Is Markleeville, California Good for Airbnb Investment?

To start an Airbnb in Markleeville, California, begin by researching Alpine County's short-term rental regulations, which typically require a business license and transient occupancy tax registration, as the county has been implementing stricter oversight since 2020-2022. Contact Alpine County Planning Department to obtain necessary permits, including a short-term rental permit and ensure compliance with fire safety and health department requirements. Find a suitable property by working with local real estate agents familiar with Markleeville's market, focusing on properties near Lake Tahoe attractions or downtown areas, with average property prices ranging $400,000-$800,000. Furnish the property with mountain-appropriate amenities including heating systems for winter months, outdoor gear storage, and rustic-modern décor appealing to tourists visiting for skiing, hiking, and lake activities. Create your Airbnb listing with professional photos highlighting proximity to Lake Tahoe (15 miles), Grover Hot Springs State Park, and seasonal activities, pricing competitively at approximately $150-300 per night depending on size and season. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Tahoe Mountain Lodging or similar regional operators, while maintaining 24/7 guest communication and coordinating with Alpine County's 10-12% transient occupancy tax collection requirements.

To identify profitable short-term rental properties in Markleeville, California, focus on properties within walking distance of the Carson River for fishing access and near Highway 89/88 corridors connecting to Lake Tahoe (30 minutes away), as this small Alpine County town of roughly 200 residents attracts outdoor enthusiasts year-round. Target 2-4 bedroom cabins or mountain homes with rustic charm, fireplaces, outdoor spaces, and modern amenities like high-speed internet, as guests seek authentic mountain experiences while maintaining connectivity. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby South Lake Tahoe ($150-400/night range), adjusting downward for Markleeville's smaller market size while capitalizing on lower competition and acquisition costs. Research the limited existing STR inventory through Airbnb, VRBO, and local property management companies like Tahoe Mountain Lodging to identify gaps in amenities or property types. Utilize tools like Rabbu, STR Helper, and local Alpine County permit databases to understand regulations, while leveraging relationships with Coldwell Banker or RE/MAX agents familiar with the Eastern Sierra market to identify off-market opportunities in this niche destination that benefits from Tahoe overflow during peak seasons and attracts fishing, hiking, and hot springs visitors year-round.

To obtain an Airbnb/STR permit in Markleeville, California, you must apply through Alpine County's Planning Department since Markleeville is an unincorporated community in Alpine County. Contact the Alpine County Planning Department at 50 Diamond Valley Road, Markleeville, CA 96120, or call (530) 694-2140 to begin the application process. Required documents typically include a completed short-term rental application, proof of property ownership or authorization from owner, site plan showing parking areas, septic system compliance certificate, fire safety inspection report, and liability insurance documentation of at least $1 million. The application fee is estimated at $200-400 with additional inspection fees of approximately $150-250. You must also obtain a business license from Alpine County (around $50-100 annually) and register for transient occupancy tax collection. Specific Markleeville requirements include compliance with septic system regulations due to the rural setting, adequate off-street parking (minimum 2 spaces), fire safety measures including smoke detectors and fire extinguishers, and adherence to noise ordinances to protect the small community atmosphere. The approval timeline typically takes 4-8 weeks depending on inspection scheduling and document completeness. Once approved, you must display your permit number in all advertising and remit transient occupancy taxes quarterly to Alpine County.

Short-term rentals (STRs) in Markleeville, California are subject to Alpine County regulations, as this small unincorporated community falls under county jurisdiction rather than having its own municipal ordinances. Alpine County generally allows STRs but requires operators to obtain a transient occupancy permit and comply with health department regulations, fire safety standards, and noise ordinances. The county imposes transient occupancy tax (TOT) on short-term rentals, typically around 10-12%, and requires properties to meet specific safety requirements including smoke detectors, carbon monoxide detectors, and adequate septic systems. Given Markleeville's location in a rural mountain area near the Nevada border, additional restrictions may apply regarding water usage, septic capacity, and wildfire safety measures. Recent changes in California state law (around 2021-2022) have given local jurisdictions more authority to regulate STRs, but Alpine County has maintained a relatively permissive approach while emphasizing compliance with existing health and safety codes. Property owners must register with the county, maintain liability insurance, and ensure their septic systems can handle increased occupancy loads, which is particularly important in this rural area where most properties rely on individual septic systems rather than municipal sewer connections.

