2018 Vacation Rental Performance Report: Palm Springs, Palm Desert, Indio & La Quinta

Sari EichenblattLeave a Comment

Palm Springs and Palm Desert, Indio & La Quinta attract a wide variety of tourists, some looking to escape the city for a long weekend and others looking to escape the winter for a two or three-month stay.

Whether you’re interested in purchasing a property, or looking to turn your home into a rental, the Palm Springs area is a great place to make a good profit.

Unlike many locations across the nation that try keep from being infiltrated by tourists, the Palm Springs area welcomes tourist and investors alike. In fact, according to Visit Greater Palm Springs, tourism is the largest industry of the area – supporting one in four jobs in the region.

To give you a better understanding of the earning potential of the area, we analyzed thousands of vacation rental listings and compiled our Vacation Rental Performance Report for the Palm Springs area. The report will give you insight into the area’s average rental income, occupancy rates, and booking windows.

Some of the key factors we’ve identified that contribute to the region’s immense success are:

  • High-demand for vacation rentals
  • Proximity to big California cities
  • Annual events
  • Popularity with snowbirds


Why Palm Springs Area Vacation Rentals Are So Successful

The Palm Springs area, which includes the surrounding areas of Palm Desert, Indio, and La Quinta, is warm all year long.

Because of its warm climate and excellent location, the Palm Springs area appeals to a wide variety of visitors, all coming to stay for different periods of times. These visitors can be broken up into two big groups: weekend visitors and snowbirds.

Weekend Visitors

The Palm Springs area is close to some of California’s biggest cities: San Diego is just a little over two hours away, Los Angeles is just a little under two hours away, and Long Beach is almost exactly two hours away. This makes it the ideal destination for those looking for a break from city life.

Those escaping the city for a long weekend of sun and relaxation tend to gravitate to the privacy and space of a vacation rental, as opposed to a hotel. The weekenders are looking for a private pool, a kitchen to cook in, and the home-away-from-home experience provided by a rental.

The Snowbirds

Before Palm Springs was popularized by music festivals and Southern Californians looking for a long weekend escape, the snowbirds have always flocked to the area for extended stays.

The snowbirds descend in the winter months for month-long stays to escape the harsh winters. Similarly to the weekenders, the snowbirds are looking for their home-away-from-home and tend to choose vacation rentals that have what they need for the season, extra space, a well-equipped kitchen,and extra drawer space and closets.

How Much Owners Can Earn With Palm Springs Area Vacation Rentals

Vacation rental homeowners in the Palm Springs area can make a lot of money if they put in the time, effort, and research required to get their income into the 75th percentile of performance. With that being said, the amount of money a property can make depends a whole lot on the size of the home. Download our Palm Springs area report to see stats on property size and income.

According to our report, three-bedroom properties make up the majority of the vacation rental inventory at 33%. They’re booked an average of 34% per year and can make around $37,065 in the 50th percentile, and around $50,837 in the 75th percentile of performance.

Two-bedroom properties make up 27% of the vacation rental inventory and are booked 29% of the year on average. In the median, they make around $14,905 per year, and in the 75th percentile, they can make around $24,705 per year.

How To Make Your Palm Springs Area Vacation Rental Successful

Since the Palm Springs area is so popular with vacation rental visitors, Palm Springs area vacation rental owners need to go above and beyond to beat out the competition and get more bookings.

Here are a few things that homeowners can do to move up from the 50th percentile of yearly revenue and reach the 75th percentile:

Provide extra sleeping space

Think outside of the bedroom and find ways to comfortably sleep extra guests in your rental. Popular additions include:

  • Sofa beds
  • Futons
  • Air mattresses
  • Trundle Beds
  • Bunk Beds

Create an outdoor oasis

Because of the beautiful – but hot – weather in the Palm Springs area, provide an outdoor space that helps guests relax comfortably while cooling them in the hot desert sun.

Provide a deck with umbrellas and, most importantly, have a pool. Pools are essential to beating out competitors and are likely the number one thing that travelers look for when searching for a Palm Springs area rental.

Update your kitchen

The kitchen is one of the main reasons why travelers choose one vacation rental over another. Supply your kitchen with modern cooking equipment to put yourself ahead of your competitors.

Market your vacation rental to your guests

Since the Palm Springs area attracts so many different types of travelers, it’s important that you make sure to market to the right type of guest.

For instance, many neighborhoods in the Palm Springs area require vacation rental homes to have a 28 night minimum for short-term renters. If this applies to your second home, then be sure to use language that would attract a snowbird.

If you’re looking to rent out your second home to weekenders, then update your listing based off of upcoming local events, and be sure to highlight your amenities.


With consistent demand and strong returns, the Palm Springs area is proving to be one of the top markets for vacation rental ownership.

Are you thinking about buying a vacation rental in this area? Do you already own a vacation rental and want to know how to beat the competition?

Download our free 2018 Vacation Rental Performance Report for the Palm Springs area to find out about:

● Rental income potential by property size
● Average occupancy by property size
● Average daily rate by property size
● Average days booked in advance
● Average length of stay
● Vacation rental inventory by property size
● Occupancy rate by month

Palm Spings Area Market Performance Report

The Palm Springs Area Report
Vacation Rental Performance Report

Enter your email below to download your free copy.