Executive Summary

Short-term rentals are explicitly PROHIBITED in Beverly Hills, California. As of September 5, 2025, the City Council adopted Ordinance No. 25-O-2918, implementing a citywide ban on short-term rentals for all single-family and multi-family units. This represents one of the most restrictive STR regulations in California, effectively ending all STR operations in this luxury market.

Overview: STR Status in Beverly Hills

The City of Beverly Hills has implemented the most restrictive short-term rental regulations possible under California law. The complete prohibition applies to:

• All single-family residential units
• All multi-family residential units
• Accessory dwelling units (ADUs)
• Guest houses and accessory structures
• All forms of short-term leasing arrangements

The ordinance establishes a mandatory minimum initial lease period of 12 months for all residential units, with month-to-month tenancy permitted only after the expiration of the initial 12-month term. Any lease shorter than 12 months is classified as a short-term rental and is prohibited.

How to Start a Short-Term Rental Business in This Market

It is not possible to legally start a short-term rental business in Beverly Hills. The city has completely banned the practice. There are no permits, licenses, or regulatory pathways that would allow short-term rental operations.

Alternative Investment Strategies for Beverly Hills:

1. Long-Term Rental Properties: Focus on traditional residential leasing with minimum 12-month terms
2. Corporate Housing: Target business professionals requiring extended stays (6+ months)
3. Furnished Long-Term Rentals: Offer fully furnished properties for medium to long-term tenants
4. Hotel/Hospitality Development: Consider licensed hotel operations in commercially zoned areas
5. Traditional Real Estate Investment: Purchase properties for appreciation and long-term wealth building

Required Documents, Permits, Licenses, and Guidelines

For Long-Term Rentals (Legal Alternative)

If pursuing traditional long-term rental operations in Beverly Hills, investors would need:

Business Registration:

• Business tax license from City of Beverly Hills
• Registration with Los Angeles County (if applicable)

Property Documentation:

• Valid property ownership or management authorization
• Residential rental property registration (if implemented per planning recommendations)
• Property insurance meeting city requirements

Compliance Requirements:

• adherence to all Beverly Hills Municipal Code residential rental provisions
• Property maintenance standards compliance
• Noise and nuisance regulations compliance
• Local, state, and federal fair housing law compliance

Tax Obligations:

• Property taxes
• Income taxes on rental income
• Los Angeles County Transient Occupancy Tax (for permitted hospitality operations)

For STR Operations (Currently Prohibited)

No permits, licenses, or documentation can be obtained for short-term rental operations. Any attempt to operate an STR in Beverly Hills would result in immediate code enforcement action and significant financial penalties.

Specific Regulations

Beverly Hills Municipal Code - Short-Term Rentals (Effective September 5, 2025)

Primary Ordinance Provisions:

1. Complete Prohibition: STRs prohibited in all single-family and multi-family units citywide
2. Minimum Lease Requirement: 12-month minimum initial lease period for all residential units
3. Month-to-Month Limitation: Only permitted after 12-month initial term expires
4. Scope of Coverage: Includes ADUs, guest houses, and all accessory structures

Definitions:

• Short-term rental: Any lease or sublease shorter than 12 consecutive months
• Residential units: All single-family and multi-family properties
• Accessory structures: Guest houses, ADUs, pool houses, and similar structures

Enforcement Provisions:

• Administrative citations for renting: $1,500 (first offense), $3,000 (second offense), $5,000+ (subsequent offenses)
• Administrative citations for advertising: Same penalty structure as renting
• Each day of violation constitutes a separate offense
• City actively monitors vacation rental websites for violations
• Resident complaints investigated promptly

Los Angeles County Regulations

Beverly Hills operates as a charter city with independent regulatory authority. County-level STR regulations do not apply within city boundaries, as municipal code preempts county ordinances for incorporated areas.

California State Regulations

State-Level Context:

• California Government Code Section 19588.15 allows cities to regulate STRs
• No state-level STR licensing or registration requirements
• Standard landlord-tenant laws apply for long-term rentals
• California Environmental Quality Act (CEQA) exemption granted for the STR ban (Section 15305)

Contact Information for Local Authority

Primary Contact - Code Enforcement Division:

• Phone: 310-285-1000
• Email: bhcp@beverlyhills.org
• Purpose: Report STR violations, ask enforcement questions

City of Beverly Hills - General Contact:

• Phone: 310-285-1000
• Address: 455 North Rexford Drive, Beverly Hills, CA 90210
• Hours: Monday-Thursday 7:30AM to 5:30PM, Friday 8:00AM to 5:00PM

Planning Department - Policy Questions:

• Principal Planner: Chloe Chen
• Phone: (310) 285-1194
• Email: cchen@beverlyhills.org
• Purpose: Policy questions, ordinance clarification

Online Resources:

• City Website: www.beverlyhills.org/278/Short-Term-Rentals
• FAQs: www.beverlyhills.org/faq.aspx?TID=18
• Report Violations: askBH portal or direct phone/email contact

Sources and References

Primary Sources

1. City of Beverly Hills - Short-Term Rentals Official Page

   • Direct ordinance information and implementation details
   • Official city position and enforcement procedures

2. Beverly Hills Municipal Code - Ordinance No. 25-O-2918

   • Complete legal text of the STR prohibition ordinance
   • Formal adopted language and definitions

3. Beverly Hills Code Enforcement - Short-Term Rental FAQs

   • Official answers to common STR questions
   • Enforcement and compliance guidance

Secondary Sources

4. California Environmental Quality Act (CEQA) Notice

   • SCH Number: 2025100567
   • Environmental review documentation for the ordinance
   • Contact: Chloe Chen, Principal Planner

5. Apartment Association of Greater Los Angeles - Industry Alert

   • Industry perspective on ordinance adoption
   • Background context from July 2025

6. Rental Scale-Up - Industry Analysis

   • Industry news coverage of the ban
   • Comparative analysis with other California markets

7. Beverly Hills Courier - Planning Commission Coverage

   • Documentation of failed exemption attempt for historic landmarks
   • Planning Commission recommendation against carve-outs

Important Notes for Investors

• No exemptions currently exist: The Planning Commission rejected a proposed exemption for historic landmark properties in September 2025
• Complete enforcement: The city actively monitors STR platforms and pursues violations
• High penalty structure: Fines can accumulate rapidly with daily citations
• No grandfathering: All existing STRs became illegal on September 5, 2025
• Legal risk: Continuing STR operations exposes property owners to significant financial and legal consequences

Investment Recommendation: Beverly Hills is not a viable market for short-term rental investments. Investors should focus on long-term rental strategies or consider alternative markets with more permissive STR regulations.