The best areas for Airbnb investment in Markleeville, California are concentrated around the historic downtown district near Hot Springs Road and Highway 89, which attracts tourists year-round due to Grover Hot Springs State Park and serves as a gateway to Lake Tahoe recreation. The residential areas along Markleeville Creek offer scenic mountain views and proximity to hiking trails, appealing to outdoor enthusiasts visiting for fishing, camping, and winter sports at nearby ski resorts like Kirkwood and Heavenly. Properties near the Markleeville General Store and along Highway 4 toward Monitor Pass capture visitors attending the annual Markleeville Death Ride cycling event each July, which brings thousands of participants and spectators. The Hot Springs Creek area provides a more secluded setting while maintaining access to the natural hot springs, attracting wellness tourists and couples seeking romantic getaways. Areas closer to the Alpine County courthouse and government buildings can capture some business travel, though leisure tourism dominates the market with peak seasons during summer hiking months and winter ski season.

Airbnb properties in Markleeville, California are subject to California state transient occupancy tax at 14% for stays under 30 days, collected by the state since 2019. Alpine County, where Markleeville is located, imposes an additional transient occupancy tax of approximately 10-12% on short-term rentals, which hosts must collect from guests and remit quarterly to the Alpine County Treasurer's office by the 15th of the month following each quarter. The town of Markleeville may impose its own local TOT of around 8-10%, bringing the total tax burden to approximately 32-36% of the nightly rate. Airbnb automatically collects and remits state taxes but hosts are typically responsible for collecting and paying county and local taxes directly. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may exempt stays by government employees or certain non-profit organizations, though documentation is required for exemptions.

To start an Airbnb in Markleeville, California, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 for a median 2-3 bedroom mountain cabin suitable for short-term rentals in this small Alpine County town. Furnishing costs will run $25,000-$35,000 for quality mountain lodge-style furniture, bedding, kitchen essentials, and outdoor equipment appropriate for the area's recreational tourism. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,000. Permits and fees total $3,000-$5,000 covering business license, transient occupancy tax registration, and potential homeowner association approvals. Insurance including short-term rental coverage and liability protection costs $3,500-$5,000 annually. Utility setup and deposits for electricity, propane, internet, and waste management require $2,000-$3,000. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($2,000), property management software ($300), and marketing ($1,500) total approximately $9,200, bringing the complete startup investment to roughly $650,000-$750,000 depending on property condition and furnishing choices.

Airbnb properties in Markleeville, California show moderate profitability potential with average daily rates ranging from $150-250 during peak seasons (summer/fall) due to its proximity to Lake Tahoe recreational activities and Alpine County's scenic attractions. Properties typically generate $35,000-55,000 in annual gross revenue, with expenses including property management (10-15%), cleaning fees ($75-100 per turnover), utilities ($200-300/month), insurance ($1,500-2,500 annually), and maintenance costs averaging 15-20% of revenue. Net profit margins generally range from 25-40% for well-managed properties, with success factors including proximity to outdoor recreation areas like Grover Hot Springs State Park, quality furnishings targeting outdoor enthusiasts, and strategic pricing during peak seasons when visitors come for hiking, fishing, and hot springs activities. Properties within walking distance of downtown Markleeville or offering mountain views command premium rates, while those requiring significant upfront renovations may see reduced first-year profitability. The market benefits from limited hotel inventory in the area, creating strong demand for short-term rentals, though seasonal fluctuations mean winter months typically see 40-60% lower occupancy rates compared to summer peaks.

Airbnb investments in Markleeville, California typically generate annual ROI of 12-18% due to the town's proximity to Lake Tahoe recreation areas and limited lodging options in this small Alpine County community. Cash-on-cash returns generally range from 8-14% annually, with seasonal peaks during summer months (June-September) and winter ski season driving occupancy rates of 65-75%. Properties in Markleeville, particularly cabins and mountain homes within 20 miles of ski resorts, typically reach profitability within 18-24 months of initial investment, with average daily rates of $180-280 depending on property size and amenities. The market benefits from year-round tourism to nearby Grover Hot Springs State Park and outdoor recreation activities, though investors should expect higher maintenance costs due to mountain weather conditions and the remote location requiring property management fees of 20-25% of gross rental income.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Markleeville, California. Local real estate agents specializing in vacation rental investments include Sierra Nevada Properties and Tahoe Mountain Realty, both established around 2015-2018, who understand the unique zoning and permit requirements for short-term rentals in Alpine County. National services like Awning (founded 2020), Mashvisor (2014), and AirDNA (2015) offer market analysis and property identification tools specifically for Airbnb investors targeting mountain resort markets like Markleeville. RedAwning Property Management and Vacasa provide full-service property management for investors, while local firms such as Alpine Vacation Rentals and Sierra Escapes Management handle day-to-day operations for short-term rental properties. BiggerPockets marketplace and Roofstock also feature investment properties suitable for Airbnb conversion in the greater Lake Tahoe region, and specialized consultants like STR Wealth and Short Term Rental University offer coaching services for investors looking to enter the Markleeville market, which benefits from proximity to Lake Tahoe recreation and seasonal tourism demand.