Airbnb Riverside, California: Market Data, Laws & Investor Guide

Riverside, California is emerging as a top destination for savvy Airbnb entrepreneurs in 2024. With its prime location, growing tourism industry, and favorable regulatory environment, Riverside offers a golden opportunity to launch a profitable short-term rental business.

Situated just 60 miles east of Los Angeles, Riverside benefits from its proximity to major attractions like Disneyland and Hollywood while maintaining a laid-back, affordable atmosphere that appeals to a wide range of travelers. In fact, Riverside County welcomed a record 25.2 million visitors in 2023, generating over $8 billion in tourism spending.

As travel rebounds post-pandemic, Riverside is poised for continued growth. Airbnb occupancy rates in the city surged to 72% in Q2 2024, outpacing the national average by 8%. Meanwhile, the average daily rate for Riverside listings climbed to $142, providing healthy margins for hosts.

Riverside's short-term rental market is also supported by a friendly regulatory landscape. While some California cities have cracked down on Airbnb, Riverside has taken a more balanced approach, with sensible regulations that protect neighborhoods while still allowing responsible hosting.

• Strategic Location: Riverside's location in the heart of Southern California's Inland Empire makes it an attractive base for exploring the region's top attractions. Within a 90-minute drive, guests can access theme parks, beaches, mountain resorts, and vibrant city centers.
• Diverse Attractions: The city itself boasts an array of visitor draws, from the historic Mission Inn Hotel & Spa to the Riverside Art Museum and the lively Downtown entertainment district. This diverse appeal caters to a broad guest demographic.
• Growing Tourism Numbers: Riverside County's tourism industry is on a strong growth trajectory, with visitor spending projected to increase by 15% in 2024. More tourists mean higher occupancy rates and revenue potential for Airbnb hosts.
• Favorable Regulatory Climate: While some cities have restricted short-term rentals, Riverside has taken a more supportive stance. The city's balanced short-term rental ordinance, passed in 2022, provides clear guidelines for hosts while preserving the character of residential neighborhoods.

Riverside Short-Term Rental Market Analysis

Riverside's short-term rental market has shown steady growth over the past two years. Here are some key metrics and trends:

Occupancy Rate:

1. In 2024, the average Airbnb occupancy rate in Riverside is 61%, up from 58% in 2023.
2. The best performing listings can achieve occupancy rates between 64% and 74%.

Average Daily Rate (ADR):

1. The average daily rate for Airbnb listings in Riverside is $116 in 2024, a 7.4% increase from $108 in 2023.
2. Riverside's ADR is lower than the national average of $142, providing a more affordable option for travelers.

Airbnb Seasonality:

1. Riverside experiences moderate seasonality, with a Seasonality score of 81 out of 100.
2. The peak travel months are typically June through August, coinciding with summer vacations.

Market Growth:

1. Riverside County's tourism industry generated over $8 billion in visitor spending in 2023, a record high.
2. The number of Airbnb listings in Riverside grew by 3% year-over-year, reaching 952 active listings in 2024.
3. Riverside County is projected to add 68,000 new jobs between 2024 and 2028, with tourism as a key growth driver.

Key Events and Festivals:

1. Riverside Lunar Festival (January 27-28, 2024)
2. Riverside County Fair & National Date Festival (February)
3. Riverside Dickens Festival (February)
4. Riverside International Film Festival (April)
5. Riverside Arts Walk (First Thursday of each month)

Booking Durations and Mid-Term Rentals:

According to Airbnb host forums, typical booking durations in Riverside range from 2-3 nights for weekend getaways to 7+ nights for longer vacations. The mid-term rental market (stays of 30+ days) is also strong, with 46.6% of listings offering monthly discounts. This trend is driven by traveling professionals, students, and those seeking temporary housing.

In summary, Riverside's short-term rental market is experiencing healthy growth, fueled by its affordable prices, proximity to major attractions, and a thriving tourism industry. With a diverse mix of short and mid-term stay options, Riverside presents an attractive opportunity for Airbnb hosts looking to tap into this expanding market.

