Airbnb & VRBO Performance in Costa Mesa California.

RedAwning offers vacation rental property management for busy vacation rental owners and Airbnb hosts. Starts at 10% of revenue.
Schedule a call
Call or text 415-941-5206

Costa Mesa, California: Airbnb & VRBO Vacation Rental Market Overview

In Costa Mesa, California, the short-term rental market is thriving, with a median occupancy rate of 75%, an average daily rate of $160, and an annual host income of $40,000, making it a highly profitable and stable investment opportunity.

Market overview

Thriving Short-Term Rental Market in Costa Mesa, California

Costa Mesa, California, is experiencing a robust and profitable short-term rental market, making it an attractive destination for both hosts and travelers. With a median occupancy rate of 75%, short-term rentals in Costa Mesa are in high demand, particularly during the peak summer months from June to August. The average daily rate for these rentals stands at $160, contributing to an average annual host income of $40,000. The city's lenient regulations, coupled with its vibrant attractions such as the South Coast Plaza and the Segerstrom Center for the Arts, and its proximity to popular coastal destinations like Newport Beach and Huntington Beach, further enhance its appeal. This combination of high occupancy rates and lucrative daily rates makes Costa Mesa an ideal location for investing in short-term rentals.

Short Term Regulations

Short-Term Rental Regulations in Costa Mesa, California for 2024

Key Regulations

Ban on Short-Term Rentals

  • Costa Mesa has a complete ban on short-term rentals within city limits, enacted through Ordinance 2021-17 on November 2, 2021.

Definition of Short-Term Rentals

  • The ban applies to the rental of any residential property for less than 31 days, including rentals facilitated through platforms like Airbnb and VRBO, as well as direct bookings.

Prohibited Activities

  • Property owners, residents, landlords, tenants, and other parties are prohibited from advertising, booking, or facilitating stays under 31 days.

Limited Exemptions

  • There are limited exemptions for owner-adjacent home sharing, where the host must live on-site at the property during the rental period.

Enforcement and Penalties

  • Violations are subject to escalating fines of up to $1,000 per day, as well as potential criminal charges and nuisance abatement procedures.

No Permits or Taxes

  • Since short-term rentals are prohibited, no permits or taxes are currently applicable.

Future Regulatory Considerations

  • The Costa Mesa City Council has indicated they may revisit and implement a permitting system for short-term rentals in the future, which could include transient occupancy taxes and other fees.
Neighborhood Performance
Meet with a revenue advisor
Design Tips

Creating an Inviting Airbnb in Costa Mesa: Tips for Furnishing and Design

Understand the Local Style

  • Costa Mesa is known for its fresh, sophisticated, and unpretentious style. Incorporate elements that reflect this aesthetic, such as modern kitchens, contemporary bathrooms, and living spaces that blend traditional and modern elements.

Tailor the Design to Your Guests

  • Hone in on the unique needs and tastes of your target guests. For example, if your Airbnb is geared towards families, ensure the space is functional and safe for children. If it's for business travelers, include amenities like a dedicated workspace.

Optimize Space Usage

  • Make the best use of the available space to ensure a practical and flowing layout. This includes selecting furniture that serves multiple purposes and arranging it to create a cohesive and welcoming atmosphere.

Choose the Right Colors and Materials

  • Select colors and materials that are pleasing to the eye and reflective of Costa Mesa's style. Consider using light, airy colors and high-quality materials that add to the sophistication of the space.

Add Local Touches

  • Incorporate local elements and decor to give your Airbnb a unique and authentic feel. This could include artwork, furniture pieces, or accessories that reflect the city's culture and history.

Ensure Functionality

  • Design the space with functionality in mind. This includes organizing rooms effectively, picking flooring and wall colors that complement the furniture, and ensuring all areas are well-lit and comfortable.

Provide Visualizations

  • Offer your guests a clear idea of what to expect by providing visualizations or high-quality photos of the space. This can help set expectations and make the space feel more inviting before they even arrive.

Maintain Communication

  • Keep in constant communication with your guests to understand their needs and preferences. This can help you make adjustments and improvements to the space over time.

Adhere to Regulations

  • Ensure that your Airbnb meets all local regulations and codes. This includes safety standards, zoning laws, and any other relevant requirements to avoid any legal issues.

Stay Updated with Trends

  • Keep abreast of the latest design trends to ensure your Airbnb remains appealing and modern. This can include updating furniture, decor, and other elements periodically to reflect evolving design preferences.
Insider Tips

Discover Costa Mesa: Local Attractions and Insider Tips

Local Attractions

Shopping

  • South Coast Plaza: A luxury shopping destination with over 250 stores, including Louis Vuitton, Chanel, Gucci, and Dior. Don't miss the iconic SCP carousel.
  • The LAB Anti-Mall: An outdoor retail space with a counterculture theme, featuring art installations, pop-up boutiques, and stores like Urban Outfitters. Check out quirky bars like Ruin and enjoy Cuban food at Habana.

Arts and Culture

  • Orange County Museum of Art (OCMA): A newly opened museum with free admission for the next 10 years.
  • Noguchi Garden (California Scenario): A hidden sculpture park depicting the diversity of the California landscape, perfect for photos. Visit early in the day for maximum sunshine.
  • Segerstrom Center for the Arts: An architecturally stunning venue hosting various performances and shows.

