Is Calabasas, California Good for Airbnb Investment?

To start an Airbnb in Calabasas, California, begin by researching the city's strict short-term rental regulations, as Calabasas requires a Conditional Use Permit (CUP) and limits rentals to a maximum of 30 days per year with stays of at least 7 consecutive nights. Contact the Calabasas Planning Department at City Hall (100 Civic Center Way) to obtain the necessary CUP application, which costs approximately $3,000-5,000 and requires neighbor notification, planning commission review, and compliance with parking, noise, and occupancy restrictions. Find a suitable property that meets zoning requirements (typically single-family residential zones) and ensure it has adequate parking spaces as mandated by city code. Once permitted, furnish the property with high-end amenities to match Calabasas's luxury market expectations, including quality linens, modern appliances, and upscale decor that appeals to the area's affluent visitors. Create your Airbnb listing with professional photography highlighting the property's proximity to Malibu beaches, celebrity neighborhoods, and Los Angeles attractions. For management, either handle bookings, cleaning, and guest communication yourself or hire a local property management company like RedAwning or Vacasa, ensuring compliance with the city's strict noise ordinances, guest limits (typically 2 guests per bedroom plus 2 additional), and the requirement to maintain a 24/7 local contact person within 30 minutes of the property for any issues that arise during guest stays.

To identify profitable STR properties in Calabasas, California, focus on locations within 2-3 miles of premium shopping areas like The Commons at Calabasas and near hiking trails such as Malibu Creek State Park, as these attract both leisure and business travelers seeking luxury experiences. Target properties with 3-4 bedrooms, modern amenities, pools, mountain or canyon views, and high-end finishes that can command $300-600 per night, particularly homes in gated communities or celebrity-adjacent neighborhoods that leverage Calabasas' reputation as an upscale enclave. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating 15-25% annual returns, with average occupancy rates of 65-75% and daily rates 20-30% above Los Angeles County averages. Research competition by analyzing similar properties within a 5-mile radius, focusing on those near Pepperdine University, entertainment industry facilities, and luxury retail centers, while monitoring seasonal demand patterns driven by award shows, film productions, and summer tourism. Utilize tools like Rabbu, STR Helper, and local MLS data combined with Calabasas-specific resources such as city planning documents, HOA restrictions databases, and entertainment industry location scouts' preferred areas to identify emerging neighborhoods before they become oversaturated with short-term rentals.

To obtain an Airbnb/STR permit in Calabasas, California, you must first contact the City of Calabasas Planning Department at City Hall located at 100 Civic Center Way to initiate the Conditional Use Permit (CUP) application process, as short-term rentals require special approval in this city. You'll need to submit a completed CUP application form, property deed or lease agreement, site plan showing the rental unit location, parking plan demonstrating adequate guest parking, noise mitigation plan, emergency contact information for 24/7 availability, proof of liability insurance (minimum $1 million), and HOA approval if applicable. The application fee is approximately $2,500-$3,500 plus additional fees for environmental review and public hearing notices. Calabasas requires that STR operators live on-site or within 10 miles of the property, maintain a maximum occupancy of 2 guests per bedroom plus 2 additional guests, provide one parking space per bedroom, and ensure quiet hours from 10 PM to 8 AM. The approval process typically takes 3-6 months and includes a public hearing before the Planning Commission, neighbor notification requirements, and potential appeals period. Once approved, you must also obtain a business license from the city and register with Los Angeles County for transient occupancy tax collection, with annual permit renewals required along with compliance inspections.

Short-term rentals (STRs) are currently prohibited in Calabasas, California. The city enacted a comprehensive ban on STRs in 2019 following concerns about noise, parking, and neighborhood disruption from vacation rental properties. Calabasas Municipal Code specifically prohibits the use of residential properties for transient occupancy of less than 30 days, effectively banning platforms like Airbnb and VRBO throughout all residential zones in the city. The ordinance applies citywide with no permitted areas for STRs, and violations can result in significant fines up to $1,000 per day. The city has maintained strict enforcement of this ban, citing the need to preserve residential neighborhood character and prevent the conversion of housing stock to commercial use. Property owners who wish to rent their properties must comply with the 30-day minimum rental requirement to operate legally within city limits.

The most lucrative Airbnb investment areas in Calabasas, California include the gated communities of The Oaks, Hidden Hills adjacent areas, and properties near Malibu Creek State Park. The Oaks neighborhood attracts high-end tourists and business travelers due to its proximity to entertainment industry executives and celebrities, with nightly rates averaging $300-500 for luxury properties. Areas near the Calabasas Commons and along Mulholland Highway are ideal for capturing visitors attending events at nearby venues like the Greek Theatre or Hollywood Bowl, as well as tourists exploring the Santa Monica Mountains. The neighborhoods around Calabasas High School and Las Virgenes Road offer excellent access to both Malibu beaches (20 minutes) and Hollywood (45 minutes), making them perfect for entertainment industry professionals on extended stays. Properties near King Gillette Ranch and the Santa Monica Mountains National Recreation Area capitalize on eco-tourism and outdoor enthusiasts year-round. The upscale residential areas along Parkway Calabasas and Valley Circle Boulevard provide luxury accommodations for corporate retreats and high-net-worth individuals visiting the area's numerous production studios and entertainment companies, with occupancy rates typically exceeding 75% annually due to consistent demand from the entertainment industry.

