The Planning Commission recommended against creating an ordinance that would exempt historic homes from the ban on short term rentals. (photo by Tabor Brewster)

The Beverly Hills Planning Commission voted 3-2 on Sept. 11 against creating a historic home exemption for the city’s ban on short-term rental properties. Commissioners Myra Demeter, Terri Kaplan and Chair Jeff Wolfe voted against the exemption, while Vice Chair Lou Milkowski and Commissioner Gary Ross voted to approve the exemption. The final decision on whether to create an exemption will be made by the City Council.

On July 15, the Beverly Hills City Council approved an ordinance that prohibits short-term rentals, including Airbnb and Vrbo, within the city. Under the ordinance, short-term rentals include all lease agreements of less than one year. However, council members expressed interest in making an exception for historic homes after some owners of properties with historic landmark designation raised concerns over the ban, arguing that revenue from short-term rentals helps fund expensive maintenance on the properties.

The Planning Commission was tasked with examining the possibility of an exception through the creation of a separate ordinance.

According to city staff, there are 45 historic landmarks in Beverly Hills, 18 of which are single-family homes. Approximately 16 of those homes include accessory dwelling units or similar structures that could potentially be rented out on a short-term basis.

“The historic houses of Beverly Hills hold the magic of a bygone era, when Hollywood royalty settled here and turned our city into one of the world’s most fabled locations,” said Deborah Blum, owner of a 1913 Craftsman-style home that is a designated historic landmark. “Over a century later, people still want to see the actual places where all the glamor and enchantment took place. This is especially important now, as our city contemplates a tide of massive development. Our City Council recognizes that preserving our historic homes protects our identity and the singular heritage that makes Beverly Hills Beverly Hills.”

Blum was the only homeowner of a historic property who provided feedback to the Planning Commission. Commissioners who voted against creating an exemption said allowing some homeowners to rent their properties on a short-term basis while prohibiting others would create an unfair environment for residents seeking to rent their properties.

“We have many not just old, but homes that by their construction are expensive to maintain. What about all those people who could benefit from the ability to put their ADU or their guest house out for short-term rentals? It’s really inherently unfair to them,” Kaplan said.

Ross, who voted in favor of creating an exemption, said he understood both sides of the issue but added that owners of historic properties take on greater responsibilities and should therefore be granted the exception.

“We have 18 historic structures that people have the opportunity to come to and experience our city in that unique fashion, and I don’t want to punish homeowners who have taken that leap of faith, and are helping to preserve the charm of our city which is quickly going away,” Ross said.

Robert Bibeault, chief marketing officer for the Beverly Hills Conference and Visitors Bureau, spoke on behalf of hotels in Beverly Hills, which opposed the exemption.

“Unlike hotels, which operate under strict regulatory and financing reporting requirements, short-term rentals are frequently unlicensed, transient and operate under the radar. This results in under-reported or uncollected [transient occupancy taxes], ultimately depriving the city of essential revenue that would otherwise be used to benefit the community,” Bibeault said. “Moreover, the proliferation of short-term rentals reduces demand for traditional hotel accommodations, directing revenue from established, tax-paying businesses. This creates an uneven playing field and threatens the economic sustainability of our industry, which is already navigating the challenges of post-pandemic recovery.”

Housing advocates – including the group Better Neighbors L.A., which opposed the exemption – have criticized 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, the group said.

Additionally, residents in Beverly Hills have expressed concerns over short-term rental properties that often become nuisances, where loud parties are held 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.

The Planning Commission’s recommendation to deny the ordinance will be forwarded to the City Council, which will make a final determination on whether to adopt or deny a short-term rental ordinance for historic homes.