Despite some recent challenges, Big Bear Lake's short-term rental market remains a lucrative investment opportunity, with high demand during peak seasons, average rental yields of 6-8%, and the potential for substantial monthly earnings ranging from $3,000 to $7,000 for well-located and well-managed properties.
Thriving Despite Challenges: Big Bear Lake's Short-Term Rental Market
Despite recent market saturation and competitive pressures, Big Bear Lake, California, continues to show promising signs for short-term rental investors. The area, known for its stunning natural beauty and diverse recreational activities, maintains a robust demand for vacation rentals. As of the latest data, a typical short-term rental listing in Big Bear Lake is booked for approximately 135 nights per year, with a median occupancy rate of 37% and an average daily rate of $235.
While the market has faced declines in total revenue and average revenue due to over-saturation, there are indications of stabilization. The growth rate of new listings is tapering off, and early 2024 has seen positive year-over-year revenue growth, suggesting a potential recovery. With lenient short-term rental regulations and high demand during peak seasons, Big Bear Lake remains an attractive destination for both visitors and investors, offering stable and potentially profitable opportunities in the vacation rental market.
Short-Term Rental Regulations in Big Bear Lake, California for 2024
Registration and Permitting
- Registration Application: Hosts must submit a Vacation Rental Program Registration Application, including proof of ownership (recorded deed or final closing statement from escrow) and documentation for entities like trusts or LLCs.
- Permit Fee: A permit fee of $550 is required as part of the registration process.
Property Compliance
- Home Inspection: Properties must pass a home inspection before they can be rented out. Hosts cannot rent their property while waiting for inspection results.
- Proof of Liability Insurance: Applicants must include proof of current liability insurance coverage for the vacation rental.
Listing and Advertising
- Listing Compliance: Hosts must ensure their registration details are included on their Airbnb listings to comply with local regulations.
- Approved Vacation Rental Listing: The registration process is complete after all requirements are met, and an approval email is sent with the license attached, which must be posted in the vacation rental.
Annual Certification
- Owner and Agent Certification: All agents and owners (except those who hire a full-service management company and never rent the property on their own) must be certified by the City annually through a 25-question exam with a 100% score.
Tax Obligations
- Transient Occupancy Tax (TOT): Hosts are required to collect and remit 12% of their gross receipts monthly. Remittances and payments are due by the last day of the month following the reporting period.
Renewal and Maintenance
- Annual Renewal: Renewal of the vacation rental license is required annually, with a reminder email sent out 45 days prior to the expiration date.
Additional Requirements
- Friends and Family Form: If the property is used by friends or family without charging any fees, a "Friends & Family Form" must be included during the application process.
- Local Jurisdiction: Vacation rentals must be located within the zip code 92315 (Big Bear Lake jurisdiction).
Compliance and Enforcement
- Compliance with Ordinance: Hosts must comply with the Vacation Rental Ordinance 2023-518, which includes various operational standards and prohibitions.
- Penalties for Non-Compliance: Failure to keep the license current and valid can result in penalties outlined in the vacation rental ordinance.
High-Revenue Neighborhoods for Airbnb in Big Bear Lake, California
Why These Neighborhoods Are Appealing
Big Bear Lake, nestled in the San Bernardino Mountains, is a popular tourist destination known for its outdoor activities such as hiking, skiing, and fishing. Here are the top neighborhoods that generate the most Airbnb revenue, along with their appeal to guests:
1. Moonridge
- Annual Revenue: $40,325
- Occupancy Rate: 51%
- Average Daily Rate: $204
- Appeal: Moonridge is highly attractive due to its proximity to ski resorts and the lake. It offers easy access to recreational activities, making it a favorite among skiers and outdoor enthusiasts.
2. Big Bear Lake East
- Annual Revenue: $28,168
- Occupancy Rate: 61%
- Average Daily Rate: $120
- Appeal: This area is central to many recreational activities and events, drawing a high number of tourists. The high occupancy rate indicates its popularity among guests looking for convenient access to the lake and village.
3. Central Big Bear Lake
- Annual Revenue: Varies, but typically the highest in the Big Bear valley
- Occupancy Rate: High, due to central location
- Average Daily Rate: Higher rates due to prime location
- Appeal: Being at the heart of the Big Bear valley, this area offers easy access to most recreational activities, events, and amenities. It is particularly appealing to guests who want to be close to the lake, village, and ski resorts.
