South Lake Tahoe is a low DSCR friendliness short-term rental market within the Mountain ski / lake category. Property type and tourism patterns drive STR economics here in particular ways that distinguish South Lake Tahoe from peer destinations.
South Lake Tahoe, CA is a low short-term rental DSCR market. Property type: Mountain ski / lake. Median home value approximately $695K. Average nightly rate: $405.
Occupancy rate in South Lake Tahoe averages approximately 55%, which combined with the nightly rate produces gross annual revenue per property of approximately $81K.
South Lake Tahoe STR. Permitted units required. STR regulatory environment in South Lake Tahoe: restrictive.
South Lake Tahoe seasonality and tourism patterns
Tourism patterns in South Lake Tahoe produce winter heavy concentration with summer secondary. Lenders annualize these patterns when computing DSCR coverage.
South Lake Tahoe STR economics
South Lake Tahoe STR cash flow math: $81K gross revenue minus operating costs of approximately $33K (cleaning, supplies, management, marketing, utilities) leaves roughly $49K for debt service and net cash flow.
South Lake Tahoe specific FAQ
South Lake Tahoe peaks December through March (ski season) with secondary summer. Lenders use annual averaged occupancy in underwriting.
South Lake Tahoe guests prefer multi-bedroom ski groups. Hot tubs and ski storage command premium rates.
South Lake Tahoe has restrictive STR regulations.
South Lake Tahoe averages approximately 55% occupancy. Premium properties outperform; standard properties cluster near average.
South Lake Tahoe averages approximately $405 per night. Premium units command 1.5-2.5x average.
Full-service STR management in South Lake Tahoe runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A South Lake Tahoe STR at the median home value of $695K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $278K+.
Bottom line for South Lake Tahoe STR investors
South Lake Tahoe STR works for investors comfortable with the mountain ski / lake operating profile and restrictive regulatory environment. Match the property to the market and the math typically works. Mismatch and the property struggles regardless of underwriting.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.