Considering Buying a Short-Term Rental (Airbnb) in Big Bear Lake—Thoughts?

Question

Hi everyone,

I’m exploring the idea of purchasing a property in Big Bear Lake, CA to use as a short-term rental (Airbnb), and I’d love to hear from anyone with experience in the area. I had some experience on long-term rental out of California, but I know running short-term is a different story. I’ve done some research on the local regulations and the market, but would appreciate more insights before moving forward.

- Is Big Bear Lake still a profitable Airbnb market in 2024?

- How difficult is it to comply with the city’s regulations?

Albert Wimile · Answer

We manage Bearadise and own a few cabins in Big Bear, so I can give you a pretty clear picture from both sides, owner and operator.Big Bear is still profitable, but it's become more competitive. The key is picking the right property, cabins near the lake or the village consistently perform better. Off-season can be slower, but corporate retreats, small events, and weekenders still keep things moving if you price right.Regulations are the bigger challenge now. The city has tightened up with permits and caps in certain zones. If you're not familiar with the rules, you could end up with a property that's harder to rent than you expected. That's where having a local management team really matters. We deal with the compliance side daily and can help you avoid the common pitfalls.At the end of the day, it's still a solid investment if you treat it like a business, good management, smart pricing, and a property that stands out.

Vanessa Li · Answer

Thank you David. In your opinion, what are the better markets with lower investments and higher return?

David D. · Answer

I would consider taking over a turnkey property there but wouldn't advise investing in a conversion unless you're going super luxury or simply want to enjoy the area yourself frequently. There are already 3k properties in the market currently and the average occupancy has dropped almost 23% in the last 12 months. IMO there are just better markets that require a much lower investment for a higher CoC return.Hope this helps!