People wonder where they should invest their money today. They worry about the stock market crashing because it has been on a good run for a while now. Gold and silver are options, but investors don’t want to tie up all of their funds in precious metals. Real estate, in the eyes of many, remains the best choice.
However, potential buyers wonder how they should go about making this investment. Should they look for long-term rentals, or do they need to worry about another global pandemic and rent moratorium? Would a short-term investment property make more sense?
When they go to answer these questions, they may wonder Why short-term investment properties are a good idea in Palm Springs in the eyes of many. Short-term rentals are more profitable than traditional ones. They frequently offer more amenities and come with other benefits.
What do people need to know before taking this step? For example, what makes Palm Springs such as attractive option? The following guide will answer these questions and more.
What is a Short-Term Rental?
A short-term rental is a property that is rented for a specific period, much like a traditional rental. However, where the two differ is in the length of the rental term. Short-term rentals tend to be occupied by the same person for a period of no more than four weeks. Some guests only stay one or two nights.
Most properties of this type are found in popular tourist destinations, such as Palm Springs, and the owner or their agent cleans the property and handles most tasks that would normally be covered in a hotel or other lodging accommodations.
Why Do Short-Term Rentals Make Good Investments?
A short-term rental is easy to book, and many people will make their reservation at the last minute. They know the accommodations are of good quality, so they are willing to pay more when they want to get away for a few days.
In addition, people like to stay in short-term rentals rather than hotels because they know they will have a unique experience. No two rentals are alike in their offerings, so they can go to the same location and have two completely different getaways.
What Short-Term Rental Owners Need to Know
Before investing in a short-term rental property, a person must find the right location. Tourist areas tend to be good, as people will visit year-round for different reasons. Compare prices for other short-term rentals in the area to learn the going rate and read reviews for similar properties in the area to see what guests want and need in a property of this type and what they dislike.
In addition, treat this purchase as if it were the purchase of a primary residence. Have the property inspected and work with a reputable real estate agent. Learn about what permits and licenses will be needed to rent the property and what other steps must be taken before advertising for the first renter. The real estate agent can often provide this information.
The Benefits of Short-Term Rentals
Owners of short-term rentals find they have a steady stream of renters, particularly if the property is located in a tourist area. The owner can set aside a week or two for personal use of the property and have income coming in the rest of the year. This income is often enough to pay the mortgage as well as maintenance and repairs. With each mortgage payment made, the owner builds equity in the home even when they aren’t residing in it.
Many platforms exist today for owners of short-term rentals. Using one of these platforms increases the odds of the property remaining booked at all times. This increases the income generated from the property.
In addition, some people make lifelong friends by renting out one room in the home to travelers. A person who cannot otherwise afford a house may find they can if they have extra income coming in from a rental such as this. In fact, they may be so successful that they buy other properties and use them for the same purpose. However, before taking this step, a person must know the legal and financial aspects of doing so.
People often fail to account for the cost of utilities or don’t calculate the number of people who will be staying in the property. These costs can add up. In addition, they fail to understand the laws of renting and run into legal trouble as a result.
Learn from those who have traveled this path before for the best results. Individuals who are investing in a property for the first time find they experience fewer setbacks when they have a mentor who can help them avoid common pitfalls.
Choosing a Property?
Vacation homes are also good investments for short-term rentals. However, be prepared to offer amenities to draw people in. They want access to a home but also want the luxuries of a hotel. Consider which amenities will be needed to attract more renters. A real estate agent can help investors uncover this information.
Some homes come with a pool, while other homes are family friendly. They come equipped with video game systems, board games, and child-friendly furnishings. The real estate agent can help the homeowner determine which amenities are in most demand in Palm Springs.
Consider the location of each property and the property. The number of bedrooms and bathrooms will play a role in which property should be purchased, as will the condition of the residence.
People find they receive the best return on investment if they choose a property in an area that tourists frequently visit. This reduces the number of vacancies and helps to ensure the property pays for itself. For this reason, many people choose to invest in a short-term rental property in Palm Springs. What advantages come with doing so?
Why Palm Springs?
Palm Springs remains a popular tourist attraction thanks to the gorgeous weather. While temperatures do rise above 100 during the summer months, many people prefer this type of weather for outdoor activities. They know they won’t be rained out, as Palm Springs sees an average of five inches of rain each year.
Desert cities often struggle with high winds, but that is not the case for this city. Nestled at the base of the San Jacinto Mountains, Palm Springs remains sheltered from these winds. According to Best Places, this city has a higher comfort average than the United States as a whole.
Housing prices are currently up in the area, but experts say the overall housing market is started on a downward trend. The time to buy is coming fast, as the market remains competitive and hot houses are going for five percent above their list price.
With this downward trend, a house may come on the market in the near future that an investor wants to buy. They need to have everything in place to do so or somebody else may grab it from under them. Be prepared to act quickly when the perfect house comes up for sale.
Furthermore, there are a variety of homes to choose from. Some people wish to purchase a ranch style home, while another individual may dream of owning a spacious condo. With many housing types to choose from, finding the perfect residence has never been easier.
People who visit Palm Springs and live in the area know there are plenty of outdoor activities to keep every member of the family busy. Go rock climbing or hiking, enjoy the beauty of nature while sitting and visiting with friends, or spend some time on the golf course.
When indoor activities are preferred, people will find there are plenty of casinos, museums, and more. There is something for everyone who chooses to spend time in this amazing city. Furthermore, a person is never more than an hour away by plane from San Francisco or Las Vegas. Why stay in a big city when beautiful residences are available for rent so close to the action?
Many of the residents of Palm Springs believe climate control is a major concern. Sustainable homes are available in this beautiful city. Imagine owning a home that achieves net-zero energy consumption. Individuals wanting to invest in a short-term rental in Palm Springs find they can have exactly that.
The homes are built in a factory-controlled environment to reduce the impact construction has on the planet. Products used in the construction of these homes are often renewable, recyclable, and resistant to pests, fire, and more. Learn more today about this type of short-term rental investment. Many people find this type of investment is the right choice for their needs.
Anyone who is considering investing in short-term rentals in Palm Springs should rent one or two properties of this type before taking the plunge. Doing so provides the potential future owner of a short-term rental with first-hand experience of the market and the available accommodations.
For many individuals, this is an eye-opener. They see what the properties are lacking and may use this to make theirs better. Book a reservation today, as purchasing a short-term rental in Palm Springs may be in the near future for those who do.