How to Invest in a Short-Term Vacation Rental Property in Newport Beach
Newport Beach, CA, is one of Southern California’s most desirable destinations for short-term vacation rentals (STRs). With its stunning beaches, upscale amenities, and year-round appeal, it’s no surprise that many investors are looking to purchase properties here for platforms like Airbnb and VRBO. However, there’s an important factor you need to consider before diving into this market: STR permits.
Understanding Short-Term Rental Permits in Newport Beach
The City of Newport Beach has capped the number of STR permits at 1,500, and all permits have already been issued. In fact, there are currently about 650 people on the waiting list, which makes obtaining a new permit highly unlikely for the foreseeable future.
Here’s the good news: STR permits are transferable. If you’re considering buying a property for short-term vacation rental purposes, you’ll need to purchase one that already has a valid permit in place. This ensures you can start renting out the property immediately without waiting indefinitely for a permit to become available.
For more details about Newport Beach’s STR requirements, visit the City of Newport Beach website.
Looking for Alternative Investment Opportunities? Consider San Clemente
If you’re open to exploring other locations for short-term vacation rental investments, San Clemente is another excellent option. This charming coastal city offers a laid-back vibe, beautiful beaches, and strong tourist appeal.
San Clemente’s approach to STRs may provide more flexibility for investors compared to Newport Beach. It’s worth exploring their STR guidelines and requirements to determine whether this city aligns with your investment goals.
Why Invest in Short-Term Rentals?
Short-term rentals offer unique benefits for investors:
•Higher Revenue Potential: Compared to long-term rentals, STRs often generate higher income, especially in high-demand vacation destinations.
•Flexibility: You can block off dates for personal use while still earning rental income the rest of the year.
•Appreciation: Coastal properties in areas like Newport Beach and San Clemente tend to appreciate over time, making them solid long-term investments.
Take the Next Step Toward Your Investment Goals
Investing in a short-term vacation rental property requires strategy and careful consideration of local regulations. Whether you’re targeting Newport Beach or exploring other options like San Clemente, I’m here to help you navigate the process.
Pro-Tip: How's the rental market? Research short-term rental data with AirDNA.co
Ready to start? Book a consultation with Danae Aballi today to discuss your investment goals and find the right property for you.
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