Airbnb & VRBO Performance in Cathedral City California.

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Cathedral City, California: Airbnb & VRBO Vacation Rental Market Overview

While Cathedral City, California, has phased out most short-term rentals as of January 1, 2023, properties within homeowners associations or those offering home shares can still operate, maintaining a niche but regulated market.

Market overview

Current Short-Term Rental Performance in Cathedral City, California: A Pre-Phaseout Snapshot

Despite the impending phase-out of short-term rentals in Cathedral City, California, the current performance of these rentals has shown promising metrics. As of the latest data, a typical short-term rental listing in Cathedral City is booked for 201 nights a year, boasting a median occupancy rate of 55% and an average daily rate of $125. This translates to an annual revenue of $27,471 for a typical host in 2023. The average net rental yield for a one-bedroom property stands at 7.8%, which is significantly higher than the national median of 5.4% in the USA. These figures highlight the profitability and stability of short-term rentals in Cathedral City, even as the city prepares for the phase-out of most short-term vacation rentals by January 1, 2023.

Short Term Regulations

Short-Term Rental Regulations in Cathedral City, California for 2024

General Regulations

  • Phase-Out of Short-Term Rentals: As of January 1, 2023, all existing short-term vacation rental (STVR) permits, except for those in homeowners associations (HOAs) that allow STVRs or for on-site home shares, have been terminated. No new permits are being issued for single-family and multi-family residential zones.

Exceptions

  • Homeowners Associations (HOAs): STVRs are allowed in HOAs that permit them, specifically in the RR (Resort Residential) zone.
  • On-Site Home Shares: Properties can operate as STVRs if the host is on-site during all guest stays.

Licensing and Fees

  • Permit Fees: Although new permits are not being issued, previous fees included $1,950 for single-family homes and $525 for hosted rentals, plus inspection fees.
  • Business License: Required for property management companies and individuals managing vacation rentals.

Operational Requirements

  • Minimum Stay: Guests must book a minimum of three nights.
  • Occupancy Limits:
  • Studio: 2 occupants
  • 1 bedroom: 2 occupants
  • 2 bedrooms: 4 occupants
  • 3 bedrooms: 6 occupants
  • 4 bedrooms: 8 occupants
  • 5 or more bedrooms: 10 occupants.

Compliance and Enforcement

  • Health and Safety Inspections: Required prior to license issuance or renewal.
  • Noise Regulations: No outdoor music or noise-producing devices allowed at any time. Indoor noise must not be heard beyond the property line. Outdoor amenities and activities that create noise are prohibited between 10 p.m. and 8 a.m..
  • Trash and Refuse: Must be stored in proper containers and not in public view except on collection days.
  • Advertising Requirements: Must include the STVR Permit Business License number, maximum occupancy, compliance with noise and outdoor activity standards, maximum number of cars allowed, and a statement respecting neighbors' privacy.

Penalties

  • Unpermitted Operations: Fines of up to $5,000 for operating without a permit. Additional fines for other violations such as noise, occupancy, trash, and parking can reach up to $5,000. False reports to the complaint hotline can result in a fine of up to $500.

Taxes

  • Transient Occupancy Tax: A 12% tax imposed on guest stays of 29 nights or less. Hosts are responsible for collecting and filing this tax.

Other Requirements

  • Commercial Insurance: Proof of commercial insurance with $500,000 per occurrence policy limits, unless exclusively hosting through Airbnb which provides its own liability insurance.
  • Guest Information: Owners must provide vacation rental regulations to guests, obtain their identification, and maintain this information for 3 years.
Neighborhood Performance

Neighborhoods Generating the Most Airbnb Revenue in Cathedral City, California

Why These Neighborhoods Are Appealing for Guests

While specific neighborhood-level data for Cathedral City itself is limited, the surrounding areas and broader region provide insights into the most lucrative and appealing locations for Airbnb guests.

