Short-term rental rules used to be background noise. In 2026 they are the business. Across the markets where Marbella Lane operates, cities are capping permits, capping nights, and tightening renewals — and in several markets the permit itself has become the scarcest asset a vacation rental property has. Here is what has changed in four of our markets, what it means if you own a rental home, and how we handle it for our owners.
Pacifica, California — a new ordinance, a 120-night coastal cap, and permits that don’t transfer
What changed. Pacifica’s new short-term rental ordinance (Ordinance 901-C.S.) has applied east of Highway 1 since October 2025. For the Coastal Zone — including Sharp Park and Rockaway Beach — it takes effect starting with the November 2026 permit year, after the California Coastal Commission modified the city’s original version in August 2026. Two modifications matter: the cap on unhosted rentals in the coastal zone is 120 nights per year (the city had proposed 60), and the city’s proposed primary-residence requirement was eliminated for the coastal zone.
What it means for owners.
- Unhosted short-term rentals (under 30 nights) are capped at 120 nights per permit year. Stays of 30+ nights are not short-term rentals and do not count toward the cap.
- Permits are not transferable. A permit belongs to an individual owner-operator for one property. When a home sells, the buyer must apply for a new permit of their own.
- Pacifica caps permits at 150 citywide, with a waiting list processed only twice a year. Existing permit holders who renew on time keep their position — renewals are filed every year between October 1 and October 31, and a permit that lapses sends the owner back to the waitlist as a new applicant.
- New compliance duties apply in the coastal zone, including an exterior noise monitor, off-street parking per rented bedroom, and three years of rental records.
How Marbella Lane handles it. We file renewals inside the October window, track each property’s night count against the cap, reserve the 120 short-term nights for peak and high-rate periods, and fill the rest of the calendar with 30+ night stays that sit outside the cap. If you are buying in Pacifica, we check the property’s permit position before you close — not after.
Palm Springs, California — a 20% neighborhood cap and a limit on bookings, not nights
What changed. Palm Springs continues to tighten its vacation rental program (Municipal Code Chapter 5.25, most recently amended in July 2026). A Vacation Rental Registration Certificate is required for any rental of 28 days or less, certificates are issued only to the owner of record (never to a business entity), and each owner may hold only one.
What it means for owners.
- Neighborhood cap: the city will not issue a new certificate in a neighborhood where 20% or more of homes already hold one. Capped neighborhoods run a first-come waiting list. Whether a specific street still has room under the cap is now a pre-purchase question, not a post-purchase surprise.
- Contract caps: new certificate holders are limited to 26 rental contracts per year; long-standing certificate holders (issued or applied for by October 17, 2022) keep 32, plus up to four additional third-quarter contracts. A junior certificate allows six contracts a year.
- Registration is renewed annually (fee $1,046 as of December 2025), every property must name a local contact who can respond in person within 30 minutes, 24/7, and the transient occupancy tax is 11.5%.
How Marbella Lane handles it. We verify certificate status and neighborhood cap room before an owner buys or lists, manage the contract count against the annual limit so peak-season bookings are protected, and staff the 30-minute local-response requirement.
Newport Beach, California — the permit cap is full, and October 31 is the date that matters
What changed. Newport Beach runs one of the tightest programs in the state. A Short-Term Lodging Permit and a city business license are both required, and the citywide cap of 1,550 active permits has been reached — no new permits are being issued until the count drops, and new applicants join a long waitlist. Since 2026, California’s SB 346 platform data-sharing also gives the city direct visibility into booking activity.
What it means for owners.
- Both the permit and the business license renew annually by October 31. Letting a permit lapse in a capped city can mean losing short-term rental rights for years.
- Operating rules include a two-night minimum stay, occupancy of two guests per bedroom plus two, a designated local contact, and 10% transient occupancy tax plus a 1% visitor service fee.
- One important difference from Pacifica: Newport Beach permits can transfer to a buyer when a permitted home sells, subject to city approval — which makes an active permit a real part of a property’s value, and worth confirming during escrow.
How Marbella Lane handles it. We calendar every renewal well ahead of October 31, keep permit numbers displayed on every listing as the city requires, and verify permit transferability as part of any purchase evaluation.
