Last updated on June 22nd, 2023
Are you looking to invest in an Airbnb property in California? If you have chosen Santa Barbara in particular, then you’re on the right track.
There’s no doubt that the best places to Airbnb in California are generating thousands of dollars which catches the attention of property owners and investors. In addition to this, Santa Barbara offers various investment opportunities that one should not miss out on.
Continue reading to learn more about Airbnb rules in Santa Barbara and check out the profitability in this city.
Is Airbnb legal in Santa Barbara?
Let’s cut the story short: Yes, Airbnb is certainly legal in Santa Barbara! This city is popular for its Mediterranean-style properties with attractions such as the Cold Spring Tavern, County Courthouse, Old Mission Santa Barbara,, and more.
Here is a little proof! As of July 2022, there are 3,202 nights available in Santa Barbara from Airbnb alone. Paradise Retreats manages 34 listings, while Vacation Rentals and Cody operate 28 and 17 respectively.
How much can I make by running an Airbnb in Santa Barbara?
Currently, there are 781 Airbnb listings in Santa Barbara, with 69% of entire houses earning up to $7,990 a month. The Average Occupancy Rate in Santa Barbara is 82% and the average daily rate is $283. According to vacation holiday properties data source Airbtics, a 2-bedroom apartment in Santa Barbara can make up to $111,380 each year. Check out our Airbnb Income Estimator!
What Are The Short-term Rental Accommodation Policies in Santa Barbara?
- If your unit is within an R-4, Commercial (C), or Manufacturing (M) zone, you can register with the City and get a business license.
- Short-term vacation rentals are unlawful in Santa Barbara, including in the coastal zone, unless they are permitted by the City and are located within zoning districts that allow for hotels or motels.
- The City will not issue business licenses for unpermitted STRVs outside of the Coastal Zone.
Is Santa Barbara A Profitable Area to Invest In?
If you’re worried about spending thousands of bucks to purchase a property, the good news is you have the option of not owning one. This is because there are many property investors who enjoy doing rental arbitrage in Santa Barbara as a passive income!
Based on a recent report about rental arbitrage in California, Santa Barbara is the second-best market to start an Airbnb business with potential monthly revenue of $7,361 and a steady occupancy rate of 68%. These Airbnb metrics are important in order to expect potential revenue and avoid losing hard-earned money. Before starting an Airbnb business, getting to know your preferred area’s occupancy rates, average daily rates, and annual revenue is important to achieve success.
By using an accurate short-term rental calculator, you’ll be able to confirm if Santa Barbara is a good place for investment! In the digital era, it’s easy to discover your estimated annual revenue and high-return investment opportunities in Santa Barbara.
Source: Airbtics Dashboard
Rental Market in Santa Barbara 2022
Based on a recent report on the rental market trend in Santa Barbara, rent price has increased by $250 in comparison to the previous year. Despite this fact, more and more tenants are still interested in renting properties for passive income in Santa Barbara.
Source: Rental Price Trend in Santa Barbara
Profitable Neighborhoods in Santa Barbara
Here are some of the most recommended neighborhoods that you can look into & consider purchasing based on Airbtics estimator:
| Suburbs | Average House Price (2bd apartments) | Average Rent Price | Average Airbnb Revenue |
|---|---|---|---|
| Santa Barbara Downtown | $869,000 | $3,540 | $11,607 |
| Oak Park | $1.3M | $2,950 | $9,668 |
| East Mesa | $965,000 | $4,762 | $10,724 |
Source for Property Price: Properties in Santa Barbara
Conclusion
In general, considering the Airbnb rules & regulations in Santa Barbara will help your Airbnb business to run smoothly! Aside from the fact that this is a passive income for various hosts, starting an Airbnb business is also a way to enjoy life and connect with new people from all over the world. Try Airbtics now and make the wisest investment decisions!
