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Palm Springs Rental Property Outlook: 2025
Navigating Success in Palm Springs’ Rental Market
Palm Springs continues to attract tourists worldwide, thanks to its sunny weather, desert landscapes, and vibrant cultural scene.
At Open Air Homes, we leverage our 14+ years of experience managing properties in Palm Springs and Greater Palm Springs, providing homeowners with tailored strategies to maximize revenue and guest satisfaction.
Navigating PalmSprings’
STR Regulations:
✔️ Palm Springs maintains a 20% cap on STR properties per neighborhood.
✔️Neighborhoods exceeding this cap require prospective STR hosts to join a waitlist.
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A streamlined online permitting portal now allows homeowners to manage and track their annual limit of 36 rental contracts per year easily.
At Open Air Homes, we strategically secure longer stays through discounted rates, helping homeowners stay well within the permitted annual rental contracts and achieve high occupancy without relying on frequent short stays that negatively impact their occupancy limits.
Market Trends and Opportunities:
Since the boom in 2020, Palm Springs experienced a surge in property supply, leading to heightened competition and downward price pressure. However, the market is gradually returning to equilibrium, offering a great opportunity for homeowners to reassess their strategies and reposition their properties for sustained success.
Property Size Matters:
Navigating Market Supply in Palm Springs
In Palm Springs’ competitive 2025 rental market, property size directly impacts your investment’s performance. Understanding the current supply can help you position your property strategically:
Total Active Rentals: 3,942 properties
✔️Five-Bedroom Homes: 416 properties (lower supply, premium nightly rates)
✔️Four-Bedroom Homes: 1,201 properties (moderate competition, popular with families)
✔️Three-Bedroom Homes: 2,134 properties (highest saturation, requires strategic pricing)
✔️Two-Bedroom Homes: 950 properties (medium saturation, ideal for couples/small families)
✔️One-Bedroom Homes: 682 properties (lower supply, niche appeal for solo travelers or couples, monthly rentals have more success)
At Open Air Homes, we analyze these insights to optimize your property’s visibility, pricing, and occupancy—ensuring success across every property type.
An Attractive Alternative
If your neighborhood has reached or exceeded Palm Springs’ 20% STR cap, Month+ rentals offer a profitable and fully compliant alternative:
✔️Growing demand from remote workers, digital nomads, and seasonal residents.
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Strong occupancy from October through May, with tailored pricing strategies.✔️Legally secure—we manage rentals professionally using California Association of Realtors (CAR) forms, safeguarding your rights.
Important to Note:
From June to September, monthly rental demand significantly decreases. To maintain occupancy during these summer months, substantial rate reductions are necessary. Many homeowners choose to pause rentals during this period, but we can advise you on the best strategy for your specific home and goals.
Choosing Open Air Homes in Palm Springs Means:
✔️Customized rental strategies designed specifically for your property.
✔️Expertise in local regulations, ensuring smooth permitting and compliance.
✔️Strategic occupancy management, emphasizing longer stays to maximize annual revenue.
✔️Flexible management options for both short-term and Month+ rental solutions.
Whether you’re looking to optimize your investment, reduce wear and tear with monthly stays, or find a balanced combination, Open Air Homes provides the knowledge and experience to help you succeed.
Work with Local Experts
Our real estate brokerage partner, OpenAiRE Brokerage, provides specialized local insights, supporting your investment from property selection through ongoing management. By understanding Palm Springs’ unique market dynamics, OpenAiRE helps you make informed, profitable decisions.
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