Is Beverly Hills, California Good for Airbnb Investment?

To start an Airbnb in Beverly Hills, California, begin by researching the city's strict short-term rental regulations, as Beverly Hills requires hosts to obtain a Conditional Use Permit (CUP) through the Planning Commission, which can take 3-6 months and costs approximately $3,000-5,000 in application fees. You must live on the property as your primary residence, register with the city's Business License Division for around $150 annually, and comply with the 30% rule limiting short-term rentals to no more than 30% of residential units in multi-family buildings. Find a suitable property in Beverly Hills with parking availability, as the city requires one parking space per rental unit, then furnish it with high-end amenities matching the luxury market expectations, including premium linens, upscale furniture, and concierge-level touches since nightly rates typically range from $300-800. Create your Airbnb listing with professional photography highlighting Beverly Hills' proximity to Rodeo Drive, Hollywood, and West Hollywood, ensuring compliance with the city's maximum occupancy limits of two guests per bedroom plus two additional guests. For management, either handle operations personally or hire a local property management company like RedAwning or Vacasa, maintain detailed records for the city's annual reporting requirements, collect and remit the 14% Transient Occupancy Tax to Beverly Hills, and ensure 24/7 availability for any issues since violations can result in fines up to $1,000 per day and permit revocation.

To identify profitable short-term rental properties in Beverly Hills, California, focus on locations within walking distance of Rodeo Drive, the Golden Triangle, or near major hotels like The Beverly Hills Hotel and Waldorf Astoria, as these areas command premium rates of $400-800+ per night. Target properties with 2-4 bedrooms, luxury amenities like pools, high-end finishes, parking, and outdoor spaces, as Beverly Hills guests expect upscale accommodations. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that luxury 3-bedroom homes can generate $8,000-15,000 monthly during peak seasons. Research competition by studying occupancy rates and guest reviews of similar properties within a 1-mile radius, focusing on properties managed by companies like RedAwning and Vacasa that dominate the luxury STR market. Utilize tools like STR Helper for revenue projections, check Beverly Hills' specific STR regulations through the city's planning department, and consider properties near entertainment industry hubs since the area attracts high-spending entertainment professionals and tourists willing to pay premium rates for proximity to iconic Beverly Hills attractions and shopping.

To obtain an Airbnb/STR permit in Beverly Hills, California, you must apply through the City of Beverly Hills Community Development Department located at 455 N. Rexford Drive. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plans, site plan, parking plan showing compliance with city requirements, proof of liability insurance ($1 million minimum), contact information for a local responsible party available 24/7, and payment of application fees totaling approximately $2,500-$3,500 (including initial permit fee, inspection fees, and annual renewal costs). Beverly Hills has specific requirements including a maximum occupancy of 2 guests per bedroom plus 2 additional guests, mandatory 24-hour local contact person, compliance with noise ordinances, provision of adequate parking (typically 1 space per bedroom), and adherence to the city's 30% cap on STR permits per residential block. The application process typically takes 60-90 days and includes a planning review, health department inspection, fire department inspection, and potential public hearing if located in certain residential zones. Once approved, permits must be renewed annually with the city, and operators must collect and remit transient occupancy tax (14% as of 2023) and maintain detailed guest records for city inspection.

Short-term rentals (STRs) are currently prohibited in Beverly Hills, California. The city implemented a comprehensive ban on STRs in 2018 following concerns about housing availability, neighborhood character, and quality of life impacts. Beverly Hills Municipal Code specifically prohibits the rental of residential properties for periods of less than 30 days, with limited exceptions for certain commercial zones and hotels. The ban applies to all residential areas throughout the city, including single-family homes, condominiums, and apartments. Violations can result in significant fines up to $1,000 per day, and the city actively enforces these regulations through complaint-driven investigations and monitoring of platforms like Airbnb and VRBO. Unlike some neighboring cities that have implemented partial restrictions or permit systems, Beverly Hills maintains one of the strictest anti-STR stances in Los Angeles County, with no recent indications of policy changes or relaxation of the prohibition.

The most lucrative Airbnb investment areas in Beverly Hills include the Golden Triangle bounded by Canon Drive, North Crescent Drive, and South Santa Monica Boulevard, which attracts high-end tourists visiting Rodeo Drive's luxury shopping district and business travelers attending meetings at nearby Century City offices. The Flats area south of Sunset Boulevard offers excellent returns due to its proximity to Beverly Hills Hotel and tourists exploring the famous palm-lined residential streets, while the Bird Streets neighborhood north of Sunset provides premium rental opportunities for guests seeking privacy and Hollywood Hills views during award season events and film industry gatherings. The area around Beverly Gardens Park and Beverly Drive appeals to families and leisure travelers wanting walkable access to restaurants and boutiques, while properties near the Beverly Hills Civic Center benefit from business travelers attending legal proceedings and municipal meetings, with the entire city seeing peak demand during major events like the Golden Globes, Oscars season, and summer tourist influx from international visitors seeking the quintessential Beverly Hills luxury experience.

