Why Consider Monthly Rentals in SoCal? 🌴
How Shifting to Monthly Rentals Transformed Our Business at Open Air Homes
Back in 2019, Los Angeles changed its rules for short-term rentals. Suddenly, some of our homes, including one I personally owned, no longer qualified. We had to act quickly, transitioning these properties from short-term to monthly rentals. Honestly, at first, we were uncertain how this change would impact our occupancy and revenue.
Before these regulations came into effect, we had already sensed a growing trend of guests interested in longer stays. Even before COVID made remote work common, more guests started requesting monthly furnished rentals. We saw an opportunity but also felt nervous—short-term rentals were our expertise.
Becoming a Licensed Brokerage 🏡
After thorough research, we learned that in California, stays longer than 30 days classify guests as tenants. To manage these rentals legally, we needed proper tenant leases through the California Association of Realtors (CAR) forms. We took the necessary steps and became a licensed real estate brokerage (DRE #02164159).
This compliance ensured every monthly guest was a legal tenant, safeguarding both our homeowners and our business.
Surprising Demand and Steady Income 📈
To our pleasant surprise, the demand was strong and consistent. Whether it was a charming one-bedroom home in Venice Beach or a luxurious four-bedroom property in the Hollywood Hills, a rising number of people preferred longer stays. Guests increasingly valued the experience of feeling like a local rather than a tourist.
Personally, I’ve always loved the concept of monthly rentals. It’s a more sustainable way to travel. Guests have the opportunity to truly immerse themselves in a community, while homeowners benefit from:
- Less wear and tear on their properties.
- Fewer turnovers and lower maintenance costs.
- Steady, predictable income.
- Listing on Airbnb, VRBO, direct as well as Zillow and Redfin
Finding the Right Fit for Your Property 🌿
We discovered early on that homeowners using their properties seasonally could block dates for personal use and still achieve impressive occupancy numbers with monthly rentals. The key lies in strategic pricing, a strong marketing strategy, and delivering an exceptional guest experience.
Monthly rentals might not reach the occupancy levels of short-term rentals, but they come close. For homeowners who find the high turnover and constant demands of short-term rentals stressful, monthly furnished rentals offer a flexible, lower-maintenance alternative.
Palm Springs vs. Los Angeles: A Tale of Two Markets 🌵🌊
Our journey into monthly rentals also revealed important insights about different markets. In Los Angeles, monthly rentals quickly became approximately 40% of our portfolio due to strong, year-round demand from professionals, entertainment industry members, and athletes seeking extended stays.
However, Palm Springs presented unique challenges:
Peak Season (October–May): Strong demand, good occupancy rates.
Off-Peak Season (June–September): Lower occupancy due to extreme heat. More frequent lowball offers and higher maintenance costs (like air conditioning).
In Palm Springs, smaller homes (one or two bedrooms) tend to perform best year-round. Larger homes experience greater seasonal fluctuations, yet success is achievable with the right strategies.
Making the Right Choice for Your Goals 🗓️
Ultimately, short-term rentals aren’t for everyone—and that’s okay. If you’re considering monetizing your home but prefer less frequent turnover and more predictable guests, monthly furnished rentals may be ideal for you.
At Open Air Homes, we’ve spent years refining our monthly rental strategy. Our goal is always to match your needs with the optimal rental approach, ensuring compliance, profitability, and peace of mind.
Considering monthly rentals for your SoCal property? Let’s talk about the best fit for you and your home. 🌴