Seal Beach Short-Term Rental Regulations: A Guide for Owners

Seal Beach, a charming coastal city in Orange County, California, is a popular destination for tourists seeking a laid-back beach experience. With its sandy shores, historic pier, and vibrant Main Street, it’s no surprise that property owners are eager to capitalize on the demand for short-term rentals (STRs) through platforms like Airbnb and Vrbo. However, operating an STR in Seal Beach comes with strict regulations that owners must navigate to remain compliant and avoid penalties. This comprehensive guide explores the current STR regulations in Seal Beach, offering property owners a clear roadmap to successfully manage their vacation rentals while adhering to local laws.

Understanding Short-Term Rentals in Seal Beach

A short-term rental in Seal Beach is defined as a residential property, or a portion thereof, rented for 30 days or less. These rentals cater to vacationers, business travelers, and others seeking temporary accommodations. While STRs can be a lucrative investment, they have historically sparked debate in Seal Beach due to concerns about noise, parking, and neighborhood character. As a result, the city has implemented stringent rules to balance the interests of property owners, residents, and visitors.

In the past, Seal Beach enforced one of the strictest STR bans in Orange County, prohibiting rentals of 29 days or less in residential zones. However, legal challenges and court rulings, particularly those referencing the California Coastal Act, prompted the city to revise its policies. In 2022, a court overturned the city’s blanket ban, citing that such restrictions limited coastal access, which is protected under state law. This led to the development of a regulated STR program, approved by the California Coastal Commission in July 2024, allowing a limited number of STRs in the coastal zone.

Current Regulations for Short-Term Rentals

As of 2025, Seal Beach permits STRs under a tightly controlled framework. Below is a detailed breakdown of the key regulations and requirements for property owners.

1. Permit Requirements

To operate a legal STR in Seal Beach, owners must obtain a Short-Term Rental Permit. The city has capped the total number of STR permits at 47, equivalent to 1% of the housing units in the coastal zone (approximately 4,700 homes). This cap aligns with similar restrictions in neighboring cities like Long Beach (1.6% cap) and Laguna Beach (1.5% cap).

• Application Process: Permits are issued through a lottery system, with applications reviewed by the Community Development Department. The lottery for initial permits was held on May 10, 2023, and additional permits may be issued if the program expands or existing permits are revoked.

• Eligibility: Only properties in the coastal zone are eligible for STR permits. Owners must verify their property’s zoning status with the city’s Planning Division.

• Fees: The permit application fee is approximately $250, and a business license (around $260) is also required. These fees may vary, so owners should confirm with the city.

• Conditional Use Permits (CUPs): Some properties operate under existing CUPs, which are separate from the new STR program. As of 2024, 14 properties held CUPs for STRs, and these are grandfathered into the current system, running with the land.

2. Operational Rules

Once a permit is obtained, STR owners must adhere to strict operational guidelines to maintain compliance:

• Good Neighbor Guidelines: Guests must follow the city’s “Good Neighbor” policies, which prohibit parties, weddings, or other large gatherings at STR properties. Noise, trash, and parking violations can lead to permit revocation.

• Occupancy Limits: The city enforces maximum occupancy limits to prevent overcrowding. Typically, this is based on the number of bedrooms, with a standard of two guests per bedroom plus two additional guests.

• Local Contact Person: Owners must designate a local contact person who can respond to complaints or emergencies within one hour. This could be the owner, a property manager, or a neighbor with access to the property.

• Display of Permit: The STR permit number must be displayed on all advertisements, including online listings on platforms like Airbnb and Vrbo.

• Transient Occupancy Tax (TOT): Owners are required to collect and remit an 8% TOT on all rental income. Failure to comply can result in fines and penalties.

3. Restrictions on Property Types

Not all properties are eligible for STRs in Seal Beach. The following restrictions apply:

• Residential Zones: STRs are only permitted in specific residential zones within the coastal area. Properties outside these zones, such as those in inland neighborhoods, are ineligible.

• Prohibited Structures: Accessory Dwelling Units (ADUs), garages, pool houses, and other outbuildings cannot be used as STRs.

• Homeowners’ Associations (HOAs): Properties within HOAs or condo associations may face additional restrictions. Owners should review their CC&Rs (Covenants, Conditions, and Restrictions) to ensure STRs are allowed.

