Thinking about buying a short‑term rental and torn between Palm Springs and La Quinta? You’re not alone. Both cities sit in the same desert valley yet deliver very different guest experiences, operating realities, and revenue profiles. In this guide, you’ll learn how each market performs, what rules to expect, and how to match property type and guest demand to your goals. Let’s dive in.
Palm Springs snapshot
Palm Springs is the Coachella Valley’s design-forward hub with deep tourism roots. Guests come for mid‑century style, downtown dining and shopping, spa weekends, and a steady calendar of events and conferences. If you want to serve design-minded couples and small groups who prize walkability and aesthetics, Palm Springs is compelling.
From Carmela in Riverside, you’ll find Palm Springs slightly closer and easier to reach for hands-on oversight. Smaller, well‑located homes and condos can perform well when they lean into architecture, outdoor living, and photo‑ready design.
La Quinta snapshot
La Quinta skews to resort living and golf. Think quiet luxury near PGA West and the La Quinta Resort area, plus proximity to major events in Indian Wells and Indio. Larger homes with private pools and multiple bedrooms tend to attract families, golf groups, and higher‑spend travelers.
Many neighborhoods are within homeowners associations. HOA rules can be more restrictive than city rules, so you need to confirm permissibility at the community level before you buy.
Demand, seasons, and events
Both cities share strong seasonality. Peak demand runs fall through spring as travelers escape colder climates. Summer slows due to heat, so plan for lower occupancy and rate adjustments in those months.
Events drive booking spikes across the valley. Palm Springs fills around design and culture moments like the film festival and Modernism Week. La Quinta benefits from golf tournaments and luxury resort traffic, and both cities see demand ripple effects from regional events such as the BNP Paribas Open and music festivals in Indio.
Rules and permits to know
Both Palm Springs and La Quinta require you to register or permit your STR and to collect and remit local Transient Occupancy Tax. Programs typically include safety standards, display of permit numbers, and local contact requirements for guest issues.
Palm Springs has a mature STR program and active enforcement given its inventory. La Quinta’s framework often reflects resort-community concerns, with close attention to neighborhood impact and HOA interplay. Noncompliance in either city can lead to fines or permit loss.
Before you commit to a property, verify:
- Current city ordinances, permit steps, and renewal cycle.
- Occupancy limits, night caps, and zoning rules for hosted versus non‑hosted stays.
- Inspection requirements, local contact rules, and response times.
- TOT registration and how collection is handled on booking platforms.
- Any HOA covenants that restrict or prohibit STRs, even if the city allows them.
- City council agendas or news for potential changes under discussion.
Property types that perform
Palm Springs rewards design and proximity. Mid‑century cottages and downtown‑adjacent condos often do well with weekenders. You can command strong nightly rates when your home looks and lives like the Palm Springs experience guests expect.
La Quinta favors space and resort adjacency. Larger villas, 2–5+ bedroom homes, and properties near golf or club amenities can capture group bookings. Private pools, outdoor kitchens, and flexible sleeping arrangements are common revenue drivers.
Revenue modeling basics
STR performance comes down to what you charge and how often you book. Focus on:
- Average Daily Rate (ADR): Peak and off‑season pricing for similar homes.
- Occupancy: Monthly trends and the impact of events.
- RevPAR: Revenue per available rental night to combine price and occupancy.
Always calculate net, not just gross. Subtract platform fees, cleanings, management, utilities, maintenance, insurance, property taxes, HOA dues, and reserves for future improvements. Include startup costs like furnishings, safety upgrades, permits, and professional photography.
Operate from Carmela: management choices
Living in or near Carmela makes weekend trips to the desert feasible, but STRs still require same‑day support. If you self‑manage, line up local pros for cleaning, pool, landscaping, and repairs and have an on‑call contact for guest issues. Many owners hire professional managers, especially for larger homes, peak seasons, and event weeks.
Desert properties need consistent pool and landscape care and careful HVAC management. Confirm your insurance covers short‑term rentals and considers local risk factors. Most hosts mix booking channels to reach the right guests and manage fees.
Decision guide: which market fits you?
Choose Palm Springs if you want to:
- Serve design‑focused weekenders who value downtown access.
- Optimize a smaller home or condo with strong style and outdoor living.
- Keep a closer drive from Carmela for periodic self‑management.
Choose La Quinta if you want to:
- Host families or golf groups seeking larger luxury homes.
- Leverage proximity to golf, resort amenities, and event demand.
- Compete on space, privacy, and pool‑centric outdoor features.
If you’re flexible, consider a portfolio approach. One smaller design jewel in Palm Springs plus a larger La Quinta pool home can balance guest mix, seasonality, and event cycles.
Due diligence checklist
Use this step‑by‑step path before you write an offer:
- Define your target guest, property size, and tolerance for seasonal swings.
- Pull 12–36 months of localized ADR and occupancy data for both cities and neighborhoods with similar homes.
- Confirm city permit rules, TOT requirements, inspection steps, and renewal process.
- Review HOA CC&Rs for any STR limits or special assessment rules.
- Get STR‑specific insurance quotes, including coverage for local risks.
- Build a full pro forma with startup and recurring costs and run best/base/worst scenarios.
- Interview 2–3 local property managers on fees, seasonality, and guest profiles, and loop in a CPA for tax strategy.
Selling an STR in either city
If you plan to sell, package your property like a business. Gather permits, TOT filings, revenue history by month, maintenance logs, and any HOA approvals. Highlight design upgrades and guest‑ready features that support rate and occupancy. Buyers pay up for a clean regulatory file, strong financials, and a property that looks as good as it performs.
If your home needs a refresh, targeted design and renovation can lift nightly rate and buyer confidence. Strategic improvements to outdoor living, bedrooms, and kitchen flow tend to move the needle in both cities.
Let’s compare your options together
Whether you lean Palm Springs or La Quinta, the right move starts with data that fits your property and plan. If you want a hands‑on partner to source, underwrite, and set up your STR for success, reach out to the Jacobellis Group - Bayside Real Estate Partners. We pair design‑savvy upgrades with investor‑level modeling so you can enjoy the home and hit your revenue goals.
FAQs
Is a short‑term rental legal in Palm Springs or La Quinta?
- Yes, when you follow each city’s permit or registration rules, collect and remit TOT, and comply with any HOA restrictions.
Which city usually earns more for STRs?
- It depends on property type and location: Palm Springs can excel with smaller design‑forward homes, while La Quinta can win with larger luxury pool homes near golf and resorts.
How seasonal is demand in the Coachella Valley?
- Very seasonal, with peak demand from fall through spring and slower summer months; major events create spikes that can boost revenue.
What should you consider if self‑managing from Carmela?
- Plan for local support for cleanings, pool and landscaping, guest issues, and emergencies; many owners still hire a local manager for coverage.
Do HOAs in La Quinta allow short‑term rentals?
- Some do and many do not; HOA rules can be stricter than city rules, so verify CC&Rs and community enforcement before you buy.
