Are Airbnbs a Smart Investment for the Indian Wells Tennis Tournament?

Every March, the BNP Paribas Open transforms Indian Wells into a global tennis hotspot, drawing thousands of visitors to the Coachella Valley. With hotels filling up fast, short-term rentals become a sought-after alternative—making Airbnb properties an attractive investment. But is buying a rental property in Indian Wells or nearby cities a smart move? Let’s break down the opportunities and challenges.

🎾 Why Airbnb Demand Surges During the Tournament

The Indian Wells Tennis Tournament brings an influx of international visitors, players, and corporate sponsors, all looking for high-end accommodations. Short-term rental owners benefit from:

• Higher Nightly Rates – Premium properties can command 2-3x normal rental prices during the tournament.
• Consistent Occupancy – Well-located Airbnbs can be booked for weeks at a time, especially for corporate stays and player entourages.
• Repeat Guests – Many fans return annually, creating a reliable customer base.

📍 Best Locations for Airbnb Rentals

When considering an investment property, proximity to the Indian Wells Tennis Garden is key. Here are the best areas to buy an Airbnb:

1️⃣ Indian Wells

• Closest to the tournament with high-end clientele.
• Strict short-term rental regulations—only owner-occupied vacation rentals allowed.
• The community Mountain Cove has more lenient STR policies from their HOA allowing residents to vacation rent their properties, located just 2 miles from the Tennis Tournament.
• Higher home prices but strong luxury demand.

2️⃣ Palm Desert

• Just minutes from Indian Wells, offering a mix of condos and single-family homes.
• The city is not offering permits for short-term rental applications although there are some hoa neighborhoods that will allow you to vacation rent.
• Closer Proximity to dining and nightlife than Indian Wells while still drawing tennis tourists.

3️⃣ La Quinta

• Popular for golf and resort-style vacation homes.
• Allows short-term rentals in designated areas like PGA West, La Quinta Country Club, but largely does not give permits out at the city level beyond specific communities.
• Attractive for investors looking for year-round rental potential.

4️⃣ Mountain Cove, Indian Wells

• One of the prime Airbnb rental locations for the tennis tournament.
• Located just 2 miles from the Indian Wells Tennis Garden.
• Unlike much of Indian Wells, Mountain Cove’s HOA allows short-term rentals, making it a standout choice for investors specifically looking to take advantage close proximity to the tournament.

5️⃣ Indio

• A historically popular area for Airbnb investments, driven by Coachella Festival demand.
• However, high supply has driven down rental prices outside of peak events.
• Still a viable option for those targeting festival season and occasional tennis tournament guests.

💰 Estimated Rental Income Potential & ROI Analysis

During the tournament, average Airbnb nightly rates in the area can range from:

• $200 – $400/night for condos or smaller homes.
• $500 – $1,500/night for luxury homes with pools and high-end amenities.

Outside peak season, nightly rates drop, but properties near golf courses, shopping districts, and event venues can still generate income from snowbirds and festivalgoers.

Investors should consider:

• Annual occupancy rates (high in winter/spring, lower in summer).
• Property management fees if not self-managed (typically 20-30% of revenue).
• City regulations & taxes (TOT – transient occupancy tax applies in most cities).

⚖️ Airbnb vs. Long-Term Rentals: Which is Better?

| Factor | Airbnb Short-Term Rental | Long-Term Rental | |--------|------------------|-----------------| | Income Potential | Higher during peak events but seasonal | Stable, year-round income | | Management Effort | Requires active hosting & turnovers | Lower maintenance, fewer guest interactions | | Regulations | Varies by city, stricter in some areas | Fewer restrictions, but lease agreements apply | | Flexibility | Can block dates for personal use | Locked into leases, less personal use |

🏛️ Short-Term Rental Regulations in Indian Wells & Coachella Valley

Each city has its own set of rules for vacation rentals. Indian Wells is one of the strictest, allowing only owner-occupied short-term rentals. Palm Desert and La Quinta have largely banned new short-term rental permits, making Mountain Cove in Indian Wells one of the best options for investors looking for legal Airbnb opportunities near the tournament. Indio, once a hotspot for Airbnb investors due to Coachella Festival demand, has seen a drop in rental prices outside of peak events due to increased supply.

It’s crucial to check with local city ordinances before purchasing an investment property to ensure compliance.

🏡 Is Investing in an Airbnb Near Indian Wells Worth It?

If you’re looking for high seasonal income, an Airbnb near the Indian Wells Tennis Tournament can be a lucrative investment. However, it’s essential to choose the right location, understand regulations, and plan for year-round rental potential beyond the tournament.

For those interested in buying a short-term rental property in Indian Wells or nearby areas, let’s connect and explore your investment options!