Is Redondo Beach, California Good for Airbnb Investment?

To start an Airbnb in Redondo Beach, California, begin by researching the city's short-term rental regulations, which require hosts to obtain a Transient Occupancy Registration Certificate and pay the 14% Transient Occupancy Tax, with properties limited to rentals of 30 days or less and subject to zoning restrictions that may prohibit short-term rentals in certain residential areas. Apply for the necessary permits through the Redondo Beach City Clerk's office, including the business license and TOT certificate, which typically costs around $100-200 annually. Find a suitable property by focusing on areas zoned for short-term rentals, particularly near the beach, pier, or downtown areas where tourism is highest, with average property prices ranging from $800,000-$1.5 million for condos and $1.2-2.5 million for single-family homes as of 2023. Furnish the property with beach-themed, durable furniture and essential amenities including WiFi, kitchen appliances, linens, towels, and beach equipment like chairs and umbrellas, budgeting approximately $15,000-25,000 for a complete setup. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting the beach proximity and local attractions like the Redondo Beach Pier and Riviera Village, setting competitive rates based on local market analysis showing average nightly rates of $150-300 depending on property size and location. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining compliance with city regulations including noise ordinances and occupancy limits, and consider hiring local property management companies like RedAwning or Vacasa if you live outside the area, which typically charge 15-25% of rental income.

To identify profitable short-term rental properties in Redondo Beach, California, focus on locations within 0.5 miles of the beach, particularly near The Strand, Riviera Village, and Pier areas where vacation demand peaks year-round due to proximity to Manhattan Beach and LAX airport. Target 2-3 bedroom properties built after 1980 with parking, outdoor space, and ocean or partial ocean views, as these command $200-400 nightly rates compared to $120-180 for inland properties. Analyze comparable STR pricing using AirDNA and Mashvisor, which show Redondo Beach averaging 65-75% occupancy rates with seasonal peaks during summer months and holiday weekends when rates increase 30-50%. Research competition by monitoring active Airbnb and VRBO listings within your target radius, noting that beachfront properties typically achieve $80,000-120,000 annual revenue while properties 3+ blocks inland generate $45,000-70,000. Utilize STR-specific tools like Rabbu and AllTheRooms for Redondo Beach market data, verify local zoning compliance through the City of Redondo Beach planning department since STR regulations require permits and have occupancy limits, and consider properties near Beach Cities Transit lines for guests without cars visiting nearby attractions like Hermosa Beach Pier and Palos Verdes Peninsula.

To obtain an Airbnb/STR permit in Redondo Beach, California, you must first apply through the City of Redondo Beach Planning Department located at 415 Diamond Street, submitting a Short-Term Rental Business License application along with required documents including property ownership verification or lease agreement with landlord consent, floor plans, proof of liability insurance (minimum $1 million), contact information for a local responsible party within 30 minutes of the property, and a good neighbor agreement. The application fee is approximately $200-300 annually, with additional inspection fees of around $150-200. Redondo Beach requires STRs to be owner-occupied or have the owner live within the city limits, limits rentals to maximum 30 consecutive days, mandates parking spaces equal to bedrooms offered, requires smoke and carbon monoxide detectors, and prohibits rentals in multi-family buildings with more than four units. The approval timeline typically takes 4-6 weeks after submitting a complete application, including a mandatory inspection by the Building and Safety Department. Once approved, you must display the permit number in all listings, maintain a guest registry, respond to complaints within one hour, and renew annually by December 31st with updated documentation and fees.

Short-term rentals (STRs) are currently prohibited in Redondo Beach, California. The city implemented a comprehensive ban on STRs in 2019 following community concerns about noise, parking, and neighborhood character disruption. The municipal code specifically prohibits the rental of residential properties for periods of less than 30 days, with violations subject to significant fines up to $1,000 per day. This ban applies citywide across all residential zones, including single-family homes, condominiums, and apartments. The restriction was enacted after the city council determined that STRs were incompatible with residential neighborhoods and posed public safety concerns. Unlike some neighboring coastal cities that have opted for regulation rather than prohibition, Redondo Beach has maintained its strict stance against short-term rentals, with enforcement actively pursued through code compliance officers who investigate complaints and monitor online platforms like Airbnb and VRBO for illegal listings within city limits.

The most promising Airbnb investment areas in Redondo Beach, California include the Redondo Beach Pier and Seaside Lagoon vicinity, which attracts year-round tourists seeking beachfront accommodations and proximity to dining, entertainment, and water activities. The Riviera Village area offers excellent potential due to its upscale shopping district, restaurants, and walkability to the beach, appealing to both leisure travelers and business visitors to nearby aerospace companies like SpaceX and Northrop Grumman. The Torrance Beach border area provides quieter luxury accommodations while maintaining beach access, attracting families and couples seeking premium stays. The South Redondo Beach neighborhoods near Aviation Boulevard offer good value investments with easy access to LAX (15 minutes), making them ideal for business travelers and flight crews, while the Hermosa Avenue corridor provides mid-range options popular with groups visiting for beach volleyball tournaments, summer concerts at the pier, and the annual Lobster Festival, with additional demand from professionals working at nearby El Segundo's tech and aerospace hub.