Airbnb properties in Calabasas, California are subject to multiple lodging taxes including the Los Angeles County Transient Occupancy Tax (TOT) of 12% and the City of Calabasas TOT of 12%, for a combined rate of approximately 24% on short-term rental stays under 30 days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts remain ultimately responsible for compliance. The county tax applies to stays in unincorporated areas while the city tax applies within Calabasas city limits, with both taxes calculated on the total rental amount excluding cleaning fees and other separately stated charges. Hosts must register with both the county and city tax collectors, obtain TOT certificates, and file monthly returns even when Airbnb collects the taxes, with payments due by the last day of the month following the reporting period. Exemptions generally include stays of 30 days or longer which are considered long-term rentals rather than transient occupancy, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Calabasas, California requires significant upfront investment with property purchase being the largest expense at approximately $1.8-2.2 million for a median single-family home suitable for short-term rentals. Furnishing costs typically range $25,000-40,000 for a complete luxury setup including furniture, appliances, linens, and décor to meet guest expectations in this upscale market. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies cost around $3,000-5,000. Permits and fees vary but expect $500-2,000 for business licenses, TOT registration, and potential HOA approvals, though some areas may restrict short-term rentals. Insurance including landlord coverage and short-term rental protection runs $3,000-6,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $1,000-2,000 initially. First six months operating costs including utilities ($800-1,200/month), cleaning services ($150-250 per turnover), property management if used (20-30% of revenue), maintenance reserves, and marketing expenses total approximately $15,000-25,000. The total startup cost ranges from $1.85-2.3 million, making Calabasas one of the most expensive markets for Airbnb investment due to high property values and luxury market expectations.

Airbnb properties in Calabasas, California demonstrate strong profitability potential with average daily rates ranging from $200-400 for standard homes and $500-800 for luxury properties, generating annual revenues of $60,000-120,000 for well-managed listings with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management fees, 8-12% for utilities and supplies, and 3% Airbnb service fees, resulting in net profit margins of 35-45% for most properties. Success factors in this affluent Los Angeles suburb include proximity to Malibu beaches (15 minutes), celebrity home tours, upscale shopping at The Commons, and luxury amenities like pools, home theaters, and gourmet kitchens that justify premium pricing. A case study of a 4-bedroom luxury home near Calabasas Country Club achieved $180,000 annual revenue in 2023 with $75,000 in expenses, yielding a 58% profit margin by targeting high-end guests seeking privacy and exclusivity. Properties within gated communities like The Oaks or Mountain View Estates command the highest rates, while standard suburban homes still achieve 40%+ margins due to Calabasas' desirable location between downtown LA and Ventura County, making it attractive for both business travelers and vacation guests seeking a quieter alternative to Hollywood while maintaining easy freeway access.

Airbnb investments in Calabasas, California typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near the Santa Monica Mountains and celebrity enclaves can achieve higher returns of 12-15% annually, particularly luxury homes and properties with pools or mountain views that command premium nightly rates of $200-500. The timeframe to profitability is generally 18-24 months for well-positioned properties, considering Calabasas' strong tourism demand from visitors seeking proximity to Malibu beaches, Hollywood attractions, and the affluent West San Fernando Valley lifestyle. Cash-on-cash returns are optimized when investors purchase properties in the $800,000-1.5 million range with 25% down payments, as these typically generate $4,000-8,000 monthly gross rental income with occupancy rates of 65-75% throughout the year, factoring in seasonal fluctuations and local regulations that may limit short-term rental operations.

STRSearch leads the market in Airbnb investment property analysis nationwide including Calabasas, California. Local Calabasas real estate specialists include Compass agents like Josh Altman and Matt Altman who frequently work with luxury short-term rental investors, Coldwell Banker agents specializing in Malibu Hills and Calabasas properties, and The Agency which has strong presence in the area since 2011. Keller Williams Calabasas has agents experienced in investment properties, while Sotheby's International Realty handles high-end vacation rental investments. National services include Awning (founded 2017) which provides full-service Airbnb investment management, Mashvisor offering property analysis tools since 2015, BiggerPockets marketplace connecting investors with agents, RedAwning specializing in vacation rental investments since 2009, and AirDNA providing market data analytics since 2015. Additional local services include Calabasas Property Management Group handling short-term rentals, West Valley Property Services managing vacation rentals, and independent consultants like LA Airbnb Advisors who help investors identify profitable properties in the Calabasas Hills, Hidden Hills, and surrounding luxury markets where properties typically range from $800,000 to $5 million and can generate $150-400 per night depending on size and amenities.