The question comes up constantly: is Airbnb in Manhattan Beach legal? The answer is “it depends on where in Manhattan Beach you are” — and most of the city, the answer is no.
Here’s what the city actually allows, how it works, and what it means if you’re evaluating a Manhattan Beach property with rental income in mind.
Short-Term Rentals Are Only Allowed in the Coastal Zone
Manhattan Beach has a general ban on short-term vacation rentals — defined as rentals of less than 30 days. That ban, however, does not apply to properties within the city’s Coastal Zone.
In April 2022, a California Court of Appeal ruled that Manhattan Beach’s short-term rental ban cannot be applied to properties within the Coastal Zone. Properties outside the Coastal Zone remain subject to the ban.
In practice, the Coastal Zone covers the western portion of the city — primarily the Sand Section, west of approximately Highland Avenue. The Tree Section, Hill Section, and East Manhattan Beach (Mira Costa, Liberty Village, The Village) are largely outside the Coastal Zone and cannot legally operate short-term rentals.
If you’re not sure whether a specific property is in the Coastal Zone, use the City’s Interactive GIS Map or contact the Planning Division at (310) 802-5520 before assuming it’s eligible.
What You Need to Legally Operate an STVR in the Coastal Zone
There is no separate “STVR permit” in Manhattan Beach the way there is in Hermosa Beach. Instead, you need two things:
1. A City Business License
All short-term rental operators must obtain a business license from the City’s Revenue Services Division before listing. This involves completing a Business License Tax Application and a Zoning Business Review Form.
The business license tax is calculated based on your annual gross receipts — there is a base tax plus a percentage of gross receipts from the prior calendar year. For new businesses, the tax is prorated quarterly. The business license year runs from March 1 through the last day of February.
As of February 2025, Manhattan Beach uses a new online business license portal at manhattanbeach.hdlgov.com, where you can apply, renew, pay, and download your license certificate.
Contact: Revenue Services Division — (310) 802-5559 | BusinessLicense@manhattanbeach.gov
2. Transient Occupancy Tax (TOT) Registration and Remittance
All short-term rental operators must collect and remit Transient Occupancy Tax (TOT) from every guest. The current TOT rate in Manhattan Beach is 14% (effective July 1, 2023). The simplest way to calculate the TOT owed is to apply the 14% rate to the host payout you receive from Airbnb, VRBO, or similar platforms.
Operating without collecting and remitting TOT is a separate compliance issue from the business license — the city enforces both.
Operating Without a Business License
The city does not allow advertising or operating a short-term vacation rental without a current business license, even in the Coastal Zone. Code enforcement in Manhattan Beach is active in the residential neighborhoods, and neighbor complaints in a dense beach community travel fast.
What About the FIFA World Cup?
In early 2026, there was significant local discussion about whether Manhattan Beach might temporarily lift its short-term rental ban citywide to accommodate visitors to the FIFA World Cup (June 5–July 17, 2026, with some matches at SoFi Stadium in Inglewood).
The City Council voted 3–2 on January 20, 2026 to reject the proposal. The citywide ban remains unchanged for the World Cup period. No temporary STVR expansion will take effect. If you heard otherwise, that proposal was killed before it got off the ground.
The practical implication: World Cup rental demand in the South Bay will flow primarily to Hermosa Beach (where STVRs are already permitted in commercial zones) and to the existing Coastal Zone operators in Manhattan Beach’s Sand Section.
What This Means for Sand Section Owners
If you own in the Sand Section and your property is within the Coastal Zone, you have a genuine short-term rental option that most of Manhattan Beach doesn’t. The Sand Section near the Pier, the Strand, and the walk streets is a strong vacation rental draw — access to the beach, walkability to Downtown, and a legitimate beach town atmosphere.
A few practical considerations:
- HOA restrictions — if your property is in an HOA (more common in townhomes and condos), check the CC&Rs carefully. Many HOAs restrict or prohibit short-term rentals regardless of what the city allows.
- Coastal Zone verification — confirm your specific address is within the Coastal Zone before listing. Being in the Sand Section is usually sufficient, but verify.
- Small lots, close neighbors — Sand Section lots run ~2,700 sq ft. If guests are disruptive, neighbors will notice. The business license process exists partly to create accountability.
- Gross receipts tax exposure — unlike a flat annual permit fee, the business license tax scales with your income. Factor this into your income model.
Manhattan Beach vs. Hermosa Beach for STVR Income
If rental income is a meaningful part of your investment thesis, the two cities are not equivalent:
| Manhattan Beach | Hermosa Beach | |
|---|---|---|
| Where allowed | Coastal Zone only (Sand Section) | Specific commercial zones only (C-2, C-3, SPA 7, 8, 11) — residential zones prohibited as of Oct 2019 |
| What you need | Business license + TOT registration | STVR permit ($2,173 initial, $1,880/yr) + TOT |
| TOT rate | 14% | 14% |
| License cost | Based on gross receipts | Flat annual permit fee |
| Sections excluded | Tree Section, Hill Section, East MB | None — city-wide program |
For a more detailed comparison, see: Manhattan Beach vs. Hermosa Beach: STVR Rules Compared.
If You’re Buying with STVR Income in Mind
The due diligence checklist:
- Confirm the address is within the Coastal Zone (Interactive GIS Map or call Planning at 310-802-5520)
- Check whether the property or building has HOA rules that restrict short-term rentals
- Ask whether the property has operated as an STVR before — prior income data is useful, and any prior violations are worth knowing about
- Build in the 14% TOT, business license tax, platform fees (typically 3%), and cleaning costs when modeling net income
- Understand that city regulations can change — the current framework exists because of a court ruling, not a permanent ordinance passed by the city in support of STVRs
Important: City regulations change, and your specific property may have additional restrictions based on zoning, lot configuration, or HOA rules. Before listing or buying with rental income in mind, verify current requirements directly with Manhattan Beach Planning at (310) 802-5520. This guide is informational — the city has final say on what’s allowed for your property.
I work with investors and buyers who are evaluating properties with rental income as part of the picture. If you want to run through the numbers on a specific property or understand the regulatory landscape more fully, let’s talk.
Cecilia Agraz | Stroyke Properties Group
310-803-9338 | cecilia@manhattanhermosahomes.com
DRE #01974999
Also reading: Short-Term Rentals in Hermosa Beach | ADU Guide for Manhattan Beach | Manhattan Beach for Real Estate Investors
Cecilia Agraz
South Bay neighbor and Realtor® focused on clear guidance and low‑stress moves in Manhattan Beach & Hermosa Beach.