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Published July 15, 2026
Yes, almost everywhere. Redondo Beach charges $20 for one unit, Gardena $50, El Segundo and Manhattan Beach have their own tax.
Yes, in nearly every South Bay city, renting out even a single property counts as doing business, and that means a city business license or business tax registration. Redondo Beach charges $20 for the first unit and $8 for each additional unit. Gardena charges $50 annually for up to four units. El Segundo and Manhattan Beach run their own business license tax (BLT) structures that apply to rental property owners specifically. The requirement, and the fee, is set city by city, so a single-property owner cannot assume one city's rule applies elsewhere.
It feels strange to call renting out a single condo a "business," but most South Bay municipal codes define business broadly enough to sweep in any rental activity conducted for compensation, regardless of how many units you own or whether you have employees. Cities license this the same way they license a hair salon or a plumbing contractor, through a flat annual registration or tax certificate tied to the address and the number of units. The fee is usually modest for one or two units, but it is a real requirement, not a formality, and cities do enforce it through code compliance sweeps and complaint-driven audits.
Redondo Beach: rental property, commercial or residential, is taxed at $20 for the first unit and $8 for each additional unit, with an exemption if the owner or the owner's dependent occupies the unit rent free. Applications go through the Finance Department's business license process.
Gardena: owners renting residential units pay an annual license fee of $50 covering the first four units, and $10 for each additional unit beyond four. Gardena's code frames this broadly, requiring a license for anyone "owning, operating, leasing or engaging in the business of renting" residential units, other than hotels and motels.
El Segundo: since Measure BT took effect January 1, 2024, property rental, whether commercial, industrial, residential, or apartment, is licensed under the City's modernized Business License Tax (BLT) structure, which folds rental activity into the base BLT rate rather than a flat small-parcel fee. A single-family rental owner in El Segundo should expect to register and pay under this structure, not assume an exemption because it is only one property.
Manhattan Beach: the Municipal Code requires a business license tax for any business activity conducted within city limits, and multi-unit rental buildings are taxed per unit (roughly $23.51 per unit annually for three or more units on one lot per the city's published tax resolution, with an owner-occupied credit; the rate adjusts periodically). A single rental unit still falls under the City's general BLT requirement even outside that specific multi-unit rate table.
Hawthorne: Municipal Code Chapter 5.62 covers rental businesses directly, including licensing obligations tied to certain rental activities and higher thresholds (five or more residential units) for some of its specific fee provisions, alongside the City's general business license requirements that apply more broadly.
The mistake we see most is an owner who has one property, assumes a "real business" threshold (employees, an office, multiple units) has to be crossed before any license applies, and skips registration entirely. Nearly every city here disagrees with that assumption. Redondo Beach's $20 first-unit fee and Gardena's $50 flat fee for up to four units both make clear that a single rental unit is exactly the case the ordinance is written for, not an edge case it overlooked. The license is also usually a prerequisite tied to other city processes, business tax certificates are sometimes checked when a rental listing agent pulls a permit, or when a code enforcement complaint comes in, so an unregistered rental can surface at an inconvenient moment.
If you own a single rental property anywhere in the South Bay, check that specific city's business license or business tax office before you assume you are exempt because you are small. The fee itself is rarely the issue, most of these are in the $20 to $50 a year range for one unit, but going unregistered can complicate a sale, a refinance, or a code enforcement inquiry down the line. Confirm current fees directly with the city, since these schedules do get updated.
If keeping track of which city wants what paperwork sounds like a headache you would rather hand off, that is exactly the kind of thing we handle at Schofield.
This is general information, not legal or tax advice. Confirm with a licensed professional before you act.
Last verified: July 2026.
Topics: compliance, business license, Redondo Beach, Gardena, El Segundo, Manhattan Beach, Hawthorne
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Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.
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