Is Long Beach, California Good for Airbnb Investment?

To start an Airbnb in Long Beach, California, begin by researching the city's short-term rental regulations, which require hosts to obtain a Conditional Use Permit (CUP) from the Planning Bureau and register with the city's Business License Division, with fees typically ranging $500-1,500 depending on property type and location. Next, secure your property either through ownership or landlord approval, ensuring it meets Long Beach's safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Apply for necessary permits including the CUP, business license, and Transient Occupancy Tax (TOT) registration with the city, which charges 14% TOT on all bookings. Furnish your space with quality furniture, linens, kitchen essentials, and amenities while ensuring compliance with Long Beach's occupancy limits and parking requirements. Create your Airbnb listing with professional photos, competitive pricing based on local market rates ($80-200+ per night depending on location and size), and detailed descriptions highlighting proximity to beaches, downtown, and attractions. For ongoing management, maintain regular communication with guests, coordinate cleaning between stays, collect and remit the 14% TOT to Long Beach quarterly, keep detailed records for tax purposes, and stay updated on any changes to local regulations as the city continues to refine its short-term rental ordinances.

To identify profitable short-term rental properties in Long Beach, California, focus on locations within 1-2 miles of major attractions like the Queen Mary, Aquarium of the Pacific, and downtown waterfront, as well as properties near the beach, convention center, and transit hubs like the Metro Blue Line stations. Target 2-4 bedroom properties built after 1980 with parking, outdoor spaces, modern amenities, and ocean or harbor views, while ensuring compliance with Long Beach's STR regulations which require permits and limit rentals to primary residences in residential zones. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-400/night depending on size and location) exceeds long-term rental income by at least 30-50% after accounting for higher operating costs, vacancy rates of 20-30%, and city permit fees of approximately $200 annually. Research competition by analyzing similar properties within a 0.5-mile radius on Airbnb and VRBO, focusing on occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize Long Beach-specific resources including the city's STR permit database, local real estate platforms like Redfin and Zillow for comparable sales, and connect with Long Beach-area property management companies like RedAwning or Vacasa who understand local market dynamics and can provide insights on neighborhood performance and regulatory compliance.

To obtain an Airbnb/STR permit in Long Beach, California, you must first register with the City of Long Beach Development Services Department by submitting an application through their online portal or visiting their offices at 411 West Ocean Boulevard. Required documents include a completed Short-Term Rental Registration application, proof of property ownership or lease agreement with landlord consent, a site plan showing the rental unit location, contact information for a local responsible party available 24/7, and proof of liability insurance coverage of at least $1 million. The registration fee is approximately $827 annually, with additional fees for inspections if required. The timeline typically takes 4-6 weeks for processing once all documents are submitted and approved. Long Beach specific requirements include that the property owner or designated local contact must respond to complaints within one hour, maintain a guest registry, post the registration number prominently at the property, limit occupancy to 2 guests per bedroom plus 2 additional guests with a maximum of 10 people total, provide adequate parking, ensure quiet hours from 10 PM to 8 AM, and comply with all zoning regulations which may restrict STRs in certain residential areas. Properties must also pass health and safety inspections and maintain current business tax certificates.

Short-term rentals (STRs) are currently prohibited in Long Beach, California. The city implemented a comprehensive ban on STRs in 2018 following concerns about housing affordability, neighborhood character, and noise complaints from residents. The ordinance prohibits all short-term rentals of less than 30 days throughout the entire city, with no exceptions for specific zones or property types. Property owners who violate the ban face significant fines, and the city actively enforces the prohibition through code enforcement officers who investigate complaints and monitor online platforms like Airbnb and VRBO. The ban was upheld after legal challenges from property owners and rental platforms, and as of 2024, there have been no recent changes to soften the restrictions. Long Beach's position remains one of the strictest in California regarding short-term rentals, reflecting the city's prioritization of long-term housing availability and neighborhood stability over tourism revenue from STR operations.

