How to STR a property in CA

5 Replies

I'm new to the idea of AirBnb (or VRBO/HomeAway etc..) for my real estate investments. I've come across the website and see there MAY be a potential to make more money on my investment as opposed to renting out.

If this website is accurate, I'd like to make my first investment property strictly an AirBnb property and in the event legislation changes or some other plan altering event occurs, I can revert back to my original plan and rent it out to tenants. I plan on living 1 hour away from the house. I live in CA. House will be around $400K. SFR. Close to the beach. Probably in the city of Oceanside.

My target city currently has no limitations to STR. Beyond, the Transient Tax, and potential changes to legislation annually, what are some hidden problems I may encounter? Any advice at all is greatly appreciated. Thank you!

(yes I plan on buying some books to study more before actually doing this)

(book recommendations?)

Always make sure utility wise you have that all buttoned up as that hurts your noi. Solar etc. Airbnb is a good platform and walk you thru quite a bit. is way, way off on their estimates of my properties.  If you are interested in sharing your projections, I'd be happy to help refine them.

@Jacob Abuata I’ve used Airbnb for one of my units in a 4plex. Very lucrative. Downside is the utilities. I’ve asked in the house rules that you turn off lights when not in use. That is usually enough to remind people that someone has to pay the electric. The other thing to consider, especially with a SFR is the potential of someone throwing a party and trashing the place. Airbnb used to be pretty laissez faire about dispute resolution. I think they’ve gotten better. State explicitly in your rules no parties/no illicit drug use. Also, I have a rule that says only registered guests allowed at the Airbnb without approval from the host. Some of my guests have asked if friends can stay an extra night or whatever and that’s usually fine. That brings up another point. Consider how many people you are willing to have before charging for extra people. A lot of SFR hosts charge after 4-5 people. Happy to answer any questions. I’m looking to expand my Airbnb’s also. ~Adhana

One of the things I have successfully done is incorporate timers onto the bathroom exhaust fans.  That, and replacing every light bulb in the place with LEDs.  Not only does that reduce energy costs, maintenance is also drastically reduced.