The short-term rental market in Eureka, California, is thriving, with an average occupancy rate of 53%, a daily rate of $175, and monthly revenue of $19,557, making it a promising and lucrative investment opportunity.
Thriving Short-Term Rental Market in Eureka, California
Eureka, California, is experiencing a robust and vibrant short-term rental market, driven by its unique blend of natural beauty, rich history, and tourist attractions. The city, nestled in the heart of the Redwood Empire, boasts an average occupancy rate of 53% for its short-term rentals, indicating a consistent demand throughout the year.
During the peak season, which spans from late spring to the summer months, occupancy rates surge, allowing hosts to charge higher prices and maximize their revenue. The average daily rate for short-term rentals in Eureka stands at $175, with monthly revenues averaging $19,557. This strong performance highlights Eureka as a promising location for Airbnb hosts and vacation rental investors, offering a lucrative opportunity to capitalize on the city's enduring appeal to tourists and nature enthusiasts.
Short-Term Rental Regulations in Eureka, California for 2024
City of Eureka Regulations
Purpose and Applicability
- Regulations aim to minimize adverse impacts on residential neighborhoods, ensure vacation rentals do not significantly reduce permanent housing, provide homeowners with supplemental income opportunities, offer visitors lodging options, and ensure tax collection.
Types of Vacation Rentals
- Proprietor on-site: Rental of entire or part of a dwelling unit with the proprietor in residence during the rental period. Includes bed and breakfast establishments.
- No proprietor on-site: Rental of entire or part of a dwelling unit without the proprietor in residence during the rental period.
Restrictions on Certain Units
- Accessory dwelling units with a certificate of occupancy after January 1, 2020, cannot be used as vacation rentals.
- Second single-family homes in RE or R1 zoning districts and new single-family homes from urban lot split subdivisions cannot be used as vacation rentals.
Permit Requirements
- Vacation Rental Permit: Required to confirm compliance with applicable standards.
- Minor Use Permit: Required for certain types of vacation rentals.
- Home Occupation Permit: May be required for vacation rental operators.
- Business License: Mandatory for vacation rental operators.
- Vacation Rental Agreement: Operators must sign a statement agreeing to comply with city regulations.
Operational Requirements
- Emergency Contact: An emergency contact person must live within 50 miles of the city limits and be provided to neighboring properties and the Eureka Police Department.
- Fire Department Access: Properties with gated entries must have a Fire Department-approved device for emergency access.
Annual Limits
- The number of vacation rentals with no proprietor on-site is limited by an annual cap set by the City Council. Rentals with a proprietor on-site are exempt from this cap.
Humboldt County Regulations (Applicable to Unincorporated Areas and Possibly Eureka)
Permitting Process
- Short-term rental operators must obtain an Administrative Permit or Special Permit, depending on the circumstances.
Caps on Short-Term Rentals
- Greater Humboldt Bay Area: Limited to 2% of the housing stock.
- Other Areas: Limited to 5% of the housing stock, with exceptions for certain zones.
Permit Term and Renewal
- Permits lapse after two years unless renewed with evidence of continued operation, no outstanding violations, and payment of required fees.
Special Permits
- Can be issued for exceptions from standards, subject to findings that the rental does not significantly impact the community or neighborhood quality.
Nontransferable Permits
- Short-term rental permits cannot be transferred between property owners.
Ownership Limits
- An individual or business can own no more than three parcels with short-term rental permits.
Compliance and Enforcement
- Continuous use without resolving violations can result in code enforcement action, permit suspension, or revocation.
Application Deadlines
- Existing operators in inland areas must apply by June 3, 2024, to receive exceptions from neighborhood concentration and cap regulations.
Top Neighborhoods for Airbnb Revenue in Eureka, California
1. Old Town Eureka
- Appeal: Historic charm, central location, easy access to US-101, and proximity to local restaurants, bars, and shops.
- Revenue Potential: High demand due to its historic appeal and central location, making it an attractive spot for tourists and travelers.
2. Henderson Center
- Appeal: Tranquil settings, modern homes, remodeled kitchens, and walk-in tiled showers. The area is nestled between shops, restaurants, and bars, enhancing the guest experience.
- Revenue Potential: The combination of modern amenities and a peaceful environment makes this area highly desirable for guests, leading to higher occupancy rates and revenue.
3. Sequoia Park Zoo Area
- Appeal: Proximity to the Sequoia Park Zoo, a popular local attraction, and the surrounding redwood forests.
