Most profitable Airbnb: Indio or Palm Springs?

Question

Which city is most profitable: Indio or Palm Springs for a house? Are there key regulations that would limit Airbnb there?

Or maybe it is a another neighboring city would would do better for Airbnb profitability?

Carlos Ortega · Answer

I'm not sure that that is correct regarding to have to be your Primary Residence. You would need a "local contact" a STR Property Manager to be specific....

From the City of Indio Ordinance...

(H)   Twenty-four hour availability. During the period of a short-term rental, the owner or owner's agency and/or the owner's local contact person shall be available 24 hours per day, seven days per week to respond to complaints from third parties regarding the condition, operation, or conduct of the occupants of the short-term rental, including responding in person at the location of the short-term rental. The local contact person's response to complaints can be made by telephone, text message or in person, however, in no event shall the response time exceed 15 minutes if responding by telephone or text or 45 minutes if an in-person response is required because of the severity of the complaint. If the local contact person is contacted directly by the city, the local contact person shall respond within 15 minutes of the city's telephone call or text message. If the city requests an in-person response, the local contact person shall respond in person at the location of the short-term rental within 45 minutes of the city's request. In all circumstances, complaints that the occupants of the short-term rental has created unreasonable or unlawful noise or disturbances in violation of Chapter 95 of the Municipal Code or the provisions of this chapter or is engaging in disorderly conduct, requires an in-person response by the local contact person.

I do agree that Indio is a saturated STR market however you just need to make sure to do your "due diligence".

John D. · Answer

Indio does not have a primary residence requirement.  Also @Carlos Ortega there are other permissible HOAs (including the montage).

Profitability is going to be deal-by-deal, house-by-house, neither PS or Indio are anywhere near as easy to cashflow as they were a year or two ago.  Still, there are value-add opportunities.

Caroline Gerardo · Answer

The desert is saturated for STR. Indio you have to be primary residence so that's not a good choice. If you need recommendations of Realtors let me know.

Pablo Flores · Answer

@Mike Yeghekian

You are following the right steps. The market has became saturated to the point that you need to make every space practical and differentiate yourself from the competition with things like entertainment areas in lieu of a garage. Terra Lago is a great area if you have the right home.

Yu Liu · Answer

I have a partner that has a property in Indio. Because it's the desert, a pool is a must. From what I've seen, the best properties with the nicest pools, design and entertainment amenities crushes it there.

My partner is in the midst of building their pool now, they were not doing too well before so this hopes to turn it around

Mike Yeghekian · Answer

I just bought a house in Terra Lago Added a pool also made the garage into an Entertainment center. I used to have 4 parking spots now I can only have 2 cars no street parking extra cars need to be parked outside the community… but I think more entertainment is better for guests. It’s gonna be a Airbnb Vrbo. Let’s see how it goes. Any suggestions?

Phillip Vaughan · Answer

Here is a projection from Rabbu.com for a 4 bedroom home that is near the Indio Fairgrounds and in a decent community. The data should always be verified with other sources too, but these graphs are at least a quick and dirty way to see if it is worth looking at. If I were to buy an STR here in the desert, Indio is probably where I would purchase.

I have helped others buy STRs in Palm Springs but cashflow is tight due to the restriction they have on number of bookings per year. I would see that as more of a long term appreciation play.

In a nutshell, if you are thinking 5-10 years out, either strategy would help to build wealth.

Carlos Ortega · Answer

Thanks John for the info on The Montage.

Carlos Ortega · Answer

I don't do STR but I hear Palm Springs is more profitable but also more expensive and they have a maximum of I believe 30 bookings per year. Indio does don't have limitations just don't buy in an HOA unless it's Terra Lago and Indian Palms Country Club those are the only ones that allow it. You can also look at the City of Coachella. If you need more local insights just reach out.

Most profitable Airbnb: Indio or Palm Springs?

Most Popular Reply