The short-term rental market in Long Beach, California, remains robust, with a median occupancy rate of 70%, an average daily rate of $174-$257, and an average annual host revenue of $43,000-$64,000, making it a profitable and stable investment opportunity.
Thriving Short-Term Rental Market in Long Beach, California
Long Beach, California, continues to excel as a lucrative destination for short-term rental investors. The city boasts a robust occupancy rate, with a median occupancy of 70% throughout the year, peaking at 77% in July due to high summer demand.
The average daily rate (ADR) in Long Beach is impressive, standing at $257.1, and reaching a maximum of $277 in July. This indicates strong revenue potential, with the average annual revenue per listing estimated at $64,400. The peak month of July also sees the highest monthly revenue, reaching up to $5,400.
These metrics highlight Long Beach as a favorable and profitable market for Airbnb hosts, driven by its appealing coastal location, rich cultural offerings, and lenient short-term rental regulations.
Short-Term Rental Regulations in Long Beach, California for 2024
Registration and Eligibility
- Registration Requirement: Hosts must register their property with the city, with a valid registration lasting one year and requiring renewal.
- Application Fee: An initial application fee of $250 and a renewal fee of $400.
- Eligible Properties: Short-term rentals are allowed in single-family homes, condominiums, apartment units in residential complexes, maids' quarters, and guest houses. However, they are not permitted in pool houses, casitas, garages, or other outbuildings.
- Proof of Residency: Hosts must provide proof of residency, such as a driver's license, loan documents, or voter registration card. For non-primary residences, a notarized document granting permission is required.
Capacity and Occupancy
- Maximum Occupancy: Two guests per bedroom plus an additional two guests per unit, with a maximum of 10 people per rental unit.
- Capacity Caps in Residential Complexes: For buildings with 11 or more units, specific percentage caps apply (e.g., 10% for 11-50 units, 12% for 51-100 units, and 15% for 101 or more units).
Operating Requirements
- Local Contact Person: Hosts must provide a local contact person available 24/7 to handle complaints within one hour.
- Safety Standards: Hosts must adhere to safety standards and ensure the rental activity does not disturb the neighborhood's peace.
- Transient Occupancy Tax (TOT): A 13% TOT must be paid on a monthly basis.
Restrictions and Prohibitions
- Prohibited Areas and Buildings: Short-term rentals are not allowed in ADUs, JADUs, deed-restricted affordable units, SROs, or units in prohibited buildings.
- Coastal Zone Regulations: Specific regulations apply within the Coastal Zone to preserve public access and ensure responsible use of properties.
- Neighborhood Petitions: Residents can petition to prohibit unhosted short-term rentals in their census tract block group if more than half of the neighbors sign in support.
Additional Requirements
- Primary and Non-Primary Residence Registrations: Hosts can have one registration for a primary residence and one for a non-primary residence. Primary residences can be rented unhosted for up to 90 days per year, while non-primary residences have no day limits but are capped at 800 citywide registrations.
- Property Owner Consent: Renters or tenants must provide a signed and notarized Property Owner Authorization form from the landlord.
- No Pending Citations: The dwelling unit must not have any active or pending code enforcement actions or violations.
Community Enforcement
- Nuisance Violations: Hosts and property owners are jointly responsible for any nuisance violations arising from short-term rental activities. Repeated violations can lead to registration revocation.
- Community Action: Residents can form petitions to ban short-term rentals in their neighborhoods, and the city may enforce stricter regulations based on community feedback.
Top Airbnb Revenue-Generating Neighborhoods in Long Beach, California
1. Downtown Long Beach
- Appeal: Downtown Long Beach is the heartbeat of the city, characterized by modern skyscrapers, bustling streets, and waterfront views. It offers a dynamic mix of entertainment, dining, and cultural attractions, including the Aquarium of the Pacific, Pike Outlets, and the Queen Mary. Guests love the easy access to conferences, festivals, nightlife, and the vibrant arts scene with historic buildings and contemporary developments.
2. East Village
- Appeal: Known as the arts district of Long Beach, East Village is a haven for artists and creatives. The neighborhood boasts boutique shops, artisanal cafes, independent art studios, and a bohemian vibe. Guests are drawn to its inspiring and eclectic atmosphere, surrounded by murals and within walking distance to the beach.
3. Alamitos Beach (East, West, Southeast)
- Appeal: These sections of Alamitos Beach offer direct access to sandy shores, oceanfront paths, and parks. The area is ideal for guests who prioritize beach activities like biking, rollerblading, and enjoying the vibrant boardwalk with its array of shops and eateries.
