Airbnb & VRBO Performance in Carmel California.

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Carmel, California: Airbnb & VRBO Vacation Rental Market Overview

Despite new regulations, the short-term rental market in Carmel, California, remains robust, with typical listings booked for 208 nights a year, a median occupancy rate of 57%, and an average daily rate of $550, generating an average annual revenue of $112K for hosts.

Market overview

Thriving Short-Term Rental Market in Carmel, California

The short-term rental market in Carmel, California, is experiencing a robust period of growth and high demand. With a median occupancy rate of 57%, short-term rentals in the area are consistently booked for an average of 208 nights per year. The average daily rate for these rentals stands at an impressive $550, reflecting the area's allure and premium pricing. In 2023, a typical host in Carmel-by-the-Sea generated an annual revenue of $112,000, highlighting the lucrative potential of the short-term rental industry in this picturesque and highly sought-after destination. Despite recent regulatory changes aimed at balancing tourism and local housing needs, the market remains vibrant and attractive for both hosts and guests.

Short Term Regulations

Short-Term Rental Regulations in Carmel, California for 2024

General Prohibitions and Permits

  • Prohibition in Single-Family Zoning District: Short-term rentals are prohibited in the single-family (R-1) Zoning District.

Types of Permits

  • Legal Nonconforming Permits: These permits were issued prior to the adoption of the current ordinance and are classified as a legal nonconforming use. They do not expire and can be transferred to a new owner upon the sale of the property.
  • Housing Incentive Permits: These permits are issued as an incentive for creating new and affordable housing units. One transient rental unit is permitted for the creation of three new rental units, with two of these units required to be rented at low and moderate income levels, respectively.

Specific Requirements

  • Transient Rental Units in Commercial and R-4 Districts: Short-term rentals are allowed in commercial and R-4 districts, but they require specific permits. These units must pay transient occupancy tax and are subject to density provisions.

Additional Regulations

  • Conditional Use Permit: Transient rentals permitted as an incentive require the issuance of a conditional use permit and must be maintained at the original site of approval.
  • Off-Street Parking: One off-street parking space is required per transient rental unit in all districts.
  • Advertising Restrictions: Advertising of unpermitted transient rentals is prohibited.

Compliance with Monterey County Regulations

While the specific regulations within Carmel are stringent, it is important to note that Carmel is part of Monterey County, which has its own set of regulations. However, the city of Carmel has its own ordinances that supersede or complement the county regulations.

  • Monterey County Regulations: Commercial vacation rentals in areas like Carmel Highlands and Carmel Valley residential zones are banned under Monterey County's new rules. However, these regulations do not override the city's specific prohibitions and permit requirements.
Neighborhood Performance

High-Revenue Airbnb Neighborhoods in Carmel, California

While specific neighborhood-level revenue data for Carmel, California, is not provided in the sources, we can infer the most appealing and potentially high-revenue areas based on general trends, amenities, and guest preferences.

Carmel-by-the-Sea

  • Appeal: Known for its picturesque coastal location, high-end tourist attractions, and charming architecture. Guests are drawn to its boutique shops, art galleries, and fine dining options.
  • Revenue Potential: With an average daily rate of $551 and an average monthly revenue of $46,919 for short-term rentals in the broader Carmel area, Carmel-by-the-Sea is likely a high-revenue generator due to its popularity and premium pricing.

Carmel

  • Appeal: The area offers a mix of beachfront properties, scenic views, and easy access to outdoor activities such as hiking and surfing. The high demand for vacation rentals here is driven by its natural beauty and recreational opportunities.
  • Revenue Potential: Carmel short-term rentals average a 56% occupancy rate, a $724 daily rate, and $75,157 in monthly revenue, indicating strong revenue potential.

Nearby Coastal Areas (e.g., Aptos, Capitola)

  • Appeal: These areas are favored for their beachfront properties, resorts like Seascape Resort in Aptos, and amenities such as pools, hot tubs, and on-site restaurants. They offer a blend of relaxation and recreational activities.
  • Revenue Potential: Properties in these areas, such as the Seascape Resort Ocean View Studio, have high average ratings and are likely to generate significant revenue due to their popularity among families and couples looking for a beach getaway.

