If you’re considering a Desert Hot Springs property that is already rented, the seller’s registration permit would not simply follow the property to you under the City’s posted ordinance text. A change of ownership calls for a new application, and the property may not operate as a rental until the new permit is issued.
That buyer rule makes the permit more than a routine document to glance at during a purchase. You should ask what permit exists, whether the City has identified any violations, and what a new application may require after the transfer.
The details below describe the ordinance text posted by the City in September 2026. The final adopted wording, effective date and fee amounts should be confirmed with the City before you rely on them. This guide is educational, not legal or tax advice.
What is the status of the program?
The City has posted the proposed rules, but the reviewed sources do not confirm the final adopted wording, effective date or fee amounts.
Desert Hot Springs published its Rental Registration Ordinance document in September 2026. That document would add Chapter 5.58, called the “Rental Registration Program,” to Title 5 of the municipal code. The posted copy still shows a blank ordinance number.
The City Council agendas show the measure at different stages. The July 7 agenda presented it for a first reading. The September 1 agenda listed a second reading and adoption as the recommended action. A September 15 item concerned permit fees and a nexus study.
The City also published a hearing notice for October 6. That hearing concerned proposed user fees for permit applications, permit modifications, self-certification and appeals. The reviewed material does not establish the hearing result or any fee amount.
Which rental properties does the posted text cover?
The posted text covers residential units rented or offered for 30 consecutive days or more.
Its list includes single-family homes used as rentals, duplexes through fourplexes, apartment complexes, rental condominiums and townhomes. It also includes ADUs and Junior ADUs, including detached units, attached units, garage conversions and casitas. Buyers considering one of these smaller units can also review the broader guide to ADU rules.
Manufactured or mobile homes rented by their owners are listed too, except for mobile home park spaces regulated by the California Department of Housing and Community Development. The text also reaches mixed-use buildings with legally established dwelling units.
Rentals for less than 30 days are handled differently. The City’s FAQ says they follow the Vacation Rental Permit process and are not part of this program. That distinction matters if the intended use is closer to the short stays discussed in the guide to Indio rentals during festival season.
What happens when a registered rental is sold?
A sale would end the existing permit unless the City authorizes otherwise, and the buyer would submit a new registration application.
Chapter 5.58’s posted change-of-ownership rule says the existing owner gives written notice to the City within 30 days of a transfer. It also says a change of ownership requires a new application, fees and a new permit before the property may operate as a rental.
The permit itself is described as nontransferable. It is valid for up to 12 months, while the City’s permit-validity FAQ calls it valid for one year and renewed annually.
The City may require an inspection after a transfer. That inspection may occur before the new permit is issued or within a reasonable time after the transfer, according to the posted text. Refusing or failing to complete it can support denial, suspension or revocation.
A buyer considering a Desert Hot Springs rental asked us whether the seller’s registration would continue after closing. She had included the existing rent in her projections but had not included the city’s registration and compliance requirements. We went through those obligations before she finalized her operating budget.
What information does the application request?
The application requests specific property, unit and occupancy details from the owner.
The posted text lists the assessor’s parcel number, the number of units and bedrooms, the year built, and occupied and vacant unit counts. It also asks about any adjacent parcel used for parking, access or storage with the rental. A buyer can compare those entries with the property’s records and intended use before submitting anything.
An application is not approval. The text provides that no person may own, operate, lease, rent, advertise for rent or permit occupancy of a covered residential rental without a valid permit. Existing rentals are given six months after the chapter’s effective date to submit a complete application, but the reviewed sources do not establish that effective date or a calendar deadline.
After processing begins, the owner has 60 calendar days to complete inspections, correct violations and obtain the permit. Otherwise, the application is treated as abandoned. The text allows one extension of up to 30 days for good cause.
How would inspections work?
Every covered rental would be subject to a City inspection at least once every five years under the posted text.
Inspections may happen more often after documented violations, prior noncompliance, complaints, nuisance activity or a failed self-certification. A property with an “exemplary compliance history” may receive an extended inspection cycle, but that cycle may not exceed 10 years. Complaint-based inspections are also allowed.
Interior access is not presented as automatic. The ordinance ties interior unit inspections to lawful consent under Civil Code Section 1954 or other law, and it says the owner gives tenants lawful notice.
A permit does not authorize use of a unit the City finds unsafe or uninhabitable. The posted wording says such a unit remains vacant until violations are corrected and the City verifies compliance with applicable law. Buyers can ask whether an inspection has occurred, whether corrections remain open and whether any unit is unpermitted or illegal.
Other cities use different systems and timelines. The Hesperia rental housing license and inspection guide is useful for comparison, while Hemet’s repealed registration program shows why current local status matters.
What could delay or prevent a permit?
An incomplete application, outstanding violations or an inspection problem could delay or prevent approval.
The posted grounds for denial include false information, refusing an inspection and operating without a permit. They also include unpermitted or illegal units, described as units or structures that are unsafe, illegally constructed or not approved under zoning, building or housing rules.
That makes the physical layout and legal status of each dwelling unit important. A buyer looking at a converted garage, casita or mixed-use dwelling should ask what the City recognizes, not rely only on how the space is currently used or advertised.
The program also calls for fair housing compliance. Its administration is to be uniform and nondiscriminatory.
What ongoing deadlines and penalties appear in the text?
The posted text sets renewal, local-agent and enforcement rules that would continue after the first permit is issued.
Renewal materials, fees and any required self-certification are due no later than 90 days before the permit expires. The self-certification may be made under penalty of perjury. An owner who does not live within 50 miles of the rental, or who lives outside the county, designates a property manager or local agent.
The listed fines are $1,000 for a first general violation, $2,000 for a second and $3,000 for a third. Operating a rental without a valid permit carries a listed $5,000 fine.
The permit may be summarily suspended after three substantiated complaints with administrative citations for the same property within 12 months, or after an immediate hazard. If no hearing is requested within 10 calendar days after notice, the posted text provides for a six-month suspension.
The short version
The key buyer issue is that the posted rental permit would not transfer automatically with the property.
For a covered rental of 30 days or more, check the existing permit, its expiration date, inspection history, open violations and the legal status of every unit. Ask the City to confirm the final adopted wording, effective date, application steps, transfer inspection requirements and the fees. No reviewed source establishes a final fee amount or registration deadline date.
If the purchase depends on immediate rental operation, do not assume the seller’s permit fills the gap. The posted text says a new permit is required before the property may operate as a rental after ownership changes.
For a starting point on pricing before you assess the permit questions, use the home value tool.
Common questions
Does a rental registration permit transfer to a buyer?
No. The posted ordinance text says the permit is not transferable, existing permits expire on transfer unless the City authorizes otherwise, and a new owner submits a new application and fees.
Which Desert Hot Springs rentals would be covered?
The posted text covers units rented or offered for 30 consecutive days or more, including listed houses, multifamily properties, condominiums, townhomes, ADUs, manufactured homes and legal mixed-use dwelling units.
How long would a rental registration permit remain valid?
The posted ordinance says up to 12 months. The City's FAQ describes the permit as valid for one year and renewed annually.
How much are the rental registration fees?
The reviewed City sources do not provide final fee amounts. The final amounts should be confirmed directly with the City.
Are short-term rentals part of this registration program?
No. The City's FAQ says rentals of under 30 days follow the Vacation Rental Permit process instead.
