When purchasing a home, it is important to remember that not everyone who is going through the buying process plans to live in the home full time. This is especially true in areas of nice climates as snowbirds often use the homes during the winters and then rent the property during the summer months to vacationers. With any home purchase, especially when choosing to use the property as a rental, there are always risks involved.
Related: Why Single-Story Homes Sell Faster
Even though the year of 2020 has brought with it many travel restrictions, Palm Springs has somehow defied the odds and remained one of the highest visited areas. Whether it be for a traditional styled rental of a condominium or house, or an Airbnb styled rental, the city of Palm Springs is currently one of the best places to invest in rental properties within all of the U.S. Additionally, Palm Springs is currently ranked well above the national average in regard to rental potential.
The state of California went into a panic when COVID threatened to crash the housing market, however, the state as a whole has seen increased real estate purchases and sales which has left the real estate market booming. Even with limited travel, many Californians have embraced staycations and have visited surrounding areas to enjoy a week away without using means of traditional and crowded transportation such as choosing to fly. With so many people enjoying staycations, the rental potential in Palm Springs has exceeded the normal rental seasons, and rentals are in high demand, thus, ensuring that investing in a rental property can be profitable and create a great return to investment even when faced with limited travel.
In conclusion, while there is always some risk, and we are currently uncertain of any future travel restrictions, if history repeats itself, then the rental possibilities for 2021 and years to come looks promising. As with all real estate purchases, should you decide to purchase a rental property whether it be a full-time rental, or partial rental, it is important to look at the neighborhood and surrounding conveniences to ensure your renters have the best experience possible.
Working closely with your real estate agent, you will be able to weigh the pros and cons of each property you tour until you find the property that will allow for the highest return of investment, whether that be solely in finances, or in creating the best home away from home for the months you plan to occupy the property, your agent will assist you in finalizing the purchase to meet and exceed all of your needs.
If you’re currently searching for a home in the Palm Desert area, whether for full time use or a rental property, have questions regarding the market and the real estate within Palm Springs, or have general real estate questions, please feel free to contact our office at any time.