In Palm Desert, California, the short-term rental market is showing resilience, with a 1% increase in RevPAR, a 21% rise in average daily rates to $395, and a strong occupancy rate despite some fluctuations, making it an attractive option for investors.
Thriving Short-Term Rentals in Palm Desert, California
Palm Desert is standing out as a resilient and attractive destination for short-term rental investments in the Greater Palm Springs area. Despite some challenges in the broader region, Palm Desert has managed to maintain a strong performance. Here, the Revenue Per Available Rental (RevPAR) has seen a 1% increase to $136, although this represents a slight fall in real terms due to inflation. However, average daily rates (ADRs) have surged by 21% to $395, indicating attractive value for visitors. While occupancy has dipped to 34%, the high ADRs and the city's abundance of golf courses, country clubs, and amenities continue to make Palm Desert an appealing choice for both investors and travelers.
Short-Term Rental Regulations in Palm Desert, California for 2024
General Requirements
- Permit Requirement: Short-term rental owners must obtain a Short-Term Rental Permit, which must be renewed annually.
- Transient Occupancy Tax: Operators must pay the City’s 11% Transient Occupancy Tax and a 1% assessment by the Greater Palm Springs Tourism Business Improvement District.
- Transient Occupancy Tax Operator Permit: Operators must have a Transient Occupancy Tax Operator Permit.
Zoning and Prohibited Areas
- Prohibited Zones: New short-term rental permits are prohibited in R-1, R-2, and PR zones unless approved by the homeowners' association.
- Hillside Planned Residential (HPR) Zone: Off-site short-term rental permits in the HPR zone are being phased out. Permits are allowed if governed by a functioning HOA and permitted under state law or the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
Property Types
- Prohibited Unit Types: Short-term rentals are prohibited in apartments, accessory dwelling units, junior accessory dwelling units, and units with one bedroom or less.
Operational Requirements
- Minimum Rental Duration: The minimum duration of a short-term rental is three days, two nights. Rentals or leases for less than this period are prohibited.
- Noise Compliance: Operators must ensure guests comply with the city’s noise standards and regulations. Advertising must include requirements for noise compliance and respect for neighbors’ privacy.
- Advertising Requirements: The short-term rental permit number must be included in all advertisements. Advertisements must also specify the maximum overnight occupancy and a statement that guests shall respect neighbors’ privacy and enjoyment of their property.
Compliance and Enforcement
- Good Neighbor Brochure: Applicants must acknowledge receipt and inspection of the Good Neighbor Brochure.
- 24-Hour Hotline and Online Complaint Form: Residents, visitors, and businesses can report issues with short-term rentals through a 24-hour hotline or online complaint form.
- Penalties for Non-Compliance: Failure to comply with regulations can result in penalties and potential revocation of the permit.
Additional Regulations
- On-Site Owner Requirements: Specific forms and requirements apply for on-site owners.
- Application and Renewal Fees: STR permit applications, including new and renewals, cost $29.00.
- Business Practices: Operators must use reasonably prudent business practices to ensure guests do not create unreasonable noise or disturbances.
Top Airbnb Revenue-Generating Neighborhoods in Palm Desert, California
1. Brava
- Appeal: Brava is a gated community known for its luxury townhomes and Mediterranean architecture. It offers privacy and exclusivity, making it perfect for guests seeking a quiet and upscale lodging experience.
2. Villa Portofino
- Appeal: This 55+ active adult community boasts elegant homes and condos, providing a serene and luxurious lifestyle with amenities like a clubhouse, dining options, and a fitness center. It is ideal for guests looking for a relaxed and refined stay.
3. Shadow Mountain Golf Estates
- Appeal: This neighborhood surrounds a historic golf course and offers stunning mountain views, attracting guests who are golf enthusiasts or those seeking a peaceful retreat.
4. Palm Dell Estates / Estates at Rancho Mirage
- Appeal: Characterized by spacious homes and lush landscapes, these areas provide a tranquil escape, perfect for families or groups seeking a more secluded stay.
