Short-term rental (STR) hosts across California are watching closely as Beverly Hills becomes the latest city to take a hard stance against platforms like Airbnb and Vrbo. On July 1, 2025, the Beverly Hills City Council voted 4 to 1 in favor of banning most small-scale short-term rentals, a decision that could send shockwaves through the STR industry in high-end urban markets.

If you’re a host or investor, this change isn’t just a local issue, it’s a signal of where regulations may be heading in other cities. In this article, we’ll break down exactly what the city is banning, why they’re doing it, and what it means for STR operators across California and the U.S.

What Did Beverly Hills Just Ban?

As of early July 2025, Beverly Hills is moving to ban all short-term rentals of fewer than:

• 12 months for single-family homes
  
• 6 months for multi-family residences
  

That effectively eliminates the traditional Airbnb-style booking model (typically 1–29 nights).

While the final ordinance language is still being drafted, the council is expected to approve it by mid-July. Once passed, enforcement is likely to begin within a few months. (Source: SFGate)

Why Is Beverly Hills Cracking Down?

The city cited several key reasons for its decision:

• Party house complaints: Residents have reported disruptive noise, traffic, and events at STRs in residential neighborhoods.
  
• Loss of hotel tax revenue: Local officials argue that STRs cut into traditional hotel business, which contributes significantly to the city’s tax base.
  
• Housing supply pressure: Like many parts of California, Beverly Hills faces a shortage of long-term rental housing. The city believes converting homes to STRs removes inventory from the traditional rental market.
  
• Wealthy investors overbuying: There’s concern that LLCs and out-of-town investors are purchasing homes not to live in them  but to run full-time short-term rentals instead.
  

In short, Beverly Hills officials see short-term rentals as disruptive and misaligned with the city’s long-term residential goals.