There are cases where someone decides to officially rent out a second home that was only used during the winter in Palm Springs. They found that writing the rental agreement was a bigger concern than finding a tenant. Even after downloading a template from the internet, they were unsure about which parts to fill out.

Before discussing the agreement, let's look at rental prices. The average monthly rent in Palm Springs is around $2,099 (according to RentCafe, a 2.54 percent decrease from the previous year). A one-bedroom unit averages $1,919, while a two-bedroom unit is about $2,353. Since demand varies between peak and off-peak seasons, it's wise to check the recent market rates for similar listings before setting a price.

After determining the rent, the next step is to advertise. Recent market trends show that posting on platforms like Zillow, Apartments.com, and Zumper simultaneously is still effective. Including details such as the number of bedrooms, parking availability, and whether pets are allowed can improve the quality of inquiries.

When selecting a tenant, it's important to check their credit score, proof of income, and previous rental history. A common practice is to set the income requirement at three times the rent. It's essential to apply the same process to all applicants.

The lease agreement must include the rental period, monthly rent and due date, security deposit amount, responsibility for repairs, and conditions for termination. Verbal agreements alone will not serve as evidence in case of disputes.

• Check recent market rates considering peak and off-peak seasons
• Advertise on multiple platforms with photos and conditions specified
• Verify tenants using credit scores, income, and rental history
• Specify rental period, monthly rent, security deposit, and termination conditions in the agreement
• Confirm security deposit limits and return deadlines

In California, starting July 2024, the security deposit limit will be capped at one month's rent under AB 12. Individual landlords with four or fewer rental units can receive up to two months' rent as an exception. Security deposits must be returned or a deduction statement sent within 21 days after move-out (Civil Code Section 1950.5). If rent is unpaid, procedures can be initiated after a three-day notice, and for no-cause terminations, a 30-day notice is required for less than one year of residency and 60 days for more than one year.

A screening fee can be charged when receiving applications, but there is a cap. As of 2026, it is $65.86, and if more is charged than the actual cost, the difference must be refunded (Civil Code Section 1950.6).

There are also limits on rent increases. If the building is over 15 years old, AB 1482 caps annual increases at the inflation rate plus 5 percent, with a maximum of 10 percent. Tenants who have lived there for over a year cannot be evicted without just cause. Single-family homes owned by individuals can be exempt if a notice is included in the lease. When converting a home that was only used in winter to a formal rental, it is crucial not to omit this notice in the lease drafting stage.

Landlords are also obligated to maintain plumbing, heating and cooling, and security systems in proper working order. Repair requests should be handled within a reasonable time frame.

Don't forget to take photos of the home's condition on the day the tenant moves in. Documenting the state of the walls, floors, and appliances in advance makes it easier to distinguish between original wear and new damage when settling the security deposit. Having the tenant review and sign off can help reduce disputes.

You also need to decide whether to set the lease term as a fixed one-year or on a month-to-month basis. A one-year fixed lease provides stability without vacancy concerns, while a month-to-month lease offers flexibility but comes with vacancy risks. If the home was only used in winter, considering a one-year fixed lease for stable operation might be worthwhile.

Specific conditions may vary by county. It's advisable to consult a real estate professional or a rental law attorney before drafting the lease. This article is for informational purposes only and does not substitute for legal advice.