In Redondo Beach, California, Airbnb hosts are subject to multiple lodging and occupancy taxes including the city's Transient Occupancy Tax (TOT) of 12% on gross rental receipts for stays under 30 days, which is collected by Airbnb directly from guests and remitted to the city monthly under their voluntary collection agreement established around 2017. Additionally, hosts must pay California state sales tax of 7.25% plus Los Angeles County sales tax of 0.25% for a combined rate of 7.5% on short-term rental income, which hosts typically must register for and remit directly to the California Department of Tax and Fee Administration quarterly, though some platforms may collect this as well. The city also requires a business license and short-term rental permit with associated fees, and properties rented for 30 days or longer are generally exempt from TOT but may still be subject to other local taxes. Hosts should register with the city's finance department and maintain detailed records of all bookings, as failure to comply can result in penalties and back taxes, with the city conducting periodic audits of short-term rental operators to ensure compliance with both tax collection and permit requirements.

Starting an Airbnb in Redondo Beach, California requires approximately $1,200,000-$1,500,000 in total initial investment. Property purchase costs average $1,100,000 for a median 2-3 bedroom home near the beach based on 2024 market conditions. Furnishing costs range $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses include $2,000-$3,000 for professional photography, listing creation, and marketing materials. Permits and fees total approximately $1,500-$2,500, including business license ($100-$300), transient occupancy tax registration ($50-$100), and potential homeowner association approvals. Insurance costs $2,000-$4,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits require $500-$800 for electricity, gas, water, internet, and cable services. First six months operating costs include $3,000-$5,000 for utilities, $1,200-$2,400 for cleaning services, $600-$1,200 for supplies and maintenance, $2,400-$3,600 for platform fees (Airbnb charges 3% host fees), and $1,000-$2,000 for marketing and guest amenities, totaling approximately $8,200-$14,200 in operational expenses before generating revenue.

Airbnb properties in Redondo Beach, California typically generate annual revenues between $35,000-$65,000 for well-positioned units, with beachfront properties commanding premium rates of $150-$300 per night during peak summer months and $80-$150 during off-season periods. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($2,000-$4,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Net profit margins typically range from 15-35% for successful operators, with properties near the beach, pier, and Riviera Village performing strongest due to tourist demand. A typical 2-bedroom condo purchased for $800,000-$1.2 million can generate $45,000-$55,000 annually after expenses, yielding 4-6% returns before mortgage considerations. Success factors include professional photography, dynamic pricing strategies, maintaining 4.8+ star ratings, quick response times under 1 hour, and strategic amenities like beach equipment, parking, and modern furnishings. Properties within 0.5 miles of the beach consistently outperform inland units by 25-40% in both occupancy rates (65-80% vs 45-60%) and average daily rates, with the strongest performance occurring during summer months (June-September) and major events at the nearby Redondo Beach Pier.

Airbnb investments in Redondo Beach, California typically generate annual ROI of 8-12% based on current market conditions, with cash-on-cash returns ranging from 6-10% depending on financing structure and property type. Properties within 0.5 miles of the beach command premium rates of $150-250 per night, while inland properties average $100-180 per night, with occupancy rates of 65-75% annually due to consistent demand from LAX proximity and beach tourism. Initial profitability is generally achieved within 18-24 months, factoring in startup costs of $15,000-25,000 for furnishing and permits, with median property acquisition costs around $800,000-1.2 million for suitable 2-3 bedroom units. The market benefits from year-round tourism, corporate travelers, and weekend beach visitors, with peak summer months generating 20-30% higher rates than off-season periods, making break-even typically occur by month 20-28 for leveraged purchases with 20-25% down payments.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties in Redondo Beach, California, offering comprehensive market analysis and property recommendations. Local real estate agents like Pacific Shores Realty and Beach City Brokers have developed expertise in the Redondo Beach vacation rental market since 2018, helping investors identify properties with strong rental potential near the beach and pier areas. National services including Awning, Mashvisor, and AirDNA provide detailed market analytics and property search tools specifically for Airbnb investments in the South Bay region. RedAwning and Vacasa offer property management services while also helping investors acquire suitable properties in Redondo Beach's prime rental zones. Local companies such as South Bay Property Investors and Manhattan Beach Real Estate Group have expanded their services to include Airbnb investment consulting since 2019. Additional national platforms like BiggerPockets, Roofstock, and HomeUnion occasionally feature Redondo Beach properties suitable for short-term rental conversion, while local property management companies including Beachside Vacation Rentals and Coastal Property Solutions assist with both acquisition guidance and ongoing management of Airbnb investments in the area.