Best Neighborhoods in Riverside for an Airbnb Business

When starting an Airbnb business in Riverside, location is key. Hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. Here are the top 5 neighborhoods in Riverside for launching a successful Airbnb:

1. Downtown Riverside

As the heart of the city, Downtown Riverside offers a prime location for Airbnb hosts. With its vibrant arts scene, historic architecture, and diverse dining options, this neighborhood attracts a steady stream of visitors.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $135
3. Airbnb Seasonality: High (75/100)
4. Estimated Annual Revenue: $33,500

Housing Prices:

1. Median Single-Family Home Price: $580,000
2. Median Condo Price: $320,000
3. Best Performing Listing Type: 2-bedroom units

2. Canyon Crest

Situated near the University of California, Riverside, Canyon Crest is a popular choice for visiting families, academics, and students. The neighborhood's proximity to hiking trails and scenic views adds to its appeal.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $110
3. Airbnb Seasonality: Moderate (65/100)
4. Estimated Annual Revenue: $24,900

Housing Prices:

• Median Single-Family Home Price: $750,000
• Median Townhouse Price: $450,000
• Best Performing Listing Type: 3-bedroom units

3. Magnolia Center

Known for its historic homes and tree-lined streets, Magnolia Center offers a charming setting for Airbnb guests. The neighborhood's central location provides easy access to Riverside's top attractions.

• Average Occupancy Rate: 60%
• Average Daily Rate: $100
• Airbnb Seasonality: Moderate (60/100)
• Estimated Annual Revenue: $21,900

Housing Prices:

• Median Single-Family Home Price: $500,000
• Median Duplex Price: $400,000
• Best Performing Listing Type: 1-bedroom units

4. Mission Grove

Mission Grove's proximity to the Riverside Convention Center and the Galleria at Tyler mall makes it an attractive option for business travelers and shoppers. The neighborhood's quiet residential streets offer a peaceful retreat.

• Average Occupancy Rate: 58%
• Average Daily Rate: $95
• Airbnb Seasonality: Low (55/100)
• Estimated Annual Revenue: $20,100

Housing Prices:

• Median Single-Family Home Price: $550,000
• Median Condo Price: $280,000
• Best Performing Listing Type: Studio units

5. Orangecrest

Orangecrest's location near the California Citrus State Historic Park and the hiking trails of Sycamore Canyon Wilderness Park appeals to outdoor enthusiasts. The neighborhood's newer homes and amenities attract a diverse range of guests.

• Average Occupancy Rate: 55%
• Average Daily Rate: $120
• Airbnb Seasonality: Moderate (62/100)
• Estimated Annual Revenue: $24,100

Housing Prices:

• Median Single-Family Home Price: $650,000
• Median Townhouse Price: $380,000
• Best Performing Listing Type: 2-bedroom units

By carefully considering these top neighborhoods and their unique characteristics, hosts can position themselves for success in Riverside's thriving Airbnb market. Analyzing the performance metrics and housing prices in each area can help guide investment decisions and optimize rental strategies.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Riverside

To maximize your Airbnb revenue in Riverside, it's crucial to set competitive prices and offer the amenities that guests crave. By analyzing the top-performing listings in the city, we've identified the key factors that contribute to their success.

Setting Competitive Prices

When setting your nightly rate, consider these factors:

• Market Demand: Monitor occupancy rates and adjust your prices based on seasonal fluctuations and local events that drive demand.
• Comparable Listings: Analyze the prices of similar listings in your neighborhood, taking into account factors like size, amenities, and reviews.
• Dynamic Pricing: Utilize dynamic pricing tools to automatically adjust your rates based on market conditions and occupancy trends.
• Length of Stay Discounts: Offer discounts for longer stays to attract guests and reduce turnover costs.

In-Demand Amenities

The most successful Airbnb listings in Riverside offer these sought-after amenities:

• Pool or Hot Tub: Listings with a private pool or hot tub can command significantly higher rates, especially during the summer months. In Riverside, listings with a pool earn an average of 25% more revenue than those without.
• Outdoor Space: Guests value private outdoor areas like patios, balconies, or backyards for relaxing and enjoying Riverside's pleasant weather. Listings with well-maintained outdoor spaces see a 15% boost in occupancy rates.
• High-End Kitchen: A fully-equipped, modern kitchen is a major draw for guests who want to cook their own meals. Listings with upgraded appliances, ample counter space, and a dining area earn an average of 10% more per night.
• Smart Home Features: Tech-savvy guests appreciate smart home amenities like keyless entry, voice-controlled lighting, and smart thermostats. Listings with these features can charge a 5-10% premium.
• Pet-Friendly: Allowing pets can significantly expand your potential guest pool. Pet-friendly listings in Riverside have an occupancy rate that's 8% higher than the city average.

Popular Property Types

In Riverside, these property types are most in-demand:

Single-Family Homes:

• 2-Bedroom: Median Price $550,000, Avg. Monthly Revenue $3,200
• 3-Bedroom: Median Price $650,000, Avg. Monthly Revenue $4,500
• 4-Bedroom: Median Price $800,000, Avg. Monthly Revenue $6,000

Single-family homes are the most popular rental type in Riverside, particularly those with 3 or more bedrooms. These properties offer ample space for families and groups, and often include desirable amenities like yards and garages.

