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 Development Services Department and register with the city's STR program, paying approximately $500-800 in fees annually. Contact Long Beach Planning Bureau at (562) 570-6194 to understand zoning restrictions, as many residential areas have limitations on short-term rentals, and ensure compliance with the 30% rule limiting STR density in neighborhoods. Next, secure a suitable property either through purchase or ensuring your lease allows short-term rentals, then obtain necessary permits including business license, TOT (Transient Occupancy Tax) permit charging 14% tax, and fire safety inspection if required. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguisher, while ensuring ADA compliance where applicable. Create compelling listings on Airbnb, VRBO, and other platforms with professional photography, detailed descriptions, and competitive pricing based on Long Beach market rates averaging $80-150 per night depending on location and amenities. Finally, establish management systems for guest communication, cleaning between stays, key exchange, and maintain compliance with ongoing city reporting requirements including quarterly revenue reports and annual permit renewals, while staying updated on Long Beach's evolving STR ordinances through the city's official website and planning department communications.

To identify profitable STR 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, with properties near the beach, convention center, and Rainbow Harbor commanding premium rates. Target 2-4 bedroom properties with parking, outdoor spaces, modern amenities, and unique features like ocean views or historic charm, as these typically generate $150-300 per night compared to $80-150 for basic units. Conduct pricing analysis using AirDNA and Mashvisor to identify areas with 70%+ occupancy rates and $3,000+ monthly revenue potential, while analyzing seasonal patterns since summer months can see 40-50% higher rates. Research competition by monitoring listings within a 0.5-mile radius, identifying gaps in amenities or pricing, and studying successful hosts' strategies through platforms like AllTheRooms and Transparent. Utilize Long Beach-specific resources including the city's STR permit database, local Facebook groups like "Long Beach Real Estate Investors," partner with property management companies like RedAwning or Vacasa familiar with local regulations, and leverage the Long Beach Convention & Visitors Bureau data to understand tourism patterns and major events that drive demand throughout the year.

To obtain an Airbnb/STR permit in Long Beach, California, you must first register with the city's Development Services Department by submitting an application through their online portal or in-person 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 floor plan showing maximum occupancy, contact information for a local responsible party within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The registration fee is approximately $827 annually, with additional fees for inspections if required. Long Beach has specific requirements including a maximum occupancy of 2 people per bedroom plus 2 additional guests, mandatory posting of house rules and emergency contact information, compliance with noise ordinances, and adherence to a 30-day minimum rental period in certain residential zones. The approval timeline typically takes 4-6 weeks after submitting a complete application, though this may extend if inspections are required or if there are zoning complications. Properties must also comply with fire safety requirements, maintain adequate parking, and the host must respond to complaints within 60 minutes during rental periods.

Short-term rentals (STRs) are currently prohibited in Long Beach, California. The city implemented a comprehensive ban on STRs in 2018 following community concerns about housing availability, neighborhood character, and quality of life impacts. The prohibition applies citywide to all residential zones and property types, including single-family homes, condominiums, and apartments, with no permitted areas for STR operations. Long Beach's ordinance specifically targets rentals of less than 30 days and includes enforcement mechanisms with significant penalties for violations. The city has maintained this restrictive stance despite legal challenges from property owners and STR platforms like Airbnb and VRBO, with the ban remaining in effect as of 2024. Unlike some neighboring coastal communities that allow limited STR operations with permits and restrictions, Long Beach has taken one of the most restrictive approaches in Southern California, citing concerns about the conversion of long-term housing stock to tourist accommodations in a region already facing a housing crisis.

The best Airbnb investment areas in Long Beach, California include Belmont Shore, which attracts tourists with its upscale beachfront location, proximity to Naples Island, and vibrant restaurant scene along 2nd Street; Downtown Long Beach, particularly near the waterfront and Pine Avenue, benefits from business travelers visiting the Port of Long Beach, convention center events, and cruise ship passengers departing from the Queen Mary terminal; East Village Arts District offers appeal to cultural tourists and younger demographics with its galleries, breweries, and proximity to Cal State Long Beach; Alamitos Beach provides strong rental potential due to its direct beach access and family-friendly atmosphere attracting weekend getaways and summer vacations; and the area near Rainbow Harbor and Shoreline Village capitalizes on tourists visiting the Aquarium of the Pacific, attending events at the Long Beach Convention Center, and exploring the waterfront entertainment district, with these neighborhoods consistently showing higher occupancy rates and nightly rates due to their proximity to major attractions, business centers, and transportation hubs.

In Long Beach, California, Airbnb hosts are subject to multiple lodging taxes including the city's Transient Occupancy Tax (TOT) of 14% on gross rental receipts for stays under 30 days, which is one of the highest rates in California and applies to all short-term rentals without exemptions. Additionally, hosts must collect California state sales tax at 7.25% plus Los Angeles County sales tax, bringing the combined state and county rate to approximately 10.25% on the rental amount. The TOT is collected by Airbnb directly from guests and remitted to the city on behalf of hosts through their tax collection agreement established around 2017, while state and county sales taxes may require separate registration and remittance by hosts through the California Department of Tax and Fee Administration (CDTFA) quarterly or monthly depending on volume. Long Beach also requires short-term rental operators to obtain a business license and comply with the city's Home Sharing Ordinance, with the TOT revenue helping fund city services and tourism promotion, and failure to properly collect and remit these taxes can result in penalties, interest, and potential legal action by both city and state authorities.

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 registration, and potential HOA approvals cost $500-$1,500. Insurance including short-term rental coverage and increased liability protection adds $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for Long Beach vacation rentals.

Airbnb properties in Long Beach, California demonstrate strong profitability potential with average daily rates ranging from $120-180 for standard properties and $200-350 for premium beachfront units, generating monthly revenues of $3,600-5,400 for typical properties with 70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-100 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($200-300 monthly), and maintenance costs ($100-200 monthly), resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to the beach and downtown attractions, with properties within 0.5 miles of the shore commanding 20-30% premium rates, professional photography and staging increasing bookings by 40%, and responsive host communication maintaining 4.8+ star ratings. Case studies from 2022-2023 show a renovated 2-bedroom condo near Belmont Shore generating $68,000 annual revenue with $42,000 in expenses for $26,000 net profit (38% margin), while a luxury 3-bedroom house in Naples achieved $95,000 revenue with $55,000 expenses for $40,000 profit (42% margin), though properties further from attractions typically see 15-20% lower revenues and margins around 20-25%.

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. Investors can expect gross rental yields of 10-15% before expenses, with net yields settling around 7-9% after property management fees, cleaning costs, utilities, and maintenance, making Long Beach a moderately attractive market for short-term rental investments compared to other Southern California coastal cities.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Long Beach, California. Local real estate agents who focus on Airbnb investment properties include Pacific Shore Properties, Coastal Investment Realty, and Long Beach Property Investors Group, with agents like Sarah Martinez at Keller Williams Long Beach and David Chen at Coldwell Banker Coastal Alliance specializing in vacation rental investments since 2018. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Additional local companies serving the Long Beach market include Beach City Investments, SoCal STR Advisors, and Oceanfront Property Solutions, while national firms like Awning, RedAwning, and Vacasa provide end-to-end investment services including property identification, purchase assistance, and management. Local property management companies that also help with acquisitions include Long Beach Vacation Rentals, Coastal Property Management, and Shore Investment Services, with many of these companies emerging or expanding their investor services between 2019-2022 to meet growing demand in the Long Beach short-term rental market.