5. Desert Breezes / The Palm Desert Country Club
- Appeal: Known for its welcoming community and access to exceptional golfing facilities, this area is a favorite among guests who are golf enthusiasts or seeking leisurely stays with scenic views.
6. Spanish Walk
- Appeal: Featuring modern homes and community pools, Spanish Walk appeals to families and groups looking for a comfortable and stylish stay with convenient amenities.
7. The Lakes Country Club / Oasis Country Club
- Appeal: With access to premium golf courses, tennis courts, and clubhouses, these neighborhoods cater to guests who enjoy active lifestyles and social environments.
8. Cahuilla Hills
- Appeal: Offering more seclusion and larger properties, Cahuilla Hills is nestled in the mountains, providing breathtaking views and privacy, ideal for a luxurious getaway.
9. Palm Village Plaza / Palm Village Garden
- Appeal: This commercial and residential mix offers convenience and accessibility, suited for guests who want to be close to shopping, dining, and entertainment options.
10. The Grove / Hidden Palms
- Appeal: These gated communities are known for their quiet streets, community pools, and tennis courts, perfect for guests seeking a peaceful and amenity-rich environment.
These neighborhoods are highly appealing due to their combination of luxury amenities, scenic views, and convenient access to various activities and attractions, making them prime locations for generating significant Airbnb revenue.
Furnishing and Design Tips for an Inviting Airbnb in Palm Desert, California
Understanding Palm Desert's Unique Style
- Incorporate mid-century modern and desert deco elements, which are characteristic of Palm Desert's architectural and design heritage.
- Use natural materials such as wood, stone, and plants to blend the interior with the desert landscape.
Color Scheme and Lighting
- Choose a color palette that reflects the desert environment, including earth tones, pastels, and vibrant colors inspired by the sunset.
- Utilize natural light by keeping windows unobstructed and adding skylights where possible.
- Install warm and inviting lighting, such as string lights or fire pits, for evening ambiance.
Furniture and Layout
- Select furniture that is both stylish and comfortable, such as plush sofas and mid-century modern chairs.
- Optimize the layout to create open, airy spaces that facilitate relaxation and social interaction.
- Include outdoor furniture that complements the indoor style, such as patio sets and hammocks.
Amenities and Features
- Add amenities like hot tubs, pools, and fire pits to enhance the guest experience and take advantage of the desert climate.
- Ensure the kitchen is well-equipped with modern appliances and stylish fixtures, such as vintage stoves and Nespresso machines.
- Incorporate local art and decorative items to give the space a unique and authentic feel.
Outdoor Spaces
- Design outdoor spaces that are perfect for stargazing, such as patios with comfortable seating and fire pits.
- Include BBQ areas and outdoor dining spaces to encourage al fresco dining.
- Utilize the natural beauty of the desert by incorporating native plants and landscaping.
Technology and Comfort
- Install high-speed Wi-Fi and Smart TVs to cater to guests who need to work remotely or stay entertained.
- Ensure the home is equipped with air conditioning and other modern comforts to make the stay comfortable.
Personal Touches
- Add personal touches such as a collection of local books, maps, and guides to help guests explore the area.
- Provide a welcome package with recommendations for local restaurants, hiking trails, and other attractions.
Maintenance and Cleanliness
- Ensure the property is meticulously maintained and cleaned to uphold high standards of cleanliness and guest satisfaction.
- Regularly update and refresh the decor to keep the space feeling new and inviting.
Discover Palm Desert: Local Attractions and Insider Tips
Must-Visit Attractions
The Living Desert Zoo and Gardens
- A conservation-focused zoo featuring endangered species from deserts around the world. Highlights include the Rhino Savanna, Australian Adventures habitat, and the opportunity to feed giraffes.
McCallum Theatre
- A state-of-the-art performance venue hosting top entertainers, Broadway acts, and educational programs for the arts. Catch a musical, concert, or dance performance.
El Paseo Shopping District
- A tree-lined boulevard with upscale stores, boutiques, public art pieces, and a variety of restaurants serving international cuisines. Don't miss the Palm Desert Food & Wine Festival and Fashion Week El Paseo.
Bump and Grind Trail
- A moderately challenging 4-mile loop trail offering great workouts and stellar views. Ideal for walkers, runners, and cyclists, but note that dogs are not permitted.
