A Hermosa Beach homeowner was forced into a costly legal battle after a long-term Airbnb guest stopped paying rent and refused to leave her townhome, according to a 7 On Your Side investigation by ABC7's Rob Hayes that aired Thursday, July 23. The guest had stayed long enough to trigger California's 30-day tenancy threshold, meaning the homeowner could not simply change the locks and had to pursue formal eviction through the courts.

She eventually regained possession but reported damage to the property. She is calling for stronger protections for short-term rental hosts.

The case arrives at a critical moment for Hermosa Beach.

Court ruling opened the coastal zone

On Thursday, March 26, a Los Angeles Superior Court judge ruled the city's decade-old short-term rental ban unenforceable in the coastal zone because Hermosa Beach never obtained California Coastal Commission approval before enacting it in 2016. The ruling in Koerner v. City of Hermosa Beach dismissed a $2,500 citation against Manhattan Avenue homeowner Todd Koerner, who has rented a spare bedroom on Airbnb since 2012, and issued a permanent injunction blocking coastal-zone enforcement citywide.

The Hermosa Beach Review reported that approximately 200 short-term rental operators, mostly in the coastal zone west of Ardmore Avenue, could be affected by the ruling. Attorney Frank Angel, who represented Koerner, warned the city of its legal exposure in 2024 during a prior enforcement case: "If you play with fire, you will get burned."

The revenue stakes

City staff estimated that enforcing Transient Occupancy Tax collection from operators who haven't been paying could yield up to $5 million in one-time arrears, plus roughly $1 million annually in ongoing revenue, according to the Hermosa Beach Review's reporting on the city's revenue options. No voter approval is required.

That revenue matters. Hermosa Beach faces a $3.2 million structural deficit driven by rising labor costs, escalating county contracts for fire and lifeguard services, and aging infrastructure. City Manager Steve Napolitano told the council at its May 26 meeting, during a discussion of revenue options, "It won't be about doing more with less. We're already doing that every day."

The City Council adopted a balanced fiscal year 2026-27 budget on Tuesday, June 23, cutting approximately $4.5 million in spending. The same night, council voted 4-1 to place a half-cent sales tax measure on the Tuesday, November 3 general election ballot. Councilmember Ray Jackson proposed a more aggressive package that included a higher TOT rate specifically for short-term rentals, but that motion failed 2-3.

Hermosa Beach voters rejected sales tax increases in both November 2022 and November 2024. The November 3 measure is the city's third attempt.

What hosts should know

For South Bay homeowners who rent on Airbnb, the practical risk is concrete. Under California law, any guest who occupies a residential property for 30 consecutive days or more can establish tenant rights. Airbnb's own help center warns hosts that local tenancy laws may protect guests who overstay monthly bookings, and that a formal eviction process may be required to remove them.

The next Hermosa Beach City Council meeting is Tuesday, July 28, at 6 p.m., where staff will present formal ballot language for the November sales tax measure ahead of the county's Friday, August 7 filing deadline.