I'm Dave Ross. I own and manage over 10 short-term rentals in the Sierra Foothills as Ross Family Rentals, including in El Dorado County - you can see them all here.

I'm not a lawyer and this isn't legal advice. It's the list of things I'd check first, with the official sources, checked October 20, 2026. The county is rewriting parts of its ordinance right now, so verify everything with the county or the city before you buy or convert a place. Want to talk through your own property? Shoot me a call or text at 805-324-2798.

Find out which rules apply to your parcel

First question: is the property in unincorporated El Dorado County or inside Placerville city limits? The rules are separate and different. Most of Apple Hill, Camino, and Pollock Pines is unincorporated county. Downtown Placerville is the city, with its own ordinance. Check the parcel before anything else.

Unincorporated county: the VHR permit

The county requires a Vacation Home Rental (VHR) permit for short-term rentals, or a cheaper Hosted Home Rental (HHR) permit if you live in the home while renting part of it. What I verified on the county's own VHR page:

The current ordinance was adopted November 21, 2024. The county was reviewing changes as of August 2026, including occupancy limits and the 500-foot buffer between rentals, which is still in place.

Fees when I checked: $564 for a new VHR permit, $282 to renew each year, plus a fire safety inspection fee (due with a new permit and every two years), a sign fee, and a $31 technology fee.

Occupancy is capped at two people per bedroom, and children six and older count toward the limit.

You must name a local contact who is available 24/7 and can respond to a problem within 30 minutes. You can be your own contact if you live within 30 minutes of the rental. Need a local contact? I am certified, live centrally in the county, and have a few slots available.

The county asks you to call or book a phone appointment before applying online: 530-642-4888, the Placerville office.

Transient occupancy tax (TOT)

Short-term rentals in unincorporated El Dorado County owe TOT: 10% of the rent, plus another 4% in the unincorporated Tahoe area. You register with the Treasurer-Tax Collector and file returns. The City of Placerville has its own TOT under its own code.

Don't assume your booking platform collects this for you. Platforms collect some taxes in some areas and not others. Check your payout breakdown, and confirm with the Tax Collector's office (tot@edcgov.us) who is remitting what.

City of Placerville: separate and tighter

Short-term rentals are allowed only in commercial zones (Central Business District, Commercial, and Highway Commercial), under an ordinance effective August 11, 2022.

The city caps new short-term rental permits at 10 per calendar year.

You also need a city business license, TOT registration with the city, a fire life and safety inspection, paved parking tied to occupancy, and a garbage account. Permits renew every year.

A responsible person must be available 24/7 and able to be on site within an hour.

What I'd verify before doing anything

1. Look up the property on the county VHR permit map and verify it is not in a buffer zone - 500 feet, property line to property line - from an existing VHR.

2. Call the county VHR office (or Placerville's Development Services for a city parcel) and ask about your specific address: eligibility and waitlists.

3. Ask whether the ordinance changes under review affect your area.

4. Confirm the TOT setup: the rate, registration, filing schedule, and what your platform already collects.

5. Budget for the fire inspection and the annual renewals, not just the first permit.

If you would like to see a list of my owned and managed listings, click here.

Buying? Use an agent who knows short-term rentals

It is important to use a real estate agent who is familiar with the intricacies of purchasing a home to use as a short-term rental - someone with the exact experience you need, who can guide you through the process and help you make the best decisions in this type of investment. I have been contacted by many investors who had already purchased a property that legally cannot be a short-term rental.

My wife Amber Ross is that agent. You can reach her at amber@teamrossrealty.com or (916) 238-1319, or visit her website.

Not legal advice

Rules and fees change, and the county is mid-review right now. Nothing here replaces a call to the county or the city about your specific parcel.

Sources

Checked October 20, 2026:

El Dorado County Vacation Home Rentals Division

El Dorado County transient occupancy tax: forms and registration

El Dorado County code (Chapter 5.56, hosted and vacation home rentals)

City of Placerville short-term rental FAQ (PDF)

Placerville Municipal Code 10-4-20: short-term rentals

El Dorado County VHR permit map

Join Amber's team

Are you a real estate agent? Join Amber Ross's team at eXp Realty, or reach out to Amber directly.