4. Enforcement and Compliance

Seal Beach actively monitors STR activity to ensure compliance. The city collaborates with hosting platforms to enforce regulations and may impose fines or revoke permits for violations. Common violations include:

• Operating an STR without a permit.

• Exceeding occupancy limits.

• Failing to address guest-related complaints (e.g., noise or parking issues).

• Not collecting or remitting TOT.

Residents can report suspected illegal STRs to the city’s Code Enforcement Division, which investigates complaints promptly. Owners found operating without a permit risk significant fines and legal action.

Steps to Start a Short-Term Rental in Seal Beach

For property owners interested in entering the STR market, the following steps outline the process to become a compliant host:

1. Verify Property Eligibility: Contact the Seal Beach Planning Division (562-431-2527) to confirm that your property is located in the coastal zone and meets zoning requirements. Check with your HOA or condo association for any additional restrictions.

2. Apply for a Permit: Submit an STR permit application through the Community Development Department. If the permit cap has been reached, you may be placed on a waitlist for future openings.

3. Obtain a Business License: Apply for a business license with the city, ensuring all required documentation is provided.

4. Prepare Your Property: Ensure your property complies with safety regulations, including working fire alarms, carbon monoxide detectors, and clear emergency exits. Provide guests with information on local rules, such as parking restrictions and noise ordinances.

5. Set Up Tax Collection: Register with the city to collect and remit the 8% TOT. Consult a tax professional to ensure compliance with state and local tax laws.

6. List Your Property: Create listings on platforms like Airbnb or Vrbo, ensuring your permit number is displayed. Highlight your property’s proximity to Seal Beach attractions, such as the pier or Main Street, to attract guests.

7. Maintain Compliance: Regularly monitor guest behavior, respond to complaints promptly, and renew your permit and business license annually.

Challenges and Considerations

While STRs offer significant income potential, owners in Seal Beach face several challenges:

• Limited Permits: With only 47 permits available, competition is fierce. Owners on the waitlist may face delays in starting their STR business.

• Community Resistance: Some residents oppose STRs, citing disruptions to neighborhood tranquility. Owners must be proactive in managing guest behavior to avoid complaints.

• Regulatory Changes: STR regulations are subject to change based on city council decisions or Coastal Commission reviews. Owners should stay informed by attending Planning Commission meetings or checking the city’s website.

• Operational Costs: Beyond permit and license fees, owners must budget for property maintenance, insurance, and potential legal fees if disputes arise.

Tips for Success

To thrive as an STR host in Seal Beach, consider the following best practices:

• Prioritize Guest Experience: Provide clear instructions, local recommendations, and prompt communication to earn positive reviews and repeat bookings.

• Hire a Property Manager: If you’re not local, a property manager can handle guest inquiries, maintenance, and compliance tasks.

• Stay Informed: Subscribe to city newsletters or follow the Seal Beach Community Development Department for updates on STR regulations.

• Market Strategically: Emphasize your property’s unique features, such as ocean views or proximity to the Seal Beach Pier, to stand out in a competitive market.

The Future of Short-Term Rentals in Seal Beach

The city’s STR program is still evolving, with a mandated review scheduled 18 months after its implementation in 2023. The California Coastal Commission has also requested a follow-up report to assess the program’s impact on housing availability and coastal access. Future changes could include adjustments to the permit cap, additional restrictions on unhosted rentals (those without an on-site owner), or enhanced enforcement measures.

For now, Seal Beach’s approach strikes a balance between supporting tourism and protecting residential neighborhoods. By limiting permits and enforcing strict rules, the city aims to minimize disruptions while allowing property owners to benefit from the growing demand for vacation rentals.

Conclusion

Operating a short-term rental in Seal Beach offers an exciting opportunity to generate income in a sought-after coastal destination. However, success requires a thorough understanding of the city’s regulations, from permit caps to operational guidelines. By following the steps outlined in this guide and staying proactive about compliance, property owners can navigate the complexities of the STR market and provide memorable experiences for their guests.

For the most up-to-date information, contact the Seal Beach Community Development Department at 562-431-2527 or visit www.sealbeachca.gov. Whether you’re a seasoned host or a first-time investor, this guide equips you with the knowledge to thrive in Seal Beach’s regulated STR landscape.

Disclaimer: Regulations may change, and this guide is for informational purposes only. Always consult with the City of Seal Beach and a legal professional before starting a short-term rental business.