Palm Springs investment properties might seem, at first, like a fickle bunch. It’s a popular area for second and vacation homes, and with that, it can seem at first glance like it’s glutted with rental properties. But nothing could be further from the truth. Palm Springs, Cathedral City, Rancho Mirage and Palm Desert are all pristine investment areas with some of the strongest returns for those who take the time and look at the area carefully.
Let’s look at why a Palm Springs investment property may just be the smartest money you ever spend.
The entire Coachella Valley continues to grow strongly as a tourist destination. With that come hundreds of interested renters every year. Many wish to stay, and many do. There’s a booming economy focused on keeping them here and keeping them happy. And it’s not just Hollywood types pricing everyone out of the market. Lots of more modest visitors stick around throughout the year. While Palm Springs is not the biggest economy in California it holds its own far better than many similar sized markets.
- A Supportive Rental Economy
While working with a property management company is always a good (the only?) way to learn about local regulations and restrictions, in Palm Springs and the greater Coachella Valley, everyone is in on the idea. Most homeowner associations and most cities strongly regulate short-term rentals. We’re not here to express an opinion on the overall justness of such an environment, but it does make many aspects of dealing with rentals in a tourist economy a lot clearer. This is one area you’ll definitely want to discuss in detail with your property manager and real estate agent. Which leads us to…
- Common Interest Developments
They’re not just in Palm Springs. But they benefit absolutely every kind of property owner and renter in the Coachella Valley. Common Interest has proven pretty much contagious and even renters are attracted to the concept. In short, it’s a much smarter version of a homeowner association and with much more in the way of shared amenities, like swimming pools. And Palm Springs does have swimming pools. CIDs tend to work better – with the same homeowners associations – in part because they’re planned with the HOA already in mind. Again, this can sound like a lot more restrictive kind of environment, but it has proven very successful – at least in this part of California.
One thing we always emphasize, when talking about investment properties in Palm Spring, is that while it’s always up to an individual investor, it certainly helps to have a strong experienced management partner when you’re going forward. We’re that partner for lots of investors in the Palm Springs, Desert Palm Springs, Cathedral City and Rancho Mirage areas. As it’s a relatively highly regulated environment, it’s also one that gives investors better returns, at the expense of navigating a little more red tape. Again, a strong management partner makes it all the more worthwhile.