Following several months of debate and consideration, the Manhattan Beach City Council on Tuesday night finally voted, 3-2, to reject a proposal that would temporarily allow city-wide short-term rentals during the FIFA World Cup this summer. 

Voting to reject the proposal were Mayor David Lesser, Mayor Pro Tem Joe Franklin, and Councilmember Steve Charelian. Councilmembers Amy Howorth and Nina Tarnay were in favor of the proposal. 

"It isn't that we don't want to be welcoming; I just don't think we have the capacity to host this safely," said Franklin before the vote. 

The World Cup is the world's largest sporting event, drawing 5 billion viewers in 2022, with 1.5 billion viewers of the final match. In comparison, the Super Bowl has approximately 177 million viewers. Visitors are expected to flock to Los Angeles for the games; and most of Manhattan Beach's limited number of hotel rooms are fully booked. 

The proposal under consideration would have allowed short term rentals (STRs) city-wide for a limited window, June 5 through July 17, around the 2026 World Cup matches scheduled in Los Angeles (which last from June 11 through July 19).

Currently there are no short-term rentals allowed outside the so-called Coastal Zone, which generally encompasses properties west of Highland Ave.

The draft proposed by city staff would have created a temporary STR program that would apply only to the non‑coastal zone. That draft includes a proposed cap of 450 licenses, a number that would mirror the 4% STR density currently allowed in the coastal zone. Staff said licenses could be distributed either through a first‑come, first‑served system or a lottery.

Issue Had Been Hotly Debated

In two previous community surveys reporting back to City Council, more than half of the survey participants were interested in supporting short-term rentals temporarily in the city. And in a temperature-taking poll at a January 6 forum, when asked what concerns residents had about the short-term rental proposal, the most commonly received answers were "none" or "no concerns."

Supporters had argued that the World Cup’s scale demands additional lodging options and that Manhattan Beach should capture the economic benefits rather than push visitors into neighboring cities. With only about 1,000 hotel rooms – and at least one major hotel already fully booked for the tournament – residents and business owners said at the forum that STRs are necessary to meet demand.

The potential revenue could be a boon to both homeowners and the city. Staff reported that the city’s 191 licensed coastal‑zone STRs generated $1.7 million in Transient Occupancy Tax (TOT) revenue last fiscal year. A temporary expansion, they said, could significantly increase that figure.

On Tuesday night, resident Eric Schrader told the council that he would be glad to open his East Manhattan home to visitors. "I do like the opportunity that this is presenting for us to 'dip our toes in' for a short period of time," he said. "Having something that could be more official would be beneficial to the city and to us as a family."

Opponents Warn of Noise, Parking, and Neighborhood Disruption

Meanwhile, opponents have focused on quality‑of‑life concerns, warning that even a temporary program could bring noise, late‑night gatherings, and parking congestion to residential streets. Staff confirmed that parking complaints make up “the bulk of calls” related to existing STRs.

Residents have also raised safety concerns such as the risk of poorly vetted guests, property damage, and “squatters” who refuse to leave. Several questioned whether the city could realistically enforce rules during a high‑demand global event.

Lesser noted that in a Flash Vote community survey taken at the end of 2025, 75 percent of residents said that they planned to stay in town for the World Cup games. "Our responsibility is to protect them," said Lesser.