Buying and Selling Short-Term Rentals in Long Beach, CA: Regulations, Neighborhoods, and Investment Strategies

Q: Can I run an Airbnb in an Accessory Dwelling Unit (ADU) in Long Beach?

No. Under California state law and Long Beach municipal code, ADUs and Junior ADUs (JADUs) cannot be rented for stays under 30 consecutive days. They can only be utilized for long-term tenancies or 30-plus-day mid-term rentals (MTRs).

Q: Does an existing STR permit transfer to me when I buy a property?

No. STR registration numbers are non-transferable. When escrow closes, the existing license is voided, and the new buyer must apply independently with the City of Long Beach.

Q: What is the maximum guest occupancy allowed in a Long Beach STR?

The city caps occupancy at two guests per bedroom plus two additional guests, with an absolute maximum ceiling of eight occupants per property (inclusive of children). Studio units have a strict maximum occupancy of two guests.

Q: What is the Transient Occupancy Tax (TOT) rate, and who collects it?

The City of Long Beach charges a 13% TOT on gross rental receipts for all stays of 30 days or fewer. While major platforms like Airbnb automatically collect and remit this tax on your behalf, hosts are still responsible for registering with the City Finance Department and filing monthly reports for any direct or non-collecting platform bookings.

Q: What are the penalties for operating an unpermitted STR in Long Beach?

Unregistered STR operations face administrative citations of $1,000 per violation. Three citations within an 18-month window can bar the parcel from receiving or renewing an STR permit for at least 12 months.

Q: Can I buy a condo in Downtown Long Beach or along Ocean Boulevard to use as an STR?

Only if the HOA covenants, conditions, and restrictions (CC&Rs) explicitly permit short-term leasing. The vast majority of condo associations in Long Beach enforce minimum lease requirements (typically 30 days, 6 months, or 1 year) or maintain complete bans on STR activity, regardless of whether city permits are available.

by Rick Lee

Buying and Selling Short-Term Rentals in Long Beach, CA: Regulations, Neighborhoods, and Investment Strategies

Blog/Investment Property

Short-Term Rental Investing in Long Beach: what to know before you buy.

Rick J. Lee·October 2, 2026·8 min read

Investing in short-term rentals (STRs) like Airbnb and Vrbo in Long Beach can deliver strong yields, consistent leisure and convention traffic, and long-term equity growth. However, Long Beach operates under one of Southern California's most strictly enforced municipal STR ordinances.

Buying an STR here is not as simple as closing escrow and furnishing the property. A single oversight regarding zoning, parcel caps, or HOA restrictions can leave an investor holding an expensive asset they cannot legally list.

Navigating this market requires an advisor who combines daily transactional real estate expertise with an in-depth understanding of municipal code enforcement.

How Long Beach Short-Term Rental Regulations Work

Operating legally in Long Beach requires an active registration through the City's Development Services / Code Enforcement Division before taking bookings. The city strictly bifurcates STRs into two categories: STRPermitKit

Primary Residence STRs

Residency Requirement

The property must be your permanent home, meaning you reside there for at least 275 days (9 months) per year.

Source: STR Profit Map

Hosted Stays

Unlimited nights per year while you remain present on-site.

Source: STR Profit Map

Unhosted Stays

Capped at a maximum of 90 days per calendar year when the owner is away.

Source: STR Profit Map

Citywide Cap

Unlimited licenses available.

Source: BNBCalc

Non-Primary Residence STRs (Pure Investment Properties)

Residency Requirement

None—investors do not have to live on the property.

Source: STRPermitKit

Hosted & Unhosted Stays

Unlimited 365 days a year.

Source: STR Profit Map

Citywide Hard Cap

Strictly limited to 800 non-primary licenses across the entire city.

Source: STRPermitKit

Coastal Zone Sub-Cap

Only 350 of the 800 non-primary licenses are permitted inside the California Coastal Zone (south of Ocean Blvd, Belmont Shore, Peninsula, Naples, Alamitos Bay).

Source: BNBCalc

Critical Regulatory Traps Investors Must Avoid

Purchasing property with the intent to run an STR without upfront due diligence exposes buyers to immediate city code violations ($1,000+ fines per citation) or an unusable investment model. BNBCalc

Rule / Barrier

Detail & Impact

ADU / JADU Exclusion

California law and Long Beach municipal code strictly prohibit Accessory Dwelling Units and Junior ADUs from being rented short-term (<30 days).

Building / Parcel Density Caps

In multi-family complexes, the city caps the percentage of units that can operate as STRs (e.g., 2–10 units = max 1 STR; 11–50 units = 10% cap).

Non-Transferable Permits

STR licenses do not transfer with ownership. A property sold as a "turnkey STR" loses its license upon close of escrow; the buyer must apply anew.

HOA CC&R Restrictions

Most condo associations across Ocean Blvd and Downtown maintain explicit 30-day minimum lease clauses or outright STR bans in their CC&Rs.

Prohibited Buildings List

Buildings with active tenant or owner petitions banning STRs are formally blacklisted by the city.

