Should Manhattan Beach allow short-term rentals during the worldwide sporting events that are coming to Los Angeles? That was the question before the Manhattan Beach City Council this week, as the council debated whether to temporarily lift the city’s long-standing prohibition on short-term rentals (STRs). In the end, the council directed staff to draft an ordinance focused only on the World Cup, leaving the Olympics for later consideration. Councilmembers will vote on the proposed ordinance in January. 

Tuesday night's motion passed on a vote of 3-2, with Mayor Pro Tem Joe Franklin and Councilmember Steve Charelian voting no.

A Proposal Rooted in Extraordinary Events

The proposal under review would allow STRs city-wide for a limited window: a week before and a week after the 2026 World Cup matches scheduled in Los Angeles (which last from June 11 through July 19 in Los Angeles). A similar exception had been floated for the 2028 Olympics, but council members opted to narrow the scope for now.

This marked a significant departure from the city’s current ordinance, which restricts STRs to the Coastal Zone (generally, the five or six westernmost blocks of the city). As of late 2022, only 119 licensed operators exist, with 89 actively renting.

True North Data Showed Some Support

Council deliberations leaned heavily on survey data. A True North survey, which used randomized sampling, found that 58% of residents supported a temporary STR allowance. Support rose to 66% when respondents learned that Transient Occupancy Tax (TOT) revenue would be earmarked for public safety costs.

By contrast, a FlashVote survey drew skepticism from council members, who questioned its methodology and the ability of respondents to forward a survey link they were sent.

Economic Promise or Quality of Life? 

Much of the debate centered on whether the potential economic benefits outweighed risks to neighborhood character. Supporters argued that illegal STRs would proliferate during the events regardless of city policy, so a temporary legal framework would allow Manhattan Beach to capture tax revenue. In fiscal year 2024–25, STRs generated $1.7 million in TOT revenue.

"I believe people want quiet enjoyment of their home, but I know people are coming whether we do this or not. Manhattan Beach is on people's radar," said Councilmember Amy Howorth. As good "fiscal stewards," she added, the city should take the opportunity to collect the TOT revenue. 

"In all of my SBACC [South Bay Association of Chambers of Commerce] meetings, this conversation is hot, hot, hot," said Jill Lamkin, president and CEO of the Manhattan Beach Chamber of Commerce. "I think we are going to have an influx of guests. We don't have a ton of hotels and as we've said, we're close; they're going to come; people are going to rent their houses out... I would much rather have it that we're collecting the TOT taxes and better able to monitor where they are and respond to those complaints."

Opponents countered that visitors would spend money locally whether they lodged in Manhattan Beach or elsewhere, making the incremental tax revenue a “red herring.” They warned that even a short-term expansion could erode the city’s residential character.

"Nothing makes you more against short-term rentals than having a loud party next to you," said Mayor Pro Tem Joe Franklin. "Does anybody here remember the '84 Olympics? Everyone was excited - 'I'm going to make a million dollars' - and it didn't happen for the majority of people. So I don't think it's going to be as much of a bonanza as everyone thinks it is. You are going to put a dent into the quality of life for so many people." 

A "Slippery Slope"? 

The “slippery slope” argument surfaced repeatedly. Council members and residents alike worried that granting exceptions for the World Cup and Olympics could open the door to similar requests for future events. Over time, they warned, the city’s prohibition might be weakened beyond recognition.

"Temporary somehow manages to turn into permanent a lot of times, so that would be my main concern," said resident Heather Kim. "I think it just ends up being 'Here's another event' 'Let's just make another exception for this event and this event and this event' and then there's just events all the time, so I would rather not have it at all."

Enforcement Concerns Remain

Enforcement challenges continue to loom large. Officers explained that proving an illegal STR during a service call is difficult, as renters often claim to be relatives. 

"It's hard to prove," said MBPD Lt. Kelly Benjamin. "If you have someone who is operating like this, it's likely they're going to tell their tenant to say that you're my cousin."  

Code Enforcement staff added that violations are typically identified through online listings rather than on-site inspections.

Ultimately, the council directed staff to draft an ordinance allowing STRs only for the World Cup. The measure would create a temporary exception to the city’s prohibition, but its final form – and whether it might pass – remains uncertain. The Olympics will be revisited later, giving the city time to evaluate the impact of any World Cup policy.