Dining

  • Mercado Gonzalez Northgate Market: An authentic Mexican market with a food court, fresh produce, and a variety of Mexican cuisine. Come hungry and explore the different vendors.
  • 17th Street: Known for its dining scene, with numerous restaurants, boutiques, and wine stores. A great place to explore new eateries and shops.
  • Sidecar Donuts: Famous for its freshly made donuts, especially the butter and salt donut. A must-visit for donut enthusiasts.

Events and Activities

  • OC Fair: Held every summer at the OC Fairgrounds, featuring rides, games, fried food, live music, and shopping. Also, check out the OC Night Market at the same venue.
  • Pacific Amphitheatre: Adjacent to the Fairgrounds, this amphitheater hosts various musical acts and events.

Historical Sites

  • Diego Sepulveda Adobe: One of the oldest structures in Orange County, located in Estancia Park.

Insider Tips

Best Times to Visit

  • Noguchi Garden: Visit early in the day to capture the best photos with maximum sunshine.

Local Favorites

  • Tin Lizzie Saloon: A small, dark space that feels like a speakeasy, perfect for a happy hour or low-key night out. One of the few gay bars in Orange County.
  • Habana: Enjoy excellent Cuban food in a moody, intimate setting at The LAB Anti-Mall.

Hidden Gems

  • The LAB Anti-Mall: Explore the unique art installations and pop-up boutiques set up in Airstream campers and unconventional spaces.

Getting Around

  • Walk-Friendly City: Costa Mesa is highly walkable, especially for a "No Wheels" weekend getaway. Many hotels offer complimentary shuttle service to and from John Wayne Airport.

Neighborhoods to Explore

  • South Coast Metro: Home to Segerstrom Center for the Arts, South Coast Plaza, and California Scenario.
  • SoBeCa District: Features The LAB, The CAMP, Mitsuwa Marketplace, and local breweries.
  • Eastside Costa Mesa: Known for Sidecar Doughnuts, Instagram-worthy dining, and access to nature trails.
Practical Tips

Practical Tips for Running a Successful Short Term Rental Business in Costa Mesa, California

Running a successful short-term rental business in Costa Mesa, California, involves navigating the city's specific regulations and ensuring a seamless guest experience. Here are some practical tips:

Noise Regulations and Quiet Hours

Inform your guests about the noise regulations and quiet hours to avoid any potential issues. Costa Mesa has strict noise regulations, so it is crucial to include this information in your digital and physical house manual. Clearly state the quiet hours and any other noise-related rules to maintain a peaceful environment for both your guests and the neighbors.

Digital and Physical House Manual

Create a comprehensive house manual that includes essential instructions, Wi-Fi passwords, and other important details. This manual should be both digital (accessible via a shared link or app) and physical (available in the rental property). Ensure it covers all aspects of the property, including appliance usage, trash disposal, and emergency contact information.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process. This eliminates the need for physical key exchanges and allows guests to enter the property at their convenience. Provide clear instructions on how to use the smart locks and ensure that the access codes are communicated securely.

Parking Instructions with Photos

Given the specific parking regulations in Costa Mesa, it is important to provide detailed parking instructions accompanied by photos. This helps guests understand where they can park and how to comply with local parking rules, reducing the risk of fines or towing.

By following these tips, you can ensure compliance with local regulations and enhance the overall guest experience, making your short-term rental business in Costa Mesa successful and hassle-free. However, note that as of the latest updates, Costa Mesa does not allow any short-term rentals, so these tips would need to be adapted or applied in a different context or location.

Local Vendors

Here is a brief list of house cleaning providers in Costa Mesa, California:

House Cleaning Services in Costa Mesa, CA

1. Campos Cleaning Services

  • Highly rated for professionalism and detailed cleaning.

2. Aloha Maids

  • Offers house cleaning and housekeeping services in Costa Mesa.

3. Maggy Maid

  • Provides maid services in Orange County, including Costa Mesa.

4. The Maids

  • Specializes in professional residential maid cleaning services in Costa Mesa.

5. Various Independent Cleaners

  • Listed on platforms like Care.com, including individuals such as Sapeer G., Johnica M., Jacquelyn M., and Shelly J..
Management fees

Short-Term Rental Management Fees in Costa Mesa, California: A Breakdown

Managing a short-term rental in Costa Mesa, California, involves a range of fees that can significantly impact your revenue. Typically, short-term rental management fees in Costa Mesa range 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, pricing optimization, and maintenance, tends to be on the higher end of this spectrum, often starting at around 20% of the revenue.

Basic service packages, which may only include essential management tasks, can be less expensive but still incur additional fees for cleaning, repairs, or design services. For instance, cleaning fees are often charged separately and can be included in the overall management fee structure or passed on to the guests. Understanding these fees and the specific services included is crucial for property owners to maximize their rental income and ensure compliance with Costa Mesa's stringent short-term rental regulations.

Meet with an advisor

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 Costa Mesa 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
RedAwing knows how to get bookings
50+ Top Booking Channels
More than any other platform available

Furnishing checklist

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

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)
Unlock your home’s potential
Schedule a call to learn more about Awning’s Short Term Rental Property Management Service.
Schedule a call

⇤ Airbnb Statistics for California