Palm Springs just made it harder to profit with a vacation rental

[Phillip Vaughan]

It's not surprising that Southern California is largely against short term rentals, as restrictions have increased over the years in places like San Diego, LA, Big Bear, and also the Palm Springs area, which is a very popular vacation destination. Yesterday the Palm Springs City Council voted in additional restrictions on the number of bookings per year, number of permits allowed per neighborhood, and also created a new "Junior" permit which allows 6 bookings per year and bypasses the cap on neighborhood permits.

Im curious if this will change anyone's strategy in the Palm Springs market or are there those of you still able to turn a profit despite the new restriction on the number of bookings? How is this affecting those of you investing in the area?

Here is a link to the Desert Sun article: https://www.desertsun.com/stor...

[Michael Baum]

No for me. I would never buy anything in CA personally. I know that a lot of people do well there but these sorts of moves are why I stay away.

[Nathan Gesner]

Quote from @Phillip Vaughan:

The junior permit allowing six bookings per year is interesting. Who's going to keep count?

[Henry T.]

I didn't read the article but most west coast city councils seem to be anti-str, is this a result of hotel lobby influence?, I don't know...but It's sad because I figure there are so many families that could use a little extra cash simply renting out a room or whatever. ....I've closed most of my LTR's in Seattle, experimenting a few STR's and Seattle is a pita with requirements. I'm transitioning to other states without the unfair "just cause" and other anti landlord laws. As a pet project I was compiling a list of fair vs unfair landlord states. Much of it conflicts, and Nolo info seems to be quite out of date. Not easy and beside the point.

Palm springs? I would not invest in until things loosen up considerably. and that's unlikely. Organize with others and speak to your city council for changes, ask for concise reasoning why the restrictions? or get out.

[Nicholas Coulter]

@Phillip Vaughan its unfortunate because this is likely to drive money away and lower the total availability of vacation options in an economy that thrives in winter months from visitors. cant say I am suprised