- Revenue Potential: Families and nature lovers are drawn to this area, ensuring a steady stream of bookings and revenue throughout the year.
4. Humboldt Bay Area
- Appeal: Scenic views of Humboldt Bay, access to the Humboldt Bay Maritime Museum, and various waterfront activities.
- Revenue Potential: The scenic views and waterfront activities make this area appealing for guests, contributing to higher occupancy rates and revenue.
5. Carson Mansion and Surrounding Areas
- Appeal: Historical significance of the Carson Mansion, a popular tourist attraction, and the nearby Clarke Historical Museum.
- Revenue Potential: The historical appeal and proximity to other attractions make this area a hotspot for Airbnb bookings, generating significant revenue.
These neighborhoods are highly appealing due to their unique blend of historical charm, modern amenities, and proximity to local attractions, making them ideal for generating substantial Airbnb revenue in Eureka, California.
Creating an Inviting Airbnb in Eureka, California: Design and Furnishing Tips
To design an Airbnb in Eureka, California, that is both inviting and reflective of the city's unique style, consider the following tips:
Living Room
- Lighting Control: Install lamps and dimmer switches to provide flexible lighting options.
- Comfortable Seating: Include a mix of sofas, chairs, and poufs to create cozy nooks and encourage conversation.
- Occasional Tables: Ensure each guest has a place to set their drinks and other items.
- Layout: Design the room to facilitate conversation and guest interaction. Consider swivel chairs and reading nooks with lamps.
Bedroom
- Quality Bedding: Offer high-quality linens and multiple bedding layers stored in the closet for guest convenience.
- Pillow Variety: Provide 2 sleeping pillows per guest with different fill options (e.g., foam-filled, down alternative).
- Temperature Control: Install ceiling fans or other temperature control features.
- Bedside Amenities: Include bedside tables and lamps with USB ports or wireless charging features for each guest.
- Blackout Shades: Use blackout shades to cater to different sleep preferences.
Kitchen
- Modern Appliances: Equip the kitchen with modern appliances to enhance functionality and guest satisfaction.
- Local Touches: Incorporate local art and decor to reflect the unique character of Eureka.
Outdoor Spaces
- Durable Furniture: Invest in durable yet attractive outdoor furniture to boost the functionality of outdoor spaces.
- BBQ and Relaxation Areas: Provide a BBQ area and comfortable outdoor seating for relaxation and socializing.
Decor and Style
- Nature-Inspired Themes: Emphasize themes of nature, using artwork and decorations that inspire a sense of tranquility and connection to the outdoors.
- Cozy Textiles: Use cozy textiles, vintage elements, and earthy color palettes to create a warm and inviting atmosphere.
- Local Craftsmanship: Incorporate local craftsmanship or materials to set the property apart from standard vacation rentals.
Additional Amenities
- Private Entrances and Bathrooms: Offer private entrances and bathrooms for added guest comfort and privacy.
- High-Speed WiFi: Ensure high-speed WiFi is available to meet the needs of modern travelers.
- Self Check-In: Implement self check-in options for convenience.
Neighborhood and Community Feel
- Proximity to Local Attractions: Choose properties close to local attractions, shops, and restaurants to enhance the guest experience.
- Community Vibe: Opt for neighborhoods with an inviting community feel and unique character to attract guests looking for a local experience.
Discover Eureka, California: Local Attractions and Insider Tips
Historic and Cultural Attractions
- Historic Old Town & Waterfront:
- Explore the charming Victorian architecture, local restaurants, boutique shops, and modern street art. Don't miss the Old Town Farmers Market on Tuesdays from June to October and the Eureka Street Art Festival.
Visit the Carson Mansion, a grand Victorian house and one of the most photographed homes in California. Although it's now a private club, the exterior is worth a look.
Morris Graves Museum of Art:
Located in the former Carnegie Free Library, this museum features exhibitions from local and international artists. It's a short walk from the Clarke Historical Museum.
Clarke Historical Museum:
Showcases the history of Northwestern California through exhibits and events. It's a seven-minute walk south from the Morris Graves Museum of Art.
Kinetic Museum Eureka:
- Dedicated to the Kinetic Grand Championship, a unique 50-mile race of human-powered, homemade vehicles. Check out past mobile sculptures and plan a visit during Memorial Day weekend.