1. Palm Springs

  • Appeal: Known for its historic mid-century modern architecture, beautiful mountain views, and a vibrant downtown area with numerous shops, restaurants, and attractions. Properties like the "Original Mid Century Alexander" and "Desert gateway" are highly rated for their architectural charm and modern amenities.
  • Revenue Potential: High demand due to its popularity among tourists and event attendees, contributing to a strong short-term rental market.

2. Palm Desert

  • Appeal: Offers a mix of luxury resorts, golf courses, and easy access to festivals and local attractions. Properties such as "Casa Chella&casita" are favored for their private pools, casitas, and proximity to golf courses and festivals.
  • Revenue Potential: The area's amenities and events, like the Coachella Valley Music and Arts Festival, drive high demand for short-term rentals.

3. Rancho Mirage

  • Appeal: Known for its upscale communities, golf courses, and serene gated neighborhoods. Guests are attracted to the luxurious and peaceful environment, such as the "Your Perfect Retreat in a Serene Gated Community".
  • Revenue Potential: The high-end nature of the properties and the area's reputation for luxury living make it an attractive and profitable location for Airbnb hosts.

4. La Quinta

  • Appeal: Famous for its golf courses, outdoor recreational activities, and the La Quinta Resort & Club. Properties like "Song Bird Estate by GPM" offer extensive amenities, including private pools and game rooms, making them highly desirable.
  • Revenue Potential: The area's popularity among golf enthusiasts and those seeking a luxurious desert getaway ensures a steady stream of guests.

5. Joshua Tree National Park Area

  • Appeal: While not directly in Cathedral City, the nearby Joshua Tree National Park is a significant draw for tourists seeking outdoor adventures and unique desert landscapes. Neighborhoods like Joshua Tree City, 29 Palms, and Yucca Valley benefit from this tourism.
  • Revenue Potential: The increasing demand for short-term rentals in this area, driven by the park's popularity, makes it a lucrative option for Airbnb investors.

These neighborhoods are appealing due to their unique blend of natural beauty, recreational opportunities, and luxurious amenities, which attract a wide range of guests and contribute to their high revenue potential.

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Design Tips

Tips for Furnishing and Design of an Airbnb in Cathedral City, California

To create an inviting and stylish Airbnb in Cathedral City, California, consider the following tips, which reflect the city's unique desert charm and amenities:

Emphasize Outdoor Living

  • Incorporate outdoor spaces that take advantage of Cathedral City's sunny climate. Features like saltwater pools, hot tubs, fire pits, and shaded areas with tiki huts or loungers are highly appealing.
  • Ensure multiple seating and lounging areas outdoors, including dining spaces and poolside chaises.

Choose Desert-Inspired Decor

  • Opt for modern desert or mid-century modern styles, which are popular in the Palm Springs area. These styles often feature light colors, natural textures, and rustic elements like reclaimed wood and stone.
  • Incorporate elements that reflect the desert environment, such as cacti and succulents in the landscaping and decor.

Focus on Comfort and Luxury

  • Use high-quality, comfortable furnishings, including luxurious linens and modern appliances. This enhances the overall guest experience and can lead to positive reviews.
  • Include amenities like fully-equipped kitchens, gourmet cookware, and spa-like bathrooms to cater to guests seeking a luxurious stay.

Utilize Local and Natural Materials

  • Incorporate local materials and natural elements such as hardwood flooring, travertine, and marble to add a touch of elegance and authenticity to the space.

Ensure Functionality and Convenience

  • Provide dedicated workspaces for guests who may need to stay productive during their stay. This is particularly important given the increasing number of remote workers.
  • Include amenities like high-speed internet, cable TV, and laundry facilities to enhance guest convenience.

Highlight the View and Natural Beauty

  • If the property has a view, such as mountain views or desert landscapes, design the space to maximize this feature. Use large windows, French doors, and outdoor decks to bring the outdoors in.

Add Unique Touches

  • Incorporate unique features like artist's paintings, outdoor sculptures, or a cold plunge pool to make the space stand out and provide a memorable experience for guests.