Key Factors Contributing to Appeal

  • Location: Proximity to beaches, scenic views, and easy access to outdoor activities.
  • Amenities: Availability of amenities like pools, hot tubs, on-site restaurants, and dedicated workspaces.
  • High-End Attractions: Boutique shops, art galleries, and fine dining options in Carmel-by-the-Sea.
  • Family and Pet-Friendly: Many properties in these areas are family-friendly and pet-friendly, which broadens their appeal to a wider range of guests.

These neighborhoods are attractive to guests due to their unique blend of natural beauty, recreational opportunities, and high-end amenities, making them promising areas for generating significant Airbnb revenue.

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Design Tips

Tips for Furnishing and Designing an Inviting Airbnb in Carmel, California

Set Your Budget

Determine your budget before starting to furnish your Airbnb to ensure you know exactly how much you can spend. This will help you prioritize essential items over non-essential ones.

Focus on Key Areas

Concentrate on the bedroom, living room, and kitchen, as these areas have the most impact on guests. Ensure these spaces are well-equipped and welcoming to create a positive first impression.

Explore Secondhand Shopping

Utilize thrift stores, consignment shops, Facebook Marketplace, and garage or estate sales to find affordable furniture. Be patient and prepared to negotiate prices to get the best deals.

Incorporate Local Art and Elements

Visit local markets, art fairs, or connect with local artists to find unique pieces that reflect Carmel's style and character. This supports the local community and adds a personal touch to your rental.

DIY Decor

Consider DIY projects to upcycle old furniture or create unique decor. This can add a personalized touch without breaking the bank. Repaint old furniture, add decorative elements, or create custom pieces to enhance your space.

Use Multi-functional Furniture

Choose multi-functional furniture such as sofa beds, ottomans with storage, or dining tables that can double as workspaces. This maximizes space and enhances the functionality of your rental, especially in smaller units.

Prioritize Essentials Over Non-Essentials

Differentiate between essential items (like a comfortable bed and quality linens) and non-essential decor. Prioritize items that make your guests feel at home over fancy but unnecessary decorations.

Add Local and Natural Elements

Incorporate elements that reflect Carmel's natural beauty, such as adding plants, using natural materials, and highlighting the local scenery. This can include using local wood, stone, or other natural materials in your decor.

Create a Cozy Atmosphere

Use lighting, textiles, and color schemes that create a cozy and welcoming atmosphere. Carmel's charm often includes elements like fireplaces, cozy patios, and warm color tones, so incorporate these into your design.

Balance Style and Functionality

Ensure that your design choices balance style with functionality. Choose furniture and decor that not only look good but also serve a purpose, making the space comfortable and practical for your guests.

Insider Tips

Discovering Carmel, California: Local Attractions and Insider Tips

Local Attractions

In Carmel-by-the-Sea

  • Ocean Avenue: Stroll through the town's main block to explore unique boutiques, local art galleries, and adorable inns and hotels, many of which are pet-friendly.
  • Carmel Beach: Enjoy the white sands, legendary sunsets, and picturesque Monterey Cypress trees. It's also one of the most dog-friendly beaches in the area.
  • Carmel Plaza: Experience metropolitan shopping with a variety of stores and eateries.
  • Wine Tasting Rooms: Visit over a dozen wine tasting rooms serving Monterey County regional wines. Download the free mobile Carmel Wine Walk for exclusive experiences and specials.
  • Sunset Center: Catch live performances, including global music, comedy shows, theatre, and dance.

Nearby Landmarks

  • Carmel Mission and Basilica Museum: Historic landmarks less than two miles away, offering insights into the area's rich history.
  • Pebble Beach Golf Links: A world-renowned golf course just two scenic miles away.
  • Robinson Jeffers Tor House: An architectural wonder and former home of poet Robinson Jeffers, now on the National Register of Historic Places. Small tours are available on weekends.

