Palm Springs vs Fort Lauderdale

14 Replies

Of the two cities Which one has more complicated laws for STR? Which one brings more profits? Which city in the US has the most lax regulations for STR. Thank you.

I lived just outside of Fort Lauderdale for a few years and know the market fairly well, and moved to the greater Palm Springs area to work with short-term rentals full time a couple of years ago.  I've found far better numbers in the cities surrounding Palm Springs then in the greater FLL area.  Palm Springs proper though, I would steer clear of.

@Lucas Carl What do you see as the sweet spot in terms of house size for returns in your area- 2 or 3 br house or something else?

Everyone is different. Me personally the smaller the better but zero bedrooms are hard to find. I have 3 2 bedrooms and 2 0-1 bedrooms. But plenty of folks have 4/5/6/7 and do well. Depends on PP and whether you’d rather have 4 small ones or 1 huge one. They put up big numbers and I self manage from a distance. 

Hey, I have a studio apartment in Hollywood, FL. I'm thinking of converting it into a STR. Does anyone have good advise on best ways to manage the STR? What vendor services are essential for running successful STR?

I have properties in La Quinta, Indio, Bermuda Dunes, and Palm Desert (which is phasing out short-term rentals zoned R1 and R2)  There are a number of cities within 30 minutes or so of Palm Springs that have more lax rental regulations.

@Tom Hertel Palm Springs hasn't outlawed R1/R2 although they are pretty restrictive. Indio as the "City of Festivals" has a lot of incentive to keep fairly reasonable STR rules, and unincorporated Riverside continues to have the most liberal ordinance by far.

FLL has well defined rules to allow you to get licensed so it's pretty straightforward. You can also generate good revenue if you are east of US-1 and close to Broward/Las Olas BLVD. Homes will be priced in the $500K - $1MM range in that locale. 

I'm not familiar with Palm Springs but a quick search on ABB showed a relatively low nightly rate compared to FLL. What revenue can one generate with a 3/2 SFH and what can one expect to pay for the home? What about a 5/4?

     @Anand S. I am typically looking for 25-30% of the properties total cost, in gross annual rent, here in areas south of Palm Springs.  While you won't trip over returns like that every day, they can definitely be had for the knowledgeable investor.  Overall our insurance, maintenance, etc. ongoing costs tend to be a little lower here in the desert as well.

     It's a very different market in that most of our guest are driving a couple of hours to get here, and not flying.  Very different guest dynamic and booking cycle.

@John D. Why would you avoid Palm Springs proper?  There are no zoning restrictions with the new regulations, right?  It seems some of the regulations are tedious, but not deal breakers?  

I am looking at larger properties, do you operate smaller condos or SFHs?

Here's why I would avoid Palm Springs proper:

The maximum number of rentals per year, the max occupancy, the parking restrictions, the fact that no amplified sound outside is ever allowed (including a guest playing music on the speaker on their phone), the testy neighbors in many neighborhoods, the hefty fines, etc.  It is NOT for the faint of heart.

All of the homes I own are 7-10 bedrooms, some are larger estate type homes.  All are down valley from PS proper.


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