UPDATE: Council OKs Short Term Rental Ordinance

The Palm Desert City Council moved forward Thursday with an ordinance that cracks down on short-term rentals, also known as "party houses," in Palm Desert.

The ordinance -- which will undergo a second reading with a few changes later this month -- requires property owners to get a permit to operate a home as a short-term rental.

Councilwoman Jan Harnik requested that the ordinance be changed to allow renters to have more daytime guests. The law previously stated that only one daytime guest was allowed for every two renters.

"My concern is the total number of people who can be there during the day. It seems a little draconian," Harnik said.

Under the law, anyone who operates a short-term rental in Palm Desert without a permit could face fines between $1,000 up to $5,000 over a year-long period. In addition, violators of the city's code could face a fine of $250 up to $1,500, according to a city staff report.

In addition, home owners have to provide a local contact who will be available 24-hours a day to respond to potential problems.

City officials hope the new law will help Palm Desert collect unreported transient occupancy tax.

Councilwoman Jean Benson asked for a review of the ordinance in six months to guage its effectiveness.