4. Belmont Shore and Belmont Heights
- Appeal: Belmont Shore and Belmont Heights provide waterfront views, access to the beach, and a thriving dining scene. These neighborhoods are perfect for guests seeking adventure and leisure by the sea, with a mix of historic homes and modern amenities. The area is also known for its charming residential vibe and proximity to marina activities.
5. North Alamitos Beach West & North Alamitos Beach
- Appeal: These neighborhoods offer a blend of residential tranquility and urban convenience. Close to the beach but away from the busiest tourist areas, they provide a quieter stay for guests. The area’s architectural diversity, including historic homes and modern apartments, and its community feel are major attractions.
6. Peninsula
- Appeal: The Peninsula stands out for its exclusive beachfront properties, offering serene ocean views and a quieter retreat. Guests appreciate the luxurious and peaceful atmosphere, making it an ideal choice for those seeking a more secluded beach experience.
7. Zaferia (North, East) & East Side
- Appeal: Known for their eclectic vibe, these neighborhoods feature a mix of restaurants, vintage shops, and cultural attractions. Guests enjoy the unique charm and the blend of local experiences that these areas provide.
These neighborhoods are highly appealing due to their unique blend of cultural, historical, and recreational attractions, making Long Beach a versatile and desirable destination for Airbnb guests.
Creating an Inviting Airbnb in Long Beach, California: Design and Furnishing Tips
Prioritize Comfort and Functionality
- Choose comfortable and durable furniture that can withstand the wear and tear of guests.
- Invest in high-quality mattresses and linens to ensure a good night's sleep.
- Provide additional amenities such as extra pillows, blankets, and towels to enhance the guest experience.
- Ensure the rental is equipped with all necessary appliances and amenities, including a fully-stocked kitchen and reliable Wi-Fi connection.
Create a Cohesive Style
- Select a style that reflects the location and type of rental. For a coastal city like Long Beach, consider incorporating coastal elements such as nautical decor and beach-inspired colors.
- Ensure all decor elements work together in terms of color, texture, and style to create a cohesive look.
Optimize Outdoor Spaces
- Create comfortable seating areas such as a patio or deck.
- Add outdoor lighting and heating to extend the use of these spaces into the evening and cooler months.
- Incorporate greenery like plants and flowers to enhance the natural beauty of the outdoor space.
- Provide outdoor equipment such as beach chairs, umbrellas, and bicycles if the rental is near the beach or other outdoor attractions.
Infuse Local Culture
- Incorporate local art, textiles, and furnishings that tell a story unique to the region.
- Use colors that reflect the local palette and integrate local textures into your decor, such as handmade rugs or locally sourced wooden furniture.
- Provide guests with a curated selection of local snacks or beverages to engage multiple senses.
Pay Attention to Details
- Add personal touches such as local artwork or photographs to create a sense of place.
- Use throw pillows, blankets, and decorative objects to add warmth and comfort to seating areas.
- Ensure the rental is spotless and clutter-free to create a welcoming environment.
Design for Guest Experience
- Create mini escapes or cozy nooks where guests can relax and unwind.
- Stock the rental with amenities such as board games, yoga mats, crafts, and other activities that enhance the guest experience.
- Consider offering shoppable items within the rental, allowing guests to purchase decor or amenities they love.
Set the Right Tone
- Design the space with a specific feeling in mind, such as comfort, joy, or serenity.
- Use patterns, textures, and details that evoke the local environment, such as the beach or coastal vibe in Long Beach.
Discover Long Beach, California: Local Attractions and Insider Tips
Local Attractions
Waterfront Delights
- Aquarium of the Pacific: Southern California’s largest aquarium, featuring sea otters, Magellanic penguins, and a 350,000-gallon tropical reef habitat.
- Whale Watching: Take a tour with Harbor Breeze Cruises or City Experiences to spot marine life.
- Beaches: Enjoy family-friendly beaches like Alamitos Beach, Marine Park, and Belmont Shore Beach. Rent stand-up paddleboards, kayaks, or Duffy electric boats at Rainbow Marina.
Cultural and Historical Sites
- Museum of Latin American Art (MOLAA): Explore the sculpture garden and check for free admission on Sundays.
- The Queen Mary: A historic ship now permanently moored in Long Beach, offering tours and dining experiences.
- Earl Burns Miller Japanese Garden: A serene garden located at California State University, Long Beach.
Shopping and Dining
- The Pike Outlets: Shop at stores ranging from Restoration Hardware to H&M.
