It’s been an interesting few years for the real estate market and the rental market in Palm Springs.
Is “interesting” the right word?
You know what we mean. Prices spiked, there was a sudden rush for everyone to sell, and there were plenty of buyers willing to fight over homes and pay those higher prices.
Then, inflation took hold and mortgages suddenly became far more expensive. The urge to buy cooled and prices seemed to peak, but the market itself did not seem to suffer much.
And here we are, taking a look at what all of this means for the Palm Springs rental market. We know that the investment market can be a challenging industry to master or even understand, and that’s why we are here to help. As professional Palm Springs property managers, we can help you understand the abundance of opportunities that do exist, whether you’re thinking about your first investment or you’re building a strong portfolio of rental properties.
Understanding the current market trends and knowing how to make the most of them can be challenging, especially when it seems like things are always changing, but it can also be the key to your success in the market.
We’ll do some exploring with you; pointing out the latest rental market trends in Palm Springs and providing you with some valuable insights into what investors should be looking for moving ahead.
Demand for Palm Springs Rental Properties
The first trend to keep an eye on in the Palm Springs rental market is the increasing demand for rental properties. There is a growing population of renters in Palm Springs, and they cover several demographics. We have a healthy population of retirees, and we’re also seeing a lot of remote workers who don’t have to worry about living close to the office. We strongly recommend that investors capitalize on this trend while it’s still on the rise. The increase in demand can be attributed to several factors, including:- The rise in housing prices and mortgage rates. People who might have bought a home are now continuing to rent.
- An aging population of people who prefer to rent instead of own because there’s less maintenance and fewer costs involved.
- Shifting attitudes toward homeownership in general.
- The popularity of remote work.
Short Term Rentals in Palm Springs
Another trend in the Palm Springs rental market that’s impossible to ignore is the rise of short-term rentals. These are often vacation properties. They’re furnished. They are available to guests who want to stay a few days, a few weeks, or maybe even for the entire winter season. Palm Springs has always been a popular tourist destination. More and more visitors are choosing the privacy and the convenience of a private home over a hotel when they’re in town. With the popularity of apps like Airbnb and VRBO, the market for short-term rentals is booming. In Palm Springs, tourists and snowbirds flock to the area year-round to soak up the sun, play golf, and enjoy the many local festivals and events. As a result, short-term rentals can provide a significant return on investment for investors who have the resources to manage them. This is an excellent way to diversify your portfolio. It’s also a good reason to look for a new investment property if you’re hoping to acquire one. The things you look for in a long-term rental home are a bit different from what you want in a short-term rental. It’s also important to remember that there are some legal implications to consider when it comes to short-term rentals, so be sure that you understand the local laws and regulations before diving in. Palm Springs has recognized the higher demand for short-term rentals, and you’ll have to apply for and obtain a permit from the city before you rent out a home in the short term.Tenant Trends: Sustainability and Smart Home Tech
You won’t be a successful real estate investor if you’re not paying attention to what tenants are looking for in their next rental home. They want all of the usual things; market-driven rents, attention to maintenance, and upgraded features like appliances and floors. Lately, tenants have also been drawn to eco-friendly and sustainable homes. If you want to make your Palm Springs rental property even more competitive in a crowded market, show your prospective tenants that you’re embracing a planet-first approach to rental properties. Many renters are looking for properties that are environmentally conscious. You’ll be able to charge more and attract better tenants when you offer energy-efficient appliances and LED lights. Sustainable materials will get you noticed. We recommend that you explore eco-friendly options when considering any future investments. Investing in homes with environmentally friendly features may also be an excellent way to attract the millennial and Gen-Z pool of tenants, who value sustainability and attention to environmental issues. Smart home technology is also a huge selling point for tenants when you’re renting out your home. They’ll look for Smart thermostats and video doorbells. Consider making your home more tech-attentive when you’re making upgrades and improvements.Increasing Property Values in Palm Springs
The Palm Springs market has been experiencing steady growth in property values.
While this does make it more expensive for investors to acquire properties, it’s a good sign when it comes to potential returns on investment. Investing in Palm Springs could potentially be a profitable long-term investment due to the market’s consistent growth.
With rising rents, the higher property values will give you an easy path towards profitability when you buy and rent out properties in Palm Springs.
Palm Springs is a market that is full of potential and opportunities for property investors. Always keep an eye on the latest trends and market shifts to succeed with your investment properties. Working with a Palm Springs property management team like ours can help you stay ahead of the curve. If you’d like to talk about what the current and coming market trends mean for your specific properties, contact us at Xepco Properties.
