The Big Bear Dream
Vacation rentals have been a popular lodging choice in Big Bear for decades. What was once a cottage industry with just a handful of players has turned into one of the most competitive vacation rental markets in all of California. With the advent of the internet the Big Bear vacation rental market has exploded into a $20 million industry generating over $1.2 million in occupancy taxes. The City of Big Bear Lake has 1,059 approved rentals and another 300 properties on the waiting list.
The story of vacation rentals in Big Bear has had its rough moments. In 2007 a group of motel and B&B owners tried unsuccessfully to force vacation rentals out of business. Citing unfair advantages, the opposition group had hoped to convince the City of Big Bear Lake that private rentals were in fact small businesses and that each property should have to obtain a business license and conform to same strict rules that public properties and commercial businesses must follow. They also argued that the Jacuzzi’s that property owners provide for their guests should be subject to the same health codes that public pools and spas must follow.
The City of Big Bear Lake decided that vacations rentals were too important to the local economy and that the best course of action was to develop a local ordinance (99-300) that property owners and managers must follow. The ordinance requires owners and managers to pay a registration fee ($175.00) and have the property inspected for safety and health risks. Big Bear is now a model for other communities trying to regulate their own vacation rental industry.
Vacation rentals are private property and labeling them as commercial businesses would infringe on property rights. The best way to protect those property rights is to collect and pay the transient occupancy tax that the city requires. The guests pay the tax and the property owner simply has to forward the funds to the city. Transient occupancy taxes, registrations, and inspections are now the law and mangers could lose their business license and property owners face stiff fines if caught renting illegally.
Visitors to Big Bear have been staying in vacation rentals for as long as there’s been a way to get here. The local rental market has grown into one of the most popular lodging choices in California and it’s important that everyone follow the rules and protect our rights. For more information on Big Bear Lake’s rental ordinance, contact Cathy Hernandez at 909-866-5831 x122.
If you’re interested in entering the vacation rental market or would like to discuss how to make your existing rental property reach its full potential give Doug Meeder a call at 909-856-2124.