The short-term rental market in Newport Beach, California, is thriving, with high occupancy rates of 63%, significant revenue growth, and a strong demand driven by online hosting platforms, making it an attractive and lucrative option for investors and homeowners.
Thriving Short-Term Rental Market in Newport Beach, California
Newport Beach, California, continues to excel as a lucrative destination for short-term rentals, driven by its stunning coastline, upscale living, and year-round mild climate. The market boasts an impressive 63% average occupancy rate, with an average daily rate of $646, translating to a substantial monthly revenue of $87,815.
The peak season, spanning from late May to early September, sees a significant surge in demand, allowing hosts to capitalize on higher rental rates. Even during the off-peak season, events like the Newport Beach Christmas Boat Parade in December provide smaller yet notable spikes in demand. With strict but manageable regulations in place, Newport Beach remains an attractive and profitable market for Airbnb hosts and vacation rental investors.
Short-Term Rental Regulations in Newport Beach, California for 2024
Registration and Permitting
- Short-Term Lodging Permit: Required for all short-term rental operators. Apply through the City of Newport Beach Revenue Division using the Short Term Lodging Application and Business License Tax Application.
- Business License: Mandatory in addition to the short-term lodging permit. Fees include $104 for the lodging permit, $179 for the business license, and a $4 state fee.
- Permit Cap: Total cap of 1,550 permits, split between 1,475 for residential areas and 75 for mixed-use zones (MU-W2 and MU-CV/15th Street).
Zoning Compliance
- Eligible Zones: Short-term rentals allowed in certain residential districts such as R-1.5, R-2, and RM, but prohibited in R-1 Zones. Mixed-use zones (MU-W2 and MU-CV/15th Street) are also eligible with specific conditions.
- Mixed-Use Zones: Properties in these zones must have 20 or more units under common ownership, be professionally managed, include amenities, and not cause significant parking impacts.
Operational Restrictions
- Occupancy Limits: Maximum occupancy cannot exceed two people per bedroom plus two additional persons per property.
- Minimum Stay Requirements: Minimum stay durations apply in certain zones to reduce turnover and associated disturbances.
- Parking Requirements: On-site parking for guests is mandatory to mitigate parking impacts on surrounding neighborhoods.
Guest and Property Requirements
- Guest Age: Guests must be at least 25 years old.
- Written Rental Agreement: Required between the host and guests, outlining terms of the rental, occupancy limits, house rules, and other important details.
- Noise Ordinances: Strict noise restrictions are in place to maintain the quality of life for residents.
Tax and Fee Compliance
- Transient Occupancy Tax: Hosts must collect and remit transient occupancy taxes from guests and inform them of the tax amount.
- Visitor Service Fee: Hosts must inform guests of the visitor service fee prior to completing a booking transaction.
Enforcement and Compliance
- Permit Number Display: The short-term lodging permit number must be included in all advertisements for the rental unit.
- Compliance with Local Laws: Hosts must comply with all local regulations, including those related to noise, disturbances, and disorderly conduct.
Additional Regulations
- No Subletting: Subletting of short-term rental units is prohibited.
- Residential Use Only: Short-term rentals are restricted to residential purposes only.
- Enforcement Mechanisms: The city can require hosting platforms to remove unpermitted rentals, and there are mechanisms in place for reporting and addressing violations.
Top Neighborhoods for Airbnb Revenue in Newport Beach, California
1. Balboa Island
- Appeal: Balboa Island is highly sought after due to its central location, beautiful beaches, and vibrant community. Guests love the easy access to the Balboa Ferry, local shops, restaurants, and the iconic Fun Zone. Rentals like the "Balboa Hideaway" and "Balboa Island Diamond" are favorites for their stylish decor, private outdoor spaces, and proximity to the sand.
2. Peninsula (Newport Beach)
- Appeal: The Peninsula offers stunning beachfront properties, many of which are highly rated for their modern amenities and spectacular ocean views. Guests appreciate the direct access to the beach, surf spots, and the Balboa Pier. Properties like the "Beachfront on the Bay" and "Dreamy Ocean Views" are popular for their luxurious comforts and family-friendly atmosphere.
3. Newport Bay
- Appeal: Newport Bay is attractive for its mix of luxury and comfort, with many rentals offering easy access to the bay beach and local restaurants. Guests enjoy the proximity to the Fun Zone, ferry rides, and watercraft rentals. Rentals such as "Newport Beach luxury comfort" and "Close to Beach, Great Location" are favored for their cleanliness, modern amenities, and convenient locations.
4. West Newport
- Appeal: West Newport is popular for its laid-back atmosphere and close proximity to the beach. Guests like the area for its local restaurants, parks, and access to water sports. Properties like the "49th St - 2 Story Home 1 Block To The Beach" offer spacious living areas, BBQ facilities, and a short walk to the beach.
5. Sunset Beach
- Appeal: Sunset Beach is appealing due to its quieter atmosphere and stunning sunset views. Guests enjoy the area's surf spots, pet-friendly rentals, and easy access to Huntington Beach. Rentals such as "The Beach Hive" and "Endless Sunset" are popular for their cozy decor and family-friendly amenities.
These neighborhoods are highly appealing to guests due to their combination of beautiful beaches, convenient locations, modern amenities, and a range of activities and attractions that cater to various preferences and needs.
Creating an Inviting Airbnb in Newport Beach: Design and Furnishing Tips
Prioritize Comfort and Functionality
- Choose comfortable and durable furniture that can withstand the wear and tear of guests.
- Invest in high-quality mattresses and linens to ensure a good night's sleep.
- Provide additional amenities such as extra pillows, blankets, and towels to enhance the guest experience.
- Ensure the rental is equipped with all necessary appliances and amenities, including a fully-stocked kitchen and reliable Wi-Fi.
Create a Cohesive Style
- Select a style that reflects the location, such as coastal elements like nautical decor and beach-inspired colors for a beach house.
- Ensure all decor elements work together in terms of color, texture, and style to create a cohesive look.
- Consider the local aesthetic of Newport Beach, which often includes light, airy colors and beach-themed decor.
Optimize Outdoor Spaces
- Create comfortable seating areas such as patios or decks.
- Add outdoor lighting and heating to extend the use of these spaces into the evening and cooler months.
- Incorporate greenery like plants and flowers to enhance the natural beauty of the outdoor space.
- Provide outdoor equipment such as 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 and blankets to add warmth and comfort to seating areas.
- Include decorative objects like vases and candles to add elegance to the space.
- Ensure the rental is spotless and clutter-free to create a welcoming environment.
Enhance with Modern Amenities
- Provide a fully equipped kitchen with modern appliances and necessary cooking utensils.
- Offer amenities like large screen LED TVs, free Wi-Fi, and a washer and dryer to make the stay convenient.
- Consider adding a rooftop deck or outdoor BBQ area for additional relaxation and entertainment options.
Reflect the Local Vibe
- Incorporate elements that capture the relaxed and coastal vibe of Newport Beach.
- Use furniture and decor that reflect the city's unique style, such as modern minimalism or vintage styles that add a unique character to the space.
Ensure Proximity and Accessibility
- Highlight the proximity to local attractions such as the beach, pier, restaurants, and shopping areas.
- Ensure easy access to the property and provide convenient parking options.
Discovering Newport Beach: Local Attractions and Insider Tips
Local Attractions
Beaches and Coastal Activities
- Corona del Mar State Beach: A popular public beach ideal for swimming, kayaking, paddle boarding, and sunbathing. It features volleyball nets, public restrooms, and fire pits.
- Newport Beach Pier: A historic pier offering stunning views of the coastline, dining, and shopping options. It's a great spot for a leisurely walk and learning about Newport Beach's history.
- The Wedge: Known for its powerful waves, it's one of the best surfing spots in the world.
Nature and Wildlife
- Upper Newport Bay Nature Preserve: Southern California’s largest expanse of coastal wetlands, perfect for hiking, biking, and bird watching. You can also take horseback riding tours.
- Newport Bay Conservancy: Explore the wetlands on a guided kayak tour to spot local wildlife such as pelicans, terns, and stingrays.
Islands and Harbors
- Balboa Island: Accessible by ferry, the island offers paddle-boarding, whale and dolphin watching, and family-friendly activities. Rent bikes or explore on foot.
- Newport Harbor: A charming marina with yachts, sailboats, and racing boats. Enjoy dining options, fishing docks, and picnic areas.
Cultural and Historical Sites
- Orange County Museum of Art (OCMA): Features rotating exhibits and a permanent collection of over 4,500 works by contemporary California artists.
