Anaheim, California, is thriving as a top destination for short-term rentals, boasting high occupancy rates of up to 78%, premium daily rates reaching $407, and average annual revenues of over $90,000, making it an exceptionally lucrative market for investors.
Thriving Short-Term Rental Market in Anaheim, California
Anaheim, California, continues to shine as a lucrative destination for short-term rental investments, driven by its robust tourism sector and strong economic foundations. The city boasts an impressive occupancy rate, with an annual average of 69% and peaks reaching up to 78% in July, indicating a consistent and high demand for short-term rentals.
The average daily rate (ADR) in Anaheim is equally compelling, standing at $362.4, with peaks as high as $407 in July. This premium pricing, coupled with the high occupancy rates, results in significant average annual revenues for Airbnb hosts, averaging around $90,900 and peaking at $8,200 in July.
These metrics underscore Anaheim's status as a goldmine for investors in the short-term rental market, with its proximity to major attractions like Disneyland and a diverse range of rental options contributing to its attractiveness. The city's updated short-term rental ordinance and robust economic landscape further enhance its appeal, making it an ideal location for those looking to capitalize on the growing demand for vacation rentals.
Short-Term Rental Regulations in Anaheim, California for 2024
General Requirements
Permit Requirement: All short-term rental owners or agents must apply for and obtain a short-term rental permit from the City of Anaheim. The permit is valid for 1 year from the date of issue.
Business License: In addition to the permit, a City of Anaheim Business Tax Certificate (business license) is required.
Operational Rules
Minimum Stay: Properties must be rented for a minimum of 3 nights to avoid frequent disturbances in residential neighborhoods.
Transient Occupancy Tax: Hosts must collect and remit the City's 10% Transient Occupancy Tax (TOT) for each stay.
Good Neighbor Rules: Compliance with strict "good neighbor" rules is mandatory, including having a local contact available 24/7 to respond to complaints within 45 minutes, providing contact information to neighbors, limiting guests to those ages 21 and above, and adhering to a "quiet time" from 10 pm to 9 am.
Permit Application and Documents
Application Process: The application must be filled out and returned in-person between 8 a.m. to 5 p.m. Monday through Friday, or mailed to the address listed on the application.
Required Documents: Proof of ownership or authorization to rent the property, a valid business license, proof of liability insurance, a site plan of the property, and a signed affidavit of compliance with the city's regulations are required.
Compliance and Enforcement
Penalties for Non-Compliance: Two major violations or 10 minor violations within a one-year period can result in the revocation of the permit. Fines can be as high as $2,500 for owners/operators and up to $500 for guests.
Enforcement History: Anaheim has a history of strictly enforcing its short-term rental regulations, with previous bans and phase-outs that were later reversed to allow existing rentals to continue under strict regulations.
Zoning and Location Restrictions
Homeowner Association Restrictions: Short-term rentals must close by December 2022 in communities where homeowner associations have banned them. New short-term rentals are not allowed, except for relocations of existing permitted rentals.
No New Permits: Current policies forbid the issuance of new short-term rental permits, except for the relocation of existing permitted rentals.
Additional Considerations
Registration and Compliance Contract: Hosts must comply with all applicable laws, regulations, and ordinances governing short-term rental properties in Anaheim, including the Anaheim Municipal Code and any regulations set forth by the City Planning Department.
Local Contact Requirement: A local contact must be available to respond to reported concerns and complaints within 45 minutes, 24 hours a day, 7 days a week.
Top Neighborhoods Generating Airbnb Revenue in Anaheim, California
1. The Anaheim Resort Area
- This area is highly appealing due to its proximity to Disneyland, Downtown Disney, and the Anaheim Convention Center. Guests can walk or take a short drive to these major attractions, making it an ideal location for families and business travelers alike.
2. Anaheim Colony District
- Located close to the Packing District, a trendy historic warehouse with communal dining, unique culinary offerings, and a railroad car patio. This neighborhood offers a vibrant atmosphere with easy access to restaurants, breweries, and other local attractions. Disney is also just a short drive away.
3. Downtown Anaheim
- Central to many amenities, Downtown Anaheim provides easy access to the Center Street Promenade, which features numerous dining options, shops, and entertainment venues. Its proximity to Disneyland and other local attractions makes it a favorite among guests.
4. Santa Ana (adjacent neighborhoods)
- Neighborhoods in Santa Ana, such as those near the historic district, are popular due to their quiet and family-friendly environment. They offer easy access to Disneyland, the Anaheim Convention Center, and other Southern California attractions. The presence of organic fruit trees, beautiful gardens, and safe walkable neighborhoods adds to their appeal.
