Short-Term Rental Market- Yucca Valley/Joshua Tree, CA

Short-Term Rental Market- Yucca Valley/Joshua Tree, CA

Member since 2023 · 3 posts · 0 votes

Hello!

I'm hoping to hear from anyone who currently has a short term rental in the Yucca Valley, CA area. What are your occupancy rates looking like in and out of season/year round? Is a short term rental still profitable in this area or is the market over saturated?  I know 6 months ago there were only about 30 short term rental permits still available and now there are 91 in Yucca Valley (since there is now a cap on permits). This makes me wonder why so many short term rentals have recently left.

I have a 2 bd/1 ba property on 2 acres of land in Yucca Valley that is 7 minutes to the park entrance. I have been on the fence if I should offer it as a long term or short term rental. I've just finished a down to the studs renovation so it's a beautiful little home (more cozy and timeless than trendy/artsy), but doesn't have a pool or hot tub.

I'm also finding short term rental insurance policies to be so expensive in this zip code, making it that much harder to profit on a short term rental. If you're pro short term rental, I would be so appreciative of any recommendations on insurance companies that offer coverage here, maintenance, and housekeeping connections in the area.

Thank you so much in advance for any insight you can share!

-Alexis

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y

From what I have read @Alexis Yeakel, there has been so much influx of STR owners in the area that it has driven the nightly rates down for most owners. So many bought at the height of the market expecting 2020-2022 returns. Now they are finding out what the real return is and they can't afford to keep the places.

Plus the permit issue as well. 

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  • Investor · Tallahassee · Member since 2019 · 249 posts · 93 votes
    2y

    Hi Alexis, I have a friend. His name is Patryk. Reach out to him as he's an expert in that area https://www.instagram.com/patryk_swietek/

  • Member since 2023 · 3 posts · 0 votes
    2y

    Hi Yu, thank you for sharing! I'm actually familiar with his portfolio of STR's up here but didn't know who was behind it. Will definitely be reaching out!

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Hey @Alexis Yeakel, so a lot of folks have posted that profits have dropped off in that area.

    STR insurance is pricey. Proper has the best coverage but the most expensive. Check with your current insurer as well as a broker to see what is available. You might get a discount with your current insurer.

  • Member since 2023 · 3 posts · 0 votes
    2y

    Hi @Michael Baum, thank you for taking the time to respond! I've done a deep dive on the forums and have seen this mentioned a lot for STR's in recent years. Definitely gives me pause. Curious to get more recent numbers from the STR community in the area this year to see if there's been further drop off (making LTR the better route now here) or if the market is starting to stabilize now.

    I do have a quote from Proper, and definitely on the higher side but had them ranked as one of my top choices. Current insurer is moving out of CA and dropping us- so the pressure is on! I'm working with an insurance broker now though thanks to this post! :)

    Thanks again!

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    From what I have read @Alexis Yeakel, there has been so much influx of STR owners in the area that it has driven the nightly rates down for most owners. So many bought at the height of the market expecting 2020-2022 returns. Now they are finding out what the real return is and they can't afford to keep the places.

    Plus the permit issue as well. 

  • Investor · Tallahassee · Member since 2019 · 249 posts · 93 votes
    2y
    Quote from @Alexis Yeakel:

    Hi Yu, thank you for sharing! I'm actually familiar with his portfolio of STR's up here but didn't know who was behind it. Will definitely be reaching out!


     Gotcha, yea he's a good guy. Hope he answers all your questions!

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