The city of Palm Springs has adopted new Airbnb regulations, bringing down the value of housing and leaving many homeowners struggling to find a solution to offsetting the high cost of their second home ownership.
Whether you just purchased your home in Palm Springs or have been a resident for years, we’ve developed our “2024 Guide to Monetization in Palm Springs” to help you discover the best solution that works for you and your home.
As a Palm Springs Homeowner looking to monetize your home, you have options. Open Air Homes is here to help.
Open Air Homes set up our business to operate legally for Month+ bookings in 2018, and now find ourselves uniquely positioned to help homeowners in Palm Springs to skirt the arduous short term rental regulations of the moment.
We are setting a new standard for the short and medium term rental industry here in Palm Springs. Our goal is to help as many homeowners as we can with this guide, whether or not they ultimately decide to partner with us.
Steps to Monetization:
1. Check if your neighborhood is capped with permits via this link from the City of Palm Springs. If capped, go to step two. If not capped, apply for a short term rental permit through the city of Palm Springs.
2. If your neighborhood is capped for short term rentals, you have three options:
A. You can apply for the junior permit to allow 6 rentals per year for when you travel. You can self manage, or hire a company like Open Air Homes to manage while you’re out of town.
B. Work with a company like Open Air Homes to rent out your home for 30+ day stints, or long term furnished rentals. Stays over 30 days are considered long term in the state of CA, and do not apply to the short term rental regulations. Please note: To legally take rentals over 30 days in the state of California, the company you partner with needs to be a Real Estate Brokerage. Open Air Homes is a brokerage, with DRE #02164159.
C. Add yourself to the capped waitlist and wait until your neighborhood is under the 20% threshold, or until Palm Springs’ city council realizes their regulation has plummeted house pricing, and reverses course.
3. Partner with Open Air Homes to launch your listing, whether as a STR with 36 rentals per year in a non-capped city, 6 rentals per year with a junior permit + Month+ rentals, or strictly as a rental property for Month+ bookings.
Some homeowners are choosing to apply for their junior permit, and then work with Open Air homes to allow 6 short term rentals per year, along with Month+ bookings.
Others are choosing to simply go the Month+ route, and work with a company like Open Air Homes. We have focused on Month+ rentals since 2018, and a significant portion of our portfolio rents to discerning travelers who are looking for 30-90 day stays.
If you are a homeowner that has been affected by recent changes in the Palm Springs Market and are curious about how Open Air Homes might be able to help, we’d love to hear from you. Your privacy is important to us. We’ll never share your information.
In 2018, Open Air Homes began to realize that guests were beginning to travel for much longer periods of time, often seeking 3-4 months in our homes. At that time, we began to see an opportunity to cater a significant portion of our portfolio specifically to guests traveling for longer periods of time, and became a Real Estate Brokerage in order to legally take 30-90 day rentals.
Any rental over 30 days, it turns out, is considered a long term rental in the state of California, and are not subject to the ever changing short term rental regulations we are seeing in various cities throughout the state of California. Open Air Homes believes the work-from-anywhere culture is here to stay, and that demand for 30-90 days will continue to grow over the coming decade.
Many of our homeowner partners at Open Air Homes are either forced through regulation, or purposefully choose to go the Month+ rental route. Open Air Homes set up our business to operate legally for Month+ bookings in 2018, and now find ourselves uniquely positioned to help homeowners in Palm Springs to skirt the arduous short term rental regulations of the moment.
• Airbnb SuperHost and VRBO Premier Host.
Our superior status Gets Your Home viewed more often.
• Occupancy rate of 55% vs 51% Palm Springs Market Average.
• Average Nightly Rate of $637 vs $216 Palm Springs Market Average.
• Focus on the Medium-term rental market (30-90 day rentals) for homeowners who seek less turnover, or are looking to skirt the arduous short term rental regulations (we’re looking at you, Palm Springs!)