In Beverly Hills, California, Airbnb hosts are subject to multiple lodging taxes including the city's Transient Occupancy Tax (TOT) of 14% on gross rental receipts for stays under 30 days, which is one of the highest rates in Los Angeles County. Additionally, hosts must collect California state sales tax at 7.25% plus Los Angeles County sales tax of 0.25%, bringing the total state and county sales tax to 7.5% on short-term rental income. The Beverly Hills TOT is collected by Airbnb directly from guests for eligible listings and remitted to the city monthly, though hosts remain ultimately responsible for compliance and must register with the city's Finance Department to obtain a business license and TOT certificate. For properties not covered by Airbnb's automatic collection, hosts must collect taxes directly from guests and file monthly returns with the city by the 15th of the following month, with payments due at the same time. State and county sales taxes must be reported quarterly to the California Department of Tax and Fee Administration (CDTFA) using form BOE-401-A. Exemptions are limited and typically apply only to stays of 30 days or longer, certain government employees on official business, and in rare cases, stays by permanent residents, though documentation requirements are strict and exemptions must be verified before applying reduced tax rates.

Starting an Airbnb in Beverly Hills, California requires a substantial initial investment of approximately $2.8-3.2 million. Property purchase dominates costs with Beverly Hills' median home price around $2.5-2.8 million as of 2023-2024. Furnishing a luxury property suitable for Beverly Hills guests typically costs $80,000-120,000 including high-end furniture, appliances, linens, and décor. Initial setup expenses including professional photography, listing optimization, and marketing materials run $5,000-8,000. Permits and fees are significant, with Beverly Hills requiring short-term rental permits costing approximately $2,500 annually, plus business license fees of $500-1,000. Insurance including liability and property coverage specifically for short-term rentals costs $8,000-12,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total $2,000-3,000. First six months of operating costs including utilities ($1,800/month), cleaning services ($200 per turnover, estimated 40 turnovers), property management fees (20-30% of revenue), maintenance, and supplies total approximately $35,000-45,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Beverly Hills, California demonstrate strong profitability potential with average daily rates ranging from $300-800 for luxury properties and $150-300 for standard accommodations, generating annual revenues of $75,000-200,000 for well-positioned properties with 60-70% occupancy rates. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($75-150 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and city business license fees ($300-500). Net profit margins generally range from 25-40% for successful properties, with luxury estates near Rodeo Drive and the Beverly Hills Hotel commanding premium rates and achieving margins above 35%. Success factors include proximity to high-end shopping districts, professional photography showcasing luxury amenities, concierge services, and maintaining 4.8+ star ratings. Properties within walking distance of Beverly Hills' "Golden Triangle" consistently outperform those in residential areas, with some luxury hosts reporting annual profits exceeding $100,000 on properties generating $250,000+ in gross revenue. The market benefits from year-round demand driven by entertainment industry professionals, international tourists, and business travelers, though hosts must navigate strict city regulations including registration requirements and occupancy limits that can impact profitability.

Airbnb investments in Beverly Hills, California typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% for properties purchased in the $2-5 million range. Premium luxury properties above $5 million may see lower cash-on-cash returns of 4-7% but stronger appreciation potential of 5-8% annually. The timeframe to profitability is generally 18-24 months after initial investment, accounting for setup costs, furnishing, and market establishment. Beverly Hills' proximity to entertainment districts, high-end shopping, and business centers drives average daily rates of $400-800 for luxury properties, with occupancy rates of 65-75% throughout the year. Properties in prime locations near Rodeo Drive or with exceptional amenities can achieve gross rental yields of 10-15% annually, though investors should factor in California's regulatory environment, property taxes averaging 1.2-1.5%, and management costs of 20-30% of gross rental income when calculating net returns.

STRSearch leads the market in Airbnb investment property analysis, providing comprehensive data on short-term rental performance across Beverly Hills and nationwide. Local Beverly Hills specialists include Hilton & Hyland, Coldwell Banker Beverly Hills, and The Agency Beverly Hills, with agents like Rick Hilton and Mauricio Umansky who understand luxury short-term rental markets. Compass Beverly Hills and Sotheby's International Realty Beverly Hills also offer investment-focused services for high-end Airbnb properties. National services include Mashvisor for rental property analytics, BiggerPockets for investor networking, Awning for turnkey Airbnb investments, RedAwning for vacation rental market analysis, and AirDNA for short-term rental data. Additional local services include Beverly Hills Investment Properties, Nest Seekers Beverly Hills, and specialized property management companies like RedAwning Property Management and Vacasa that help investors identify profitable opportunities while offering full-service management solutions for luxury Airbnb properties in the 90210 area.