Natural Reserves and Parks

  • Point Lobos State Natural Reserve: Known as the crown jewel of the State Park system, offering hiking trails, hidden coves, beaches, and stunning vistas.
  • Big Sur: Take a drive down the coast to explore majestic hiking trails, breathtaking hillside restaurants, and panoramic ocean views.

Other Attractions

  • Monterey Bay Aquarium: Located on historic Cannery Row, featuring a wide array of marine life, including sea otters, penguins, and sharks.
  • Historic Cannery Row: Offers over 25 restaurants, numerous shops, and luxury hotels along its historic oceanside streets.
  • Old Fisherman's Wharf: A landmark with clam chowder, whale-watching tours, unique shops, and a glimpse into Monterey's past.
  • 17-Mile Drive & Pebble Beach: A scenic drive through Del Monte Forest and Pebble Beach, featuring world-ranked golf courses, dream homes, and world-class shops.

Insider Tips

Dining and Nightlife

  • Diverse Restaurants: Carmel-by-the-Sea has more restaurants per capita than any other small city in America, including Michelin-starred Aubergine Restaurant.
  • Dametra Café: Enjoy gourmet Greek cuisine in a friendly, musical dining experience.
  • Ambrosia India Bistro: Explore delicious and beautifully prepared Indian cuisine in an intimate setting.

Activities and Tours

  • Carmel Walking Food and Wine Tours: Minutes away from many accommodations, offering a taste of local cuisine and wines.
  • Horseback Riding and Surfing Lessons: Available for more adventurous guests, offering a unique way to experience the beach.
  • Whale Watching: Catch a glimpse of these magnificent creatures from land or on daily tours leaving from Old Fisherman's Wharf.

Shopping and Art

  • Local Art Galleries: Downtown Carmel is home to several art galleries featuring works by world-renowned artists.
  • Monterey Museum of Art: Less than three miles away, offering a wide range of art exhibits.

Additional Tips

  • Pet-Friendly: Many inns, hotels, and beaches in Carmel-by-the-Sea are pet-friendly, making it an ideal destination for travelers with pets.
  • Bike Rentals: Available for guests to explore the area on two wheels.

By sharing these attractions and insider tips, you can enhance your guests' experience and help them make the most of their visit to Carmel, California.

Practical Tips

Practical Tips for Running a Successful Short-Term Rental in Carmel, California

To successfully manage a short-term rental in Carmel, California, hosts should prioritize compliance with local regulations and enhance guest experiences. Noise regulations are critical; informing guests about quiet hours, typically from 10 PM to 7 AM, helps prevent disturbances and potential fines. Creating a detailed house manual, both digital and physical, can provide guests with essential information such as instructions, Wi-Fi passwords, and local recommendations to enrich their stay. Additionally, implementing a simplified check-in process using smart locks can streamline arrivals, while providing clear parking instructions with photos will assist guests in navigating the property effortlessly. By focusing on these practical tips, hosts can create a welcoming environment that encourages positive reviews and repeat bookings.

Local Vendors

Here is a brief list of house cleaning, repair, and maintenance providers in the Carmel, California area:

House Cleaning Services

Linda's Affordable House Cleaning

  • Offers house cleaning, janitorial services, property management, and specialized vacation home cleaning.
  • Services include pressure washing, window washing, carpet & rug cleaning, tile & grout cleaning, and move-in/move-out services.
  • Contact: (831) 238-6059, support@lindasaffordablecleaning.com.

Escarraga’s Luxury Cleaning

  • Provides commercial, janitorial, and residential cleaning services.
  • Services include deep cleaning, routine maintenance, power washing, window cleaning, and small handyman projects.
  • Serves Monterey, Pebble Beach, Carmel-By-The-Sea, and surrounding areas.
  • Contact: Available through their website.

Heaven On Earth Cleaning

  • Offers exceptional-quality residential and commercial cleaning services.
  • Services include one-time deep cleans, regular maintenance, sanitation, carpet cleaning, and steam cleaning for carpets, upholstery, and mattresses.
  • Rated #1 in Carmel-By-The-Sea, CA.
  • Contact: Available through their website.

