownership do not transfer. When the house sells, the permit becomes null and void.
Fees: $190 For New Permits | $178 For Renewals
Located along the southeast shoreline, Douglas County encompasses the communities of Stateline, Zephyr Cove, and Glenbrook. This county has also instituted a 600 permit cap on STR permits within county limits, effective July 15, 2021. The remaining applicants will be placed on a waitlist to qualify to apply for future available permits.
Effective June 15, 2023, Douglas County is using a waitlist process for full areas.
*NOTE* There is an initiative seeking to eliminate all vacation rentals (VHRs) in residentially zoned areas in Douglas County, Nevada, inclusive of the Tahoe Township, over a phase-out period of three (3) years.
Incline Village is located along the northeast shore of Lake Tahoe, in Washoe County. A rental permit must acquired from Washoe County to operate a short-term rental in Incline Village. Please keep in mind that for condos and townhouses, most of the HOAs in the area do not allow short-term rentals.
Some areas on the West Shore (Homewood and part of Tahoma) are located in Placer County. New STR permit applications, that are received prior to reaching a total cap inventory, will be processed on a first come first serve basis. At such point that the total cap inventory is reached, all outstanding permit applications, either in process or received will be placed on a waitlist.
The current cap is 3,900 STR permit as of Nov. 2023.
There are currently 3,304 Licensed Short-Term Rental properties as of Nov. 2023
Currently, In The Tahoe Basin permits are still available as the 900 cap has not been reached | West Slope Area Does Not Have A Cap- There Must Be A 500-feet between rentals in El Dorado County.
Currently, The Tahoe Basin is still accepting applications and the West Slope area does not have a cap. Note: Properties that have an active permit when a house changes ownership do not transfer. When the house sells, the permit becomes null and void.
Fees: $190 For New Permits | $178 For Renewals
Tahoe’s North Shore is comprised of several small communities scattered along the major roadways: Tahoe City, Tahoe Vista, Kings Beach, Carnelian Bay, Olympic Valley and some areas on the West Shore (Homewood and part of Tahoma) are located in Placer County. New STR permit applications, that are received prior to reaching a total cap inventory, will be processed on a first come first serve basis. At such point that the total cap inventory is reached, all outstanding permit applications, either in process or received will be placed on a waitlist.
The current cap is 3,900 STR permit as of Nov. 2023.
There are currently 3,304 Licensed Short-Term Rental properties as of Nov. 2023
NOTE: Truckee has reached its cap of 1,255 permits and no registrations are currently available.* THE WAITLIST IS CURRENTLY FULL
Truckee is part of Nevada County. There is a 365-Day waiting period after a home sale before the new owner may apply for the waitlist. Even if the purchase date was prior to the regulation going into effect the waiting period would still apply. Please do not apply for the waitlist should the property be under construction or yet to be constructed/vacant land. Only proceed with the waitlist application process should you have obtained your Certificate of Occupancy (property is safe to inhabit).
Annual Renewal Highlights:
Renewal Timeframe: November 1st - December 31st
Annual Renewal Fee: $481
Some areas on the West Shore (Homewood and part of Tahoma) are located in Placer County. New STR permit applications, that are received prior to reaching a total cap inventory, will be processed on a first come first serve basis. At such point that the total cap inventory is reached, all outstanding permit applications, either in process or received will be placed on a waitlist.
The current cap is 3,900 STR permit as of Nov. 2023.
There are currently 3,304 Licensed Short-Term Rental properties as of Nov. 2023
If you are interested in learning more about purchasing and managing a STR in Lake Tahoe, it is best to do so with the guidance of an experienced, local real estate agent. Please feel free to give us a call at (530)581-1400. We are here to help answer any questions you may have.
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