Outdoor and Natural Attractions
- Sequoia Park Forest & Garden:
Home to the Sequoia Park Zoo, the oldest AZA-accredited community zoo in California. Enjoy the Redwood Sky Walk, a network of suspended bridges through the redwood trees.
Humboldt Redwoods State Park:
Explore the Avenue of the Giants and experience the majesty of the redwood forests.
Humboldt Bay National Wildlife Refuge:
A great spot for wildlife viewing and outdoor activities.
Waterfront Trail:
- Walk along the waterfront, starting near the Shoreline RV Park and extending to the Bayfront Restaurant. Enjoy views of Daby Island, Woodley Island, and kayakers on the bay.
Unique Experiences
- MV Madaket Ferry Cruise:
Take a one-hour guided cruise on this historic ferryboat to explore Humboldt Bay.
Blue Ox Millworks:
Visit this fully functioning Victorian wood shop, which also serves as a school and historic park. Featured in the TV series "The Craftsman".
Woodley Island Marina:
- Cross the bridge to visit the largest working marina in the area. See the Fisherman statue and enjoy a meal at Café Marina while watching the boats come in with their catches.
Insider Tips
- Festivals and Events:
Check the town’s busy events calendar for festivals like the Kinetic Grand Championship, Humboldt Marble Weekend, Forest Moon Festival, Friday Night Markets, and the Redwood Coast Music Festival.
Self-Guided Eureka Heritage Homes Tour:
Pick up a free brochure at Many Hands Gallery to explore the historically important Victorian homes in Old Town.
Local Cuisine:
Enjoy ice cream at Living the Dream Ice Cream in the Coast Guard Plaza and dine at local seafood restaurants like Café Marina.
Seasonal Activities:
- In the summer, take advantage of boat tours in the bay and enjoy the Eureka Street Art Festival. Spring is a good time to visit if you prefer fewer crowds and the Salt & Fog Fish Fest.
By sharing these attractions and tips, you can help your Airbnb guests make the most of their visit to Eureka, California.
Practical Tips to Run a Successful Short-Term Rental Business in Eureka, California
To ensure the success of a short-term rental business in Eureka, California, several practical tips can be implemented to enhance guest satisfaction and compliance with local regulations.
Noise Regulations and Guest Communication
Inform guests about quiet hours through clear communication in the listing and a digital or physical house manual. This helps in maintaining good relations with neighbors and avoids potential issues with local authorities.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should also highlight the city's unique features, such as nearby Redwood parks and local attractions, to enhance the guest experience.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions and photos on how to access the property, ensuring a seamless and contactless entry.
Parking Instructions
Include detailed parking instructions with photos in the house manual to avoid confusion. This is particularly important in Eureka, where parking regulations can be stringent, and clarity helps in preventing potential issues.
By implementing these strategies, you can ensure a smooth and enjoyable experience for your guests, while also adhering to Eureka's specific regulations, such as noise and parking rules.
Here is a brief list of house cleaning, repair, and maintenance providers in Eureka, California:
Restif Cleaning
- Offers carpet cleaning, floor care, window washing, exterior building cleaning, and residential maid services.
- Known for its unique employee-ownership model and commitment to sustainability and client satisfaction.
North Coast Cleaning Services
- Provides pristine and detail-oriented cleaning services for residential and commercial spaces.
- Uses eco-friendly products and methods aligned with LEED standards.
- Offers services including general cleaning, window cleaning, and specialized cleaning for high-touch areas.
A-1 Maid Service
- Specializes in residential maid services, offering weekly, bi-weekly, or monthly cleaning schedules.
- Customizes cleaning programs based on client needs and includes tasks such as bathroom and kitchen cleaning, dusting, and floor maintenance.
Humboldt Cleaning Services LLC
- Offers residential and commercial cleaning services, including thorough disinfecting, window cleaning, move out cleaning, and deep cleaning.
- Known for attention to detail and high-quality work in both residential and commercial settings.
Short-Term Rental Management Fees in Eureka, California
In Eureka, California, the fees for managing short-term rentals can vary significantly based on the level of service provided. Typically, these fees range from 15% to 30% of the rental revenue. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often around 20% to 30%.
Basic service packages, which may only include essential management tasks, can be less expensive. Additionally, hosts may incur extra fees for services like cleaning, repairs, and design enhancements. For instance, a management company might charge a separate cleaning fee that is passed on to the guests, and there could be consumables fees to cover items like linens, toiletries, and other essentials.
Overall, the total cost for short-term rental management in Eureka depends on the specific services required and the performance of the property.