In a split vote of 3-2, the South Lake Tahoe City Council approved a newly revised Vacation Home Rental (VHR) ordinance on June 3, following weeks of intense public discussion and input. Councilmembers Scott Robbins and David Jinkens opposed the measure. The ordinance will have its second reading on June 17 and, if finalized, will go into effect on July 17, 2025.

This new ordinance affects short-term rental homes located outside of the city’s Tourist Core and commercial zones. The update follows the March 2025 ruling by El Dorado County Judge Gary Slossberg, which struck down Measure T in full, citing its unconstitutional restriction on interstate commerce. Rather than appeal, the council chose to draft a new ordinance with input from city staff and residents.

What’s Changing?

The newly approved rules are an updated version of the 2017 Ordinance No. 1114, with several notable modifications:

  • Permit Limits and Buffer Zone: The cap of 1,400 VHRs has been removed. Instead, a 150-foot buffer between VHR properties will be enforced, although condominiums are exempt if they held permits as of September 1, 2016.
  • Monthly Permit Cap: A maximum of 150 VHR permits will be issued each month to prevent overwhelming city staff and services.
  • Check-In and Monitoring: Guests must complete a Good Neighbor Contract either in person or via virtual check-in with a verified signature. Properties must have indoor noise monitors and outdoor cameras to oversee trash and parking.
  • Occupancy Limits: Two adults per bedroom are allowed, with up to five additional children under 13 permitted. Studios may house two adults and two children.
  • Violations and Enforcement: Fines and enforcement measures have been strengthened. All permits will now be issued through the Police Department, and repeat violations will be escalated to the Planning Commission.
  • Application Flexibility: There is no longer a two-year waiting period to apply for a permit after a property sale. Defensible space inspections are now required for fire safety.

The ordinance also grants application preference to prior VHR holders in good standing and will undergo a permit fee review to ensure it reflects the city’s administrative costs.

Opposition and Appeal

The ordinance drew criticism from the Tahoe Neighborhoods Group, the same organization behind Measure T. Group representatives Peggy Bourland and Dianne Rees announced they would appeal the court ruling that overturned Measure T, arguing the city should have defended the will of the voters rather than reintroduce short-term rentals into residential neighborhoods.

“The City ignored its responsibility to the majority of voters,” said Bourland and Rees in a joint statement. “We believe the courts should re-examine the decision, and we intend to push forward with our appeal.”

A Flexible Start with Eyes on the Future

Councilmembers supporting the ordinance emphasized the need to act before the busy summer season begins. Mayor Pro Tem Cody Bass acknowledged the concerns but said the ordinance allows the city to gather real-time data and make evidence-based changes by fall.

“We’ve had four meetings on this,” Bass stated during the session. “By capping new permits at 150 per month, we give our team time to evaluate and adjust come September.”

The Council plans to revisit several aspects of the ordinance later this year, including the 150-foot buffer, guest age requirements, online check-in protocols, and zoning exemptions.

What’s Next?

The second reading of the ordinance will take place on June 17. If passed, the updated rules will be in effect starting July 17, allowing homeowners and the city administration to prepare for peak season under a revised regulatory framework.