Transient Occupancy Tax (TOT)

Stays of 30 days or fewer carry a 13% City of Long Beach TOT, remitted directly to the city.

High-Demand Long Beach STR Neighborhoods

Belmont Shore & Naples

Highest average daily rates (ADR), driven by coastal walkability to 2nd Street dining, bay activities, and beach access. Strict coastal caps apply.

Source: BNBCalc

Downtown Long Beach (East Village & Waterfront)

Supported by steady convention center traffic, business travelers, and cruise port departures. Units here benefit from year-round weekday business demand alongside weekend tourism.

Alamitos Beach & Bluff Park

High demand for vintage coastal character within walking distance to the beach path and retro dining corridors. Ideal for duplexes or triplexes where an owner-operator can live in one unit and short-term rent another.

Bixby Knolls & Cal Heights

Strong mid-city demand driven by visiting hospital staff, medical professionals, and visiting family members, often commanding high multi-month mid-term rental (MTR) backup rates.

Why Partnering with the Right Long Beach Agent Protects Your Capital

Most general real estate agents understand standard sales price comps, but very few understand short-term rental underwriting, local licensing queues, and municipal restrictions.

For Buyers

Zoning & Permit Verification

Confirming whether the target parcel sits within the Coastal Zone, whether the parcel's density cap is already tapped out, and current waitlist status for non-primary licenses before putting down an earnest money deposit.

HOA CC&R Auditing

Pulling and reviewing HOA bylaws during the escrow contingency period to verify that leasing covenants permit sub-30-day rentals.

Data-Driven Financial Underwriting

Pro-forma projections backed by actual local ADRs, seasonal occupancy curves, cleaning overhead, platform fees, and Long Beach’s 13% TOT.

Source: BNBCalc

The Hybrid Strategy (STR + MTR)

Setting up your asset so it generates top-tier income as a short-term rental while staying primed to capture 30+ day corporate, travel-nurse, and insurance-placement stays without needing an STR license.

For Sellers

Marketing to Active Cash Investors

Presenting verifiable historic booking revenue, cap rates, and property setup rather than treating the listing like a generic residential sale.

Turnkey Valuation

Monetizing interior furnishings, established vendor handoffs (cleaners, handymen, dynamic pricing setups), and operating assets into the final sales price.

Targeted Regional & National Reach

Direct marketing to institutional and private exchange buyers seeking income-producing assets along the Southern California coastline.

Action Plan

Sourcing or Liquidating an STR in Long Beach

Verify Target Property Parcel Status

Check the Assessor Identification Number (AIN) against the Long Beach Community Development STR Registry database to confirm unit allowance and building restrictions.

Run Dual-Scenario Pro Formas

Evaluate projected net cash flows at 70% seasonal occupancy on STR platforms versus 30+ day mid-term corporate rental rates.

Audit Covenants & Clear Title

Review deed restrictions, CC&Rs, and coastal boundary lines before removing inspection contingencies.

Book a Strategic Consultation

Align your capital requirements with an on-the-ground Long Beach market specialist to identify viable properties or execute a high-yield disposition.

Schedule a Consultation

FAQ

Frequently Asked Questions: Long Beach Short-Term Rentals

Can I run an Airbnb in an Accessory Dwelling Unit (ADU) in Long Beach?+

No. Under California state law and Long Beach municipal code, ADUs and Junior ADUs (JADUs) cannot be rented for stays under 30 consecutive days. They can only be utilized for long-term tenancies or 30-plus-day mid-term rentals (MTRs).

Does an existing STR permit transfer to me when I buy a property?+

No. STR registration numbers are non-transferable. When escrow closes, the existing license is voided, and the new buyer must apply independently with the City of Long Beach.

What is the maximum guest occupancy allowed in a Long Beach STR?+

The city caps occupancy at two guests per bedroom plus two additional guests, with an absolute maximum ceiling of eight occupants per property (inclusive of children). Studio units have a strict maximum occupancy of two guests.

What is the Transient Occupancy Tax (TOT) rate, and who collects it?+

The City of Long Beach charges a 13% TOT on gross rental receipts for all stays of 30 days or fewer. While major platforms like Airbnb automatically collect and remit this tax on your behalf, hosts are still responsible for registering with the City Finance Department and filing monthly reports for any direct or non-collecting platform bookings.

What are the penalties for operating an unpermitted STR in Long Beach?+

Unregistered STR operations face administrative citations of $1,000 per violation. Three citations within an 18-month window can bar the parcel from receiving or renewing an STR permit for at least 12 months.

Can I buy a condo in Downtown Long Beach or along Ocean Boulevard to use as an STR?+

Only if the HOA covenants, conditions, and restrictions (CC&Rs) explicitly permit short-term leasing. The vast majority of condo associations in Long Beach enforce minimum lease requirements (typically 30 days, 6 months, or 1 year) or maintain complete bans on STR activity, regardless of whether city permits are available.

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The first conversation is always free.

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