California Short Term Rental

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y

Nope! :)

So hit up @AJ Wong. He knows a lot about the areas you are interested in @Nicholas Libertin.

It is a tough row to hoe along the coast, but it can be done. 

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Nope! :)

    So hit up @AJ Wong. He knows a lot about the areas you are interested in @Nicholas Libertin.

    It is a tough row to hoe along the coast, but it can be done. 

    2Reply
  • AJ WongBusiness Member
    Real Estate Broker · Oregon & California Coast · Member since 2022 · 822 posts · 696 votes
    2y

    Michael, you're the man. Thank you. 

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  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    2y

    San Luis Obispo County has regs within individual cities but for now the County seems to leave unincorporated areas alone. "For now" being the key words. That could change at any moment because STR owners make for an easy punching bag for low housing inventory, and the county can pass the buck for their past decades of housing development obstruction. Most other counties along the coast seem to regulate the unincorporated areas.

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    2y

    Long time STR owner in coastal CA (since 1999).

    My view is the state politicians are slightly anti STR, but so far not enough to pass anything extremely anti STR. The last state item was a 14% tax just for STRs On top of TOT that hotels and STRs in some jurisdictions pay. This would have greatly benefitted the hotels and hurt the STRs.

    The city of San Diego passed STR quotas.  One of my STRs that operated legally and paid taxes since 1999 did not get a permit and is now a MTR.  The city previously passed a STR ban but when the initiative got enough votes to be placed on the ballot, the city rescinded the ban.  This tells me that they were confident that the voters would have voted against the ban, but they passed it anyways.  So instead of an outright ban, they initiated a quota.  

    Other areas have different levels of anti STR sentiment, but this anti STR sentiment appears to be growing with time.

    Because of this, I suggest if you invest in a coastal STR in CA that you have a back up plan It is my opinion that it is more a when than an if that some anti STR regulation will be passed increasing the challenges of having an STR.

    Good luck

    1Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    I wouldn't overlook the northern CA coast up to southern Oregon (Brookings) if you really want to be on the coast. We have friends in Brookings, OR doing extremely well year round.

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  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    2y

    There are lots of great areas around San Diego county to run an STR including the city of San Diego which has limited number of permits to operate an STR. But regardless if you are operating in an area with some level of STR restrictions or not, never rely on STR numbers and have a back up plan if the STR doesn't work out, at the very least an MTR as a back up. Some areas that may work well for a large 5 bedroom STR may not necessarily have much of a market for such a large MTR so you will have to see what other exist plans you may have. Its on a case by case basis.

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  • Noah Laker
    Real Estate Broker · Sacramento, CA · Member since 2021 · 517 posts · 408 votes
    2y

    Hey Nicholas, I'm a real estate broker and I manage over 100 STR properties. Based in Sacramento but we also service SD.

    San Diego is essentially on a lottery system, although it varies by jurisdiction. My agent Keith Mintz is from there and understands the different areas. If you're looking to invest in STR, Sacramento is very friendly, but San Diego is doable if you're prepared to deal with a tougher regulatory environment.

    Monterey is also popular, but the annual fee is exorbitant ($3500 or $6500). 

    0Reply
  • Patrick McCandless
    Residential Real Estate Broker · Paso Robles, CA · Member since 2015 · 196 posts · 58 votes
    2y
    Quote from @Nicholas Libertin:

    Hello all. Is there any STR friendly areas near the coast in Cali from San Francisco to San Diego?—ANYWHERE within 20 minutes from the coast. Thanks for any and all advice!


    What do you consider "STR friendly"? Like Jon Martin mentioned, unincorporated county area in San Luis Obispo is pretty much apply for a permit and you're up and running. The city of Paso Robles is a fantastic town for STR's. I run 7 STR's here and they all do really well, but the city is very regulated with how many STR's can operate unless you go the "Homeshare" route. Personally, I would prefer to buy and operate a STR in an area where regulations have already been implemented rather than an area with no regulations. If no regulations then the area will just get oversaturated with STR's which is obviously not good. Regulations help keep oversaturation at bay.

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  • Janelle K. Eagle
    Real Estate Agent · Central Coast, CA · Member since 2022 · 110 posts · 58 votes
    2y

    Hi @Nicholas Libertin - I live and invest in the San Luis Obispo County coastal area. I live in a small suburb of SLO called Los Osos, which is still friendly to STR's and not yet saturated. There are still nearby areas with the pockets of opportunity for STR investment such as Cambria and Pismo Beach. There are also slightly inland areas such as Atascadero and Santa Margarita that are just about 20 minutes to the water. Each has its own nuance and rules / regulations - most of which have to do with proximity to other existing rentals.

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