Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
In Manhattan Beach, one line on the city map decides whether you can rent short term. That line also decides which taxes you collect and how your rental losses are treated. We help Manhattan Beach owners sort out which rules apply to their address and plan the return around them.
LaviCPA is Shawn Lavi, CPA and Elias Lavi, CPA. Our one office is 7707 Sunset Blvd in Los Angeles. Manhattan Beach clients meet us there or by Zoom.
Short stays depend on the Coastal Zone
Manhattan Beach Municipal Code Chapter 4.88 makes it unlawful, in residential zones, to rent, occupy, or advertise a dwelling or room for less than 30 consecutive days. The ban does not apply to properties inside the city's Coastal Zone.
Outside the Coastal Zone, hosting platforms have to report listings to the city and may not take a fee to complete a booking for a residential property. Inside the Coastal Zone, the city requires a business license, and stays of 30 days or less owe the transient occupancy tax. The rate has been 14% since July 1, 2023.
Before you buy for short-term income, check which side of the line the parcel sits on. We start there.
Why the rental type matters on your return
A Coastal Zone property with average stays of seven days or less can fall outside the usual passive rental rules. That depends on how much you take part in running it. A house rented 30 days or longer follows the normal passive activity rules. We look at your stays and your hours before we tell you what you can deduct. Our REPS and passive loss page explains the federal tests.
Selling a Manhattan Beach property
Manhattan Beach does not levy a city transfer tax. A sale pays the LA County rate of $1.10 per $1,000. ULA does not apply, because it is a City of Los Angeles tax.
For long-held homes, the planning items are gain, the home sale exclusion if you lived there, and recapture on any rental years. If you are trading up, see our 1031 exchange page.
Manhattan Beach FAQs
Can I short-term rent my Manhattan Beach house?
Only if it is inside the city's Coastal Zone. Elsewhere in residential zones, rentals of less than 30 consecutive days are unlawful.
What is the Manhattan Beach transient occupancy tax?
14%, effective July 1, 2023, on stays of 30 days or less.
Is there a city transfer tax in Manhattan Beach?
No. A sale pays the LA County rate of $1.10 per $1,000.
Book a free 30-minute New Client Introduction
Send us your address and how you rent it today. We will tell you which rules apply and what that does to your return.
Book a free 30-minute New Client Introduction
General information only, not advice for your situation. Rules and rates change, so we confirm them before you act.