No matter what kind of investment you are interested in, consider looking for property in California. Specifically, look into Joshua Tree Airbnb for a profitable investment.
Table of Contents
- Joshua Tree Airbnb: The Numbers
- What Attractions Are in Joshua Tree?
- What Licenses Do I Need for a Joshua Tree Airbnb?
- How to Find a Profitable Joshua Tree Airbnb
- Recap
The Joshua Tree housing market attracts visitors year-round. With a national park and a great location near other major CA cities, Joshua Tree can be an excellent location for an Airbnb.
In this article, we will explore how Joshua Tree can be ideal for a California investment property. We will also discuss what tools to use to ensure you will make a profit in the short term rental market.
Joshua Tree Airbnb: The Numbers
Before you are able to determine if Joshua Tree is a good place for an investment property, it is a good idea to take a look at the latest market data. Real estate market data is very important when determining how desirable any location is. Ultimately, it will predict if you will generate money in a specific location. Below is the city-level data for Joshua Tree, CA:
- Median Property Price: $541,871
- Number of Airbnb Listings: 389
- Monthly Airbnb Rental Income: $4,505
- Cash on Cash Return: 5.66%
- Daily Rate: $244
- Occupancy Rate: 68%
The data above shows excellent potential for profitable Joshua Tree investment properties. With an Airbnb cash on cash return of 5.66%, you can count on generating a profit for your Joshua Tree Airbnb.
Additionally, the data shows a fairly high Airbnb rental income at $4,505. It is another metric that proves there is potential in the Joshua Tree real estate market.
What Attractions Are in Joshua Tree?
If you’re looking into the California real estate market for an investment property, you should consider Joshua Tree. But what types of attractions are located in Joshua Tree that would attract guests?
One of California’s national parks, Joshua Tree, is one of the main attractions of the area. At the park, visitors are able to explore the scenery and take part in activities such as rock climbing, hiking, and exploring trails. People from all over the US come to visit Joshua Tree National Park every year.
Aside from the park, Joshua Tree is not too far from Los Angles, California. Visitors can experience both the breathtaking scenery of the national park and explore one of the most popular cities in CA. Joshua Tree is only two hours away from Los Angeles, making it a fairly convenient location for tourists.
What Licenses Do I Need for a Joshua Tree Airbnb?
Before you list an Airbnb property in any area, it is important to do your research to ensure you are following the correct rules and regulations for your short-term rental. In the case of Joshua Tree, you need to look at both the county’s rules as well as the California housing market regulations.
Luckily for investors, Joshua Tree permits Airbnb properties as long as the guest is staying for less than 30 days. If the renter wants to stay longer than 30 days, this wouldn’t be considered a short-term Airbnb property, and you would be at risk for a fine.
Though Airbnb properties are permitted in Joshua Tree CA, there are rules around what type of property can be used as a short term rental. Below are the types of alternative properties that cannot be listed as a Joshua Tree Airbnb:
- RV’s
- Travel trailers
- Tents
- Cabins
- Yurts
Basically, as long as your Airbnb property is physically a house structure, it is likely it will be approved for listing.
Make Sure Your Property Is Up to Code
If you want to list your investment property, you must make sure your home is up to code in both state and county regulations. You will need to pass an inspection and fill out an application to get approval to list your Joshua Tree Airbnb. Below is the list of codes your Airbnb property must include:
- A fire extinguisher, one on each level of the property
- Emergency lights in case of power failure
- Parking available onsite
- Smoke detectors in hallways and bedrooms
- CO detectors in hallways and bedrooms
- Electric, plumbing, and mechanical up to code
- Trash cans that are animal-proof
Be sure to comply with the necessary codes above to make sure you pass inspections. Also, note that proper signage must be available to guests that show the maximum occupancy, trash removal info, emergency exits, and a property map.
If you complete all the requirements above, you will likely pass your inspections from the county.
Apply for Permits and Certificates
To operate a Joshua Tree Airbnb, you must obtain certain permits from both the county and the state.
Create a Business Entity
Though it is not required, establishing a business entity for your short-term rental business can be a good idea. It helps Airbnb owners to limit the personal liability involved when operating an Airbnb business. Essentially, if you are sued because of your Airbnb property, it would mean you wouldn’t be held legally responsible.
To establish a business entity, you will need to file certain documents as well as pay a fee.
Apply for Certificates
After securing personal liability coverage, you must obtain a Transit Occupancy Tax Certificate from the county. You must secure the certificate before you can apply for a short-term rental permit. You can apply for a TOT Certificate through the county’s local tax website.
In the county Joshua Tree is located in, note that guests must pay a 7% tax for staying in a rental property for less than 30 days. It must be submitted to the county’s tax records. Additionally, every quarter, owners of the Airbnb property must remit the taxes paid to the local tax offices.
