Property type Considerations:
Palm Springs California Real Estate offers more choices than many initially realize. Vacation homes or Vacation rentals? Year round rental or personal home? How comfortable are you with Homeowners' associations? What about the monthly fee? Do you know the cost of maintaining a pool?
To get the best deal on the property that suits you best review this list of items before starting your Palm Springs Real Estate search.
Single Family residences:
In a Home Owners Association or Outside of an HOA
Pool or no Pool
Garage or No Garage
Multi-Level - Townhouse Style or All on one level
Gated or Non-Gated Community
Garage or Carport
HOA fees ( $384 Is average - many are over $500)
Rental Restrictions (one week to one month in some neighborhoods)
Two options for owning income property:
1) Year round rentals
2) Vacation rentals
Year-round - Tenant pays all utilities other than trash and gardening, most tenants want the home unfurnished but like to have W/D and Fridge, pools are popular with some tenants but will drive up your insurance costs. Basic rentals start around 1,500-1,600 a month for an average 3 Bed 2 bath.
Vacation Rental- Rentals will average $275 a night with events, weekends, holidays, etc. achieving more.
Well managed you can expect a vacation rental to bring in 45K-65K a year. You will have utilities, management fees, lodging taxes, pool/yard maintenance fees to pay. Upkeep is a cost too and weekly tenants are harder on properties. The property must be fully furnished and have Internet, flat screen tv’s nice linens, etc.
Currently, Year-round Rentals are in High demand. Most that I see are very far from perfect or updated. If you have a nicely upgraded property with a pool year round rentals can push $2,800 to $3,200 depending on the size of the house. Avoid 1 and 2 bedroom homes. Bigger is better. There are few if any restrictions on these rentals. Some gated communities will have rules about tenants acknowledging community rules and regulations.
Vacation rentals are very hot and it is very competitive right now. I feel we are at or near the peak of the demand for these and many are coming online. Cities are struggling with regulations minimum 30 days seems to be the current restriction especially in gated communities.
Lease land – many homes in Palm Springs and Some in Cathedral City are located on leased land. This makes it cheaper to buy the home as you are basically renting the land, but can lead to financing complications making it harder to sell. See more information on Lease Land