5. Midway City and Surrounding Areas
- These areas are attractive because they offer a balance between proximity to Disney, Knott's Berry Farm, and beaches, while also providing a more suburban and relaxed atmosphere. Guests appreciate the convenience and the variety of local amenities available.
Why These Neighborhoods Are Appealing
- Proximity to Major Attractions: Many of these neighborhoods are within walking distance or a short drive to Disneyland, the Anaheim Convention Center, and other popular attractions.
- Family-Friendly Environment: They offer amenities such as pools, hot tubs, and family-friendly accommodations that cater to larger groups and families.
- Local Amenities: Access to dining districts like the Packing District, shopping areas, and historic neighborhoods enhances the guest experience.
- Safety and Comfort: Quiet, safe neighborhoods with beautiful gardens and organic fruit trees provide a relaxing atmosphere for guests.
- Convenience: Free parking, WiFi, and other essential amenities are often included, making these locations highly convenient for travelers.
Tips for Furnishing and Designing an Inviting Airbnb in Anaheim, California
Functionality and Comfort
- Choose Multi-Functional Furniture: Opt for pieces that serve more than one purpose, such as sofa beds, ottomans with storage, and extendable dining tables to maximize space and utility.
- Prioritize Comfort: Invest in high-quality, durable mattresses (at least 8 inches thick) and comfortable, easy-to-clean furniture like sofas with washable covers.
Easy Maintenance
- Select Easy-to-Clean Items: Focus on furniture with easy-to-clean surfaces, such as leather or wipeable fabrics. Use ScotchGuard on fabrics and maintain a cleaning kit with tools like the Bissel Little Green for spot cleaning.
- Durable Materials: Choose solid wood over particle board and avoid real or faux leather for sofas and chairs due to maintenance issues.
Space Optimization
- Measure and Plan: Measure your rooms carefully to ensure the best layout and avoid blocking natural light sources. Use space-saving furniture like beds with drawers and wall hooks to keep the space tidy.
- Use Mirrors: Mount mirrors strategically to make the space feel larger and brighter.
Cohesive Style
- Neutral Color Palette: Use a neutral color scheme (white, gray, beige, ivory) for main furniture pieces and add pops of color through accessories and décor items.
- Local Inspiration: Reflect Anaheim’s unique style by incorporating elements inspired by the city’s culture and surroundings. For example, if your Airbnb is near Disneyland, consider a fun, family-friendly theme.
Practical Storage
- Smart Storage Solutions: Incorporate storage beds, ottomans with hidden storage, and cabinets to keep the space organized and clutter-free. Provide designated spots for guests' personal items like luggage racks.
Safety and Accessibility
- Secure Furniture: Mount TVs and large mirrors to the wall for safety and to maintain a clean look. Consider making your Airbnb accessible to guests with disabilities by adding features like ramps and grab bars.
Outdoor Spaces
- Optimize Outdoor Areas: Create comfortable outdoor seating areas and add outdoor lighting and heating to extend the use of these spaces. Include greenery and outdoor equipment like beach chairs or bicycles if applicable.
Attention to Details
- Lighting and Amenities: Ensure the rental is well-lit and equipped with necessary appliances, a fully-stocked kitchen, reliable Wi-Fi, and a TV with streaming services. Provide extra amenities like pillows, blankets, and towels to enhance the guest experience.
By following these tips, you can create an inviting and functional Airbnb space in Anaheim that reflects the city's unique style and meets the needs of your guests.
Discovering Anaheim: Local Attractions and Insider Tips for Your Guests
Theme Parks and Family Fun
- Disneyland® Resort: A must-visit, featuring Disneyland® Park and Disney California Adventure® Park. Don't miss the holiday magic and special events.
- Knott's Berry Farm: California's first theme park, offering a mix of classic attractions and modern thrills.
- Honda Center: Home to the Anaheim Ducks and host to various events like concerts, hockey games, and family-friendly shows.
Arts, Culture, and Entertainment
- City National Grove of Anaheim: A popular venue for concerts and performances, hosting over 250 events annually. Book tickets in advance as they sell out quickly.
- Muzeo Museum and Cultural Center: Features rotating exhibits and a rich cultural experience. Check their website for advance tickets.
- Anaheim Ballet: Catch a performance, including the annual Nutcracker ballet, for a touch of classical elegance.
