3 Common Problems Property Rentals Face in Manhattan Beach

Manhattan Beach is an attractive city with strong real estate investment potential. Its coastal location, established neighborhoods and consistent housing demand contributes to long term stability in the local real estate market. 

Although it’s not without its challenges, today we’ve gathered three common problems that landlords need to plan for when looking to invest in Manhattan Beach.

High Cost Of Living 

Manhattan Beach’s high costs of living presents a challenge for landlords who need to be able to balance operational expenses against rental income. This includes property taxes, insurance premiums and overall maintenance costs tend to be elevated in beach cities. For example, the average one bedroom apartment in Southern California is $2,400 whereas in Manhattan Beach the average can be over $3,500. This can significantly increase the baseline cost of owning an investment property in Manhattan Beach. Additionally, tenants in Manhattan Beach may expect higher standards of upkeep, timely repairs and quick responses to requests and complaints. While you can balance these costs by adjusting rent prices, landlords must be careful not to overshoot their asking price as you’ll want to maintain occupancy without pricing units beyond what prospective tenants are willing to pay. If priced too expensive, a rental can have extended vacancy periods which can be even more costly in expensive areas.

Tourist Over Crowding

Being a popular tourist destination, Manhattan Beach often has to deal with tourist overcrowding, as it can affect long term rental properties. Especially during the summer months, the additional tourism increases traffic, reduces parking availability and can become significantly more noisy when compared to the colder seasons. During peak tourist seasons and weekends landlords may find that long term residents will express concerns about quality of life as the number of visitors rise. This can indirectly affect turnover as some tenants opt for a more quiet neighborhood. It's important to maintain clear communications with tenants and setting expectations about local conditions especially for tenants who are unaware of how busy Manhattan Beach can get during the summer.

In addition, rental properties near the beachfront will likely experience an increase in pedestrian traffic as well as occasional crowds that increase both noise and the wear and tear to common areas which require more frequent maintenance. Landlords need to stay proactive and schedule maintenance and inspections during less busy times. They can also invest in upgrades to the property to improve tenant comfort such as noise dampening insulation, and double pane windows.

Limited Public Transit 

Although Southern California has a relatively robust public transit system, Manhattan Beach’s public transit options are quite limited. This frequently contributes to property challenges for both landlords and tenants. Since most people residing in Manhattan Beach rely on private vehicles to commute to work, go shopping and go to school. This heavy dependency in private vehicles increases demand for already limited parking especially in residential neighborhoods near the beach or other local businesses. Long term tenants can become frustrated competing for parking, or they pay for parking which adds to the already expensive costs of living, potentially affecting tenant satisfaction and turnover rates.

With the rise of homeowners building Accessory Dwelling Units (ADUs) for additional income, the limited public transit also becomes an issue. Since Manhattan Beach requires one off street parking space per ADU in addition to the primary residence. However, this requirement isn’t necessary if the ADU is within a half a mile of a public transit stop. 

While having great potential, rental conditions in Manhattan Beach reflect a combination of local and economic pressures that shape landlord’s responsibilities and tenant’s experiences. The most stable outcomes are more likely when property operations remain organized and responsive to the seasonal changes of the neighborhood’s conditions. If you’re looking to expand your portfolio with rental in Manhattan Beach or if you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.