Apply for a Short-Term Rental Permit
Once you are approved for TOT, you are able to apply for your short term rental permit, which essentially gives you permission to list a Joshua Tree Airbnb. When filling out the application, you must provide a lot of detailed information about the property, such as:
- Number of bedrooms
- Number of bathrooms
- Area of the property (in square feet)
- Occupancy size
- Completed plot plan
- Number of parking spaces available
Additionally, there are fees involved with a short term rental permit. There is a filing fee that costs around $667, as well as a renewal fee of $401 that must be paid every other year.
The last important thing that you need to do when applying for a short term rental permit is to list an emergency contact. It is someone who knows everything about the property and can be reached at any time during an emergency.
After an inspection is complete, you will be issued a short term rental permit by the county.
Check Your Insurance Policies
Before finally listing a Joshua Tree Airbnb, make sure you have the proper insurance. Some types of insurance do not cover vacation rental properties. If damage occurs to your Airbnb, such as a fire or one that was caused by a renter, you want to be covered to repair it.
As some renter insurance policies or homeowners insurance does not cover Airbnb properties, always double-check you are covered at all times.
How to Find a Profitable Joshua Tree Airbnb
After looking at the real estate data and the attractions, you might be interested in purchasing an Airbnb property. But where can you look for available listings?
One way to search for properties is by looking through the newspaper or local website sources, scrolling through the MLS, or reaching out to real estate agents in the area. Though they all can work, it can take hours to locate a property based on your chosen investment strategy. Mashvisor offers a much easier way to do all of them.
Property Finder
Our Property Finder tool makes it easy for you to find your dream investment property. We combine all of the available listings in the area and present you with the ones that fit your requirements. Listed below are the filters we offer to help you find and sort through thousands of available listings:
- Budget
- Rental Strategy
- Location
- Type of Property
- Size
- Number of Bedrooms
- Number of Bathrooms
Using data that is relative to you helps to save time and find your perfect property much quicker.
Investment Property Calculator
After you’ve found a property that fulfills all of your wants and needs, you need to make sure it will generate a profit. Our Investment Property Calculator helps you determine just how profitable your Joshua Tree Airbnb can be.
We use recent real estate market data to fine-tune your investment costs and provide you with estimated returns. We make sure our Airbnb calculator is accurate by letting you input all of your own data on your specific property.
Our Investment Property Calculator lets you enter real estate data costs, such as:
- Interest Rate
- Maintenance Costs
- Property Tax
Additionally, Mashvisor’s Airbnb calculator provides comprehensive rental strategy data. Here, we show how your property will perform as a traditional rental vs as a short term vacation Airbnb. To determine which will be more profitable, we give investors the following metrics:
- Rental Income
- Cash Flow
- Cash on Cash Return
- Cap Rate
- Occupancy Rate
The above data will help you determine what strategy is best to generate a good return on investment.
Real Estate Heatmap
Though the city-level data for Joshua Tree is already provided, you may want to explore how different neighborhoods in the area perform. To find the most profitable neighborhoods in any city, use our Real Estate Heatmap tool.
The heatmap tool conducts a neighborhood analysis in any location in the U.S to zone in on profitable real estate markets. As an investor, it is essential you choose a location that will make you money in real estate. This is why we created our Heatmap tool.
To determine if a neighborhood will generate a cash flow, we look at the data. Below is the data used to determine neighborhood profitability:
- Listing Price
- Rental Income
- Cash on Cash Return
- Occupancy Rate
The above metrics help investors choose the best neighborhood for an investment property.
Investors can use Mashvisor’s Real Estate Heatmap tool to find the most profitable neighborhoods in any city.
Real Estate Agent Directory
When purchasing any property, it is always a smart idea to work with an agent. As an investor, you may not always be familiar with the area you are investing in. To locate an agent in any location, visit Mashvisor’s Real Estate Agent Directory.
It is simple to find an agent with our directory tool. You can search any city in the U.S and scroll through agents who are licensed in that area. Additionally, you can read some information on them, including:
- Name
- Contact Information
- Areas Licensed In
- Experience in Real Estate
- Agent Specialties
We offer all of this info in our directory to make finding an agent easy. When purchasing any property, always work with a licensed real estate agent as they can get you the best deals. This will help you save money and contribute to a larger return on your investment in the end.
Recap
You might’ve clicked on the following article to help answer the question “how to invest in real estate.” After reading all of the information about Joshua Tree, you might’ve come to the conclusion that it could be very profitable for an Airbnb property.
Joshua Tree is home to a national park that attracts visitors year-round. People from all over come to explore the park’s scenic trails and rock climbing attractions. Additionally, it is just a car ride away from one of California’s largest cities, Los Angeles.
If you’ve decided a Joshua Tree Airbnb is the perfect choice as an investment property, consider using Mashvisor’s tools to help you make a profit from your rental property.
To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.