Short term rental rules in South Lake Tahoe have changed significantly after a 2025 court decision overturned the prior Measure T ban, leading the city to adopt a new vacation home rental ordinance. Today, rentals are allowed again in limited areas, including the Tourist Core and certain residential zones, but with strict controls such as spacing requirements between rentals, phased permit issuance, and caps in residential neighborhoods. All properties must have a valid vacation home rental permit before being advertised or rented, and permits are issued in stages, often with monthly limits and priority given to previous permit holders.
The updated rules place heavy emphasis on neighborhood impact and safety. Occupancy is typically limited to two adults per bedroom, with parking-based limits, and properties must meet inspection requirements before approval. Owners are required to have a 24/7 local contact, follow strict noise, parking, and trash regulations, and ensure compliance with tax requirements like transient occupancy tax. Enforcement is strict, with fines, permit revocation, and active monitoring used to prevent overcrowding and nuisance issues, making it critical for buyers and investors to fully understand where rentals are allowed and how these regulations affect long term use and income potential.
READ MORE | SOUTH LAKE TAHOE STR RULES