Palm Springs is one of the rare places where you can purchase a home and rent it out when not using it, year round.
Many of our clients purchase 2nd homes here in Palm Springs- when not using it themselves, they rent it out to make additional income to help cover the home ownership expenses. Greater Palm Springs Realty has a division, that specializes in vacation property management, Vacation Palm Springs. The Paul Kaplan Group offers our clients this valuable resource to help them decide on the best rental investment property. (However every home is unique. We do not guarantee the potential income for any home).*
The following are frequently asked questions:
What homes and condos make the best rentals?
Well located homes and condos with private heated pools and spas and 2-3 or more bedrooms are prime vacation home rentals. Homes with 4 or more bedrooms can allow for even greater appeal and can produce higher yielding rentals. Upscale luxury homes and estates generate the greatest income, particularly luxury homes that feature expansive grounds, big pools, lush landscaping, luxurious amenities and suite-style bedrooms. More bedrooms and bathrooms are always a plus.
How much rental income might I expect?
Income potential can vary considerably by house or condo, the number of days the home is available for rentals, its location, style, size, availability on key holidays and special events, amenities.
As with any investment, its not possible to predict or guarantee future performance, but many of the 3 bedroom homes and condos in the Vacation Palm Springs program have consistently generated in the range of $25,000 to $35,000 or more in annual gross rental income. Some of our clients that have 3 bedroom mid-century homes, have grossed over $50,000/year. Larger and luxury homes, 4 bedrooms or more, have consistently exceeded $60,000 or more a year. Larger luxury estates with a large number of bedrooms and bathrooms in prime locations have produced signicantly greater incomes as much as $70,000 to $100,000 annually and more.
Location, quality of furnishings, the appealal of the outdoor area and pool, views, all contribute to the marketability of a vacation home. The Paul Kaplan Group's agents are trained and experienced to help buyers choose those properties that will be viable vacation rental homes.
What might I expect for wear and tear?
Wear and tear are both a reality and a risk associated with residential property rentals and is the responsibility of the homeowner. Vacation rentals are in many ways similar to hotel lodging, so wear and tear and routine maintenance is a reality and downside of the good fortune of generating income and a cost of doing business when renting a home or condo.
What about furnishings for the home?
Your vacation home should be furnished to reect a balance of comfort and style. Having televisions and DVDs in all bedrooms and living rooms is important as well as reading lights in each bedroom and living area. In addition to appealing design and style, vacationing guests are looking for a place with furnishings to allow for comfort, conversation, dining and relaxation both inside the home and poolside. Wireless Internet is a must. A local land line phone service is required for use in event of emergencies. We can supply a comprehensive checklist of required furnishings and supplies.
Who handles maintenance?
Homeowners are responsible for paying utilities, pool service, gardening service as well as maintenance and upkeep. Your vacation management company checks the home before guests arrive, after the guests depart and again after it has been cleaned cleaning inspect for quality. They also regularly assist and notify owners of items needing maintenance as well as ordering and assistance in coordinating the necessary repairs.
If a guest experiences a malfunction while a guest is occupying your home, your management team coordinates the service response and notifies the owner of the resolution in order to reserve your rental income and satisfy the guest. If a repair item is significant, the company will first consult with you as the homeowner before authorizing the repair expenditure.
