Vacation rentals are thus a benefit to the real estate sales market in Palm Desert. Last year, Palm Desert home prices jumped over 14 percent, and in 2014 the jump was 18 percent. The strength of the vacation rental market and vacation rental guests who elect to buy in the community are playing a significant role in home values,” says Realtor Jim Franklin with Berkshire Hathaway Home Services.
Further segments of the Palm Desert tourism economy are benefiting from vacation rentals also, such as restaurants, merchants and other attractions. Reported sales and visitor count is at the highest in Palm Desert tourism history.
Vacation rental tourism is additionally a major employer for the community and it contributes in excess of $100 million to the local economy annually. Patrick Service, president of the Palm Springs Chamber of Commerce, states “Palm Springs has exciting lodging options for every visitor.” As an example, approximately 33 pecent of non-resident attendees to the Palm Springs International Film Festival choose to stay in a vacation rental.
Specifically as to the transient occupancy tax generated by tourism visitors – the tax visitors’ pay for short-term lodging – 20 percent of overall TOT is derived from the vacation rental industry. In total, Palm Springs benefited with $5.5 million in TOT from vacation rentals in the last fiscal year. These revenues pay for essential community services such as public safety, parks, streets and senior services.
Hoteliers similarly recognize the benefit of vacation rental tourism. According to Aftab Dada, general manager of the Palm Springs Hilton and Chairman of PS Resorts, “For 30 years Palm Springs has been a leader in vacation rentals. Currently, we have 1,600 registered vacation rental owners paying in excess of $350,000 in annual fees to the city – that is close to a $6 million direct benefit to Palm Springs when including TOT – more than 6 percent of our city’s total budget.”
With the strength of vacation rental tourism we recognize the need for tough laws regulating the activities of vacation rental owners, agents and guests. Palm Springs, however, has a vacation rental ordinance that is recognized and copied in many cities, both locally and statewide. The Palm Springs vacation rental ordinance was first introduced 2008 with input from city leaders, neighborhoods, City Council, law enforcement and other stakeholders. For the majority of the year, 98 percent of vacation rentals operate without any problems for neighbors or their neighborhood. The ordinance established a 24-hour hotline for neighbors to call with vacation rental concerns and provides a rapid response for resolving those problems. When the hotline is called, the average response time is 20 minutes. Even with a 98% success rate, Palm Springs continues to be a leader on vacation rental regulation by the anticipated hiring a full-time staff person that is solely dedicated to overseeing ordinance enforcement.
Luxury homes in PALM DESERT
Palm Desert offers homes in various architectural styles, custom builds, and even raw land to build your one-of-a-kind dream home. If you want to know more about what’s available to buy in Palm Desert, check out these luxury listings currently on the market with virtual showings.
Homes for sale around the Palm Desert Area