Last updated: January 2025
7 Step Guide to Big Bear Lake Rental Regulations
1. City Overview: Short-Term Rental Landscape
Homes in Big Bear Lake have depreciated by -2.88%, with the median home value at $574,691, according to Zillow. The average property tax is 0.78%, making it an attractive option for short-term rental (STR) investors due to manageable tax rates and steady tourism demand.
Big Bear Lake currently has 3,236 active short-term rentals. The average daily rate for these rentals is $347, leading to an annual revenue of $60,683 as of January 2025. The average gross yield for STRs in the city is 10.55%, reflecting strong earning potential despite a slightly higher unemployment rate of 5.7% compared to the national average of 4.1%.
The most popular property types are 2-bedroom units, with an average daily rate of $347 and annual revenue of $34,748. High-performing amenities include Elevator, Boat slip, and Table corner guards, which align with guest preferences.
Big Bear Lake remains a desirable destination for travelers, with high Airbnb demand from cities such as Los Angeles (19.55% of all guests), San Diego (8.72%), and other regions across California.
2. Quick Facts
-
- Chalet Big Bear Lake Investor Potential & Regulation Score: Friendly
-
- Permit Required? Yes
-
- Zoning Restrictions? Yes, vacation rentals are allowed in residential zones and some commercial zones where residential uses are permitted, with specific eligibility criteria based on property types.
-
- Maximum Occupancy: Occupancy is limited to two adults per bedroom, plus two additional guests, with further restrictions based on square footage and a maximum of 16 occupants.
-
- Tax Requirements: Hosts must collect and remit a 7% Transient Occupancy Tax (TOT) and a 2% Tourism Business Improvement District (TBID) fee.
-
- Renewal Frequency: Annually.
-
- Insurance Required? Yes, liability insurance with a minimum coverage of $500,000 per occurrence is mandatory.
-
- Enforcemnet Level: Strict
3. Getting Started with STRs in Big Bear Lake
Step-by-Step Guide:
Step 1: Understand Zoning Laws
Vacation rentals are permitted in designated zones, including single-family residential (R-L and R-1 zones) and certain commercial zones where residential uses are allowed. Properties with Accessory Dwelling Units (ADUs) or those exceeding zoning restrictions are not eligible for vacation rental licenses. For zoning inquiries:
Big Bear Lake Planning Department
-
- Address: 39707 Big Bear Blvd, Big Bear Lake, CA 92315
-
- Phone: (909) 866-5831
-
- Website: City of Big Bear Lake Zoning Map
Step 2: Organize Required Documents
To operate a vacation rental, you must submit:
-
- Proof of property ownership
-
- A valid business license
-
- A Transient Occupancy Tax (TOT) registration certificate
-
- Completed building, fire, and safety inspection documentation
-
- Proof of liability insurance with a minimum coverage of $500,000
Additionally, you must provide notification to neighbors and ensure adherence to the Good Neighbor Policy as outlined by the city.
Step 3: Apply for an STR Permit
Applications for vacation rental licenses must be submitted to the City of Big Bear Lake’s Vacation Rental Program Office. The application process includes completing a registration form and passing an exam designed to ensure understanding of the vacation rental rules and requirements. The license must be displayed at the property and included in all listings.
Big Bear Lake Vacation Rental Program Office
-
- Address: 39707 Big Bear Blvd, Big Bear Lake, CA 92315
-
- Phone: (909) 866-5831
-
- Email: vacationrentals@citybigbearlake.com
Helpful Resources:
-
- Vacation Rental Checklist: View Checklist
-
- Vacation Rental Registration Form: Access Form
-
- Owner & Agent Annual Certification Exam: Access Exam
-
- Good Neighbor Policy and Exam Information: Good Neighbor Policy Details
Applicants must ensure all steps are completed, including the exam, to receive a valid vacation rental license.
Step 4: Health and Safety Compliance
Ensure compliance with health and safety standards, including:
-
- Functional smoke and carbon monoxide detectors
-
- Properly mounted Class 2A:10B fire extinguishers
-
- Emergency escape routes in all bedrooms
-
- Trash management according to city guidelines
Inspections may be conducted during the application or renewal process to verify compliance.
- Trash management according to city guidelines
Step 5: Pay Taxes and Fees
Vacation rental operators must collect and remit a 7% Transient Occupancy Tax (TOT) and a 2% Tourism Business Improvement District (TBID) fee. Taxes must be filed monthly, even if there is no rental activity. For details on TOT and TBID, visit:
Transient Occupancy Tax and TBID Information.
-
- Exam Fee: There is a $25 fee to take the required Good Neighbor Policy exam.