4. Big Bear Lake Village
- Annual Revenue: Not specified, but part of the high-demand area
- Occupancy Rate: High, similar to Central Big Bear Lake
- Average Daily Rate: Competitive rates due to high demand
- Appeal: The village area is a hub for shopping, dining, and entertainment, making it highly appealing to guests who want a mix of outdoor activities and urban amenities.
5. Boulder Bay
- Annual Revenue: $15,952
- Occupancy Rate: 40%
- Average Daily Rate: $96
- Appeal: While the revenue is lower compared to other areas, Boulder Bay still attracts guests due to its scenic views and quieter atmosphere. It is a good option for those seeking a more relaxed experience near the lake.
These neighborhoods are highly sought after due to their proximity to key attractions, recreational activities, and the overall appeal of the Big Bear Lake area.
Creating an Inviting Airbnb in Big Bear Lake: Design and Furnishing Tips
Embrace the Alpine Charm
- Incorporate alpine architecture elements such as wooden beams, stone fireplaces, and rustic decor to align with the town's mountainous vibe.
- Use natural materials like pine, cedar, and stone to enhance the cozy and organic feel of the space.
Reflect the Outdoors
- Bring the outdoors in by using earthy color palettes, such as shades of green, brown, and blue, which mirror the surrounding forests and lake.
- Add elements like potted plants, botanical prints, and nature-inspired artwork to connect the interior with the natural beauty of Big Bear Lake.
Cozy and Warm Atmosphere
- Install a fireplace or a wood-burning stove to create a warm and inviting atmosphere, especially during the winter months.
- Use plush throw blankets, comfortable seating, and warm lighting to make the space feel cozy and welcoming.
Local Touches
- Incorporate local elements such as vintage ski equipment, fishing gear, or hiking maps to reflect the area's recreational activities.
- Display local artwork, crafts, or historical items to give guests a sense of the community and its history.
Functional and Comfortable Layout
- Ensure the layout is functional and comfortable for guests, with ample storage for ski gear, hiking equipment, and other outdoor essentials.
- Provide comfortable seating areas both indoors and outdoors, taking advantage of any lake or mountain views.
Seasonal Decor
- Update decor seasonally to reflect the changing activities and scenery of Big Bear Lake. For example, use winter-themed decor during the ski season and summer-themed decor during the boating and hiking months.
- Incorporate seasonal elements like holiday decorations, autumn leaves, or spring flowers to keep the space fresh and relevant.
Modern Amenities with a Rustic Twist
- Balance modern amenities like Wi-Fi, smart TVs, and fully equipped kitchens with rustic touches to maintain the alpine charm.
- Use rustic-themed kitchenware, dining sets, and bathroom fixtures to keep the aesthetic consistent.
Lighting and Textiles
- Use warm and soft lighting to create a welcoming ambiance. Consider using table lamps, floor lamps, or string lights.
- Choose textiles such as wool, fleece, and flannel for bedding and throw blankets to add warmth and comfort.
Personal Touches
- Add personal touches like a welcome book with local recommendations, a selection of local wines or beers, and a few favorite books or games to make guests feel at home.
- Include a few local specialties or treats in the welcome package to give guests a taste of Big Bear Lake’s unique culture.
Discover Big Bear Lake, CA: Local Attractions and Insider Tips
Local Attractions
Outdoor Activities
- Hiking and Mountain Biking: Explore the extensive trails at Snow Summit and the San Bernardino National Forest. The Scenic Sky Chair at Snow Summit offers panoramic views and is a great starting point for hikes and bike rides.
- Water Sports: Enjoy paddle boarding, pontoon boating, sailing, wakeboarding, and kayaking on Big Bear Lake. Equipment rentals are available at various marinas.
- Fishing: Big Bear Lake is renowned for its fishing, with popular spots and fishing tournaments. Remember to obtain a fishing license before you start.
Winter Sports
- Skiing and Snowboarding: Big Bear Mountain Resort offers top-notch skiing and snowboarding from November to March/April. It features innovative terrain parks and lessons for all skill levels.
- Snow Tubing: The Grizzly Ridge Tube Park is a fun spot for snow enthusiasts of all ages, with a magic carpet to the top and high-speed snow tubes.
Family-Friendly Activities
- Alpine Slide at Magic Mountain: Open year-round, this attraction offers inner tubing slides suitable for all ages.
