Manhattan Beach, California Airbnb Rules & Investment Guide (2026)

Manhattan Beach prohibits rentals shorter than 30 days outside the Coastal Zone. The City states that residential properties inside the Coastal Zone may operate short-term rentals following a 2022 court decision, subject to licensing and tax requirements.

• Confirm the parcel is in Manhattan Beach.
• Determine whether it is in the Coastal Zone.
• Do not rely on a listing as proof.
• Confirm residential use eligibility.
• Review private restrictions separately.
• Obtain City confirmation before underwriting.

Eligibility turns on the exact parcel. The City directs owners to Planning for questions about whether a property lies in the Coastal Zone, where the residential short-term-rental ban currently does not apply.

• Check the exact street address.
• Review the current City map.
• Confirm the zoning designation.
• Ask Planning to resolve uncertainty.
• Keep written eligibility records.
• Recheck rules before closing.

Ordinance No. 19-0007 retained the prohibition on renting residential property for fewer than 30 days outside the Coastal Zone. It also addresses renters, lessees, advertisements, and hosting-platform responsibilities.

• Treat fewer than 30 days as short term.
• Do not advertise a prohibited rental.
• Do not assume tenant operation is allowed.
• Review Chapter 4.88 directly.
• Verify later code amendments.
• Separate 30-day rentals from STRs.

The City requires a business license before operating a short-term rental. Revenue Services administers business licensing and transient occupancy tax, while Planning addresses land-use eligibility.

• Confirm Coastal Zone eligibility first.
• Use current City application materials.
• Submit the business-license application.
• Disclose the intended rental activity.
• Retain the issued license.
• Track renewal requirements.

Manhattan Beach publishes a 14% transient occupancy tax rate, effective July 1, 2023. Operators must collect the tax from guests and remit it monthly by the 20th for the prior month.

• Register with Revenue Services.
• Apply the current 14% rate.
• Identify taxable rent and charges.
• Review platform collection reports.
• File uncovered direct bookings.
• Retain reservation-level records.

California guidance generally treats lodging charges for use of real property as outside sales and use tax. Local transient occupancy tax remains separate, and taxable sales of goods or prepared food may require different treatment.

• Do not combine sales tax and TOT.
• Review CDTFA Publication 61.
• Identify separately sold taxable items.
• Check bundled food treatment.
• Confirm local filing duties.
• Use a tax professional for edge cases.

A lawful Coastal Zone rental still requires disciplined licensing, tax collection, records, guest controls, safety review, insurance, and compliance with applicable property rules. City authorization does not override leases, association rules, or recorded restrictions.

• Keep license and tax accounts current.
• Use written guest rules.
• Document stays and tax collected.
• Review fire and building requirements.
• Maintain suitable insurance.
• Resolve complaints promptly.

Underwriting should include licensing, taxes, insurance, safety work, furnishings, utilities, cleaning, maintenance, management, professional advice, and enforcement exposure. Current fees and requirements should be confirmed before filing.

• Confirm current City fees.
• Budget inspections and corrections.
• Include insurance premiums.
• Model owner-paid utilities.
• Maintain a compliance reserve.
• Do not underwrite prohibited use.

Marketwide revenue, occupancy, nightly-rate, and return figures cannot establish property performance. Analyze only after legal eligibility is confirmed, using address-level costs and comparable rentals whose legal status is understood.

• Use address-level comparables.
• Exclude unknown legal status.
• Verify realistic booking capacity.
• Include every owner-paid expense.
• Stress-test fewer booked nights.
• Separate appreciation assumptions.

Planning answers Coastal Zone and land-use questions. Revenue Services administers business licenses and transient occupancy tax. Code Enforcement handles suspected short-term-rental violations.

• Call Planning at 310-802-5520.
• Call Revenue Services at 310-802-5559.
• Call Code Enforcement at 310-802-5518.
• Email code@manhattanbeach.gov.
• Review the City short-term-rental guidance.
• Reconfirm requirements before operating.