Maintain Cleanliness and Organization

  • Ensure the property is meticulously clean and well-organized. Guests highly rate properties for cleanliness, so this is crucial for positive reviews.

By following these tips, you can create an Airbnb in Cathedral City that is both inviting and reflective of the city's unique desert style.

Insider Tips

Discover Cathedral City, California: Local Attractions and Insider Tips

Local Attractions

Arts and Culture

  • Public Arts Initiative: Explore various public art works, including the whimsical Fountain of Life statue in downtown Cathedral City.
  • Gallery Openings on Perez Road: Attend local art gallery openings in the city’s art and design district.
  • Mary Pickford Theatre: Watch movies in a historic Spanish Colonial building with DBOX technology.

Festivals and Events

  • Hot Air Balloon Festival and Food Truck Fiesta: Enjoy balloon tether rides and a nighttime balloon glow, along with food from various trucks.
  • Taste of Jalisco Festival: Celebrate the culture and cuisine of Tequila, Jalisco.
  • Free Outdoor Movies in the Park: Relax with a movie under the stars, followed by a visit to La Michoacana Ice Cream Parlor.

Outdoor Activities

  • Golf Courses: Play at Cimarron Golf Resort, Desert Princess Country Club, or Cathedral Canyon Golf Club. Consider golf lessons at Cathedral Canyon.
  • Boomers Entertainment Park: Enjoy mini-golf and other family-friendly activities.
  • City Parks: Visit one of the nine parks, such as Century Park, Ocotillo Park, or Patriot Park, for various recreational activities.

Unique Experiences

  • Create Your Own Sandals: Participate in a workshop with local footwear designer Debra Hovel to make bespoke sandals.
  • Sol y Sombra Restaurant: Savor tapas-style dishes with a desert twist at this popular restaurant in the Paloma resort.

Insider Tips

Dining

  • Luchador Brewing Company: Sample craft beers and Mexican-style lagers, and enjoy the dog-friendly atmosphere.
  • The Roost Lounge: Attend comedy, drag, and karaoke events at this welcoming gay bar and cocktail lounge.

Shopping

  • Perez Road Art and Design District: Hunt for one-of-a-kind treasures and vintage furniture in the eclectic warehouse-style shops.

Community Engagement

  • Local Events at the Main Event Lawn: Check the city’s event calendar for various festivals and community gatherings held on the main event lawn adjacent to downtown.

Accommodation Tips

  • The Paloma Resort: Recommend this Spanish-modernist-inspired resort for its colorful bungalows, tapas restaurant, and scenic pool area.

By sharing these local attractions and insider tips, you can enhance your guests' experience and help them make the most of their visit to Cathedral City.

Practical Tips

Practical Tips to Run a Successful Short-Term Rental Business in Cathedral City, California

To ensure a successful and compliant short-term rental business in Cathedral City, California, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about the strict noise regulations in Cathedral City, which include quiet hours from 10 PM to 10 AM. Clearly communicate these rules in your house manual and during the check-in process to avoid any potential issues or fines.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This will help guests navigate the property easily and reduce the number of inquiries you receive.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos of the smart lock and any other relevant entry points.

Parking Instructions

Include detailed parking instructions in your house manual, accompanied by photos to help guests understand where they can park. This is particularly important given the city's regulation of one vehicle per bedroom, to avoid any parking-related issues or fines.

By adhering to these tips, you can enhance guest satisfaction, ensure compliance with local regulations, and maintain a smooth operation of your short-term rental business in Cathedral City.

Local Vendors

Here is a brief list of house cleaning providers in Cathedral City, California:

House Cleaning Services in Cathedral City, CA

Aloha Maids

  • Offers house cleaning and deep cleaning services with an "Aloha Spirit".

Premier Residential Services

  • Provides house cleaning services and can be contacted at 760-773-4081.

Campos Cleaning Services

  • Known for professional and detailed cleaning services, highly recommended by clients.

Deluxe Cleaning and Janitorial Services

  • A local cleaning company serving home and business owners in Palm Springs and Cathedral City since 2014.