Condos:

1. Studio: Median Price $200,000, Avg. Monthly Revenue $1,500
2. 1-Bedroom: Median Price $300,000, Avg. Monthly Revenue $2,200
3. 2-Bedroom: Median Price $400,000, Avg. Monthly Revenue $3,000

Condos are a more affordable option for Airbnb investors, and they're popular with solo travelers and couples. Well-located condos with updated interiors and community amenities like pools and gyms perform best.

Townhouses:

1. 2-Bedroom: Median Price $450,000, Avg. Monthly Revenue $3,000
2. 3-Bedroom: Median Price $550,000, Avg. Monthly Revenue $4,000

Townhouses offer a happy medium between single-family homes and condos, with multiple levels of living space and small outdoor areas. They're popular with small families and groups of friends.

By offering the right mix of amenities and focusing on in-demand property types, Riverside Airbnb hosts can maximize their revenue potential in this thriving market. Keep a close eye on market trends and guest preferences to stay ahead of the competition and ensure a steady stream of bookings.

Understanding Riverside Short-Term Rental Regulations

Riverside, California has implemented regulations for short-term rentals to ensure a balance between the interests of hosts, guests, and the community. STRs in Riverside are subject to a 10% transient occupancy tax, similar to hotels and motels. Hosts must register their properties with the County Transportation and Land Management Agency and pay associated fees.

The updated ordinance includes occupancy limits based on property size, with a maximum of 10 guests for properties up to half an acre, 16 guests for properties between half an acre and two acres, and 20 guests for properties over two acres. Hosts must also install outdoor noise monitors, observe quiet hours from 10:00 p.m. to 7:00 a.m., and notify neighbors within 300 feet of their rental property.

Several cities within Riverside County have taken additional measures, such as banning STRs (Rancho Mirage), making violations criminal misdemeanors (San Bernardino County), and placing indefinite stays on new STR permits (La Quinta). Hosts in these areas are responsible for collecting and remitting transient occupancy taxes, although Airbnb collects these taxes on behalf of hosts in some jurisdictions.

To start an STR business in Riverside, hosts must research local regulations, register their property, adhere to occupancy limits, install noise monitors, comply with safety regulations, notify neighbors, provide emergency contact information, and fulfill tax obligations. Opinions among Airbnb hosts in Riverside regarding these regulations are mixed, with some appreciating the safety and community benefits, while others find them overly restrictive and burdensome.

Read our full STR regulations guide for more detailed information about Riverside’s short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Riverside Airbnb Host

Launching a successful Airbnb business in Riverside requires more than just a well-located property. To stand out in this competitive market, hosts must create a memorable guest experience, optimize their listings, and navigate the challenges of short-term rental management. In this section, we'll explore the key strategies that top-performing Riverside hosts use to attract guests and maximize their revenue.

Popular Amenities and Design Themes in Riverside

Riverside guests are drawn to listings that showcase the city's unique character and offer amenities that enhance their stay. Some of the most popular design themes and features include:

1. Mid-Century Modern Style: Riverside's rich architectural heritage includes many stunning mid-century modern homes. Highlighting this iconic style in your decor and furnishings can attract design-savvy guests.
2. Outdoor Living Spaces: With its warm climate and scenic beauty, Riverside is perfect for outdoor living. Providing well-appointed patios, decks, or balconies can be a major selling point for guests.
3. Local Artwork: Incorporating artwork from Riverside artists is a great way to add local flavor to your listing and support the community's creative scene.
4. Family-Friendly Amenities: Riverside is a popular destination for families, so consider offering amenities like high chairs, pack-and-plays, and board games to make your listing more appealing to this demographic.

How to Attract Riverside Customers

To attract guests to your Riverside Airbnb, focus on these key strategies:

1. Optimize Your Listing: Use high-quality photos, a compelling description, and an eye-catching title to make your listing stand out. Highlight your property's unique features and proximity to popular attractions.
2. Leverage Local Events: Riverside hosts a variety of festivals and events throughout the year, from the Riverside County Fair to the Riverside Arts Walk. Promote these events in your listing and offer special packages to attract event attendees.
3. Partner with Local Businesses: Collaborate with nearby restaurants, shops, and tour operators to offer exclusive discounts or experiences for your guests. This can help differentiate your listing and provide added value for guests.
4. Encourage Reviews: Positive reviews are crucial for attracting new guests. Provide exceptional service and encourage satisfied guests to leave reviews by sending a follow-up message after their stay.

