Airbnb & VRBO Performance in Dana Point California.

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Dana Point, California: Airbnb & VRBO Vacation Rental Market Overview

In Dana Point, California, the current short-term rental market is thriving, with a range of available options, strict yet effective regulations, and significant revenue generation, highlighting the city's successful balance between economic growth and community needs.

Market overview

Thriving Short-Term Rental Market in Dana Point, California

Dana Point, California, continues to excel as a desirable destination for short-term rentals, reflecting the city's allure for both travelers and property owners. Despite upcoming regulatory changes, such as the proposed ballot measure to cut the number of short-term rental permits in half, the current market remains robust. In 2023, Dana Point implemented stringent yet effective regulations, including a permit cap of 115 in the Coastal Zone and 115 outside it, which have helped maintain a balanced and well-managed short-term rental environment.

While specific occupancy and average daily rate data for Dana Point are not provided in the sources, the city's short-term rentals have been a significant contributor to local revenue, generating $725,000 annually from transient occupancy taxes. This financial performance indicates a healthy demand and strong economic contribution from the short-term rental sector. The city's proactive approach to managing short-term rentals, including strict rules to eliminate nuisances and a system for monitoring and enforcing compliance, has also helped in maintaining a positive experience for both residents and visitors.

Short Term Regulations

Short-Term Rental Regulations in Dana Point, California for 2024

Permit Caps and Limitations

  • Coastal Zone: Maximum of 115 STR permits, with no cap for Home Stay and Primary STRs. However, each Home Stay and Primary STR permit issued reduces the 115 cap by one.
  • Outside Coastal Zone: Total cap of 115 STR permits, with a sub-cap of 60 for Non-Primary STRs.

Permit Prioritization

  • Priority for permit issuance is given to:
  • Primary STRs and Home Stay STRs
  • Multi-Family Homestays
  • Mixed-Use Parcel STRs
  • Non-Primary STRs.

HOA Approval

  • Applications for an STR permit must include a letter from the HOA confirming that STRs are permitted within the community. Without HOA approval, the City will not issue the STR permit.

Permit Application and Renewal

  • Applications for STR permits must be submitted to the Community Development Director using forms provided by the City.
  • STR permits must be renewed annually on March 1st or an alternative date determined by the Community Development Director.

Occupancy and Guest Requirements

  • The primary overnight and daytime renter must be an adult 25 years of age or older and must be accessible by telephone at all times.
  • Property owners or agents must obtain the name, address, and driver's license number or passport of the primary adult occupant before occupancy.
  • Maximum overnight occupancy is two persons per bedroom plus two additional persons, with daytime occupancy limited to 2.5 times the overnight occupancy or not exceeding 20 persons.

Compliance and Enforcement

  • No person shall rent, offer to rent, or advertise for rent a dwelling for use as an STR without a valid STR permit approved and issued by the City of Dana Point.
  • Property owners or agents must ensure compliance with the City's Good Neighbor Acknowledgment and post it in a conspicuous location within the STR.
  • Violations can result in fines and permit revocation.

Coastal Development Permit (CDP)

  • For HOAs seeking to prohibit STRs, a streamlined CDP process is available with a reduced fee of $500. This includes submitting an excerpt of CC&Rs or Rules and Regulations, and an HOA Board letter authorizing the submittal.

Public Health, Safety, and Welfare

  • The regulations aim to protect public health, safety, and welfare by limiting the total number of STRs and addressing known nuisances such as excessive noise.
Neighborhood Performance

Top Airbnb Revenue-Generating Neighborhoods in Dana Point, California

1. Monarch Beach

  • Appeal: Monarch Beach is highly attractive due to its proximity to the beach and the Waldorf Astoria Resort golf course. Guests can stroll to the beach and enjoy amenities like Club19, making it an ideal location for a coastal vacation.
  • Revenue Potential: Properties in this area, such as the "Charming Cozy Coastal Dana Point Condo," often have high revenue potential due to their prime location and amenities.

2. Dana Point Harbor Area

  • Appeal: This area is popular for its close proximity to Dana Point Harbor and nearby Salt Creek Beach. Guests appreciate the scenic views and easy access to beach activities.
  • Revenue Potential: Listings like "Dana Point Harbor close & nearby Salt Creek Beach" indicate high occupancy rates and daily rates, contributing to significant revenue.

3. Capistrano Beach

  • Appeal: Located near the beach, this area offers a relaxed coastal experience with easy access to local attractions. Guests enjoy the quiet and scenic environment.
  • Revenue Potential: Properties in this neighborhood, such as "Ritz Resort home @ Monarch Beach," tend to have high occupancy rates and daily rates, making them lucrative for hosts.

