In Huntington Beach, California, the short-term rental market is thriving, with over 200 permitted rentals generating nearly $1 million in transient occupancy taxes, high occupancy rates, and significant revenue growth, despite stringent regulations to ensure community balance.
Thriving Short-Term Rental Market in Huntington Beach, California
Huntington Beach, California, is experiencing a robust and vibrant short-term rental market. Despite initial regulatory hurdles, the city has seen significant growth and optimization in this sector. With over 200 short-term rentals now operating, the city is generating close to $1 million in transient occupancy taxes annually. These rentals boast an impressive average occupancy rate of 56%, and hosts can expect an average daily rate of $334, translating to a substantial monthly revenue of $29,209.
The market's health is further underscored by the decline in unauthorized rentals, from 867 in 2020 to just 135 last year, indicating effective compliance with the city's strict ordinance. This balanced approach has helped maintain a high quality of life for residents while supporting a thriving rental market, making Huntington Beach an attractive destination for both visitors and investors.
Short-Term Rental Regulations in Huntington Beach, California for 2024
Zone Designations and Eligibility
- Short-term rentals are permitted in two zones:
- Zone 1: All areas of the city excluding Sunset Beach. Permitted in owner-occupied residential dwelling units.
- Zone 2: Sunset Beach. Permitted in owner-occupied and existing owner-unoccupied residential dwelling units, but new permits for unoccupied units were only available until March 1, 2022.
Permit Requirements
- A valid city permit must be obtained for all short-term rentals.
- Only one short-term rental permit is allowed per host or operator within the city, including Sunset Beach.
- For existing unhosted rentals in Sunset Beach (Zone 2), permits must have been obtained by March 1, 2022, to be grandfathered.
Application and Fees
- Submit a completed application, proof of general liability insurance, and a business license.
- Application fee: $624.
- Business License Fee: $75.
- Business License Application Fee: $45.
Operational Requirements
- Hosts must display their short-term rental permit or registration number on any listing advertisement.
- A local contact person must be available 24/7 to respond to complaints within one hour.
Tax Obligations
- Hosts are responsible for collecting and remitting Transient Occupancy Tax (TOT) at 10% and the Tourism Business Improvement District Assessment at 4% via the city's online portal for each quarter.
Compliance and Enforcement
- The city strictly enforces short-term rental regulations and actively monitors STR activity for compliance.
- Complaints about STRs can be submitted online, and code enforcement addresses issues promptly.
Additional Restrictions
- Short-term rentals are prohibited in any part of the property not approved for residential use, such as garages, storage sheds, or temporary structures.
- Unhosted STRs are prohibited in Zone 1 and only allowed in Zone 2 with a permit.
Multi-Unit Properties
- In multifamily properties (condominiums or townhomes), the number of STR permits allowed varies:
- Up to 3 units: 1 STR permit.
- 4 or more units: 3 STR permits.
High-Revenue Airbnb Neighborhoods in Huntington Beach, California
Top Neighborhoods for Airbnb Investments
Huntington Beach, known as "Surf City USA," offers several neighborhoods that are particularly appealing for Airbnb investors due to their unique attributes and high revenue potential.
1. Downtown Huntington Beach
- Appeal: Downtown Huntington Beach is a hub of lively urban living, with abundant shopping, dining, and entertainment options. Its proximity to the beach makes it highly desirable for tourists.
- Revenue Potential: With median home prices at $1,250,000 and median rents at $3,300, this area attracts high-paying guests. The average revenue for Airbnb listings here is substantial, driven by the area's vibrant atmosphere and beach access.
2. Huntington Harbour
- Appeal: Known for its serene waterfront homes and picturesque marina, Huntington Harbour is perfect for boating enthusiasts and those seeking a tranquil lifestyle. The scenic views and exclusive community make it an attractive choice for guests.
- Revenue Potential: Despite being slightly more affordable than Downtown, with median home prices at $1,800,000, Huntington Harbour offers significant revenue due to its unique lifestyle offerings and high demand for waterfront properties.
3. Bolsa Chica
- Appeal: Bolsa Chica offers more affordable housing near nature reserves and the beach, catering to guests who appreciate proximity to natural settings. The area's relaxed lifestyle and unique natural attractions make it a favorite among nature lovers.