The best Airbnb investment areas in Long Beach, California include Downtown Long Beach near the waterfront and Convention Center, which attracts business travelers attending events at the Long Beach Convention & Entertainment Center and tourists visiting the Aquarium of the Pacific. The Belmont Shore/Naples area is highly desirable due to its upscale beachfront location, proximity to the beach, and charming canal system that draws leisure travelers year-round. East Village offers a trendy, walkable neighborhood with restaurants and nightlife that appeals to younger travelers and professionals. The area near California State University Long Beach provides consistent demand from visiting families, prospective students, and academic conference attendees. Alamitos Beach and the surrounding coastal neighborhoods attract beach-goers and tourists seeking oceanfront accommodations, while the proximity to major attractions like the Queen Mary cruise ship and various waterfront festivals ensures steady booking demand throughout the year.

In Long Beach, California, Airbnb hosts must collect and remit several taxes including the city's Transient Occupancy Tax (TOT) of 12% on gross rental receipts for stays under 30 days, which applies to all short-term rentals and is collected by the city's Finance Department with monthly remittance required by the 15th of the following month. Additionally, hosts must collect California state sales tax at 7.25% plus Los Angeles County sales tax of 0.25% for a combined rate of 7.5% on the rental amount, which is remitted quarterly to the California Department of Tax and Fee Administration. The Los Angeles County Transient Occupancy Tax of 14% also applies to short-term rentals, collected and remitted monthly to the county. Airbnb may collect these taxes automatically through their platform for participating hosts, but hosts remain ultimately responsible for compliance. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes but may still be subject to other local taxes, and some affordable housing units or properties meeting specific criteria may qualify for exemptions under certain city programs.

The total cost to start an Airbnb in Long Beach, California is approximately $850,000-$950,000. Property purchase represents the largest expense at $700,000-$800,000 based on median home prices in desirable areas near the beach and downtown. Furnishing costs range from $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, transient occupancy tax registration, and potential HOA approvals cost $500-$1,500. Insurance premiums for short-term rental coverage average $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable run approximately $200-$300 monthly. First six months operating costs encompass utilities ($1,200-$1,800), cleaning services ($2,400-$3,600), maintenance and supplies ($1,000-$2,000), platform fees to Airbnb and VRBO ($2,000-$4,000 assuming 60% occupancy), and marketing expenses ($500-$1,000), totaling $7,100-$12,400 for the initial operating period.

Airbnb properties in Long Beach, California typically generate annual revenues ranging from $35,000 to $85,000 depending on property type and location, with beachfront properties commanding premium rates of $150-300 per night while inland properties average $80-150 nightly. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-100 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance costs averaging $3,000-6,000 yearly. Properties near the waterfront, downtown area, and major attractions like the Queen Mary consistently achieve 70-85% occupancy rates with profit margins of 25-40%, while those in residential neighborhoods see 50-65% occupancy with 15-25% margins. Success factors include professional photography, dynamic pricing strategies, proximity to beaches and entertainment venues, responsive guest communication, and maintaining 4.8+ star ratings. A typical 2-bedroom beachfront condo generating $65,000 annually might incur $38,000 in expenses (including $12,000 in cleaning, $8,000 property management, $6,000 utilities, $4,000 maintenance, $3,000 insurance, $5,000 other costs) yielding approximately $27,000 net profit or 42% margin, while inland properties often see lower margins due to reduced nightly rates and occupancy despite similar expense structures.

Airbnb investments in Long Beach, California typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property location and management efficiency. Properties near the beach, downtown area, or major attractions like the Queen Mary tend to achieve higher returns, with average daily rates of $120-180 and occupancy rates of 65-75% annually. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses, while full ROI realization typically takes 3-5 years. The Long Beach market benefits from consistent demand due to its proximity to Los Angeles International Airport, business travelers, and tourists visiting local attractions, with peak seasons during summer months and major events generating premium rates that can boost annual returns to the higher end of the range.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Long Beach, California. Local real estate agents like Pacific Shore Properties, Coastal Investment Realty, and Long Beach Property Advisors have expertise in the area's vacation rental market and zoning regulations. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb investment properties. Regional companies such as SoCal STR Investments and California Vacation Rental Properties focus specifically on Southern California markets including Long Beach. Additional services include RedAwning for property management and investment guidance, Vacasa for full-service Airbnb management with investment consultation, and local firms like Beachside Investment Group and Harbor Area Realty Group that understand Long Beach's specific rental regulations and seasonal tourism patterns. BiggerPockets also offers networking and educational resources for Short Term Rental investors in the Long Beach market.