Desert Willow Golf Resort
- An award-winning golf resort with two championship courses, certified as an Audubon Cooperative Sanctuary for its wildlife habitat protection.
Palm Desert Civic Center Park
- A 70-acre park featuring grassy berms, a rose garden, art installations, recreational amenities like baseball fields, tennis courts, pickleball courts, and a skate park.
Insider Tips
Enjoy Local Cuisine
- Palm Desert offers a diverse range of dining options, from intimate cafes to elegant spaces. Don't miss the annual Palm Desert Food & Wine Festival for a taste of the local culinary scene.
Explore Public Art
- Take a self-guided public art tour to discover the city's vibrant art scene, including sculptures and architectural pieces.
Relax Poolside
- With numerous resorts and hotels offering poolside amenities, and the Palm Desert Aquatic Center at the Civic Center Park, there are plenty of options for relaxation and fun in the sun.
Hike and Explore
- In addition to the Bump and Grind Trail, explore other hiking trails in the area for breathtaking views of the Coachella Valley. Joshua Tree National Park is also nearby for more extensive outdoor adventures.
Shop and Unwind
- Visit the various dog parks, disc golf courses, and picnic areas for a relaxed day out. The city's many parks offer something for every passion.
Catch a Show at Acrisure Arena
- Located just north of Palm Desert, this arena hosts top names in the music industry and offers year-round entertainment.
By sharing these attractions and tips, you can help your guests make the most of their visit to Palm Desert and enjoy all that this vibrant city has to offer.
Practical Tips to Run a Successful Short-Term Rental Business in Palm Desert, California
To ensure a smooth and profitable short-term rental business in Palm Desert, California, several key practices can be implemented. First, it is crucial to adhere to and communicate noise regulations to guests, including informing them about quiet hours to maintain good neighborly relations and avoid potential fines. This can be effectively done through a comprehensive digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details.
A simplified check-in process can significantly enhance the guest experience. Utilizing smart locks eliminates the need for physical key exchanges and provides guests with a unique access code for their stay. Additionally, providing clear parking instructions accompanied by photos can help avoid confusion and ensure a hassle-free arrival.
By focusing on these details, hosts can create a welcoming and well-organized environment that fosters positive reviews, repeat bookings, and a successful short-term rental business in Palm Desert.
Here is a brief list of house cleaning providers in Palm Desert, California:
House Cleaning Services in Palm Desert, CA
Jay's One Stop Cleaning Services
- Offers home cleaning, carpet cleaning, tile cleaning, window washing, and more.
- Family-owned and operated, licensed, insured, and bonded.
- Serving Palm Desert, Palm Springs, La Quinta, Rancho Mirage, Cathedral City, and Indio.
Merry Maids of Palm Desert
- Provides expert cleaning services with 40 years of experience.
- Handles everyday chores to help you reclaim your time.
- Offers free estimates and proven cleaning processes.
Molly Maid
- Offers customized cleaning plans with no contracts and a 24-hour warranty.
- Serves Palm Springs, Palm Desert, Desert Hot Springs, Rancho Mirage, La Quinta, and neighboring communities.
- Backed by the Neighborly Done Right Promise®.
We've Got It Maid Cleaning Service
- Locally owned and managed, operating for over 25 years.
- Provides high-quality home cleaning services, licensed, bonded, and insured.
- Focuses on fine details with satisfaction guaranteed.
Additional Providers
- Various other house cleaning services listed on Care.com, with rates starting at $26.75/hr and an average experience of 5 years.
Palm Desert, California: Understanding Short-Term Rental Management Fees
In Palm Desert, California, short-term rental management fees typically range from 10% to 30% of the rental revenue, varying significantly based on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, strategic marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30%.
Basic services, which may include fewer amenities and less personalized attention, can cost less, usually around the 10% to 20% mark. Additionally, property owners may incur extra fees for specific services like cleaning, repairs, or design enhancements. These fees are structured to reflect the unique needs and market conditions of each property, ensuring that owners can maximize their investment while maintaining high standards for their rental properties.