- Revenue Potential: With lower entry costs (median home prices at $900,000) and significant lifestyle perks, Bolsa Chica provides a promising revenue stream, especially during peak seasons when nature-focused tourism is high.
Key Metrics
- Average Daily Rate (ADR): Huntington Beach as a whole has an ADR of $254, with peaks in July reaching $462.
- Occupancy Rate: The median occupancy rate is 68%, with peaks in July at 82%.
- Average Revenue: Typical hosts in Huntington Beach earn around $58,000 annually, with monthly revenues peaking at $9,300 in July.
These neighborhoods in Huntington Beach are highly appealing to guests due to their unique blend of urban living, waterfront lifestyles, and natural attractions, making them lucrative options for Airbnb investors.
Creating an Inviting Airbnb in Huntington Beach: Design and Furnishing Tips
Prioritize Comfort and Functionality
- Ensure your furniture is comfortable and durable, capable of withstanding the wear and tear of guests.
- Invest in high-quality mattresses, linens, and provide extra pillows, blankets, and towels to enhance the guest experience.
- Equip your rental with necessary appliances and amenities, including a fully-stocked kitchen and reliable Wi-Fi connection.
Create a Cohesive Style
- Choose a style that reflects the location, such as coastal elements and beach-inspired colors for a beach house.
- Ensure all decor elements, including furniture and accessories, complement each other in terms of color, texture, and style to create a cohesive look.
Optimize Outdoor Spaces
- Create comfortable seating areas such as patios or decks, and consider adding outdoor lighting and heating.
- Add greenery like plants and flowers to enhance the natural beauty of the outdoor space.
- Provide outdoor equipment like beach chairs, umbrellas, and bicycles to enhance the guest experience.
Pay Attention to Details
- Add personal touches such as local artwork or photographs to create a sense of place.
- Use throw pillows, blankets, and decorative objects like vases and candles to add warmth and elegance.
- Ensure the rental is spotless and clutter-free to create a welcoming environment.
Highlight Key Areas and Amenities
- Focus on areas that matter most to guests, such as the living room, bedrooms, kitchen, and outdoor spaces.
- List all amenities, including Wi-Fi, air conditioning, beach gear, and any extras that add value to the guest’s stay.
Personalize the Guest Experience
- Create a thoughtful welcome basket with local treats, a map of Huntington Beach, and a personalized note.
- Provide sun protection items like sunscreen, after-sun lotion, and hats.
- Offer cooling solutions such as fans or air conditioning, and an assortment of cold beverages upon arrival.
Emphasize Local Experience
- Highlight the local experiences guests can enjoy, such as the short walk to Huntington Beach or the local dining scene.
- Include a guide to local events, such as surf competitions, beach festivals, and outdoor concerts.
Create a Cozy Retreat
- For cooler months, emphasize cozy aspects like fireplaces, outdoor fire pits, or hot tubs.
- Provide extra blankets, a selection of teas and coffees, and books for guests to enjoy.
Promote Wellness and Relaxation
- Package your Airbnb as a wellness retreat by offering yoga mats, guided meditation resources, or partnerships with local spas.
- Suggest indoor attractions or activities, such as local museums or dining at renowned restaurants.
Discover the Best of Huntington Beach: Local Attractions and Insider Tips
Top Local Attractions
1. Huntington Beach Pier
- A iconic landmark spanning 1,850 feet, perfect for walking, fishing, and taking in breathtaking ocean views.
2. Bolsa Chica Ecological Reserve
- A nature lover's paradise for bird watching and exploring the local marine life.
3. Old World Village
- Experience a taste of Europe with shopping, dining, and a unique cultural atmosphere.
4. Downtown Huntington Beach
- Enjoy a lively nightlife, diverse restaurants, and a vibrant shopping scene along Main Street and Pacific City.
5. Huntington Beach International Surfing Museum and Surfers’ Hall of Fame
- Dive into the rich history of surfing and learn about the legends of the sport.
6. Huntington Dog Beach
- A pet-friendly beach where you can enjoy fun in the sun with your four-legged friends.