- Big Bear Alpine Zoo: A rehabilitation facility for local Alpine species, the zoo offers educational programs and activities. It is home to over 85 species and is open year-round.
- The Bowling Barn: Features 16 bowling lanes, a state-of-the-art scoring system, snacks, and a full bar.
Scenic Experiences
- Helicopter Tours: Take a scenic aerial tour above Big Bear Lake and the San Bernardino Mountains for a unique perspective.
- Action Tours Ziplining: Experience high-speed zip lines and a suspension bridge through the mountains, guided by experts.
Community Events
- Oktoberfest: Enjoy live music, German food, games, and a vendor village at Big Bear Lake's Oktoberfest, held from September to October/November.
- Big Bear Speedway: An outdoor Go Kart racing course open from April to October.
Insider Tips
Information and Resources
- Big Bear Visitors Center: Located in the heart of The Village, this center provides information on local activities and events from friendly locals.
Seasonal Activities
- Check Seasonal Availability: Many activities have specific seasons, so ensure to check the availability of activities like skiing, snow tubing, and water sports based on the time of your visit.
Equipment Rentals
- Rent Equipment: For water sports and mountain biking, equipment rentals are available at various locations, including discounts for some accommodations.
Scenic Views
- Scenic Sky Chair: Use the Sky Chair at Snow Summit for panoramic views and as a starting point for hikes and bike rides down the mountain.
Local Events
- Plan Around Events: Check the local event calendar to plan your visit around festivals like Oktoberfest or to avoid peak times if you prefer fewer crowds.
By providing these attractions and insider tips, your Airbnb guests will be well-equipped to enjoy the full range of activities and experiences that Big Bear Lake has to offer.
Practical Tips to Run a Successful Short-Term Rental Business in Big Bear Lake, California
To ensure a smooth and enjoyable experience for both you and your guests, several practical tips are essential when running a short-term rental business in Big Bear Lake, California.
Noise Regulations and Guest Communication
Inform your guests about the quiet hours and noise regulations in the area to maintain a good neighbor policy. This can be included in the Good Neighbor Policy that must be signed by each responsible party during the check-in process, as mandated by the City of Big Bear Lake.
Comprehensive House Manual
Create both digital and physical house manuals that include detailed instructions on how to use appliances, Wi-Fi passwords, and other essential information about the property. This will help reduce the number of inquiries and issues that guests might encounter during their stay.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions and photos on how to access the property, and include parking instructions to avoid any confusion. This will make the arrival process seamless and stress-free for your guests.
By implementing these strategies, you can enhance the guest experience, reduce potential issues, and ensure your short-term rental business in Big Bear Lake operates efficiently and successfully.
Here is a brief list of house cleaning, repair, and maintenance providers in Big Bear Lake, California:
House Cleaning Services
- Campos Cleaning Services: Known for their professional and detailed cleaning services.
- Laura's Cleaning Personnel Service, Inc.: Offers housekeeping, commercial cleaning, snow removal, and yard cleanup. They supply their own cleaning supplies and equipment.
- I & JR Big Bear Housekeeping LLC: Provides various cleaning services, including recurring cleanings and move-in/move-out cleanings.
- S & L Janitorial Service: Offers janitorial services for businesses and homes.
- Pachecos Cleaning Service: Provides quality cleaning services with attention to detail.
- Sure Clean: Specializes in residential cleaning, deep cleaning, and move-in/move-out cleanings. Known for their commitment to excellence and customer satisfaction.
- Lisa's Cleaning Service: Locally owned and operated, offering residential and commercial cleaning with a focus on detail and customer satisfaction.
- Newly Shine LLC: A women-owned and operated company with over 10 years of experience, known for their attention to detail and customer satisfaction.
Additional Services
- Laura's Cleaning Personnel Service, Inc.: Also offers snow removal and yard cleanup services.
These providers cover a range of cleaning and maintenance needs in the Big Bear Lake area.
Big Bear Lake, California: Understanding Short-Term Rental Management Fees
Big Bear Lake, California, a popular vacation destination known for its scenic beauty and year-round recreational activities, attracts a significant number of short-term renters. For property owners in this area, managing these rentals can be a lucrative venture, but it comes with associated management fees. Typically, short-term rental management fees in Big Bear Lake range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. In contrast, basic services that may only include listing and booking management might be less expensive. Additionally, property owners may incur extra fees for cleaning, repairs, or design services, which can vary based on the specific needs of the property and the services required.