4. Lantern Village

  • Appeal: This neighborhood is known for its charming atmosphere and proximity to the beach. Guests appreciate the walkable distance to restaurants, shops, and beach activities.
  • Revenue Potential: Listings in Lantern Village often have high ratings and revenue potential due to their central location and amenities.

5. Beach Cities (General Area)

  • Appeal: The general beach cities area in Dana Point, including neighborhoods near the coast, are appealing due to their beach views, access to water sports, and vibrant local community.
  • Revenue Potential: The high demand for beachside rentals, coupled with a median occupancy rate of 69% and an average daily rate of $266, makes these areas highly profitable for Airbnb hosts.

These neighborhoods are particularly appealing to guests due to their proximity to beaches, scenic views, and access to local amenities, which contribute to their high revenue potential on Airbnb.

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Design Tips

Crafting an Inviting Airbnb in Dana Point: Tips for Furnishing and Design

Embrace the California Cool Vibe

  • Incorporate a laid-back, coastal aesthetic with light, airy colors and natural textures such as wood, wicker, and linen.
  • Use nautical elements like ropes, anchors, and driftwood to reflect the town's maritime history.

Highlight Local Surf Culture

  • Decorate with vintage surfboards, surf-inspired artwork, and classic surf films to honor Dana Point's status as the original California surf town.
  • Include surf-themed accessories like beach towels, throw pillows, and wall decals.

Incorporate Spanish Architectural Influences

  • Reflect the town's Spanish heritage with architectural elements such as white adobe walls, red-tiled roofs, and wide, open spaces.
  • Use lantern-style lighting and decorative tiles to enhance the Spanish ambiance.

Utilize Outdoor Spaces

  • Maximize the use of outdoor areas by adding comfortable seating, fire pits, and BBQ facilities to take advantage of Dana Point's nearly perfect weather.
  • Incorporate plants and greenery that thrive in the coastal climate to create a lush and inviting outdoor space.

Celebrate the Ocean Views

  • Optimize the layout to take full advantage of ocean views, using large windows, sliding glass doors, and outdoor balconies or patios.
  • Use ocean-inspired colors and decor such as blues, greens, and sandy neutrals to bring the outdoors in.

Blend Luxury and Casual Comfort

  • Combine luxury amenities like plush bedding and high-quality linens with casual, comfortable furniture to reflect the town's mix of resort glitz and laid-back charm.
  • Add amenities like yoga mats, beach gear, and spa-like bathroom essentials to enhance the guest experience.

Honor the Local History

  • Display local historical items or books, such as Richard Henry Dana Jr.'s "Two Years Before the Mast," to educate guests about the area's rich history.
  • Include maps or guides highlighting local landmarks like the Mission San Juan Capistrano and Dana Point Harbor.

Enhance with Local Art and Cuisine

  • Decorate with local artwork and feature recommendations for local dining spots, especially those known for their California cuisine and seafood.
  • Provide a welcome basket with local treats and a guide to the best eateries and shops in the area.

Ensure Functionality and Comfort

  • Provide ample storage for surfboards, beach gear, and other outdoor equipment to keep the space organized and functional.
  • Include amenities like fully equipped kitchens, comfortable seating areas, and high-speed internet to ensure guests have everything they need for a relaxing stay.
Insider Tips

Discover the Charm of Dana Point, California: Local Attractions and Insider Tips

Local Attractions

1. Dana Point Harbor

  • Explore the harbor, which features cute souvenir shops, restaurants, and bars.
  • Spot sealions and a variety of bird species, including blue and green herons, gulls, pelicans, and more.
  • Enjoy the annual Festival of Lights from mid-November to January 3rd and the Dana Point Boat Parade of Lights before Christmas.

2. Whale and Dolphin Watching

  • Dana Point is renowned as the Whale Watching Capital of the U.S. and the first Whale Heritage Site in North America.
  • Take a whale-watching tour to see blue whales, fin whales, minke whales, humpbacks, and orcas, along with various dolphin species. Peak season is from December to May, but whale watching is available year-round.

3. Ocean Institute

  • Engage in educational and interactive marine programs, including 2-hour eco-friendly whale-watching tours on the Sea Explorer.
  • Participate in special events like the Festival of Whales and the Tall Ships Festival.

4. Salt Creek Beach

  • A surfer's paradise with excellent surfing conditions year-round.
  • Enjoy bodyboarding, boogie boarding, body surfing, swimming, and sunbathing.
  • Explore the 7-acre grassy bluff for picnics, reading, and outdoor activities like volleyball and basketball.

