By Brian Merrick
Owning a home near Zuma Beach, Point Dume, or the Pacific Coast Highway corridor can look like a ready-made income stream. Malibu does not let you list a property by the night on a whim, though, and the City actively enforces its rules. I walk owners and buyers through the permit, tax, and wastewater requirements so they can decide whether a rental fits their plans before they commit.
Key Takeaways
- A City permit is required before you advertise or operate
- Stays of 30 days or less trigger a 15% Transient Occupancy Tax
- Wastewater compliance affects your permit
- Pending hosted-rental rules could change the playbook
The Permit Comes Before the Listing
Malibu requires a valid short-term rental permit for any residential property rented for 30 days or fewer. Since January 15, 2021, advertising a home without that permit is a violation, even if no guest has booked yet.
What the Permit Process Involves
- Proof of ownership, such as a recorded grant deed
- A signed and initialed application, submitted through the City’s online portal or by mail
- A renewal application filed at least 30 days before your permit expires, since filing does not extend the current permit
- The City’s Code of Conduct, which you give to guests and post inside the main entrance
Septic Systems Matter in Malibu
Many Malibu properties, especially around Point Dume and in the canyons, rely on onsite wastewater treatment instead of a municipal sewer. Since January 1, 2023, a rental permit requires either a valid onsite wastewater treatment system operating permit or a compliance agreement with the City. A property that is out of compliance can see its rental permit become invalid.
What to Check Before You List
- Whether your wastewater operating permit is current
- Whether a compliance agreement with the City is in place if it is not
- Any pending repairs or upgrades that could delay approval
- Your documentation, so you can produce it quickly if the City asks
Taxes, Fines, and Enforcement
Measure T raised Malibu’s Transient Occupancy Tax from 12% to 15% in 2021. Airbnb collects and remits the tax for bookings made through its platform. If you book through another service or directly with guests, you collect the tax, remit it, and file the required returns yourself.
The City also takes enforcement seriously. A violation can carry a fine of $1,000 per day or twice the advertised daily rate, whichever is higher.
Costs and Obligations to Plan For
- The 15% tax on every qualifying stay, which affects your pricing
- Quarterly returns if you rent outside Airbnb
- Permit application and renewal fees, which you should confirm with the City
- Fines that can quickly outweigh a few weekends of rental income
What Could Change Next
The City has a pending Hosted Short-Term Rental Ordinance, known as Ordinance 472. It would add an onsite host requirement, primary residency rules, and restrictions on multifamily properties. Because Malibu sits in the coastal zone, it cannot take effect until the California Coastal Commission certifies the related Local Coastal Program amendments.
How This Affects Buyers and Sellers
- Buyers should ask for the permit history and tax filings before making an offer
- Sellers with a clean permit and wastewater record give buyers more confidence
- Investors should model returns both with and without nightly rental income
- Everyone should confirm the current status of Ordinance 472 with the City before relying on a rental strategy
Frequently Asked Questions
Do I need a permit if I only rent a few weekends a year?
Yes. Any residential rental of 30 days or fewer requires a City permit and is subject to the Transient Occupancy Tax, no matter how often you rent. I always recommend getting the permit in place before the first listing goes live.
Who collects the Transient Occupancy Tax?
It depends on how guests book. Airbnb collects and remits the tax for stays booked through its platform, while you are responsible for collecting, remitting, and filing if you use another service or rent independently. I suggest confirming deadlines with the City’s Finance Division so nothing slips.
Can I buy a Malibu home planning to run it as a short-term rental?
Yes, but I would verify the permit status, wastewater compliance, and tax history during due diligence. A property that looks ideal for rental income can carry obligations that change the numbers. I help my clients review these details before they write an offer.
Reach Out to Brian Merrick Today
Whether you own a Malibu home and want to understand your options, or you are weighing a purchase and need to know what a rental can realistically deliver, I am here to help. I will walk you through what the City requires and how it fits your goals.
If you are ready to talk through your plans, reach out to me at Brian Merrick. Brian Merrick brings local knowledge, clear answers, and a steady hand to every Malibu transaction, and I would be glad to help you move forward with confidence.