- Retro Row: Find vintage items on 4th Street, from furniture to clothes and knick-knacks.
- Shoreline Village: Specialty shops like The Village Hat Shop and Istanbul Home along the waterfront.
- Belmont Shore: Boutique shopping and dining along 2nd Street.
Events and Festivals
- Long Beach Dragon Boat Festival: Celebrate Chinese heritage with dragon boat racing, traditional art, and performances in July.
- Christmas Tree Lighting and Parades: Enjoy festive events in Downtown Long Beach, including multiple Christmas parades.
Insider Tips
Getting Around
- Water Taxis: Use high-speed water taxis for a convenient and scenic way to travel around the waterfront.
- LA Metro System: Utilize the metro for easy access to various attractions without driving.
Hidden Gems
- Marina Green Park: A scenic park perfect for picnics and outdoor activities.
- Promenade Square and Harvey Milk Park: Local favorites for relaxation and community events.
Seasonal Activities
- Beach Streets: An annual event where streets are closed for pedestrians and cyclists to enjoy.
- Holiday Events: Long Beach is known for its extensive holiday celebrations, including tree lighting, parades, and festive performances.
Local Favorites
- Yoga Classes: Find various yoga classes tailored to different needs and preferences.
- Craft Breweries: Explore the local craft brewery scene with guided tours.
By sharing these attractions and insider tips, you can help your Airbnb guests make the most of their visit to Long Beach, California.
Practical Tips to Run a Successful Short-Term Rental Business in Long Beach, California
To ensure a smooth and successful short-term rental business in Long Beach, California, several practical tips can be implemented. First, it is crucial to address noise regulations by informing guests about quiet hours through clear communication in the rental listing and a digital or physical house manual. This manual should also include essential instructions, Wi-Fi passwords, and other pertinent information to enhance the guest experience.
A simplified check-in process can be achieved by utilizing smart locks, which eliminate the need for physical key exchanges and provide guests with immediate access to the property. Additionally, providing detailed parking instructions accompanied by photos can help avoid confusion and ensure a hassle-free arrival.
By adhering to these tips, you can maintain compliance with local regulations, such as those outlined in Long Beach's Short-Term Rentals (STR) Program, which emphasize the importance of neighborhood safety and nuisance prevention.
Implementing these strategies will not only enhance guest satisfaction but also help in maximizing rental revenue and maintaining a positive reputation for your short-term rental business.
Here is a brief list of house cleaning services providers in Long Beach, California:
MaidThis
- Offers residential, vacation rental, and deep cleaning services.
- Rigorous screening and background checks for cleaners.
- Customizable cleaning plans and a 100% satisfaction guarantee.
Molly Maid of Long Beach / South Bay
- Provides customized cleaning plans with no contracts.
- Services include floor cleaning, dusting, and washing/sanitizing.
- Flexible scheduling and a "Neighborly Done Right Promise" for on-time service.
Aloha Maids
- Offers weekly, biweekly, or monthly housekeeping services.
- Services include apartment & condo cleaning, Airbnb & vacation rental cleaning, move-in/move-out cleaning, and deep cleaning.
- Cleaners are vetted and background checked upon request.
Los Angeles House Cleaners (serving Long Beach)
- Provides one-time, monthly, bi-weekly, and weekly cleaning services.
- Services include deep cleaning, oven cleaning, refrigerator cleaning, window cleaning, and more.
- Uses modern equipment and environmental cleaners.
Care.com House Cleaning Services
- Lists various local house cleaning services with average rates starting at $21.71/hr.
- Providers are rated and reviewed by customers, with an average rating of 4.5 out of 5 stars.
Short-Term Rental Management Fees in Long Beach, California: A Range of 10%-30% Depending on Service Level
In Long Beach, California, the fees for managing short-term rentals, such as those listed on Airbnb, can vary significantly based on the scope of services provided. Full-service management companies, like MasterHost and GoSummer, offer comprehensive services including guest communication, marketing, pricing optimization, and property maintenance, and these services typically come with fees ranging from 15% to 30% of the rental revenue.
On the lower end, basic services might start at around 10% per booking, focusing on essential tasks such as listing creation, booking management, and guest screening. Additional fees can also be incurred for services like cleaning, repairs, and interior design, which may be charged separately or included in the overall management fee.
Understanding these fee structures is crucial for property owners to ensure they are maximizing their earnings while complying with local regulations, such as the transient occupancy tax and short-term rental permits required by the City of Long Beach.