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Short-term rentals (STRs), commonly referred to as vacation home rentals (VHRs), are legal in El Dorado County, California, but they are subject to strict regulations enforced by the county's Vacation Home Rentals Division. Operators must obtain a permit, as individual rental units require their own licenses, and there is a cap of 900 permits specifically in the Lake Tahoe area, which has already been reached. The market is favorable for a variety of properties, particularly cabins in rural settings and homes near major attractions, as these cater primarily to tourists seeking recreational experiences in the scenic surroundings. While there is a significant tourist presence driven by activities in the Sierra Nevada foothills and Lake Tahoe, there is also some demand from business travelers, though tourism primarily shapes the market. The overall business environment shows strong competition among rental operators, especially during peak tourism seasons. The regulations are maintained by the El Dorado County Planning and Building Department, which oversees compliance with the local ordinance. For more information, you can visit the official VHR regulations page:.
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