What areas around Lake Tahoe are still good STR destinations

[Punarvashu Tyagi]

Hi All, I am exploring STR Investment opportunities in California. I did little bit of research and found Lake Tahoe to be a good candidate however I also found that there are lot of new regulations being implemented by local bodies. Since I am starting, It will be great help if you may share your views about the potential investment areas around Tahoe or even suggestions about an alternate location. Thanks in advance!

[Lindsay Buchanan]

@Punarvashu Tyagi this is a long winded answer! There are 5 different governing bodies for short term rentals around the lake. Douglas County on the East Shore in NV, South Lake Tahoe in California, Placer County on the north and west shore in California, El Dorado County in unincorporated South Lake Tahoe and then Washoe County which is Incline Village, NV.

Placer County there are no limits on the number of permits, there are two different tiers, if personally managed or if managed by a property manager. As long as you abide by their rules and pass the fire inspection, you get a permit.

El Dorado County, they have a cap on the number of permits they are issuing. They have a cap of 900 permits and have less than 100 left to issue. 

Douglas County stopped issuing permits over the last couple of months, they have decided to put a cap as well. I don't remember the number of permits they are going to issue, but they are pretty close to their cap as well.

City of South Lake Tahoe has primarily banned short term rentals, this was voted on by the residents of South Lake Tahoe and passed at the end of 2020. 

Washoe County, which is Incline Village is just starting to issue some rules and guidance around short term rentals. They are issuing permits and not sure if they are talking about a cap as well.