How much can your Airbnb generate during Coachella?
Coachella music festival and Stagecoach symbolize the emergence of sun drenched activities for the rest of the year. Out of the cold(55 degrees) winters of SoCal and back into pools, parties, and being outdoors!
But if you’re approaching your late 30’s, like myself, you might be hanging up your Coachella and Stagecoach weekend wristbands. This doesn’t mean you don’t appreciate the festivals and desert, but it might mean you are eyeing it more as a revenue generating opportunity and less of a weekend bender.
10 years ago I thought the popularity of Coachella and Stagecoach would wane, but I have been proven wrong. Packed lineups, ever improving facilities, and amenities have continued to make the Coachella Valley a popular destination… even outside of the month of April. This of course, makes it an alluring place to consider real estate.
As a fun exercise, I looked at how much it would cost me to go to a Coachella or Stagecoach weekend vs. how much I could make if I rented out a home I owned there for the month of April.
Rough estimate cost to attend Coachella or Stagecoach for a weekend
- General admission: $430 / $550
- Airbnb or hotel: Average $3K for 3 nights divided by 2 people = $1,500 (including service charges and cleaning fees)
- Food: $150
- Booze: $200
- Water: $50
- Snacks: $50
- Merch: $75
- Gas: Drive from LA: $45 gas Drive from SF: $120 gas
- Shuttle: $70
- Uber/Lyft: $100
- Lockers: $60
- Days off work: 2 (Friday and Monday)…gotta have a Monday recovery day. $300/day (80K salary x 2= $600
- Total: ~$3,475 for one of the festival weekends in Coachella Valley
Rough estimate for renting out a home during the month of April
2 traditional real estate options: Short-term rental (STR) and long-term rental (LTR)
Short-term rental (rentals under 30 consecutive days)
- STR’s, like Airbnb’s, are becoming harder to get permits for in the greater Palm Springs area but offer more opportunity to make more revenue, especially during events like Coachella and Stagecoach.
- New STR permits in La Quinta (more of the traditional resort area) are incredibly restrictive to specific neighborhoods and HOAs in those neighborhoods.
- Indio / Coachella are your best bets for obtaining STR permits close to the event site.
- April 2024 Airbnb nightly rental rates: Avg. $1K/night for a 3 bedroom home.
- Weekend revenue: ~ $3k
- Month of April revenue: ~$10K - $12K
- Less expenses: 40% (STR manager, property taxes, insurance, maintenance)
- Net: ~ $6K - $7.2K
Long-term rental (stays of 30 consecutive days or more)
- LTR options might make more sense in cities like La Quinta, that have more restrictive STR regulations.
- LTRs do not require a permit, and are less maintenance because the turnover is less frequent.
- You can actually search for LTR stays on Airbnb, making them easy to find and book for guests.
- Could be a great option for people who want to do both weekends of Coachella + Stagecoach. OR friend groups who have some people going for some weekends but not others. A shared 30 day Airbnb could be a smart way for groups of friends to save some money and make logistics easy.
- April 2024 30 day rental rate: ~$12K / month
- Less expenses: 30% (STR manager, property taxes, insurance, maintenance)
- Net: ~$8.4K
TLDR
Go to Coachella or Stagecoach for a weekend: - $3,475
Rent out your home in Coachella for April: + $8,000
