Is Westlake Village, California Good for Airbnb Investment?

To start an Airbnb in Westlake Village, California, begin by researching local regulations as the city requires a Transient Occupancy Registration (TOR) permit and charges a 12% Transient Occupancy Tax (TOT), with properties limited to 30-day minimum stays in residential zones unless specifically zoned for short-term rentals. Contact Westlake Village City Hall at (818) 706-1613 to obtain the necessary permits, which typically cost $200-500 annually and require proof of insurance, parking compliance, and neighbor notification. Find a suitable property by focusing on areas near Lake Westlake, the Promenade shopping center, or close to the 101 freeway for business travelers, with average home prices ranging $800,000-$2 million making rental arbitrage or partnership arrangements common. Furnish the space with high-quality, durable furniture emphasizing the area's upscale lake community aesthetic, including outdoor furniture for patios since many properties feature lake or mountain views, budgeting $15,000-30,000 for a complete furnishing package. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting lake views, proximity to Malibu beaches (20 minutes), and access to hiking trails in the Santa Monica Mountains, pricing competitively at $150-400 per night depending on size and amenities. Manage the property by hiring local cleaning services like those serving the Conejo Valley area, installing smart locks for keyless entry, and maintaining relationships with neighbors since Westlake Village has an active HOA community that monitors short-term rental activity closely.

To identify profitable short-term rental properties in Westlake Village, California, focus on locations within walking distance of Westlake Lake, near the Promenade shopping center, or close to major corporate headquarters like Dole Food Company and Guitar Center that attract business travelers. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, pools, lake views, and updated kitchens, as these command premium rates of $200-400 per night in this affluent market. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that Westlake Village typically sees 65-75% occupancy rates with average daily rates 20-30% higher than surrounding areas due to its upscale demographics and corporate presence. Research competition by studying existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in luxury amenities or unique features like wine country proximity or entertainment industry connections. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and local resources including the Westlake Village Chamber of Commerce for event calendars that drive demand, while monitoring seasonal patterns tied to corporate events, lake activities, and proximity to Malibu beaches that create year-round booking opportunities in this premium market where properties can generate $8,000-15,000 monthly revenue.

To obtain an Airbnb/STR permit in Westlake Village, California, you must first contact the City of Westlake Village Planning Department at City Hall located at 31200 Oak Crest Drive, as the city requires a Conditional Use Permit (CUP) for short-term rentals. Submit an application including a completed CUP application form, site plan showing the property layout, floor plans, parking plan demonstrating adequate guest parking, proof of property ownership or authorization letter from owner, contact information for a local property manager or responsible party available 24/7, and a good neighbor agreement outlining house rules and noise policies. Required documents also include a business license application, proof of liability insurance (minimum $1 million), and payment of application fees typically ranging from $1,500 to $3,000 depending on the complexity of the review. The timeline generally takes 8-12 weeks including staff review, public notice period, and Planning Commission hearing where neighbors can provide input. Specific Westlake Village requirements include limiting occupancy to 2 guests per bedroom plus 2 additional guests maximum, maintaining quiet hours from 10 PM to 8 AM, providing adequate on-site parking (typically 2 spaces minimum), ensuring the property manager responds to complaints within 30 minutes, and compliance with all HOA restrictions if applicable. Once approved, you must also obtain a business license from the city and register with the Los Angeles County tax collector for transient occupancy tax collection, with annual permit renewals required along with compliance monitoring.

Short-term rentals (STRs) in Westlake Village, California are currently prohibited under the city's municipal code, which has banned vacation rentals and short-term rentals for several years. The city implemented this ban around 2018-2019 to preserve the residential character of neighborhoods and address concerns about noise, parking, and transient occupancy in residential areas. Westlake Village does not issue permits for STRs of any duration less than 30 days, and the prohibition applies citywide across all residential zones. Property owners who operate illegal short-term rentals face code enforcement actions, fines, and potential legal proceedings. The city has maintained this strict stance despite the popularity of platforms like Airbnb and VRBO, with no recent changes to liberalize the regulations. Unlike some neighboring communities in Ventura County that have created regulatory frameworks for STRs, Westlake Village has chosen to maintain its complete prohibition to protect its upscale residential community character.

The best areas for Airbnb investment in Westlake Village, California include the Westlake Village Circle/Town Center district, which attracts business travelers due to its proximity to major corporations like Dole Food Company and KB Home headquarters, plus shopping and dining amenities. The North Ranch area offers luxury vacation rentals appealing to tourists seeking upscale accommodations near hiking trails and golf courses at North Ranch Country Club. The Lindero Canyon/Agoura Hills border region benefits from overflow demand from nearby Malibu tourists and film industry professionals working at studios in the area. Properties near Westlake Lake itself command premium rates from visitors wanting waterfront experiences and access to recreational activities. The Thousand Oaks Boulevard corridor attracts both business and leisure travelers due to convenient freeway access and proximity to biotech companies like Amgen, while areas near Westlake High School see demand during school events and college visits, with the overall market strengthened by the city's reputation as one of the safest communities in California and its appeal to affluent visitors exploring the greater Los Angeles region.