For more options, you can also refer to the list on Thumbtack, which includes other highly-rated house cleaning services in the area.

Management fees

Managing Short-Term Rentals in Cathedral City, California: Fee Structures and Services

In Cathedral City, California, the management of short-term rentals involves a range of fees that can vary significantly based on the level of service provided. Full-service management companies, which handle guest communication, marketing, and maintenance, typically charge fees ranging from 20% to 30% of the rental revenue. These comprehensive services ensure that the property is well-maintained, marketed effectively, and that guest needs are promptly addressed. On the other hand, basic services that offer fewer amenities may be available at lower rates, often around 10% of the rental revenue. Additionally, hosts may incur extra fees for cleaning, repairs, or design services, which can further impact the overall cost of managing a short-term rental property in Cathedral City.

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Why choose RedAwning

RedAwning is a tech leader in full-service short-term rental management, powered by our exclusive, unmatched tools.
Other property managers
Cost
Starting at 10%
25-40%
Guest communications
5-15 mins / 24 hours a day
1 hour+
Host communications
Dedicated phone and text line with no time on hold
Chat bots, hold lines and email threads
Insurance
Robust liability and dwelling coverage for every reservation
Spotty coverage with low claim approval rates
Contract
No cancellation fees
No contract lock-in
Just 90 days notice to cancel
Cancellation penalties
Number of Channels Your Listing is On
50+
2-4

Experience in numbers

Rest well knowing your property is managed by an experienced team powered by world-class technology.
+10-30%
in gross revenue
4.8 stars
guest rating
14+ years
managing STRs

Short Term Rental Calculator

Find out how much your property in Cathedral City should generate as a short term rental and look at the performance of properties around yours.

35,000+ Properties
Hosts stay with RedAwning
1,000,000,00 Nights Booked
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Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Cathedral City.

Living Room
Seating: Sofa, armchairs, and ottomans
Coffee Table
Entertainment: Smart TV (with streaming apps) and remote control
Decor: Area rug, wall art, plants, and throw pillows
Lighting: Floor lamp or table lamps
Charging Stations: Power strips or outlets with USB ports
Bedrooms
Beds: High-quality mattress with mattress protector
Linens: At least two sets of sheets per bed
Pillows: Hypoallergenic pillows (2-4 per bed)
Blankets: Extra throw blankets or quilts
Nightstands: With lamps or charging docks
Closet or Storage: Hangers, dresser, or luggage rack
Blackout Curtains or Shades
Bathrooms
Towels: Bath towels, hand towels, washcloths (2 sets per guest)
Shower Curtain & Liner
Toiletries: Shampoo, conditioner, body wash, hand soap
Bathroom Essentials: Toilet paper, tissues, trash bin
Hairdryer
Mirror: Full-length or wall mirror
Dining Area
Dining Table: Seating for the maximum number of guests
Place Settings: Placemats or tablecloths
Centerpiece: Vase with flowers or decorative piece
Kitchen
Appliances: Refrigerator, microwave, toaster, coffee maker, kettle
Cookware: Pots, pans, baking trays
Utensils: Forks, knives, spoons, spatulas, tongs
Dinnerware: Plates, bowls, glasses, mugs (2 sets per guest)
Cutting Board & Knives
Basic Spices & Condiments: Salt, pepper, oil
Cleaning Supplies: Sponge, dish soap, paper towels, trash bags
Outdoor Space (if applicable)
Seating: Outdoor chairs, benches, or lounges
Table: For outdoor dining or drinks
Lighting: String lights or outdoor lanterns
Grill: With necessary utensils and instructions
Outdoor Trash Bin
Extras to Elevate Guest Experience
Welcome Basket: Snacks, water bottles, or wine
Guidebook: Local recommendations and house rules
Board Games or Books: Entertainment for guests
Umbrella & Flashlight
Iron & Ironing Board
Laundry: Washer, dryer, and detergent (if available)
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⇤ Airbnb Statistics for California