Palm Springs Airbnb Investment Property

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Welcome to your dream vacation home in the heart of Palm Springs! This stunning 1958 Mid Century Modern Pool Home has been completely reimagined with a sleek and modern design that is sure to captivate and inspire. With 4 bedrooms and 3 bathrooms, this expanded home features clean, crisp interiors with polished concrete floors and white washed walls, making it the perfect oasis for a relaxing getaway.

This home is situated on a corner lot and boasts a private outdoor oasis with mature trees, a firepit, and an outdoor dining area, perfect for al fresco dining under the stars. The views are breathtaking, with massive San Jacinto views that will take your breath away. Numerous upgrades, including a new pool and spa, new roof, new electric panel, new bathrooms, and new kitchen, make this home a truly turnkey investment.

Located just minutes from the Uptown design district, you'll have access to world-class shopping, dining, and entertainment, all just a short walk or drive away. And with the neighborhood still having short term rental permits available, this home represents an excellent opportunity to generate income as an Airbnb short term rental.

Don't miss your chance to own this beautiful property in one of the most desirable neighborhoods in Palm Springs. Schedule your showing today and start living the vacation lifestyle you've always dreamed of!

The Airbnb Investment Financials

How much does the home cost?

$1,189,000  

How much will it earn on Airbnb?

$13,800 per month

How much will it cost to furnish it?

$32,910. This includes the cost of designing the space, the cost of furniture throughout the entire home, outdoor amenities shown to increase average daily rates (ADR), and the cost of shipping and assembly of furniture.

How much will it cost to renovate?

According to the listing information, the estimated cost for additional repairs to improve the house's appearance and ensure the property is rent-ready is $5,000.

How much cash can you take home in the first year?

According to the Awning Analysis, the estimated monthly Airbnb revenue is $13,800, which translates to an annual operating income of $165,600.

After accounting for estimated operating expenses of $76,226 for the first year, the net operating income for the first year is estimated to be $89,374.

What is the cap rate for this property?

The estimated cap rate is 7.3%.

All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Palm Springs Short-Term Rental Regulations

What are the short-term rental laws and regulations in Palm Springs, California?

Homeowners are required to obtain a short-term rental license from the city of Palm Springs and can only have one STR within city limits. Additionally, homeowners should refer to Palm Springs Ordinance No. 1918 for additional guidance.

Further information about the permitting process and penalties for violations can be found on the City of Palm Springs website. The website notes that penalties, including permanent ineligibility to operate a short-term vacation rental in Palm Springs, will apply for any violations.

Finally, as reported by The Desert Sun, the Palm Springs City Council is considering a proposal to cap the number of short-term vacation rental permits in Palm Springs. The proposed cap is 2,500 permits and would limit the proportion of vacation rental homes in each neighborhood to 10%.

Is there a moratorium in short-term rentals in Palm Springs, California?

There was a temporary moratorium on new short-term rental permits in Palm Springs, California. As reported by several sources including NBC Palm Springs, KESQ News, and The Desert Sun, the Palm Springs City Council approved a temporary ban on new short-term vacation rental permits in a vote on October 18, 2022. The moratorium is set to last for a little over 30 days until November 30, 2022, and applies to any new short-term vacation rental permit applications.

Why Airbnb Guests Stay In Palm Springs, California

‍Where is Palm Springs, California?

Palm Springs is a city located in the Sonoran Desert of Southern California, United States. It is located approximately 110 miles east of Los Angeles and 140 miles northeast of San Diego.

What is there to do in Palm Springs, California?

• Visit the Palm Springs Aerial Tramway: The world's largest rotating tramcar takes you from the desert floor to the top of the San Jacinto Mountains, where you can enjoy panoramic views of the Coachella Valley.
• Explore the Joshua Tree National Park: This park offers stunning landscapes, hiking trails, rock climbing opportunities, and stargazing.
• Relax in a Spa: Palm Springs is home to many world-class spas that offer massages, facials, and other treatments.
• Visit the Palm Springs Art Museum: This museum has a collection of contemporary art, sculpture, and photography, and also hosts exhibitions and events.
• Take a Hot Air Balloon Ride: Enjoy breathtaking views of the desert landscape from a hot air balloon.
• Play Golf: Palm Springs has over 100 golf courses, including many championship courses.
• Visit the Indian Canyons: Explore the natural beauty of the area by hiking, horseback riding, or taking a Jeep tour.
• Shop and Dine: Palm Springs has many boutique shops and restaurants offering a variety of cuisines.
• Attend Festivals and Events: Palm Springs hosts various events and festivals throughout the year, including the Palm Springs International Film Festival, Modernism Week, and the Coachella Valley Music and Arts Festival.

