Home Buying in Palm Springs>Question Details

User16, Home Buyer in Irvine, CA

How much does a 2 bedroom 2 bath condo in Palm springs and Ranch Mirage areas can make per year if it is rented as a Vacation Rental.?

Asked by User16, Irvine, CA Fri Mar 12, 2010

Can anyone provide the rough numbers of Min and Max amt.

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The easy rule of thumb is to expect four occupied months during season. The average price for a monthly rental with two bedrooms, two baths, and decent community amenities is $2000-$2200. Most one bedroom units can command $1800. We handle a large number of vacation rentals and we also have a distinct advantage over most rental agencies. We contract with companies that supply traveling nurses, doctors, therapists, etc. These travelers are temporary workers, usually filling in for vacation relief, maternity, etc. We get them year round and they are great for filling those summer months when most owners have empty condos. The rentals for these travelers are paid by the company and their budget is usually between $1750 and $1900 per month. We currently have two nurses using our condos......one paying $1800 that is now on his 4th month and a new arrival that is paying $1900. We try to rotate the travelers among our rental clients. One of our clients actually hit a ten month occupancy rate last year with his lowest monthly rental coming in at $1750. He netted over $14,000 in 2008 after expenses. Not bad, huh?
0 votes Thank Flag Link Sun Jul 4, 2010
The truth is that the rates will vary dramatically by the development, if it has a golf course it brings more, and depending on locatio. Therates are anywhere from $1,500 to $2,900. This is for 4 months, one month around the peak months you may get 15% - 20% less and it is hit and miss the rest of the year. You only pay the 11.5% City tax if the people stay less than 28 days and most condos require 1 month stays or greater. So you cannot really rent by the day or week, although it does happen. Hope this info helps. I can be reached at 7660-578-4003. Bob Hunt Realty Executives. Listen to my radio program on KNEWSradio.com Sunday at 11am.
0 votes Thank Flag Link Wed May 19, 2010
Hello: Vacation rentals are very popular in our valley and some are very sucessful as a rental. Most condos are in an association and most associaitons and cities now have a 30 day minimum rental. Not all but most.
Rents vary according to the amenities of the HOA. Rents vary between $1800-$2600 based on square footage and location. Golf communities are more popular than others but this again is a personal choice. Rental costs are between 25-30% of the rental term. The tenant pays the city occupancy tax and it is 11.5% in Palm Springs. Utilities are usually included and most rentals should have internet, telephone and cable (included). You should count on 60% of the year renting with an aggressive agent and promoting it yourself. Best of luck. Keith
0 votes Thank Flag Link Fri Mar 12, 2010
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