Short term rental in CA

Los Angeles County, California
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Short term rental in CA

Moshe Marciano
Member since 2021 路 4 posts 路 5 votes

Hi Guys:

I am currently looking in CA which cities are short term rental friendly. Numbers of cities restrict the number of days you can rent in short term. Others required that the house is a primary residence. I am now calling different counties to identify cities that do not have such restrictions in order to do AIRBNB. If some of you have tools that will make me gain some time or know some "friendly cities", I am all ears.

Thanks

Moshe

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Maxwell Ventura
Real Estate Agent 路 San Diego, CA 路 Member since 2016 路 308 posts 路 173 votes
2y

@Moshe Marciano

I recently helped an investor from Orange County purchase a single family home here in San Diego. The plan is to acquire a tier 3 license. We've been hovering around 1000 for the last few months. In addition to STR'ing the main house, he is building 2 more units (ADUs) on the back side of the property. Should be a great investment when it's all said and done. Super low vacancy rates in SD, even STR's.

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

    Hey @Moshe Marciano, CA can be very difficult but you can find some areas that still allow it.

    More state wide regs are coming for 2024 that could affect payouts and such.

    Do a search on here and you will find some posts.

    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant 路 OH 路 Member since 2023 路 2k+ posts 路 1k+ votes
    2y

    CA is hard all the way around with real estate, but if you're willing to jump through the hoops, San Diego is a good place to have a STR in a CA city. But you'll need to get permits before the last 1,000 or so are used up, after that no more permits will be given out.

    [email protected]330-557-3021
    0Reply
  • Rick Albert
    Real Estate Agent 路 Los Angeles, CA 路 Member since 2018 路 2k+ posts 路 1k+ votes
    2y

    Maybe AirDNA has something?

    Most have restrictions. For example it is my understanding that Big Bear allows it but whoever is managing the property has to live within 1 hour of the property. 

    Parts of Ventura County allow it with some limitations. Malibu allows it but requires a 15% "hotel tax" on the gross revenue.

    I would recommend looking out of state or underwrite the property as a long term rental in the event laws change.

    0Reply
  • Zach Edelman
    Lender 路 New York, NY 路 Member since 2022 路 1k+ posts 路 1k+ votes
    2y

    Desert Hot Springs, CA. 

    0Reply
  • Cameron Masters
    Property Manager 路 Roseville, CA 路 Member since 2023 路 16 posts 路 8 votes
    2y

    In my experience, cities are going to be much harder than working in unincorporated cities within the state that only follow county regulations. A couple that come to mind are Madera County (Oakhurst, North Fork, Bass Lake) and Placer County (Loomis, Auburn, Newcastle). What's your criteria for the market you're interested in?

    0Reply
  • Moshe Marciano
    OP
    Member since 2021 路 4 posts 路 5 votes
    2y
    Quote from @Cameron Masters:

    In my experience, cities are going to be much harder than working in unincorporated cities within the state that only follow county regulations. A couple that come to mind are Madera County (Oakhurst, North Fork, Bass Lake) and Placer County (Loomis, Auburn, Newcastle). What's your criteria for the market you're interested in?


     No regulations restrictions, low average vacancy rate.

    0Reply
  • Moshe Marciano
    OP
    Member since 2021 路 4 posts 路 5 votes
    2y

    Thanks everyone for the responses.

    0Reply
  • Suvarna G.
    Member since 2023 路 14 posts 路 1 vote
    2y

    @Moshe Marciano

    I have heard good about Arnold and ClearLake areas.  Also as someone mentioned Oakhurst above.  In southern California Oceanside seems to be an option.

    0Reply
  • Cameron Masters
    Property Manager 路 Roseville, CA 路 Member since 2023 路 16 posts 路 8 votes
    2y
    Quote from @Moshe Marciano:
    Quote from @Cameron Masters:

    In my experience, cities are going to be much harder than working in unincorporated cities within the state that only follow county regulations. A couple that come to mind are Madera County (Oakhurst, North Fork, Bass Lake) and Placer County (Loomis, Auburn, Newcastle). What's your criteria for the market you're interested in?


     No regulations restrictions, low average vacancy rate.

    Hey Moshe, why a low vacancy rate? Some of the best performing properties can have an occupancy around 60% for the year and sometimes lower. Revenue in my opinion should play a bigger factor. A high occupancy does not guarantee the lost revenue. In fact many homes with too high of an occupancy are leaving money on the table. 
    0Reply
  • Maxwell Ventura
    Real Estate Agent 路 San Diego, CA 路 Member since 2016 路 308 posts 路 173 votes
    2y

    @Moshe Marciano

    I recently helped an investor from Orange County purchase a single family home here in San Diego. The plan is to acquire a tier 3 license. We've been hovering around 1000 for the last few months. In addition to STR'ing the main house, he is building 2 more units (ADUs) on the back side of the property. Should be a great investment when it's all said and done. Super low vacancy rates in SD, even STR's.

    2Reply
  • Nate MeekerBusiness Member
    Real Estate CPA | California 路 Member since 2020 路 544 posts 路 251 votes
    2y

    @Moshe Marciano - I have clients doing great in Anza, CA.

    The CPA Realtor 572 Reviews
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    0Reply
  • Jake BakerBusiness Member
    Flipper/Rehabber 路 San Diego, CA 路 Member since 2020 路 1k+ posts 路 696 votes
    2y

    I agree with @Maxwell Ventura that the tier 3 license is a great play. Max helped me buy a condo in Little Italy that has insane cash flow because of this new license. 

    [email protected]
    BookkeepingRE - Bookkeeping for Real Estate & Service-Based Businesses52 Reviews
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    1Reply
  • Maxwell Ventura
    Real Estate Agent 路 San Diego, CA 路 Member since 2016 路 308 posts 路 173 votes
    2y
    Quote from @Jake Baker:

    I agree with @Maxwell Ventura that the tier 3 license is a great play. Max helped me buy a condo in Little Italy that has insane cash flow because of this new license. 


    馃檹馃徏 

    0Reply
  • Anabel Miranda
    Member since 2023 路 3 posts 路 1 vote
    2y

    I Just learned about corporate rentals and sober living does anyone know how to go about this in CA? looking to arbitrage a deal with a home owner I know, This might help the previous question above as well. 

    1Reply
  • Lydia Valiente
    Member since 2023 路 9 posts 路 1 vote
    1y
    Quote from @Suvarna G.:

    @Moshe Marciano

    I have heard good about Arnold and ClearLake areas.  Also as someone mentioned Oakhurst above.  In southern California Oceanside seems to be an option.


     I have a beautiful property in Cobb, is not on the lake, it's on the mountain. We don't have restrictions here. Let me know if you are interested.

    1Reply
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