Can you own two vacation rentals in Big Bear Lake?

If you’re considering a second vacation rental in Big Bear Lake, the purchase comes with a licensing question: how many licenses can you hold, and what happens to the seller’s license?

The City of Big Bear Lake generally limits an owner to two vacation-rental licenses. An ordinary sale also expires the property’s existing license. You need your own license before operating, and owning fewer than two rentals doesn’t guarantee approval.

Those rules belong together. A house with an active rental history still requires a fresh look at your ownership interests, the application and the time before you can rent it.

I remember D. putting fresh sheets in a cupboard while we discussed when he could welcome rental guests. He had just bought his second Big Bear Lake cabin, and the seller’s rental listing was beside the keys. The familiar listing had made continued use seem straightforward to him. I explained that the license expired with the ordinary sale and that he needed a new one before renting. Registration and inspection could take four to six weeks, with no rentals during that period. We left the listing aside and concentrated on the licensing steps still ahead.

What does the two-license limit actually cover?

The limit applies to licenses held by an owner, rather than the total number of vacation rentals allowed across the city.

Section 4.01.040(B) of Ordinance 2023-518 states:

“An owner may not hold more than two licenses, except that an owner holding more than two licenses as of September 16, 2021, may renew those licenses unless they have been revoked or not renewed.”

That exception concerns licenses already held on the stated date. It doesn’t establish that a buyer can acquire the seller’s position along with the house.

The chapter defines a vacation rental as a residential dwelling unit, or part of one, leased for 28 or fewer consecutive days. Home-sharing is included unless the chapter says otherwise. Each vacation-rental property on a site needs a license.

Can an LLC or trust give you another allowance?

An LLC or trust doesn’t create a separate two-license allowance that lets the same person exceed the limit.

For a business entity or personal or family trust, the application must disclose every natural person with a legal, equitable or beneficial interest. It must also disclose vacation-rental addresses owned through the entity or trust. The city uses those disclosures to check each person’s interests against the license limit.

The city FAQ explains that a person cannot use several LLCs to obtain more than two licenses.

For a generic purchase scenario, consider a buyer who already holds a vacation-rental license and is considering another rental through an LLC. The application requires disclosure of the natural persons with interests in that entity and the vacation-rental addresses owned through it. The buyer therefore needs to account for those interests when checking the two-license limit. The seller’s existing license also expires on an ordinary sale, so the property cannot operate as a vacation rental until the successor owner obtains a license.

Before relying on an ownership structure, ask the city how your disclosed interests affect eligibility.

Does the seller’s license survive the purchase?

The seller’s license automatically expires on an ordinary sale or change of ownership.

Section 4.01.030(C) says the property cannot operate as a vacation rental until the successor owner obtains a license. A business-entity ownership change that causes property-tax reassessment also counts as a change of ownership under this provision.

That makes the seller’s license a record of the seller’s authorization, not proof that you can continue renting after closing. A current license, an advertised rental or a history of bookings doesn’t replace your application.

Transfers can raise separate property-tax questions, too. The guide to a California supplemental property tax bill provides related background, but the vacation-rental ownership rule needs its own review.

For another city’s transfer framework, see the Dana Point short-term rental permit transfer guide. Keep each city’s rules separate when comparing properties.

Are family and trust transfers treated differently?

The ordinance provides an exception for certain changes between family members or spouses, including transfers because of death or divorce or to a personal or family trust.

The transferring owner must notify the city in writing within 15 business days. That notice requirement matters even when the transfer appears to fit the exception.

Don’t treat a family connection or trust document as a blanket exemption. Ask the city to confirm how the provision applies to the specific transfer before relying on continued operation.

There are two distinct questions here: whether the ownership change falls within the exception, and how the natural persons’ interests affect the two-license limit. Entity and trust disclosures still deserve attention.

What must happen before you advertise or rent?

You need a current, valid, active annual city license before advertising, offering to lease or leasing the property as a vacation rental.

The license number must appear in advertising. The current program page lists proof of ownership, applicable entity or trust documents and proof of current liability insurance among the new-application requirements. It lists a $635 registration fee.

Registration and inspection can take 4 to 6 weeks, during which the property may not be rented. That is a planning window, not a promised completion date.

The license expiration date is one year from the initial registration payment date. Each property needs a new application or annual renewal.

Owners and agents covered by the certification requirement take a 25-question annual exam and must earn a perfect score. The page lists an exception for an owner who hires a full-service management company and never rents independently.

What obligations continue after licensing?

Licensing brings continuing reporting and operating requirements, including monthly reports even when there is no rental income.

The current combined transient occupancy tax and Tourism Business Improvement District assessment is $13 per $100 of gross receipts. Payment is due by the last day of the following month.

Owners must submit forms reporting nightly stays and gross receipts even when a hosting platform remits the tax and assessment. Two or more late submissions in a 12-month period prevent renewal when the license expires.

Occupancy cannot exceed the licensed limit. The ordinance also sets limits of two adults per bedroom plus two additional adults, and no more than one person per 200 square feet or 16 people total, whichever is less.

When the city requests it, the owner or agent must respond in person at the property within 30 minutes of dispatch. Account for that requirement when arranging management.

How do you confirm these rules apply to the property?

Confirm that the property is within City of Big Bear Lake jurisdiction before relying on this program.

A 92315 mailing address alone doesn’t establish that. Ask the city to verify the property; its program page directs properties outside city jurisdiction to San Bernardino County.

Keep association restrictions in your review as well. The California HOA disclosure guide is a useful companion when reviewing a property with an association.

Location-specific review matters elsewhere, too. The Vista short-term rental rules guide addresses a separate local program. A rule that applies to one purchase should not become an assumption about another.

The short version

You can generally hold up to two Big Bear Lake vacation-rental licenses, subject to the city’s ownership-interest rules and each property’s licensing requirements.

Separate LLCs don’t give the same person extra allowances. An ordinary sale expires the seller’s license, and the successor owner must obtain a license before operating. Certain family and trust transfers have an exception that needs city confirmation.

Before relying on rental use, verify jurisdiction, disclose ownership interests and allow for registration and inspection. Two properties still require two completed licensing processes.

To explore the property’s value alongside those licensing questions, use the home value tool.