Updates to Short-Term Rental Ordinances in the Lake Tahoe Area

Leading Real Estate Agents in Lake Tahoe Tell you All You Need To Know

TAHOE CITY, CA, UNITED STATES, May 15, 2025 /EINPresswire.com/ -- The Rankin Richey Real Estate team announces new changes to Short-Term Rental ordinances in the Lake Tahoe Region: On March 13, the El Dorado County Superior Court overturned a ban on short-term rentals (STR) and vacation home rentals (VHR) in the city of South Lake Tahoe, and on April 3, the South Lake Tahoe City Council voted 4-1 not to appeal the court’s decision.

According to the Rankin Richey Team, real estate agents in Tahoe City, California, the continued influx of short-term rentals in the Lake Tahoe and Truckee area over the past 10 years and the growing popularity of rental marketplaces such as VRBO and Airbnb has lead communities around Lake Tahoe have voice concern and even take action to restrict short-term rentals and vacation home rentals.

Greg Rankin, a leading real estate agent in Tahoe City, Ca, says “residents are concerned about the impact STR’s have on workforce housing affordability and the price of homes in our area”. With this in mind, each county has implemented its own set of restrictions on vacation/short-term rentals.

On the Nevada side of the Lake in Douglas County VHR’s are allowed with no more than 600 permits issued in the Tahoe Township with a limit on density, (the total percentage of VHRs that may be permitted) per neighborhood area.

In Incline Village and unincorporated parts of Washoe County, also on the Nevada Side of the Lake, STR’s are allowed with restrictions, however some Home Owner’s Associations do not allow them. In the Town of Truckee in Nevada County, California, STR’s are allowed with a permit. Permits are restricted to 1,255 permits and that cap has been reached. In North Lake Tahoe in Placer County STR’s are also allowed with restrictions. There is a cap on permits of 3,900 which has not yet been reached.

In the City of South Lake Tahoe the most comprehensive restrictions on STR’s and VHR’s has been in place since 2018, when voters chose Measure T, which restricted VHR’s to a small area known as the “Tourist Core”. However, in 2021, an organization called South Lake Tahoe Property Owners Group filed a lawsuit against Measure T, arguing that it infringed on property rights and the group won in March 2025 on appeal. The City of South Lake Tahoe is now deciding how to implement VHR permits, possibly reinstating the 2017 ordinance which allowed the city to distribute 1,400 short-term rental permits to residential neighborhoods.

Across the Lake Tahoe area, concerns over vacation and short-term rentals abound. Many counties have implemented restrictions to some success, but there is more work to be done. As two Lake Tahoe locals and top real estate agents in Tahoe City, California, we have up to date and detailed information on the restrictions and ordnances for each county and township, visit The Rankin Richey Real Estate Team webpage for all the information.

Greg Rankin
Rankin Richey Real Estate Team
+1 530-913-6020
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