Additional Resources

For more affordable house cleaning options, you can also check listings on Care.com, which includes various local cleaners in Carmel by the Sea, CA.

Management fees

Understanding Short-Term Rental Management Fees in Carmel, California

In Carmel, California, short-term rental management fees typically range from 10% to 30% of rental revenue, depending on the level of service provided. Full-service management options—covering guest communication, marketing, and maintenance—generally fall at the higher end of this spectrum, while basic management services may be more cost-effective. Additionally, hosts should be aware that extra fees for cleaning, repairs, or design services may apply. Given the city's strict regulations regarding short-term rentals, including the requirement for permits and adherence to local ordinances, understanding these management fees is essential for hosts looking to navigate the competitive rental landscape effectively.

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Why choose RedAwning

RedAwning is a tech leader in full-service short-term rental management, powered by our exclusive, unmatched tools.
Other property managers
Cost
Starting at 10%
25-40%
Guest communications
5-15 mins / 24 hours a day
1 hour+
Host communications
Dedicated phone and text line with no time on hold
Chat bots, hold lines and email threads
Insurance
Robust liability and dwelling coverage for every reservation
Spotty coverage with low claim approval rates
Contract
No cancellation fees
No contract lock-in
Just 90 days notice to cancel
Cancellation penalties
Number of Channels Your Listing is On
50+
2-4

Experience in numbers

Rest well knowing your property is managed by an experienced team powered by world-class technology.
+10-30%
in gross revenue
4.8 stars
guest rating
14+ years
managing STRs

Short Term Rental Calculator

Find out how much your property in Carmel should generate as a short term rental and look at the performance of properties around yours.

35,000+ Properties
Hosts stay with RedAwning
1,000,000,00 Nights Booked
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Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Carmel.

Living Room
Seating: Sofa, armchairs, and ottomans
Coffee Table
Entertainment: Smart TV (with streaming apps) and remote control
Decor: Area rug, wall art, plants, and throw pillows
Lighting: Floor lamp or table lamps
Charging Stations: Power strips or outlets with USB ports
Bedrooms
Beds: High-quality mattress with mattress protector
Linens: At least two sets of sheets per bed
Pillows: Hypoallergenic pillows (2-4 per bed)
Blankets: Extra throw blankets or quilts
Nightstands: With lamps or charging docks
Closet or Storage: Hangers, dresser, or luggage rack
Blackout Curtains or Shades
Bathrooms
Towels: Bath towels, hand towels, washcloths (2 sets per guest)
Shower Curtain & Liner
Toiletries: Shampoo, conditioner, body wash, hand soap
Bathroom Essentials: Toilet paper, tissues, trash bin
Hairdryer
Mirror: Full-length or wall mirror
Dining Area
Dining Table: Seating for the maximum number of guests
Place Settings: Placemats or tablecloths
Centerpiece: Vase with flowers or decorative piece
Kitchen
Appliances: Refrigerator, microwave, toaster, coffee maker, kettle
Cookware: Pots, pans, baking trays
Utensils: Forks, knives, spoons, spatulas, tongs
Dinnerware: Plates, bowls, glasses, mugs (2 sets per guest)
Cutting Board & Knives
Basic Spices & Condiments: Salt, pepper, oil
Cleaning Supplies: Sponge, dish soap, paper towels, trash bags
Outdoor Space (if applicable)
Seating: Outdoor chairs, benches, or lounges
Table: For outdoor dining or drinks
Lighting: String lights or outdoor lanterns
Grill: With necessary utensils and instructions
Outdoor Trash Bin
Extras to Elevate Guest Experience
Welcome Basket: Snacks, water bottles, or wine
Guidebook: Local recommendations and house rules
Board Games or Books: Entertainment for guests
Umbrella & Flashlight
Iron & Ironing Board
Laundry: Washer, dryer, and detergent (if available)
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⇤ Airbnb Statistics for California