Palm Springs is a vibrant tourist destination, attracting millions of visitors every year. The city is famous for its fantastic weather, magnificent desert scenery, and world-class attractions. You’ll find that people come here to golf, to ride horses, to explore the shopping and the dining opportunities, and to soak up some sun during the winter months when it’s much colder elsewhere. This makes it an enticing hub for real estate investors seeking to capitalize on short-term vacation rentals. However, running such a business can be challenging, especially if you don't take into account the seasonal fluctuations that come with the short-term rental market. We are Palm Springs property managers who work closely with owners to keep their properties occupied as much of the year as possible. Today, we want to explore how to manage seasonal fluctuations and optimize your occupancy rates for short-term vacation rentals in Palm Springs.
Attracting and Working with Seasonal Tenants
It takes a special commitment to tenant relationships to be a seasonal landlord in Palm Springs. Most seasonal tenants will be looking for a place to stay during a period that runs between November and April. These are almost always our busiest months. During the months that you’re not renting to these tenants, you need to be actively marketing to them and attracting them to your rental home. To advertise your seasonal rental property, you’ll need to plan for:
- Excellent photos. Most seasonal tenants won’t have the opportunity to see a home in person before they rent it. So, photos are even more important than usual when you’re creating an ad and putting together a listing. Take a lot of pictures so prospective guests can get a clear idea of what they’ll find when they arrive at your home. Show the kitchen, the bedrooms, the living room, and the dining area. Include photos of the bathrooms and the tubs or showers. Take a picture of the outside of the property and any outdoor spaces, whether it’s a yard or a balcony or a patio.
- Think about a walk-through video. This can enhance the photos for potential guests and make them feel like they’re seeing the home.
- List your rental on all the appropriate sites. You might want to put it on sites like Airbnb or Vrbo, but remember that those sites typically cater to people who are looking to rent a property for a night or two. You might get some potential long-term visitors on these sites, but it’s unlikely. Think about using rental sites specific to long-term seasonal rentals. Work with a property management company that can help you with marketing this type of property.
Always be prepared to structure payment and deposits in a way that protects you but also offers your potential tenants some flexibility. You might collect half of the total amount of the stay, for example. Or, you could collect the first month’s rent as well as a security deposit that’s equal to a month’s rent, and then allow your tenants to pay at the beginning of each new month. Attracting guests effectively will ensure your seasonal rental remains occupied and profitable.
Relationships with Seasonal Guests
Once they’re in place, you’ll need to develop a relationship that’s supportive but not overbearing. Your guests will want you to remain available and accessible in case they need you. But, they don’t want to see you at the house every week, asking if everything is okay. Prepare to give them space, and always be responsive when they have a question or need help.Reviews will be a big part of your marketing efforts. When you can collect strong and positive reviews from the guests who stay in your home, you’ll have no trouble attracting new tenants. Prepare to provide an exceptional customer experience if you want to be a seasonal landlord and effectively get through the fluctuations that are bound to occur.
Understand the Palm Springs Seasonal Rental Market
As you’re deciding on a strategy to manage seasonal fluctuations, make sure you research and understand the market. In fact, it’s crucial to do this before you invest. Palm Springs is a destination that attracts different types of visitors throughout the year. For instance, the colder months are a peak season for snowbirds, who come from colder climates seeking warmer weather. On the other hand, summers are less busy, and occupancy rates are generally lower. Understanding these seasonal fluctuations can help you leverage marketing strategies and maximize bookings.Here’s what we recommend:
- Make Adjustments to Your Rates Depending on Season
Another way to optimize your occupancy rates is by adjusting your rates depending on the season. During peak seasons, the demand for vacation rentals is usually higher, and prices tend to spike. Conversely, rates often drop during the offseason due to the lower demand. Adjusting your rates can also help you attract more renters and maximize profits throughout the year.
- Offer Additional Amenities
Palm Springs is a city full of attractions and activities that vacation renters might want to experience during their stay. Offering additional amenities such as a pool or hot tub can make your property more desirable, particularly during the warmer months when visitors want to cool off. It can also differentiate your vacation rental from others, making it more likely to get bookings when there is competition.
- Use Local Events as a Marketing Tool
Palm Springs hosts several events throughout the year, from film festivals to music festivals. These events can attract tens of thousands of visitors, and your vacation rental can capitalize on this influx of people. Using events as a marketing tool can help you market your rental property to a broader audience and increase bookings.
While owning a vacation rental property in Palm Springs can be an incredibly lucrative investment, it can also be challenging to manage peak season fluctuations successfully. Understanding your market, adjusting your rates, offering additional amenities, using events as a marketing tool, and focusing on guest needs and relationships can help you maximize your profits and keep your occupancy rates high throughout the year. We can help you have the best - and most profitable - investment experience in Palm Springs. Contact us at Xepco Properties.