Food, Shopping, and Nightlife
- Anaheim Packing District: A vibrant area with the Anaheim Packing House Food Hall, live music, and unique dining options. Don't miss the historic Packard Building and Farmers Park.
- Center Street Promenade: A trendy spot in downtown Anaheim with local eateries, boutique shops, and live entertainment. Perfect for mingling with locals and tourists.
- Anaheim GardenWalk: An outdoor entertainment district with restaurants, live music, and beautiful murals. Check the calendar for upcoming festivals and events.
Outdoor Activities and Parks
- Pearson Park: A 19-acre park with picnic shelters, children’s play areas, a swimming pool, and various sports facilities. A great free activity for families.
- Santa Ana Zoo: Located nearby, this zoo focuses on Central and South American animals and features a children’s train ride.
Unique Experiences
- Anaheim Convention Center: Even if not attending an event, the sheer scale and modern facilities make it worth a visit. It’s the largest on the West Coast.
- Discovery Cube: An interactive science museum perfect for families and curious minds, with exhibits on STEM topics and environmental sustainability.
- Anaheim Brewery Tour: Explore 15 unique breweries with a self-guided tour. Download the Anaheim Brewery Map to find the best spots.
Insider Tips
- Traffic: Anaheim is 26 miles from Los Angeles, and with light traffic, you can reach LA in under 30 minutes. Plan your day accordingly.
- Advance Tickets: For popular venues like City National Grove of Anaheim and Muzeo Museum, book tickets in advance to avoid sold-out events.
- Local Gems: Explore hidden gems like the Anaheim Packing District and Center Street Promenade, which offer a unique and authentic Anaheim experience.
- Event Calendars: Check the calendars for Anaheim GardenWalk and the Anaheim Packing District to catch festivals and special events.
By sharing these attractions and tips, you can help your guests make the most of their visit to Anaheim and enjoy all that this vibrant city has to offer.
Practical Tips to Run a Successful Short Term Rental Business in Anaheim, California
To ensure a smooth and successful short-term rental business in Anaheim, California, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform your guests about the city's noise regulations and quiet hours to avoid disturbances in residential neighborhoods. This can be included in a digital and physical house manual, which should also outline other important house rules and good neighbor policies.
Comprehensive House Manual
Create a detailed house manual that includes essential instructions, Wi-Fi passwords, and other pertinent information. This manual should be easily accessible both digitally and in physical form within the rental property.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. This not only enhances guest convenience but also reduces the likelihood of lost keys.
Clear Parking Instructions
Provide clear parking instructions, accompanied by photos, to help guests navigate any specific parking rules or restrictions. This can be included in the house manual or sent as a pre-arrival message to ensure a hassle-free experience.
By following these tips, you can enhance the guest experience, comply with local regulations, and maintain a positive reputation for your short-term rental business in Anaheim.
Here is a brief list of house cleaning providers in Anaheim, California:
House Cleaning Providers in Anaheim, CA
The Cleaning Authority - Anaheim
- Offers detailed cleaning services using a rotation system to ensure thorough cleaning.
- Provides customizable cleaning programs, eco-friendly cleaning solutions, and is fully bonded and insured.
Two Maids - Anaheim
- Supplies all necessary cleaning equipment and products.
- Features experienced, trained, and fully bonded and insured house cleaners.
- Customizable services and partnerships with community organizations.
Aloha Maids - Anaheim
- Offers fast and convenient cleaning services with 24/7 online booking and up to 30% savings.
- Provides various types of cleaning services, including deep cleaning, move-in/move-out, and same-day services.
- Referral agency with vetted and background-checked cleaners.
Molly Maid of Anaheim / La Mirada / Whittier
- Offers customized cleaning plans with no contracts and a 24-hour warranty.
- Provides one-time or recurring cleaning services, including floor cleaning, dusting, and sanitizing.
- Free in-home estimates available.
Anaheim, California Short-Term Rental Management Fees: A Comprehensive Guide
In Anaheim, California, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, price optimization, and property maintenance, tends to be on the higher end of this spectrum, often around 12% to 15% of the monthly rent.
Basic service packages, which may only include listing creation, booking management, and minimal support, can be more affordable, starting at around 10% of the rental income. Additionally, property owners may incur extra fees for services like cleaning, repairs, and interior design, which can be billed separately or included in the overall management fee structure. Understanding these fees is crucial for property owners to ensure they are maximizing their revenue while maintaining a seamless and profitable short-term rental operation.