Owning a vacation home is a dream for many—and Palm Springs has long been a mecca for vacation rental homes. With sunshine, mid-century modern charm, and year-round appeal, many buyers purchase a second home here with the idea of renting it out to offset their mortgage and expenses.

Sounds perfect, right? Guests pay to stay in your home, helping offset your mortgage and expenses. But before you jump in, there are some realities every new vacation rental host should know.

Vacation Rental Rules in Palm Springs and Beyond

Before you buy, know that the rules for vacation rentals in Coachella Valley are strict. Some cities, like Rancho Mirage and Cathedral City, have banned short-term rentals altogether. Palm Springs still allows them, but only with heavy restrictions: guest limits, noise ordinances, parking requirements, tax reporting, and city permit fees.

Even so, there’s ongoing debate in Palm Springs, with some residents continuing to push for a full ban.

Preparing Your Vacation Rental: It’s More Work Than You Think

Once you’ve secured a property that qualifies for short-term rentals, the setup begins. To compete on Airbnb, you’ll need:

• Professional photography (a must in such a competitive market)

• Appealing furnishings and décor—mismatched hand-me-downs won’t cut it

• Stocked essentials like linens, cookware, patio furniture, and pool towels

• Guest resources such as a house manual, check-in procedures, and local guides

And don’t underestimate the work of coordinating deliveries, assembling furniture, and handling the inevitable delays. (Speaking from experience: some furniture pieces take hours and maybe a glass or two of wine to finish!)

Only after all that can you focus on the listing itself—writing descriptions, uploading photos, creating a house manual, setting house rules, and outlining check-in procedures.

Guest Inquiries: Expect the Unexpected

Once your listing is live, inquiries start rolling in. Some will make sense—others will surprise you:

• Requests for discounts (“Is this your best price?”)

• Guests ignoring house rules (like “No kids” or “No pets”)

• People asking to book when your calendar clearly shows “Not available”

• Inquiries two years in advance (why, we’ll never know)

Anticipate potential difficulties when dealing with certain visitors.For example, just in the last month, I had these two issues come up on my Airbnb rental:

Story #1: The Guests Who Couldn’t Decide

I offered a long-term summer guest a significant discount. A month in, they told me they “might” leave early, but couldn’t say when. After hours on the phone with Airbnb, we adjusted the reservation. Airbnb’s system bizarrely showed they owed more to leave early — but I waived all fees and even processed a refund Airbnb said wasn’t required.

Instead of gratitude, I was accused of being deceitful. Despite having received a discount, no cancellation penalty, and a refund, they demanded even more money back. I acquiesced solely to maintain harmony and hoped that the house would remain undamaged.

Later, they extended their stay by a day without asking—throwing off my cleaning crew. That’s just one scenario, but trust me, it’s not unusual.

Story #2: The Neighbors’ Worst Nightmare

Another time, I welcomed a couple who seemed perfectly pleasant at check-in. But within days, neighbors reported that they were up all night screaming obscenities at each other—every night. What began as a romantic getaway quickly turned into a nightly disturbance.

After fielding complaints and hours on the phone with Airbnb support, I was told the only solution was to remove the guests. So there I was, playing referee, having to kick them out mid-stay. Not exactly the stress-free experience most people imagine when they think of “Airbnb income.”

The Reality of Being an Airbnb Host

On the surface, hosting an Airbnb in Palm Springs sounds glamorous. You meet fascinating travelers, earn extra income, and enjoy knowing others are experiencing your home.

But behind the scenes, it can be stressful, unpredictable, and time-consuming. Late-night calls, policy misunderstandings, and difficult guests can turn hosting into a second job.

Should You Hire a Property Manager?

If you’re determined to rent out your Palm Springs home, consider whether you’re ready to handle:

• Reservation management

• Guest disputes and refunds

• Late-night visitor calls at the gate

• Maintenance issues, from guests unable to figure out the TV's remote, ac units not working,  to leaking faucets.

If not, hiring a Palm Springs property management company may be worth the cost. Or, you may decide that buying a smaller, low-maintenance condo that you can enjoy stress-free is a better option than chasing rental income.

Final Thoughts

Becoming an Airbnb host in Palm Springs can be rewarding — but it’s not as easy as many imagine. Between city regulations, upfront setup costs, and guest challenges, it takes patience and resilience.

Have I scared you?  I hope not.  Keep in mind many of our clients have run successful vacation rentals!  I just want you to take off the rose-colored glasses, and know that there can be challenges.  So, if you’re considering buying a Palm Springs vacation home, make sure you understand the pros and cons before you commit.

✨ Thinking about purchasing a Palm Springs vacation rental or second home? As a local real estate expert with 25 years of experience, I can help you navigate the market, weigh your options, and find the right property for your goals. Contact me here to start the conversation. www.PaulKaplanGroup.com