- Sherman Library and Gardens: Explore beautiful gardens, join garden tours or outdoor painting classes, and enjoy French-Californian cuisine at Cafe Jardin.
Entertainment and Family Fun
- Balboa Fun Zone: A historic entertainment destination with rollercoasters, food stands, arcades, harbor cruises, and a giant Ferris wheel.
- Beachcomber at Crystal Cove State Park: Enjoy seafood, big-jar cocktails, and a fire pit package for barbecuing and s’mores on the beach.
Insider Tips
Best Times to Visit
- For fewer crowds and less expensive lodging, visit from October to April. For the full summer buzz, come between May and September.
Transportation
- Use centrally located accommodations to avoid parking issues. The city offers Mokes (small electric cars), e-bikes, and e-boats as alternative transportation options.
Local Events
- Check for annual events like the Newport Beach International Film Festival, the Newport to Ensenada International Yacht Race, and the Fourth of July celebrations.
- Don’t miss the free concerts on the Civic Center Green during late July and August.
Dining and Shopping
- Enjoy dining at one of the many outstanding restaurants in the city. The Newport Beach Restaurant Association hosts a popular Restaurant Week event early in the year.
- Shop in one of the city’s distinct “villages” or visit the high-end shopping district at Fashion Island.
Community Resources
- Visit the Newport Beach Public Library, consistently ranked among the top libraries in the U.S., for free classes and programs.
- Check the Newport Beach Conference and Visitor Bureau, Newport Beach Chamber of Commerce, and Corona del Mar Chamber of Commerce websites for community events and listings.
By sharing these attractions and tips, you can help your guests make the most of their visit to Newport Beach.
Practical Tips to Run a Successful Short Term Rental Business in Newport Beach, California
To ensure a smooth and compliant short-term rental business in Newport Beach, California, several practical tips can be invaluable. First, it is crucial to adhere to the city's noise regulations by informing guests about quiet hours through clear communication in your rental agreement and house manual. Creating both digital and physical house manuals with detailed instructions, including Wi-Fi passwords and other essential information, helps set clear expectations and reduces the likelihood of issues.
Implementing a simplified check-in process using smart locks can enhance guest convenience and reduce the need for physical key exchanges. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate any parking restrictions or requirements, minimizing potential conflicts with neighbors.
By following these tips, you can not only comply with local regulations, such as occupancy limits and noise ordinances, but also enhance the overall guest experience, leading to better reviews and a more successful rental business.
Here is a brief list of house cleaning providers in Newport Beach, California:
House Cleaning Providers in Newport Beach, CA
The Maids
- Specializes in residential cleaning for health using the 22-Step Healthy Touch® Deep Cleaning System.
- Services include deep cleaning, kitchen and bathroom cleaning, and use of environmentally preferred products.
- Covers areas such as Balboa Island, Newport / Balboa Peninsula, Fashion Island, and more.
Aloha Maids
- Offers various cleaning services including one-time, weekly, bi-weekly, move-in/move-out, same-day, and post-construction cleaning.
- Referral agency with vetted and background-checked cleaners.
- Services include general house cleaning, Airbnb cleaning, laundry, and more.
TIDY
- Combines trusted cleaners with innovative technology for affordable and top-notch home care.
- Cleaners are background-checked and verified; services are customizable.
- Offers services such as bathroom, bedroom, kitchen, and office cleaning, with the option to schedule recurring cleanings.
Molly Maid of Newport Beach / Tustin
- Provides premium house cleaning services with a focus on custom cleaning plans.
- Offers residential and commercial services, including move-out cleaning and recurring cleaning packages.
- Fully insured staff and free in-home estimates available.
Care.com House Cleaning Services
- Lists multiple individual house cleaning services and companies in Newport Beach, allowing users to compare rates, reviews, and experience.
- Average rate is around $21/hr, with services ranging from one-time to regular cleanings.
Short-Term Rental Management Fees in Newport Beach, California
In Newport Beach, California, short-term rental management fees 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, often ranging between 20% to 25%.
On the other hand, basic or partial management services, which may require more owner involvement in tasks like cleaning and repairs, can be more cost-effective, with fees as low as 10%. Additional fees may also apply for specific services such as cleaning, repairs, or design enhancements. Moreover, property owners must also consider other costs, including the transient occupancy tax and permit renewal fees mandated by the City of Newport Beach.