7. Crystal Cove State Park
- Hike trails, explore tide pools, and enjoy various outdoor activities in this scenic park.
Insider Tips
Outdoor Activities
- Beach Bonfires: End your day with a beach bonfire, a perfect way to relax and enjoy the sunset.
- Water Sports: Engage in kayaking, paddle boarding, or surfing to make the most of the ocean.
- Biking and Walking: Use the Ocean Strand paved boardwalk for biking and walking along the coast.
Dining and Nightlife
- Duke's Huntington Beach: Enjoy Hawaiian-inspired cuisine with stunning ocean views, named after the legendary surfer Duke Kahanamoku.
- Local Ice Cream Parlors: Cool down with delicious ice cream from one of the many charming parlors along the coast.
- Nightlife in Downtown: Explore the bars and restaurants in Downtown Huntington Beach for a lively night out.
Local Events and Tips
- Check Upcoming Events: Stay updated on local events and festivals to experience the full vibrancy of Huntington Beach.
- Visitor Information Kiosk: Visit the kiosk at the base of the Huntington Beach Pier for personal recommendations and local guides.
- Parking Information: Ensure you have the latest parking information for downtown and the beach to avoid any hassles.
Additional Tips
- Pet-Friendly: Many places in Huntington Beach are pet-friendly, so feel free to bring your furry friends along.
- Day Spas and Wellness: Unwind at one of the many day spas and wellness spots available in the area.
By sharing these attractions and tips, you can help your Airbnb guests make the most of their visit to Huntington Beach, ensuring they experience the best that Surf City USA has to offer.
Practical Tips to Run a Successful Short Term Rental Business in Huntington Beach, California
To ensure a smooth and successful short-term rental business in Huntington Beach, California, several practical tips can make a significant difference. Here are some key considerations:
Noise Regulations and Quiet Hours
Inform your guests about the city's noise regulations and designated quiet hours to avoid any potential issues or fines. Clearly state these rules in your house manual and listing description to set expectations from the outset.
Digital and Physical House Manual
Create a comprehensive digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details about the property. This manual should cover everything from appliance usage to emergency contact information, ensuring guests have all the information they need at their fingertips.
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 on how to access the property, and consider adding a welcome message or video to make the process even smoother.
Parking Instructions with Photos
Include detailed parking instructions with photos in your house manual to help guests navigate any parking challenges. This can prevent confusion and ensure that guests park in the correct areas, avoiding potential fines or towing.
By implementing these practical tips, you can enhance the guest experience, reduce potential issues, and maintain compliance with Huntington Beach's short-term rental regulations.
Here is a brief list of house cleaning providers in Huntington Beach, California:
House Cleaning Providers in Huntington Beach, CA
Mega Maids
- Offers professional cleaning services for residential and commercial properties.
- Fully licensed, bonded, and insured.
- Custom cleaning packages, same-day service available, and no contracts.
- Supplies all cleaning equipment and supplies.
Aloha Maids
- Provides house cleaning and housekeeping services in Huntington Beach.
- Referrals for various cleaning needs.
Los Angeles House Cleaners
- Offers referrals for same-day and last-minute deep house cleaning, apartment cleaning, condo cleaning, and office cleaning in Huntington Beach.
The Cleaning Authority
- Provides home cleaning services in Huntington Beach and Garden Grove.
- Offers a 100% free estimate for their services.
MaidPro Huntington Beach
- Expert home cleaning services with a 49-Point Checklist™.
- Trained professionals and flexible schedules available.
Short-Term Rental Management Fees in Huntington Beach, California
In Huntington Beach, 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 coordination, tends to be on the higher end of this spectrum. This level of service is designed to alleviate the day-to-day workload for hosts, ensuring their properties are well-maintained and optimally marketed on platforms like Airbnb.
Basic service packages, which may only include listing management and minimal support, are generally less expensive. Additionally, property owners may incur extra fees for services like cleaning, repairs, and design enhancements, which are often outsourced to specialized vendors. These fees are part of the overall cost structure that property management companies like Guestable and Sail Properties use to ensure that short-term rentals in Huntington Beach are managed efficiently and profitably.