South Lake Tahoe OKs new vacation rental rules, early permits in wake of Measure T
The South Lake Tahoe City Council on Tuesday approved a new vacation rental ordinance and authorized a special application window that gives permit preference to some former short-term rental operators.
The ordinance, set to take effect July 17, revises regulations for vacation home rentals outside the city’s so-called Tourist Core. In anticipation of the law’s rollout, the city will launch a 60-day application period starting Monday for two groups: property owners whose VHR permits expired in 2021 and “qualified vacation home rental” permit holders whose licenses were voided in April when a judge struck down the city’s Measure T.
Measure T, passed by voters in 2018, banned short-term rentals in most residential areas while allowing full-time residents to rent their homes for up to 30 days. An El Dorado Superior Court judge in March 2025 ruled the measure unconstitutional this spring, prompting the city to amend its vacation rental rules instead of fighting on appeal.
Under the new ordinance, past permit holders in good standing can reapply before the general public. After the 60-day window, the city will open applications to all eligible parties. An online permit portal will open June 23 on the city’s website.
The updated ordinance eliminates a cap on permits and introduces a 150-foot buffer between rental properties. It also mandates in-person or virtual check-in procedures, 24/7 local response availability, indoor noise monitoring, exterior cameras for parking and trash areas and animal-resistant recycling carts when available.
Other changes include stricter penalties for violations, occupancy reduced to two people per bedroom (with up to five children aged 13 or younger exempted), and a requirement for defensible space inspections. Permits will now be issued by the Police Department, with a cap of 150 permits issued per month.
City staff estimate that approximately 480 owners could qualify under the preference policy, but the 150-foot buffer rule limiting the density of rentals could constrain approvals to about 325 permits, according to a staff report.
Appeals of permit denials or revocations will be heard by the Planning Commission.
City leaders said the ordinance is designed to address community concerns while restoring rental options for property owners affected by Measure T’s invalidation.
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