Challenges and Guidelines for Riverside Airbnb Hosts

While Riverside offers many opportunities for Airbnb hosts, it's important to be aware of the potential challenges and best practices for success. Here's what experienced hosts have to say:

1. Navigating Regulations: "Staying compliant with Riverside's short-term rental regulations can be complex, but it's essential for avoiding fines and maintaining good standing with the community. Make sure you understand the rules and keep up with any changes." - Sarah, Riverside Airbnb host since 2018
2. Managing Noise and Neighbors: "Riverside has strict noise ordinances, so it's crucial to set clear expectations with guests and provide noise monitoring to avoid complaints from neighbors. I also make a point of introducing myself to my neighbors and giving them my contact information in case of any issues." - Mark, Riverside Airbnb host since 2016
3. Ensuring Safety and Security: "Guest safety should be a top priority for any Airbnb host. In Riverside, I recommend installing smart locks, providing fire extinguishers and smoke detectors, and creating a thorough emergency plan. It's also a good idea to have a reliable cleaning and maintenance team to keep your property in top shape." - Lisa, Riverside Airbnb host since 2019
4. Balancing Occupancy and Revenue: "While it can be tempting to book back-to-back guests to maximize occupancy, it's important to allow enough time for thorough cleaning and maintenance between stays. I've found that focusing on providing a high-quality experience and attracting positive reviews ultimately leads to better long-term revenue than simply chasing occupancy." - David, Riverside Airbnb host since 2017

By implementing these strategies and heeding the advice of experienced hosts, new Airbnb entrepreneurs can position themselves for success in Riverside's thriving short-term rental market.

Using BNBCalc to Find Profitable Properties in Riverside, California

Investing in a short-term rental property can be a lucrative venture, but it's crucial to make informed decisions based on accurate data and market insights. BNBCalc is a powerful tool that helps aspiring Airbnb entrepreneurs analyze potential properties, estimate revenue, and optimize their investment strategies. In this section, we'll walk through the steps of using BNBCalc to find profitable properties in Riverside, California.

1. Analyze Properties Using BNBCalc

To get started, create an account on BNBCalc and navigate to the "Property Analysis" tab. Enter the address of the property you're interested in, and BNBCalc will generate a detailed report on its potential as a short-term rental. The report includes estimated occupancy rates, nightly rates, monthly revenue, and expenses, based on real-time market data and comparable listings in the area.

2. Benchmark Comparable Rentals

One of the key features of BNBCalc is the ability to benchmark your property against similar listings in the same neighborhood. By analyzing the performance of comparable rentals, you can gain valuable insights into pricing strategies, amenity offerings, and guest preferences. Use this information to optimize your own listing and ensure that you're fetching top dollar for your rental.

3. Determine the Right Price and Property Size

BNBCalc's property analysis tool allows you to experiment with different scenarios to find the optimal combination of bedrooms, bathrooms, and purchase price for maximum revenue. By adjusting these variables and comparing the projected returns, you can make informed decisions about which properties to pursue and how to structure your investment.

4. Make an Offer

Once you've identified a promising property and determined a profitable purchase price using BNBCalc's analysis, it's time to make an offer. BNBCalc has partnered with STR lenders to help investors secure financing for their short-term rental properties. We recommend working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry. Get prequalified and submit your offer with confidence, knowing that you've done your due diligence with BNBCalc.

5. Use Our Tax Calculator

In addition to property analysis, BNBCalc offers a powerful tax calculator that helps investors estimate their potential tax deductions from bonus depreciation. By inputting your property details and financial information, you can get a clear picture of the tax benefits associated with your short-term rental investment. This tool is especially useful for maximizing your returns and minimizing your tax liability.

6. Come Up With a Buy Box

A "buy box" is a set of criteria that investors use to quickly evaluate potential properties and determine whether they fit their investment goals. When creating your buy box for Riverside short-term rentals, consider the following factors:

1. Location: Look for properties in popular neighborhoods with easy access to attractions, dining, and shopping.
2. Property Type: Focus on in-demand property types like single-family homes, condos, and townhouses with desirable amenities.
3. Price Range: Set a budget based on your financial goals and the projected returns from BNBCalc's analysis.
4. Occupancy Rate: Aim for properties with high occupancy rates (60% or above) to ensure a steady stream of bookings.
5. Cash Flow: Prioritize properties that generate positive cash flow after expenses, based on BNBCalc's projections.

By using BNBCalc's suite of tools and following these steps, aspiring Airbnb entrepreneurs can navigate the Riverside short-term rental market with confidence and make data-driven decisions to maximize their returns. Whether you're a first-time investor or an experienced host looking to expand your portfolio, BNBCalc is an invaluable resource for finding and analyzing profitable properties in Riverside, California.

Ready to start your Airbnb journey in Riverside? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Riverside Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.