If you’re looking to invest in the Palm Springs real estate market, then one of the questions that you should ask yourself is whether it is a good year to be investing in Airbnb Palm Springs.
As a Californian city, you should expect to see above average prices when it comes to the Palm Springs real estate market, which is a trend that is shared by most cities in the state of California.
However, another aspect of California is that, due to its sunny weather and beautiful beaches, California is one of the most popular tourist destinations in the U.S., and it attracts a large number of both American as well as foreign travelers.
In fact, Palm Springs was one of the top cities when it came to tourism and travel in 2016, and it showed record-high occupancy rates for hotels and motels.
Palm Springs Hotel Occupancy Rates
Naturally, if you’re considering Airbnb Palm Springs, looking at the occupancy rates for hotels is a good indicator of how many people are looking for short-term accommodations, and it will give you an idea of the Airbnb occupancy rate that you can expect as it will most likely be very close to the hotel occupancy rate in the city.
When it comes to Palm Springs, in 2016 the city had a very high hotel occupancy rate of 61.2%, and the average daily room rate was 6% higher than in 2015.
These are good indicators that the Palm Springs area has been welcoming an increasing number of tourists and travelers, and its growth did not stop there.
Airbnb Palm Springs – Mashvisor’s Data
To give you a better idea of how the Airbnb Palm Springs real estate market is performing, let’s take a look at Mashvisor’s data for the city’s real estate market performance:
Median Property Price: $457,000
Median Traditional Rental Income: $1,555
Median Airbnb Rental Income: $4,854
Average Traditional Cap Rate: 0.52%
Average Airbnb Cap Rate: 6.13%
Average Airbnb Occupancy Rate: 56%
As you can see, you can easily tell that Airbnb Palm Springs seems to be doing very well. The rental income that is to be expected from owning an Airbnb rental property in Palm Springs is extremely high at $4,854, which is also reflected in the average Airbnb cap rate of 6.13%.
Additionally, the average occupancy rate of Airbnb Palm Springs Rentals is looking very solid at 56%, and it is very close to the record-high hotel occupancy rate of 61.2% in 2016.
Looking at these numbers, you can easily tell that investing in Airbnb Palm Springs seems like a very good idea, and Airbnb rentals are showing performances that can promise a high level of profits and projected returns.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Airbnb Palm Springs – Additional Useful Stats
Of course, to make the most out of your Airbnb Palm Springs rental, there are other stats and info about the Palm Springs real estate market that you should take into consideration, especially when planning your investment strategy and deciding what type of Airbnb rental you want to purchase, who your target audience is, and what areas will be most suitable for an Airbnb investment property.
Here are some important stats on the Palm Springs real estate market:
Crime Rate: 2% (safer than 2% of U.S. cities)
Walk Score: 35 (highest is 76 in the Downtown area)
Transit Score: 26 (highest is 34 in the Tahquitz Canyon River Estates)
Cost of Living Index: 112 (12% lower than California’s average, 22% higher than the U.S. average)
Buyer’s Market vs Seller’s Market: Palm Springs is a Seller’s Market
When investing in Airbnb Palm Springs, you should take these things into consideration, especially the walk score and the transit score.
The Downtown area, in particular, is a very attractive pick for an Airbnb rental property, as the area’s high walk score means that your tenants will have access to all the amenities and services that they need without having to rely on a car or any means of transportation, which is the favored choice for most tourists and travelers who rent Airbnb properties.
Airbnb Palm Springs – Laws and Regulations
Finally, if you’re interested in investing in Airbnb Palm Springs, then it is absolutely a must to look into the laws and regulations for owning and running an Airbnb rental as a business in Palm Springs.
Here are the major laws that you should take into consideration when you’re investing in Airbnb Palm Springs:
- You must have a City-issued Registration Certificate and Transient Occupancy Tax Permit in order to advertise or operate a vacation rental or a homeshare in the City of Palm Springs.
- Vacation rentals are defined as a unit that is utilized for occupancy 28 consecutive days or less while the owner is not present.
- The City defines homeshare as a bedroom(s) of a home that is offered for occupancy 28 consecutive days or less while the owner lives on-site in the home throughout the guest stay.
- Occupancy is limited to 2 adult guests overnight and 1 vehicle per bedroom. Additionally, for vacation rentals, the total number of guest stays is limited to 32 per the calendar year, with an additional 4 guest stays during July, August, and September.
- In Palm Springs, it is required that a “Responsible Person” over the age of 25 sign the contract with the operator, and the operator is required to perform a personal meet and greet of guests and explain the local rules and regulations, in addition to obtaining a signature of the receipt of the Statement of Rules and Regulations, i.e., the Good Neighbor Brochure.
Airbnb Palm Springs – Bottom Line
Is investing in Airbnb Palm Springs real estate market a good idea?
Yes. As long as you abide by the law and follow the rules, Palm Springs offers some of the best opportunities for achieving high profits by investing in Airbnb rental properties.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
If you’re looking for the best tool to locate the best and most profitable Airbnb rental properties in Palm Springs or any other city in the U.S., make sure to use Mashvisor in order to find the perfect investment property in no more than 15 minutes.
Mashvisor gives you access to our data comps and Airbnb analytics that will help you plan your investment wisely and based on accurate readings and projections in order to know exactly what return on investment to expect from owning and running an Airbnb rental property in your market of choice.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.