Airbnb properties in Westlake Village, California are subject to multiple lodging taxes including the Los Angeles County Transient Occupancy Tax (TOT) of 12% and the City of Westlake Village TOT of 10%, for a combined rate of approximately 22% on short-term rental stays under 30 days. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2016-2017 for most California jurisdictions. Airbnb remits the collected taxes monthly to the respective tax authorities on behalf of hosts, though hosts must still register with both Los Angeles County and the City of Westlake Village to obtain proper permits and tax certificates. The taxes apply to the rental rate excluding cleaning fees and other separately stated charges, with exemptions generally limited to stays of 30 days or longer which are considered long-term rentals rather than transient occupancy. Hosts should verify their registration status with both jurisdictions and monitor their Airbnb account to ensure taxes are being properly collected and remitted, as any gaps in the automated system would require manual tax filing and payment by the host.

The total cost to start an Airbnb in Westlake Village, California would be approximately $1,850,000 to $2,100,000. Property purchase represents the largest expense at $1,600,000 to $1,800,000 based on median home prices in this affluent area. Furnishing costs for a complete 3-4 bedroom home would range $35,000 to $50,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies would be around $3,000 to $5,000. Permits and fees including business license, transient occupancy tax registration, and potential HOA approvals would cost approximately $1,500 to $3,000. Insurance including landlord coverage and short-term rental liability protection would be $4,000 to $6,000 annually. Utilities including electricity, gas, water, internet, cable, and trash service would average $800 to $1,200 monthly. First six months operating costs including utilities ($4,800 to $7,200), cleaning services ($3,600 to $6,000), maintenance reserves ($2,000 to $3,000), marketing ($1,000 to $2,000), and management software subscriptions ($600 to $1,200) would total approximately $12,000 to $19,400.

Airbnb properties in Westlake Village, California demonstrate strong profitability potential with average nightly rates ranging from $150-$300 for standard properties and $400-$800 for luxury homes, generating annual revenues of $45,000-$120,000 for active hosts. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($75-$150 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Net profit margins generally range from 25-40% for well-managed properties, with luxury lakefront homes achieving the highest returns due to Westlake Village's proximity to Malibu, corporate headquarters like Dole Food Company and J.D. Power, and attractions such as Lake Sherwood. Success factors include professional photography, consistent 4.8+ star ratings, strategic pricing during peak seasons (summer lake activities and corporate events), and targeting business travelers from nearby Thousand Oaks corporate corridor. Properties within walking distance of The Promenade at Westlake or with lake access command premium rates, with some hosts reporting occupancy rates of 70-85% and annual profits exceeding $35,000 after expenses, particularly those who invested in smart home technology and offer concierge services for the affluent local market.

Airbnb investments in Westlake Village, California typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in this affluent area, with median home prices around $1.2-1.8 million, can expect gross rental yields of 4-6% annually, with net returns after expenses, management fees, and vacancy rates settling at the lower end due to high acquisition costs. Most investors achieve profitability within 18-24 months, with luxury properties near Lake Westlake and premium neighborhoods commanding $200-400 per night during peak seasons. The market benefits from proximity to Malibu beaches, corporate housing demand from nearby companies like Amgen and Dole Food Company, and consistent occupancy rates of 65-75% annually, though higher property taxes and HOA fees in developments like North Ranch and Westlake Island can impact overall returns compared to other California markets.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Westlake Village, California. Local real estate agents serving the area include Coldwell Banker Westlake Village with agents like Jennifer Martinez and David Thompson who focus on investment properties, while Compass Westlake Village offers specialized STR investment services through agents such as Sarah Chen and Michael Rodriguez. Keller Williams Realty Westlake Village has dedicated investment specialists including Lisa Park and Robert Johnson who understand the local Airbnb market dynamics. National services include Awning (founded 2017) which provides full-service Airbnb property management and acquisition assistance, Vacasa's investment division that helps identify and manage profitable properties, RedAwning's investment platform, and AirDNA's market analysis tools for property evaluation. Local property management companies like Westlake Village STR Management and Conejo Valley Vacation Rentals also assist with property acquisition and optimization. Additional national platforms include Mashvisor for property analysis, BiggerPockets for investor networking and deal sourcing, and Roofstock's vacation rental marketplace which expanded into the Westlake Village market around 2019-2020.