What kinds of people travel to Palm Springs, California?

• Retirees: Palm Springs has a large retirement community, so many older adults travel here to enjoy the warm climate, golf courses, and other leisure activities.
• Families: Palm Springs is also a popular destination for families, particularly during school breaks. Many families come to the area to visit nearby theme parks, such as Disneyland and Knott's Berry Farm.
• LGBTQ+ travelers: Palm Springs has a reputation as an LGBTQ+ friendly destination, with many hotels, bars, and restaurants catering to the LGBTQ+ community.
• Outdoor enthusiasts: Palm Springs is surrounded by mountains and desert landscapes, making it a great destination for hikers, rock climbers, and other outdoor enthusiasts.
• Festival-goers: Palm Springs hosts several festivals throughout the year, including the Palm Springs International Film Festival, Coachella, and Stagecoach.

When are the busiest and slowest seasons for tourism in Palm Springs, California?

The busiest season for tourism in Palm Springs, California is generally from January to April, when the weather is pleasant and mild. During this time, many tourists come to the area to enjoy the warm climate, outdoor activities, and events like the Palm Springs International Film Festival and the Coachella Valley Music and Arts Festival. The summer months, from June to August, are typically the slowest season for tourism, as temperatures can be very hot, with highs regularly exceeding 100 degrees Fahrenheit. However, some tourists still come to the area during this time to take advantage of lower prices and fewer crowds. The fall and winter months, from September to December, are also a popular time for tourism, particularly around the holidays, when many visitors come to enjoy the festive atmosphere and cooler temperatures.

How far is Palm Springs, California from the nearest airport?

The nearest airport to Palm Springs, California is the Palm Springs International Airport (PSP), which is located approximately 2 miles east of downtown Palm Springs.

Are there any major events in Palm Springs, California?

• Palm Springs International Film Festival: Held annually in January, this festival showcases a wide variety of films from around the world.
• Coachella Valley Music and Arts Festival: This famous music festival takes place in April and attracts tens of thousands of visitors each year.
• Modernism Week: Celebrated in February, this event is dedicated to mid-century modern architecture and design.
• BNP Paribas Open: This professional tennis tournament is held in March and draws some of the world's top players.
• Palm Springs International ShortFest: Another film festival, this event is dedicated to short films and is held in June.
• Pride Weekend: Celebrated in November, this event is dedicated to the LGBTQ+ community and includes a parade, parties, and other festivities.

What Airbnb amenities do guests expect and pay a premium for in Palm Springs, California?

• Private pool: Palm Springs is known for its warm weather, and many guests want to take advantage of it by having access to a private pool. Listings that offer a private pool tend to be more popular and can command a higher price.
• Hot tub: Similarly, guests often look for listings that offer a hot tub, particularly during cooler months.
• Outdoor space: Guests also tend to value outdoor space, such as a patio or deck, where they can relax and enjoy the Palm Springs weather.
• Modern decor: Palm Springs is known for its mid-century modern architecture and design aesthetic, so listings that incorporate this style tend to be popular.
• Air conditioning: Given the hot temperatures in Palm Springs, guests expect listings to have air conditioning.
• High-speed internet: Many guests travel with multiple devices and expect high-speed internet access.
• Fully equipped kitchen: Some guests prefer to cook their meals, so having a fully equipped kitchen can be a selling point.
• Pet-friendly accommodations: Palm Springs is a pet-friendly destination, and some guests may be looking for listings that allow pets.

From Listing to Airbnb

1. Place an offer on this property: If you have a local real estate agent forward them this email and let them know you are interested in the property. If you want help finding the best representation, simply reply to this email and request an agent. Awning will get in touch with its network of agents. It’s best to be qualified for a mortgage, here is a list of lenders that work with Airbnb investors.
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Renovate and furnish the property: This property is easy to renovate and furnish. Then you’ll need some items, which you can find in this Airbnb Host Checklist.
4. Gather necessary documents and permission: You’ll want to consult California Short Term Rental Laws. In most cases, you won’t require an attorney as the paperwork process is straightforward.
5. List the property on Airbnb: To list your property on Airbnb you’ll need a description, title and professional photography.
6. Manage the Airbnb: If you choose to self-manage the Airbnb you should not have much trouble finding reliable cleaners in the area.
7. Awning Management: If you choose to use Awning Property Management we can take care of gathering documents and list the property for you. You can learn more about Awning Property Management or reach our team by responding to this email.