San Francisco, CA · Member since 2014 · 161 posts · 26 votes
Does anybody have experience to invest in Palms Springs as an Airbnb? Any transient taxes or difficult regulations? Any resort that are recommended to invest in? Thank you!
Most Palm Springs properties that are optimized vacation rentals are rented 72 or so times per year. Following the letter of the law, one would halve the number of renters per year. If you were good at pruning the half of rentals that drove the smallest amount of revenue, you're revenue would drop approx. 25% due to the new ordinance and this specific change.
This forced drop in supply may drive rates up a bit though...which would dampen my forecasted 25% drop a bit.....my best guess is most highly occupied and in demand PS properties will see a 15-20% drop in revenue year over year.
Hello , we have a vacation rental in Palm Springs - it's doing well . A new ordinance was passed on Wednesday- I think most VR owners welcome the changes , if the city will enforce the rules it should work out well.
The number of contracts was amended from 32 to 36 , the additional 4 to be used in the summer months .
Here is a link with details: http://www.desertsun.com/story/news/2017/03/15/where-things-stand-vacation-rentals-palm-springs/99188792/
Steve Siran didn't they also regulate that you had to have someone near the property to respond within 24 hours and that person had to go through some kind of quarterly training?
This part of that story is what I'm unsure of:
"Owners of vacation rentals must undergo periodic training and testing related to operating a vacation home."
Please read the information in the link . They will require someone from property management or the owner to meet the guest at the property within 24 hours of arrival. The task force will need to be the first responder to the property in case of a complaint. Previously a property manager or owner had to arrive within 30 or 45 minutes.
Property managers and owners must undergo periodic training . They did not specify timing.
For some I can see the number of contracts may be a concern - I am certain city council would be willing to amend after a year if it is deemed necessary.
We typically have 1 week , to 2 week contracts- through April we will have had eight and we have been almost completely booked.
Given that info, would you say it is true that a long distance owner can no longer manage a vacation rental on airbnb themselves? If they do not live in the same area, they would definitely have to hire a property manager?
Most Palm Springs properties that are optimized vacation rentals are rented 72 or so times per year. Following the letter of the law, one would halve the number of renters per year. If you were good at pruning the half of rentals that drove the smallest amount of revenue, you're revenue would drop approx. 25% due to the new ordinance and this specific change.
This forced drop in supply may drive rates up a bit though...which would dampen my forecasted 25% drop a bit.....my best guess is most highly occupied and in demand PS properties will see a 15-20% drop in revenue year over year.
@Tom Hoyt Correct although other cities are considering changes, and Palm Desert currently has a moratorium on new licenses that is expected to lift in the fall.