4/3/2024 Joshua Tree Was California’s Hottest Housing Market. What Happened?

A summary of the Wall Street Journal’s article on short-term rentals in Joshua Tree reports that:

• As of early April, roughly 40% of the 199 homes on the market in Joshua Tree had price reductions.
• Home values in the area have fallen from their Covid peaks, although they are higher than prepandemic.
• Now the sales market is cooling, while the supply of short-term rentals has seen continued growth. In 2019, there were 1,876 available short-term rental listings in the Joshua Tree area; by 2023, there were 3,550, according to AirDNA, a short-term rental analytics firm. Because supply has outpaced demand, occupancy levels have fallen from a pandemic high of 72% in 2020 to 52.2% in 2023, below 2019’s level of 52.5%.
• Not all short-term rentals are struggling. Patryk Swietek, who currently manages over 80 short-term rentals in the area, said his higher-end, amenity-rich properties are performing well. One of them, a 1,600-square-foot home with a saltwater pool and hot tub, brought in around $20,000 in February, he said. In July 2023, which is considered a slow month for the area, it brought in just under $24,000. 

1/25/2023 Yucca Valley Planning Commission approves 10% Short-Term Rental Cap

Z107FM reported that Yucca Valley approved density cap of 10% for short-term vacation rentals.

6/14/2022 San Bernardino County pauses new short-term rental permits in Joshua Tree, Big Bear City

The Desert-Sun reports that San Bernardino County issues a 45-day pause on new short-term vacation rental permits in the Joshua Tree area and other second home markets to evaluate short-term vacation rental issues.

It was also reported :  “In addition to the temporary pause on new permits, the supervisors also approved several amendments to the county’s short-term rental ordinance. These changes include a limit of one STR on parcels under 2 acres and two STRs on parcels over 2 acres in the mountain and desert regions, and occupancy limits of four people for a one-bedroom or studio unit, with two additional guests allowed for each additional bedroom up to a maximum of 12 total guests.

The supervisors also capped the number of STR permits for any individual person, corporation, personal or family trust, LLC or LLP at two permits — those with more than two STRs will be grandfathered in to keep their existing rentals. Rowe also proposed banning corporations from obtaining an STR permit, but her motion did not move forward due to a lack of a second from other supervisors.

These changes to short-term rental rules will take effect July 28, 30 days after the ordinance is introduced on second reading on June 28. The temporary pause on new permits is intended to allow the county time to implement the new rules and study other options on STRs.”

Short-term rental permits get more expensive in Yucca Valley

5/6/2022 – The High-Desert Star reported:  “Owners of short-term home rentals in town limits will pay $965 for a permit plus a $340 monitoring fee starting July 1. The previous fees were $270 for a permit and $85 for monitoring.”

Are 1,818 Airbnbs Too Many in Joshua Tree?

4/7/2022 The New York Times reports:   A short-term rental gold rush is fueling concern for the area’s signature trees and debates about whether the nature of life in the desert of southeastern California is changing forever.

Joshua Tree region grappling with capping short-term rentals amid housing crisis

3/24/20222 – The Desert Sun reports on the impact of short-term vacation rentals and the lack of housing and rentals for locals in the Joshua Tree area. A typical home value in Joshua Tree is now $414,172, up from $244,942 before the pandemic. The San Bernardino County is proposing more short-term vacation regulations too.

Yucca Valley Tightens Short-Term Vacation Policies

2/18/2022 – Z107.7FM reported:  “The Yucca Valley Town Council approved updates to their housing code, based on input from several months of public hearings. The town limited the number of short-term rentals to ten percent of the town’s total housing stock. The number of guests allowed at a short-term rental is limited to eight, though larger houses may seek a special permit to allow for more guests. All new vacation rentals must have an owner or agent available to respond to reasonable complaints against the rental within 15 minutes by phone or 30 minutes in person. Noise monitoring hardware must be installed in all new rentals. All outdoor lighting must be fully shielded. And disciplinary fines against problematic short-term vacation rentals have been increased, and range from $1500 to $5000, with the town still able to completely revoke permits. Finally, the town moved the section of code relating to vacation rentals out of the development section and into the general section, allowing for easier updates to the code as needed.”

Joshua Tree Short-Term Vacation Rental Updates

7/2/21 – The San Bernardino Sun reported “Fines for violating the short-term rental rules are now 10 times as high. Rather than $100 for the first offense, $200 for the second offense and $500 for the third offense within 12 months, those fines are now $1,000, $2,000 and $5,000.”

2/20/20 – The Los Angeles Times reported about a new law passed in December 2019 in the County of San Bernardino that is affecting the owners of Joshua Tree short-term vacation home rentals.  Other short-term vacation towns and areas such as Pioneertown and Yucca Valley are affected too.

Short-Term Vacation Rental Research

Homeowners now have to apply for a Short-Term Rental Application with the county.  The Joshua Tree short-term vacation rentals are now subject to short-term residential permits, code inspections and enforcement, transit occupancy tax, advertising specifications and more.

Whether Joshua Tree, elsewhere in the high desert or in Greater Palm Springs, buyers thinking about investing in a vacation rental should consider the following before buying:

• Review the local city and/or county ordinances for vacation rental policies and the application process before you buy
• Evaluate the competition – look at HomeAway, VRBO, AirBnb.  What is the nearest vacation rental? What amenities do they have?   What are they charging.
• Investigate that there have been no complaints or violations that could prevent a new owner from short-term vacation renting the home
• Team up with a professional property manager to evaluate the home’s potential use as a vacation rental.  Review with the property manager what is required for a successful vacation rental.
• Review the use of the home as a vacation rental with your insurance agent
• Hire a professional property manager in the local Joshua Tree area to manage the day to day operation of the short-term vacation rental if you don’t live nearby to manage the home.

These are just some of the basic tips to consider when investing in a short-term vacation rental home.

For more info:

• Apply for a San Bernardino County Joshua Tree Vacation Rental Permit
• Read the entire Joshua Tree Vacation Rental Home ordinance
• Yucca Valley Short-Term Vacation Rental Information

Contact Kevin with your questions