More Short Term restrictions in the Palm Springs area

More Short Term restrictions in the Palm Springs area

Investor · Cathedral City, CA · Member since 2017 · 76 posts · 25 votes

It seems that many communities in Southern California have been moving to cap the number of STRs in a given city and Palm Springs may be jumping on that bandwagon. They already have a cap on the number of total yearly bookings you can have and this would be an additional restriction to limit future STRs. So far in the Coachella Valley, Desert Hot Springs and Indio are the most relaxed cities when it comes to STR ownership. Im curious if this would turn you off to buying an STR in Palm Spring or not?

Link to the full story is below:

https://www.desertsun.com/stor...

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Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
4y

If a city is going to cap the number of rentals, that should make you more likely to buy, not less.  That will cap the influx of competition.

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  • Member since 2022 · 1k+ posts · 1k+ votes
    4y

    Paywall 

    Anyways, I would potentially buy if I had some assurance that I could get locked in under the new rules and not have the goalposts moved on me in future. Plus if you are only allowed 30 total stays per year, seems that you would have to have a longer minimum stay (4-7 nights?) to make it worth your while? 

    On a related note, any word on the San Bernardino County moratorium? I like the idea of unincorporated areas and did so with my first STR, but county wide regulations can wipe that strategy right off the board.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    This is what I'm talking about. If you buy a STR in an area that already has rules in place to govern them there is a chance they will make more rules.

    It is much better to buy in tourist areas where STR'S are already welcome with open arms.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Even if you forced me to buy in California, I wouldn't buy in Palm Springs. Too restricted already, and limited by weather. I'd look elsewhere....

  • Member since 2022 · 1k+ posts · 1k+ votes
    4y
    Quote from @Bruce Woodruff:

    Even if you forced me to buy in California, I wouldn't buy in Palm Springs. Too restricted already, and limited by weather. I'd look elsewhere....


     I like the idea of that general area to produce some winter income. We have tons of great summer markets in the continental US but not very many winter markets. Maybe I should start looking in your neck of the woods instead? haha

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @Jon Martin:
    Quote from @Bruce Woodruff:

    Even if you forced me to buy in California, I wouldn't buy in Palm Springs. Too restricted already, and limited by weather. I'd look elsewhere....


     I like the idea of that general area to produce some winter income. We have tons of great summer markets in the continental US but not very many winter markets. Maybe I should start looking in your neck of the woods instead? haha


    Nope, you look over there! :-) 

    That general area is fine, certainly caters to that desert winter traffic. I think the desert weather in the winter is the best weather there is!

    You also got Phx, Tuscon and Yuma

  • Real Estate Agent · Yuma, AZ · Member since 2020 · 24 posts · 20 votes
    4y

    Lots of opportunity ❤️ just put in an offer on a home for my out of state buyers looking to STR and possible mid term rental for medical out here in my neck of the woods. Waiting on offer acceptance now!

    Recently helped another buyer with that same goal in mind. He's fixing up the Main house while currently renting out his ADU on Airbnb.

  • Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    4y

    If a city is going to cap the number of rentals, that should make you more likely to buy, not less.  That will cap the influx of competition.

  • Investor · Cathedral City, CA · Member since 2017 · 76 posts · 25 votes
    4y

    @John D. that is an interesting point of view I have not heard. The caveat for Palm Springs is that they already limit the number of bookings, which will limit your profit. But in other cities that perspective would make sense as long as they didn't add other regulations on top of it.

  • Investor · Cathedral City, CA · Member since 2017 · 76 posts · 25 votes
    4y

    @John Underwood Im with you! The Southeast part of the country seems to be a lot less hostile towards STRs. My wife and I just purchased one in Florida earlier this year and the relaxed regulation makes running the rental a lot less stressful!

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