Oahu, Hawaii — under-30-night rentals live in resort zones, and registrations don’t transfer
What changed. On Oahu, rentals of less than 30 nights are legal only in resort-zoned areas and a small set of eligible apartment zones (including parts of Waikiki, Ko Olina, Turtle Bay and Makaha), or in a unit holding a grandfathered Nonconforming Use Certificate (NUC) — no new NUCs have been issued in decades. Ordinance 22-7 (Bill 41) tried to raise the minimum stay outside resort zones to 90 days; a federal court permanently blocked that increase for rentals that were lawfully operating before October 2022, and the city enforces 30 days as the line.
What it means for owners.
- Legal short-term rentals must register with the Department of Planning and Permitting ($1,000 initial registration, $500 annual renewal) and display the registration or NUC number and the property’s TMK in every advertisement.
- An STR registration does not transfer when a property is sold — a change of ownership or operator requires a brand-new registration. A NUC is the exception: a new owner may renew an existing NUC, but only if the renewal is filed before it expires (NUC renewals run September 1 to October 15 each year).
- Outside the resort zones, 30+ night rentals are the compliant product — pricing, lease structure and marketing all have to be built for monthly stays.
How Marbella Lane handles it. Hawaii is our largest market. We verify a unit’s zoning and NUC/registration status before listing, manage renewal windows for both registrations and NUCs, and run 30+ night strategies for properties outside the resort zones.
The pattern owners should take from this
Every market is moving the same direction: fewer permits, harder renewals, and enforcement backed by platform data. Three habits now separate protected owners from exposed ones:
- Never let a renewal lapse. In capped markets, a missed deadline doesn’t cost a late fee — it can cost the permit.
- Check the permit before the property. Night caps, neighborhood caps and transfer rules belong in the purchase analysis, next to price and rent comps.
- Plan the calendar around the cap. When short-term nights are limited, which nights you sell — and what you do with the rest of the year — is a revenue decision, not an afterthought.
Marbella Lane manages permits, renewals, night-count strategy and compliance for owners across all of these markets, as part of one management fee. If you own in Pacifica, Palm Springs, Newport Beach or Oahu and want your permit position reviewed, talk to our team.
Rules summarized as of October 2026 and change frequently; confirm the current requirements for your specific property before buying or listing.
Frequently Asked Questions
Can a buyer take over my short-term rental permit when I sell? It depends on the city. In Pacifica and on Oahu, no — permits and registrations are personal to the owner and do not transfer, so the buyer must obtain their own (subject to caps and waitlists). In Newport Beach, a permit can transfer to a buyer with city approval. A grandfathered Oahu NUC can be renewed by a new owner if it is renewed before it expires.
What happens if I miss my permit renewal deadline? In capped markets, a lapsed permit usually expires automatically and you re-enter as a new applicant — in Pacifica that means the 150-permit waitlist, and in Newport Beach a waitlist behind a full 1,550-permit cap. Renewal windows are short and annual (October 1–31 in Pacifica; by October 31 in Newport Beach), which is why we track them for every owner.
How does a night cap change my rental income? A cap limits how many short-term nights you can sell, not how much you can earn. The strategy is to reserve capped nights for peak season and high-rate weekends, and to fill the remaining calendar with 30+ night stays, which are not short-term rentals and do not count toward the cap in Pacifica.
Is my Palm Springs neighborhood still open for a new vacation rental certificate? Palm Springs will not issue a new certificate in a neighborhood at or above its 20% cap; some popular neighborhoods are already over it and run a waiting list. The check has to be done by neighborhood, before you buy or list.
Can I legally rent my Oahu home for less than 30 nights? Only if the property is in a resort zone or an eligible apartment zone and properly registered, or it holds a grandfathered Nonconforming Use Certificate. Everywhere else on Oahu, 30 nights is the minimum legal stay.
Does Marbella Lane handle permits and renewals for owners? Yes. Permit applications, annual renewals, night-count tracking and compliance are part of our full-service management, together with pricing, guest communication, housekeeping coordination and owner reporting, for one management fee of 25% of booking revenue.