I'm Dave Ross. I own and manage over 10 short-term rentals in the Sierra Foothills as Ross Family Rentals, and owners around Placerville ask me about the rules all the time. 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. Want to talk through your own property? Shoot me a call or text at 805-324-2798.

You can see all of my rentals on the Ross Family Rentals website.

First question: is the property inside Placerville city limits?

Placerville has its own short-term rental ordinance, separate from El Dorado County's vacation home rental rules. It applies only inside city limits, and the city drew a hard line: short-term rentals are allowed only in commercial zones - the Central Business District, Commercial, and Highway Commercial zones. They are not permitted in residential zones at all, and the city says it actively tracks and fines rentals that break the rule. Long-term rentals of 31 days or more are fine in residential zones. So before anything else, confirm the parcel is inside city limits and in one of those three zones. I cover the unincorporated county rules in a separate post on El Dorado County.

The city STR permit

Inside the allowed zones, a short-term rental needs a city STR permit from the Development Services Department, second floor of City Hall at 3101 Center Street. What I verified from the city's own FAQ and ordinance:

The ordinance took effect August 11, 2022. Permits renew every year.

A complete application includes the signed form, proof of ownership, a site location map, site plan, floor plans, copies of the required signage, and a $200 application fee. A building with more than one unit is $200 for the first unit and $100 for each additional one, up to five units per parcel.

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

Permits are issued to the property owner only, are not transferable, and do not run with the land. Selling the property does not transfer the permit.

Before the final permit, expect three inspections: El Dorado County Fire, the city building official, and the city Planning Division.

Annual renewal is $200, plus a separate fire re-inspection fee.

Transient occupancy tax (TOT)

Placerville charges its own TOT: 10% of the rent. You register with the city's Finance Department, get a transient occupancy registration certificate, and post it at the property. Returns are quarterly, due by the last day of the month after the quarter closes, with the tax remitted at the same time. Late remittance adds a 10% penalty, and you keep the records for three years.

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 Finance Department (530-642-5223) who is remitting what.

Day-to-day operating rules

A city business license is required.

A responsible person must be available 24/7 and able to be on site within one hour. That can be you or a designated manager, and their name and number must be posted inside and outside the unit.

Occupancy is capped by whichever is lower: the bedroom count (two people per bedroom plus four) or the paved parking count. A studio caps at 4 guests, a two-bedroom at 8, a three-bedroom at 10.

Paved parking is required, and the spaces tie directly to your occupancy limit.

Excessive noise is prohibited between 10:00 pm and 8:00 am.

Two interior signs are required (maximum occupancy, quiet hours, 24-hour contact, the police non-emergency line 530-642-5210, and fire-risk information with CodeRED sign-up directions), plus your TOT certificate. One exterior sign shows the permit number and the same contact details.

Your city permit number goes in all marketing and advertising, including your online listings.

You need an active El Dorado Disposal garbage account, including green waste and food waste.

Keep rental records - who booked, rate, occupancy, vehicles - for three years.

The permit can be revoked if it expires, if you fall behind on TOT, if you violate its conditions, or if the unit becomes a nuisance.

What I'd verify before doing anything

1. Call the Planning Division (530-642-5252, pv.planning@gmail.com) and confirm your parcel is inside city limits and in the Central Business District, Commercial, or Highway Commercial zone.

2. Ask how many of this year's 10 permits are still available.

3. Budget for the $200 application, the $200 annual renewal, and the fire inspection fees - every year, not just the first.

4. Confirm the TOT setup: the 10% rate, registration with the Finance Department, the quarterly filing schedule, and what your platform already collects.

5. Walk the parking. Count paved spaces and bedrooms and see which one caps your occupancy.

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. Nothing here replaces a call to the city about your specific parcel.

Sources

Checked October 20, 2026:

City of Placerville short-term rental FAQ (PDF)

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

City of Placerville transient occupancy tax

Placerville Municipal Code, Chapter 16: transient occupancy tax

City of Placerville Planning Division

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