Beverly Hills Rent Stabilization: Rent Caps, Evictions, and Relocation Fees

Beverly Hills rent stabilization caps annual rent increases on most multi-family rentals at between 3% and 3.28%, allows eviction only for specific legal grounds, and requires landlords to pay relocation fees of $8,336.11 or more when they remove a tenant through no fault of the tenant’s own.¹ The rules split covered units into two categories with different ceilings, and the first task for any tenant or owner is figuring out which category applies.

Which Units Are Covered

The Rent Stabilization Ordinance (RSO) covers most multi-family rentals in Beverly Hills, with coverage turning on when the building was built and, for the older category, what the original rent was.²

Chapter 5 units are buildings constructed before September 20, 1978 where the original monthly rent was $600 or less. These face the strictest regulation.²
Chapter 6 units are all other RSO-covered rentals that don’t meet the Chapter 5 criteria. This is the larger pool and contains most rent-stabilized apartments in the city.²

Single-family homes, most condominiums, and newer construction are generally exempt from local rent stabilization under California state law, though they may still fall under the statewide rent cap in AB 1482. If you don’t know which chapter governs your unit, start with the building’s construction date and the original lease terms.

How Much Rent Can Go Up Each Year

Both chapters tie their annual cap to the Consumer Price Index, but they use different formulas.

Chapter 5 units are limited to 8% or the average CPI figure, whichever is lower.³ CPI has run well below 8% for years, so the CPI number controls in practice. As of May 2026, the maximum allowable Chapter 5 increase is 3.28%.¹

Chapter 6 units follow a separate formula under Beverly Hills Municipal Code Section 4-6-3, and the current maximum is 3%.¹ Both figures are updated as new CPI data comes out, so check the city’s rent stabilization page before calculating or accepting any increase.

Only one rent increase per tenant is allowed in any 12-month period, no matter the chapter. The landlord has to deliver a 30-day written notice before the increase takes effect, and if the notice is mailed, California’s five-day mailing rule stretches that to at least 35 days.³ Charging above the cap or skipping proper notice can lead to penalties and forced rent refunds.

Capital Improvement Surcharges

Chapter 5 landlords can add a surcharge on top of the standard annual increase for permanent improvements such as a new roof, seismic retrofitting, or major plumbing work. Routine maintenance like patching drywall or fixing a leaky faucet doesn’t qualify.⁴

The surcharge cannot exceed 4% of the existing base rent, and the cost has to be spread across units on a straight-line depreciation schedule tied to federal tax rules.⁴ Building-wide work is prorated by unit square footage. If the improvement benefits only certain units, only those tenants pay.

One point catches landlords out: interior improvements to an occupied unit require the tenant’s written consent before any surcharge can be imposed. The tenant cannot unreasonably refuse, but without a signed agreement the landlord has no right to collect.⁴ Tenants who get a surcharge notice are entitled to see the cost documentation, and the surcharge must be paused until those records are provided.

When a Landlord Can Evict

Beverly Hills landlords cannot remove a tenant from an RSO-covered unit without a legally recognized reason. The grounds split into at-fault reasons tied to tenant behavior and no-fault reasons tied to the landlord’s own plans for the property.⁵

At-Fault Grounds

At-fault grounds include failure to pay rent, violation of a material lease term, maintaining a nuisance, using the unit for illegal purposes, refusing to sign a lease renewal on substantially the same terms, refusing to give the landlord reasonable access for repairs, and harboring unapproved subtenants.⁵ Eviction for disruptive behavior has its own layered procedure, requiring a written warning, a 10-day wait, and mediation before the landlord can pursue a formal hearing.⁶

No-Fault Grounds

No-fault evictions are harder to execute and carry longer notice periods. The main grounds are owner move-in, demolition or condo conversion, and withdrawal from the rental market under the Ellis Act.⁵

Notice periods vary. An owner who plans to personally occupy the unit must give at least 90 days’ written notice and file a copy with the city’s rent stabilization program before serving the tenant. Demolition and condo conversions also require 90 days’ notice with prior city approval. An Ellis Act withdrawal needs the longest lead time: the landlord has to notify the city at least 120 days before the intended withdrawal date, and give tenants written notice at least 30 days before the city and county filing.⁶ Every no-fault eviction triggers a relocation payment.

Relocation Fees

When a tenant is pushed out through no fault of their own, the landlord owes a relocation fee based on bedroom count. The amounts are adjusted every July 1 for CPI.⁵ The figures effective July 1, 2025 are:

Studio or single: $8,336.11
One bedroom: $12,313.67
Two or more bedrooms: $16,682.95

If any tenant in the unit is 62 or older, disabled, or a minor, the landlord owes an additional $2,000.⁵ That brings a two-bedroom payment to $18,682.95 for a qualifying household.

The payment is due when the tenant vacates, not when the eviction notice is served.⁷ Delaying payment exposes the landlord to legal action from the displaced tenant, so having the funds in hand before serving notice is the safest approach.

Annual Registration

Every landlord with RSO-covered units has to register them with the city each year and report current rent information for each one.¹ Registration runs through the city’s online rent registry, and owners must complete it within 30 days of getting a renewal notice from the city.⁸

Starting in 2025, landlords also have to provide their City of Beverly Hills business tax registration number and upload a copy of their current business tax certificate during registration.⁸ The record has to be updated whenever a new tenant moves in, a rent increase takes effect, or housing services change.

Failing to register leaves a landlord exposed. The city has warned that unregistered properties face enforcement action, and owners who skip registration can run into trouble collecting rent or serving legal notices. Registration underlies every other action the RSO allows, from the annual increase to a no-fault eviction.

Extra Protection for Military Tenants

Active-duty servicemembers and their families get an additional layer of protection under the federal Servicemembers Civil Relief Act (SCRA). A landlord cannot evict a servicemember or their dependents from a primary residence without a court order if monthly rent is $10,239.63 or less, a figure the Department of Defense adjusts each year. A court can delay eviction proceedings for up to three months if military service has materially affected the tenant’s ability to pay. Knowingly violating SCRA eviction protections is a federal offense carrying fines and up to one year in prison. In Beverly Hills, where even studio rents can run high, confirming a tenant’s military status before initiating any eviction is a sensible step for landlords.

1
City of Beverly Hills. Rent Stabilization and Housing
2
City of Beverly Hills. Rent Stabilization Ordinance
3
City of Beverly Hills. Chapter 5 Frequently Asked Questions
4
American Legal Publishing. Beverly Hills Code 4-5-304 – