Overview: Are Short-Term Rentals Allowed?

Short-term rentals are largely prohibited in Manhattan Beach, California, with one critical exception. The City maintains a comprehensive ban on short-term rentals (defined as rentals less than 30 days) in all residential zones. However, on April 4, 2022, the Court of Appeal issued a significant ruling that the City's ban does not apply to properties within the Coastal Zone, creating a limited pathway for STR operations in those specific areas.

For properties outside the Coastal Zone, the prohibition is absolute - short-term rentals are strictly forbidden in residential zones, and the ban extends to renters, lessees, and even the maintenance of advertisements for such rentals.

How to Start a Short-Term Rental Business in Manhattan Beach

Step 1: Determine Coastal Zone Eligibility

Before proceeding with any STR investment in Manhattan Beach, you must first determine if your property is located within the Coastal Zone. This is mandatory because:

• Coastal Zone properties: May be eligible for short-term rental operations despite the general ban
• Non-Coastal Zone properties: Short-term rentals are prohibited regardless of property type

Action Required:

• Consult the City's Zoning Map
• Use the City's Interactive GIS Map (click "I Agree" to access)
• Contact the Planning Division at (310) 802-5520 for definitive confirmation

Step 2: Obtain Business License

All short-term rental operations must obtain a business license from the City's Revenue Services Division before commencing operations. This requirement applies regardless of property location within the city.

Business License Process:

• Apply through the Finance Department's Revenue Services Division
• Complete all required application forms
• Pay applicable fees
• Maintain current license status

Step 3: Comply with Tax Requirements

All STR operators must:

• Levy, collect, and remit Transient Occupancy Tax (TOT) to the City
• Register for TOT collection
• File regular tax returns
• Maintain accurate financial records

Step 4: Verify Zoning Compliance

Even in the Coastal Zone, ensure your property:

• Complies with all zoning requirements
• Meets building and safety standards
• Obtains any necessary permits for commercial use

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation

1. Business License (required for all STR operations)

   • Issued by Revenue Services Division
   • Must be renewed annually
   • Display requirements may apply

2. Transient Occupancy Tax (TOT) Registration

   • Required for collecting and remitting TOT
   • Registration with Finance Department
   • Monthly/quarterly filing requirements

3. Coastal Zone Documentation

   • Proof of Coastal Zone location (if applicable)
   • May require Coastal Commission permits for certain properties

4. Property Compliance Documentation

   • Building and safety clearances
   • Zoning verification letters
   • Insurance documentation

Additional Guidelines

• Hosting Platform Responsibilities: The City has established requirements for platforms that advertise short-term rentals
• Advertisement Restrictions: Outside the Coastal Zone, maintaining STR advertisements is prohibited
• Inspection Requirements: Properties may be subject to inspection for safety and compliance

Specific Regulations by Jurisdiction

City of Manhattan Beach

General Prohibition:

• Short-term rentals (less than 30 days) prohibited in all residential zones
• Prohibition extends to renters, lessees, and property owners
• Ban includes maintaining advertisements for prohibited rentals

Coastal Zone Exception:

• Court of Appeal ruling (April 4, 2022) exempts Coastal Zone properties from the ban
• Properties must still comply with all applicable business license and tax requirements
• Local Coastal Program requirements may apply

Commercial Districts:

• Hotels, motels, time-share facilities, and residential hotels may operate as "commercial use" in specified commercial districts
• Requires valid business license and TOT compliance
• Subject to Title 10 of the Manhattan Beach Municipal Code

Los Angeles County

No specific county-level regulations identified in the provided content for Manhattan Beach STR operations.

State of California

Residential Tenancy Laws:

• In California, residential tenancy may be created after 30 consecutive days of occupancy
• This establishes the legal foundation for the 30-day minimum stay requirement
• Local laws may differ from state laws regarding residential tenancies

Coastal Act Compliance:

• Properties within the Coastal Zone must comply with California Coastal Act requirements
• May require Coastal Commission approval for certain improvements or uses

Enforcement and Penalties

Administrative Remedies

• The City has established administrative remedies for STR violations
• Code Enforcement Division handles violation investigations
• Administrative subpoenas may be issued to obtain listing information

Violation Consequences

• Administrative citations
• Monetary penalties
• Business license suspension or revocation
• Court action for persistent violations

Contact Information for Local Authority

Planning Division (Zoning Inquiries)

Phone: (310) 802-5520
Purpose: Determine Coastal Zone eligibility, zoning compliance, property eligibility questions

Code Enforcement

Email: jharris@citymb.info
Phone: (310) 802-5518
Purpose: STR enforcement related inquiries, violation reporting

Revenue Services Division (Business Licenses/TOT)

Phone: (310) 802-5000
Website: Business License Information
Purpose: Business license applications, TOT registration, tax collection questions

General City Contact

Main Number: (310) 802-5000
Address: 1400 Highland Avenue, Manhattan Beach, CA 90266
Website: www.manhattanbeach.gov

City Council (Policy Questions)

Website: Mayor and City Council
Purpose: Policy questions, community concerns

Source Links

1. City of Manhattan Beach - Short-Term Vacation Rentals
2. Manhattan Beach Zoning Map
3. City's Interactive GIS Map
4. Business License Information
5. Transient Occupancy Tax Information
6. Airbnb Help - Manhattan Beach, CA Rules

Investment Considerations and Risk Factors

High-Risk Factors

• Regulatory Uncertainty: Court decisions may be subject to further legal challenges
• Limited Market: Only Coastal Zone properties are potentially viable for STR operations
• Strict Enforcement: The City has demonstrated willingness to aggressively enforce regulations
• Changing Regulations: Local ordinances and court interpretations may evolve

Due Diligence Requirements

• Legal Confirmation: Obtain written confirmation of Coastal Zone status from City Planning Division
• Insurance Verification: Ensure adequate coverage for STR operations
• Property Condition Assessment: Verify all building and safety standards compliance
• Financial Projections: Account for business license fees, TOT collection/remittance, and potential enforcement costs

Alternative Strategies

Consider long-term rental strategies (30+ days) to avoid STR regulations entirely, or explore investment opportunities in adjacent communities with more permissive STR regulations.

Disclaimer: This guide is based on information available as of the content provided. STR regulations are subject to change through court decisions, city ordinance amendments, and state legislation. Investors should verify current requirements with the City of Manhattan Beach before making investment decisions.