Palm Springs is a luxury destination for vacationers, snowbirds, and many people across diverse age groups. One million people travel to Palm Springs each year, and two-thirds stay in rentals — not hotels. Over the last few years, Palm Springs has seen exponential demand for rental properties in the area.
If you want to invest in Palm Springs real estate and earn some extra cash with a rental property, here are a few things to consider.
If you want to invest in Palm Springs real estate and earn some extra cash with a rental property, here are a few things to consider.
Short-term rentals
A short-term rental lasts less than 30 days. Airbnb and similar platforms drive traffic to your property and help manage the rental process, and they also help you get optimum rent rates for your property. During peak events, like the Coachella Festival, the online platform will automatically raise rates when short-term rentals experience increased demand. This ensures you always receive the best rate for your property.
These digital platforms also allow renters to leave a review of their property. If you provide a clean place with good service, you’ll receive positive reviews, which leads to more renters. The flip side are negative reviews if something goes wrong or a renter does not have the experience they hoped for. It’s essential to keep your rental property clean, fully stocked with necessities for your guests, and extra amenities to ensure a positive experience.
These digital platforms also allow renters to leave a review of their property. If you provide a clean place with good service, you’ll receive positive reviews, which leads to more renters. The flip side are negative reviews if something goes wrong or a renter does not have the experience they hoped for. It’s essential to keep your rental property clean, fully stocked with necessities for your guests, and extra amenities to ensure a positive experience.
Seasonal rentals
Seasonal rentals, otherwise known as vacation rentals, last from 30 days to six months. Large cities and HOA’s allow seasonal rentals, so you have more options to choose from for available Palm Springs real estate. Because renters stay longer, there isn’t as much cleaning and prepping between guests. Thus, they have lower maintenance costs. With less turnover, you have a more reliable income. However, you will miss out on any high-surging rates from local events. Renters who stay longer also tend to take better care of the property, though they tend to be pickier about where they stay. So, this could potentially be a more competitive market to enter.
Best areas for rentals
Many cities restrict short-term rentals to preserve the community and reduce the influx of travelers. Do your research before investing in a rental property — check all local and HOA regulations on homes for sale in Palm Springs.
Currently, Palm Springs, Indio, and Coachella are the only cities that allow new short-term rental permits. The Indian Canyon Golf Course, for example, allows short-term and seasonal rentals in their community. The Sun City community in Palm Desert only allows seasonal rentals from adults aged 55 and over. Many pockets of luxury neighborhoods are excellent opportunities for rental properties, provided the HOA allows them.
Currently, Palm Springs, Indio, and Coachella are the only cities that allow new short-term rental permits. The Indian Canyon Golf Course, for example, allows short-term and seasonal rentals in their community. The Sun City community in Palm Desert only allows seasonal rentals from adults aged 55 and over. Many pockets of luxury neighborhoods are excellent opportunities for rental properties, provided the HOA allows them.
It’s all about the amenities
When you go on vacation, you want to enjoy the entire experience: Stay in a beautiful place, relax by the pool, and enjoy the outdoors. When searching for a vacation rental, your ideal destination allows you space to enjoy the activities you love, whether golf, hiking, or shopping.
The more of these “wants” your Palm Springs real estate provides, the easier it will be to rent and charge higher fees. In addition to the amenities, your property needs to include the necessities. It needs to be completely furnished, including all the kitchen appliances, flatware, linens, towels, etc. You need to have enough chairs, towels, plates, and so forth to accommodate the number of people the property sleeps. Wi-Fi and a flat-screen TV with cable are also necessities, so don’t skimp on your electronics!
Responsibilities
The responsibilities of managing the property do not go away when you leave. You’ll need to tend to furnace checks, repairs, and other maintenance issues when you are away from your property for six months. If you don’t live full-time in the area, you will need to tend to this maintenance long distance, relying on service providers and contractors, so finding a trustworthy company to handle maintenance is essential.
Ask your real estate agent for referrals if you are unfamiliar with the area. You will need to hire regular service providers, like cleaning companies, laundry services, and lawn maintenance. The property will need to be cleaned, and all linens washed in-between rentals. Be ready for these responsibilities before buying a property in Palm Springs.
Ask your real estate agent for referrals if you are unfamiliar with the area. You will need to hire regular service providers, like cleaning companies, laundry services, and lawn maintenance. The property will need to be cleaned, and all linens washed in-between rentals. Be ready for these responsibilities before buying a property in Palm Springs.
Tips to stay fully-booked
Professional photographs of your Palm Springs real estate make a big difference. People will choose to rent the property based solely on the online pictures and descriptions.
Professional real estate photographers know how to capture a room and make it shine. It’s an investment that will pay off with the more rentals you book! Staying on top of the maintenance, answering questions quickly, and providing good service will help you gain good reviews and referrals.
If you don’t have the time to manage the service and maintenance, hire a company to do it for you. Yes, it is an additional cost, but it will save you time and ensure rental revenue keeps flowing.
Professional real estate photographers know how to capture a room and make it shine. It’s an investment that will pay off with the more rentals you book! Staying on top of the maintenance, answering questions quickly, and providing good service will help you gain good reviews and referrals.
If you don’t have the time to manage the service and maintenance, hire a company to do it for you. Yes, it is an additional cost, but it will save you time and ensure rental revenue keeps flowing.
Helpful experts
If you’re not from the area, it is essential to use a local real estate agent to help you find the best homes for sale in Palm Springs. They have in-depth knowledge of the best neighborhoods for short-term rentals and vacation rentals and have a pulse on the current rent rates.
It’s also beneficial to work with a lender about financing options. Lending procedures are different for second homes and investment properties. Your accountant can help you prepare for tax season and walk you through any possible tax deductions when owning an investment property. Again, make sure you work with professionals to get the best bang for your buck and have a seamless experience renting a new property.
If you have questions about investment property or rentals in the Palm Springs neighborhood, the agents at The Bernal-Smith Group are happy to help. This team of experienced real estate agents take the time to learn your needs and goals so they can help you find the property of your dreams in this southern California paradise!
