The Definitive 15-Day Guide to Agency-to-Agency Short-Term Rental Transfers in Palm Springs

By: Brad Greiner, CEO of Open Air Homes and OpenAiRE Brokerage
September 6, 2024

Why August and September Are Ideal for Switching Property Managers and Preparing for the Upcoming Season.  But truthfully, there’s no bad time to leave a property manager that isn’t working out! 

The short-term rental market in Palm Springs is facing challenges, and as a homeowner, you might be feeling the pressure. Whether it’s declining occupancy rates, reduced nightly prices, or a negative experience with a bad guest, these factors can make you question your current property management arrangement. Changing property management companies isn’t an easy decision, but it can be a necessary step if you’re not seeing the results you expect.

At Open Air Homes, we completed three agency-to-agency transfers in August 2024 alone, making it the perfect time to rethink your strategy before the market picks up in the coming season. August and September are ideal months for making a change because they allow you to prepare your property for success in the busier months ahead.

Casa Santa Fe in Palm Springs

Why Consider a Property Management Change?

Before diving into the transfer process, it’s essential to understand why you might consider switching property management companies:

• Declining Occupancy or Revenue: If your occupancy rates or nightly prices have dropped significantly, it could be time to re-evaluate your property management strategy. A good management company should be proactive in addressing market changes, adjusting pricing strategies, and optimizing your property’s visibility.
• Guest Issues: Bad guests can be a nightmare. Even with rigorous vetting, sometimes bad actors slip through the cracks, causing chaos in your home. If your current management company isn’t handling these situations effectively, it may be time to look elsewhere.
• Low Ratings: If your Airbnb listing has an average rating of less than 4.5 stars, it might be a sign that something isn’t working. Starting fresh with a new company could help you improve your ratings and attract more guests.
• Lack of Proactive Management: If you feel that your current property management company isn’t as responsive or proactive as you’d like, especially in a down market, finding a company that better aligns with your expectations might be the best course of action.

 

Remember, there’s never a BAD time to leave a property management company that isn’t succeeding. The 15-day transfer process offers a valuable opportunity to take a step back and reevaluate your property’s potential. Why not use this time for a staycation and enjoy your home as a guest? Or, let us assist you in finding the ideal stager or interior designer to help rethink your listing from top to bottom. These 15 days could be the start of your property’s renewed success.

Casa Santa Fe in Palm Springs

The Agency-to-Agency Transfer Process in Palm Springs

Palm Springs has a straightforward process for transferring your short-term rental from one property management agency to another. Here’s how it works:

1. Complete the Transfer Form: The transfer process starts with the completion of the Transfer Form, which must be signed by both your current and future agencies, as well as by you, the homeowner. You can find the Transfer Form on the Palm Springs website.
2. Pay the Transfer Fee: There is a transfer fee of $174 that must be submitted with your transfer documents. This fee covers the administrative costs associated with the transfer process.
3. Renewal Payment (if applicable): If your Vacation Rental Registration Certificate is expiring within 30 days of the transfer, you’ll need to submit the required renewal payment along with your transfer documents.
4. 15-Day Approval Period: The City of Palm Springs requires a 15-day period for the approval of an agency-to-agency transfer. During this time, the city reviews your application to ensure that the new management agency meets all regulatory requirements and that the transfer adheres to local ordinances.
5. New Management Takes Over: Once the transfer is approved, your new property management company can officially take over the management of your property.

Casa Santa Fe in Palm Springs

What to Look for in Your New Property Management Company

Not all property management companies are created equal.  

We think we are pretty great, with a 4.9+ star average over the course of 13 years of business.  Like we mentioned before, this is a tough business and it’s best to do your research before making a change. You’re hiring a property management company to protect your asset, and you hire them to fight on your behalf when something goes wrong. You want to have a strong relationship with this company, and trust in their team and ability to manage your home without causing you additional stress. 

Issues can and will come up in this space, and there isn’t one property management company that can fully prevent bad actors, as hard as we try.  Keep this in mind as you begin your search.

Here’s what you should look for in a new partner:

• Experience in the Market: Choose a company that understands the Palm Springs market and has a proven track record of success.
• Dynamic Pricing Expertise: Your new partner should be well-versed in dynamic pricing and capable of adjusting rates in real-time to maximize occupancy and revenue.
• Maintenance and Care: A good property management company should prioritize your home’s upkeep and ensure that it remains in excellent condition.
• Strong Guest Relations: Look for a company that is skilled in guest communication and has a good working relationship with platforms like Airbnb. They should be proactive in managing guest expectations and resolving any issues that arise.
• .Focus on the Future: As platforms like Google Travel gain more market share, it’s essential to work with a company that is forward-thinking and ready to adapt to changes in the industry.

Casa Santa Fe in Palm Springs

Make the Right Move for Your Property

Switching property management companies in Palm Springs can be a complex decision, but with the right approach, it can lead to greater success for your short-term rental. By carefully assessing your property, setting clear expectations, and choosing a partner who understands the market, you can ensure that your property remains competitive and profitable.

At Open Air Homes, we’re committed to working closely with homeowners to create a successful partnership that benefits both parties. If you’re considering a change, we invite you to reach out to us and learn more about how we can help you navigate this transition and achieve your goals. Don’t let the 15-day process discourage you—this could be the start of something great for your property.