Beverly Hills Condo Leasing: Essential Rules for Investors

Thinking about buying a Beverly Hills condo to rent? Smart move, but the rules here are specific and strictly enforced. If you plan ahead, you can protect your returns and avoid costly mistakes. In this guide, you’ll learn the key city, HOA and state rules that shape leasing, plus a practical checklist to use before you write an offer. Let’s dive in.

Short-term rentals in Beverly Hills

Beverly Hills now treats most short stays as illegal. The City Council adopted updated short-term rental rules effective September 5, 2025, that create a near citywide prohibition on short-term rentals and require a minimum initial lease term of one year in many contexts. Advertising a short-term rental can also trigger fines. Review the city’s summary of the rules at the official page for short-term rentals and, for full language, the ordinance text.

What this means for you: if your strategy relies on Airbnb or Vrbo, Beverly Hills is not the right fit unless you have a very narrow, documented exemption. Plan for annual leases and market your unit to long-term tenants.

Long-term leasing rules to confirm

Beverly Hills Rent Stabilization Ordinance (RSO)

The city’s RSO applies to many multifamily properties with two or more units. Many condominiums are exempt, but some buildings can be covered depending on age and configuration. If a unit is subject to the RSO, the owner must register annually and follow city rules on rent increases and termination procedures. Start with the city’s overview of the Rent Stabilization Ordinance and verify the status of the specific building and unit.

Business tax and rental registration

If your unit is covered by the RSO, you will need to register it with the city and may be asked for a City Business Tax Registration Certificate as part of that process. Budget time and fees for setup and annual renewals. See the city’s guidance on rent stabilization and registration before you lease.

Statewide tenant protections under AB 1482

California’s Tenant Protection Act caps many annual rent increases and requires just cause for many evictions. Condos can be exempt if owned by an individual rather than a corporate entity and if the proper written notice of exemption is provided to the tenant, but coverage depends on building age and other factors. Read the statute summary for AB 1482 and confirm whether it applies to your unit before setting rents or planning move-out timelines.

HOA rules: what associations can and cannot do

California Civil Code §4741 limits how condo associations restrict leasing. Associations cannot prohibit or unreasonably restrict rentals, and they cannot set a rental cap lower than 25 percent of the separate interests. HOAs may still prohibit transient rentals of 30 days or less and can regulate conduct, parking, common-area use and leasing procedures. Review the statute language at Civil Code §4741.

Important interplay: city law is stricter on short-term use in Beverly Hills and controls. Even if an HOA allows shorter leases, the city’s one-year initial lease requirement in many contexts still applies.

Before you lease, expect to provide the HOA with your ownership date and tenant contact information, and to follow any tenant onboarding or registration steps in the CC&Rs and rules.

Financing and resale implications

Condo project eligibility affects your loan options and future resale. Major lenders and secondary market buyers review owner-occupancy ratios, investor concentration, reserves, insurance and litigation. Projects that do not meet guidelines can be labeled non-warrantable, which can limit financing and shrink the buyer pool later. Learn how project reviews work in Fannie Mae’s project eligibility guidance.

Pre-purchase due diligence checklist

Use this list to verify leasing viability before you open escrow:

• CC&Rs, bylaws and all rental-related rules, plus any amendments since 2020 to confirm Civil Code §4741 compliance.
• HOA board minutes for the last 12 to 24 months to spot policy changes, enforcement trends and litigation.
• Current HOA budget, reserve study and delinquency report to gauge financial health.
• Current owner-occupancy versus tenant ratio and any rental cap in place.
• Tenant onboarding steps, fees and any required forms or registrations.
• City compliance: confirm RSO coverage or exemption and any registration requirement using the city’s RSO overview.
• Short-term rental status: understand Beverly Hills’ prohibition and one-year initial lease requirement via the city’s short-term rentals page.
• Business setup: determine if you need a City Business Tax Registration Certificate using the rent stabilization and registration page.
• State law overlay: confirm AB 1482 coverage and notice requirements.
• Insurance: review the HOA master policy and price landlord liability and loss-of-rent coverage.

Red flags that warrant deeper review

• CC&Rs that appear to prohibit leasing entirely or set a rental cap below 25 percent.
• HOA rules that conflict with city or state law, or frequent fines for rental violations.
• Investor concentration near the cap, high assessment delinquencies or thin reserves.
• Active or recent litigation involving the association or its insurance.
• Non-warrantable project indicators that could limit financing and reduce resale liquidity.
• A plan that depends on short-term rental income in Beverly Hills.

Put it all together

Leasing a Beverly Hills condo can work well when you align your plan with city rules, your building’s CC&Rs and state law. Focus on long-term leases, verify RSO status, confirm HOA compliance with Civil Code §4741 and underwrite the project’s financial health. A disciplined approach upfront helps you protect yield and avoid surprises after closing.

If you want an experienced, local advisor to help you source the right building, review documents and position your investment for long-term success, connect with Nick Hertz.

FAQs

Beverly Hills short-term rentals: Can I use Airbnb in my condo?

• In most cases no. The city’s updated rules prohibit short-term rentals and require a one-year initial lease in many contexts. Advertising a short-term stay can also trigger fines. See the city’s page on short-term rentals.

Beverly Hills rent control: Are condos subject to the RSO?

• Many condos are exempt, but some buildings can be covered based on age and configuration. Always verify the specific unit’s status using the city’s Rent Stabilization Ordinance overview.

HOA rental caps in California condos: What can my association limit?

• Under Civil Code §4741, HOAs cannot unreasonably restrict leasing or set a rental cap below 25 percent, but they may prohibit transient rentals of 30 days or less and regulate conduct and procedures. Review §4741.

State tenant protections in condos: Does AB 1482 apply to my unit?

• It depends on factors like building age and ownership. Many individually owned condos can be exempt if the landlord gives proper written notice, but you must confirm coverage. Read AB 1482 and check your unit’s details.

Condo financing and leasing: Will investor concentration affect my loan?

• Yes. High investor shares, low reserves or litigation can make a project non-warrantable, limiting loan options and future resale. See Fannie Mae’s project eligibility guidance.