5. Doheny State Beach

  • A popular surf spot for long boarding and a 121-site campground on the beach.
  • Features firepits on the sand, picnic areas with tables and BBQs.

6. Dana Point Nature Interpretive Center

  • Located within the 62-acre Dana Point Headlands Conservation Area, offering engaging exhibits and educational programs on the local natural history and ecology.

7. Baby Beach

  • A calm and sheltered beach perfect for families and launching kayaks, row boats, and paddleboards.
  • Enjoy seasonal events like vendor booths, live music, and sand castle contests.

8. Dana Point Farmers Market

  • Held every Saturday from 9:00 am to 1:00 pm at La Plaza Park, offering locally sourced products, farm-fresh produce, handmade crafts, and specialty food items.

9. City Walking Tour

  • Explore Dana Point's rich history with a free walking tour, learning about its development and historical significance.

Insider Tips

Best Time for Whale Watching

  • Peak season for gray whales is from December to May, but other species can be seen year-round.

Exploring Sea Caves and Tide Pools

  • Visit the Dana Point Sea Caves and tide pools at low tide for the best experience. Be cautious of slippery rocks and algae-covered boulders.

Festival and Event Schedule

  • Check the local event calendar for the Festival of Lights, Dana Point Boat Parade of Lights, Festival of Whales, and Tall Ships Festival to plan your visit accordingly.

Surfing and Water Activities

  • Take advantage of the excellent surfing conditions at Salt Creek Beach and other local spots. Rent kayaks, paddleboards, or row boats to explore the harbor.

Shopping and Dining

  • Enjoy a casual shopping experience at Dana Point Harbor, and explore the local boutiques and artisan shops. Don’t miss the vibrant dining scene with a variety of restaurants and bars.

Day Trips

  • Consider a day trip to Catalina Island via the Catalina Express ferry, or drive along the Pacific Coast Highway for stunning views and additional attractions.

By sharing these attractions and insider tips, you can help your guests make the most of their visit to Dana Point, ensuring a memorable and enjoyable stay.

Practical Tips

Practical Tips to Run a Successful Short Term Rental Business in Dana Point, California

To ensure a smooth and profitable short-term rental business in Dana Point, California, several key practices can be implemented. Here are some practical tips:

Noise Regulations and Guest Communication

Inform your guests about the local noise regulations and quiet hours to avoid any potential issues. Dana Point has strict rules, and ensuring your guests are aware of these can prevent nuisance complaints. Include a section in your house manual detailing the quiet hours and the importance of respecting the neighborhood.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also outline the house rules, including noise regulations, to set clear expectations for your guests.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and ensure that guests have all the necessary access codes before their arrival.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests navigate any parking restrictions or specific parking spots allocated for the property. This can reduce confusion and potential parking violations.

By implementing these strategies, you can enhance the guest experience, reduce potential issues, and maintain compliance with Dana Point's short-term rental regulations, ultimately contributing to a successful and hassle-free short-term rental business.

Local Vendors

Here is a brief list of house cleaning providers in Dana Point, California:

The Maids

  • Specializes in house cleaning for health using the 22-Step Healthy Touch® Deep Cleaning System.
  • Uses environmentally preferred products and state-of-the-art equipment.
  • Provides four-person cleaning teams and ensures a thorough, healthy cleaning of every room.

Germicidal Maids

  • Offers one-time or recurring maid services, including top-to-bottom deluxe cleaning, deep cleaning, and move-in/move-out cleaning.
  • Uses environmentally friendly and non-toxic cleaning products.
  • Conducts thorough background checks on employees and has a rigorous quality control process.

TIDY

  • Combines trusted cleaners with advanced technology for a better cleaning experience.
  • Offers customizable cleaning services, including quick cleans, general cleanings, and deep detailed cleanings.
  • Ensures cleaners pass thorough background checks and use green, non-toxic products.

HomeAdvisor Connected Services

  • Connects homeowners with various local cleaning services, including one-time and recurring maid services, carpet cleaning, window cleaning, and more.
  • Provides reviews and ratings from a community of homeowners to help in selecting a service.

Care.com House Cleaning Services

  • Lists local house cleaning services in Dana Point, allowing users to compare rates, reviews, and experience.
  • Helps match homeowners with highly rated local house cleaning services.
Management fees

Short-Term Rental Management Fees in Dana Point, California

In Dana Point, California, the fees for managing short-term rentals 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 tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. In contrast, basic services that may only cover essential tasks like booking and payment processing can be less expensive. Additionally, property owners may incur extra fees for services such as cleaning, repairs, or design enhancements, which can further impact the overall cost of managing their short-term rental properties.

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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 Dana Point 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 Dana Point.

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.
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⇤ Airbnb Statistics for California