-
- Registration Fee:
-
- The license registration fee varies and is non-refundable. Applicants should confirm the current fee schedule by contacting the Vacation Rental Program Office:
-
- Phone: (909) 866-5831
-
- Email: vacationrentals@citybigbearlake.com
-
- Registration Fee:
8. Regulatory Breakdown
Frequently Asked Questions provide detailed answers to the most common regulatory questions: Big Bear Lake Rental Regulations FAQ.
Example Questions:
-
- Do I need a permit to operate a short-term rental in Big Bear Lake? Yes, to operate a vacation rental in Big Bear Lake, you are required to obtain a current, valid, and active annual license issued by the city.
-
- What are the occupancy limits for STR properties in Big Bear Lake?The occupancy must not exceed two adults per bedroom plus two additional adults, excluding persons under 18 years of age. Additionally, the total number of occupants must not exceed one person per 200 square feet of living space or a maximum of 16 persons, whichever is less.
Local Ordinance Links:
5. Key Considerations for Investors
Investment Potential Regulation Score in Big Bear Lake
Big Bear Lake offers a well-regulated vacation rental market with clear rules, strong enforcement mechanisms, and a cap on the number of licenses, ensuring a balanced approach between tourism and community needs. This regulation-friendly environment makes Big Bear Lake a viable and manageable market for investors.
Regulatory Changes
Recent updates to vacation rental regulations in Big Bear Lake, as outlined in Ordinance No. 2023-518 (effective December 19, 2023), include enhanced penalties for violations, stricter requirements for compliance with the Good Neighbor Policy, and continued enforcement of occupancy, parking, and noise restrictions.
Additionally, the City Council’s adoption of Resolution No. 2023-518 adjusted certain fees and charges related to vacation rentals. While no further updates have been recorded, it is crucial for investors to stay informed through the city’s Vacation Rental Program website to ensure ongoing compliance.
6. Taxes and Financial Obligations
Tax Breakdown:
-
- Tax Breakdown: Vacation rental operators in Big Bear Lake are required to collect and remit a 7% Transient Occupancy Tax (TOT) and a 2% Tourism Business Improvement District (TBID) fee, for a combined total of 9%.
-
- Who Collects the Tax: Operators are responsible for ensuring the collection and remittance of these taxes. Hosting platforms, such as Airbnb and Vrbo, may collect and remit TOT and TBID on behalf of the hosts, but operators must verify compliance to avoid penalties.
-
- Payment Deadlines: Taxes must be remitted monthly to the City of Big Bear Lake, even if there is no rental activity during the reporting period. Late submissions can result in fines or license non-renewal. For more details on tax obligations and remittance procedures, visit Transient Occupancy Tax and TBID Information.
-
- Insurance Requirements: All vacation rental operators must maintain liability insurance with a minimum coverage of $500,000 per occurrence to comply with city regulations. This ensures protection against potential claims or liabilities associated with vacation rental operations.
7. How Chalet Can Help
-
- Local Realtor Partnerships
-
- Chalet’s Regulation Updates: Chalet email subscribers receive updates regarding regulatory changes in cities.
-
- Connect with Local Experts
Recommended Tools and Resources
-
- Chalet STR Market Insights Tool
Chalet offers a free market analytics tool that allows investors to explore detailed data on occupancy rates, average daily rates, revenue estimates, and market trends for specific cities. This tool helps investors make informed decisions based on comprehensive insights. Access the STR Market Insights Tool. - Airbnb Income Guide
Investors can dive into this guide to better understand how to maximize income from STRs. It covers critical aspects such as dynamic pricing, guest management, and how to boost profitability through effective listing strategies. Read the Comprehensive Guide to Airbnb Income. - Chalet Investor Guides
These investor guides provide city-specific insights, including tax obligations, regulations, investment potential, and detailed market data. Investors can select from over 200 city guides to find data tailored to their target market. Explore Investor Guides. - AI-Powered Market Comparison Dashboard
Chalet’s market comparison dashboard offers a powerful tool for comparing different STR markets based on yield, occupancy rates, and other key performance indicators. This tool is particularly useful for investors looking to diversify across different regions. Check out the Market Dashboard - Chalet STR Calculator
The Chalet STR Calculator is a powerful tool designed to help short-term rental investors evaluate potential property performance with ease. It enables users to estimate revenue, analyze expenses, and project profitability for any STR market, streamlining investment decisions. Whether you’re comparing properties or exploring new opportunities, the Chalet STR Calculator simplifies the process with precision. Learn more about the Chalet STR Calculator.
- Chalet STR Market Insights Tool
DISCLAIMER: The information provided in these guides is for entertainment and general informational purposes only. It may not reflect the most up-to-date regulations, and Chalet is not responsible for any inaccuracies or changes to the information on third-party sites. These guides are not legal advice. We highly recommend verifying details directly with local authorities and consulting professionals before making any investment decisions. Ultimately, it is your responsibility as an investor to ensure compliance with local laws.
