A new ordinance will create a minimum one-year lease for single and multifamily residences. (photo by Tabor Brewster)

The Beverly Hills City Council on July 1 agreed to prohibit short-term rentals – which include Vrbo and Airbnb – in single and multifamily residences throughout the city. The City Council has not yet passed a formal ordinance banning short-term rentals, and the matter will return for a public hearing on July 15. However, council members expressed support for creating a one-year minimum lease on most rental properties.

The city currently allows single-family residences to be rented for less than six months at a time no more than twice per calendar year. In multifamily buildings, units cannot be rented for less than 30 days.

Housing advocates have raised concerns about short-term rentals, and argue that they can exacerbate housing affordability issues. Short-term rentals often negatively impact the housing market, as they reduce the overall number of units and can potentially make existing units less affordable.

Additionally, residents in Beverly Hills have expressed concerns over short-term rental properties that often become nuisances, where loud parties are thrown by out-of-town visitors.

Nearby cities have taken a similar approach against short-term and vacation rentals, including West Hollywood and Santa Monica. In 2024, West Hollywood passed an ordinance requiring a one-year minimum lease on single-family homes and condominiums.

An ordinance banning short term rentals was supported by members of the community through public comment. Several hotels supported the ordinance, arguing that short-term rentals hurt the revenue of local hotels and create an unregulated market.

However, some residents who supported the basis of the ordinance also argued that an exemption should be made for historic homes.

Deborah Blum, an owner of a 1913 Craftsman-style home that is a designated historic landmark, said she relies on the income from short-term rentals to maintain her property.

“For the past two decades, we have relied on income from the short-term rental of our guest house to fund our preservation efforts. All these rentals have occurred without any disturbance, while we have resided in the main house,” Blum said. “Please consider adding an historic caretaker exemption to the new ordinance. We propose that landmark properties be permitted to rent guest houses for under 30 days provided the owners maintain primary residence and direct oversight.”

The City Council expressed support for increasing the minimum lease duration and creating an exemption for historic landmark properties with accessory dwelling units. According to city staff, there are 19 historic landmark residences within the city, and approximately 5-6 have accessory units that could be rented.

“We pride ourselves to preserve our community, safety, security and our quality of life as a neighborhood. I strongly am against creating policies that we cannot enforce. And the way that the current policies are written, it looks like they’re not enforceable,” Mayor Sharona Nazarian said. “Obviously we want to be able to support housing. With the data that was shared with us, I’m fine with a one-year increase for multifamily as well as single family.”

In addition to a minimum one-year lease, the ordinance will increase penalties for properties that violate the short-term rental prohibition, including fees.

The ordinance enacting a one-year minimum lease will return to the City Council on July 15. A separate ordinance making an exception for historic properties will go to the Planning Commission for review.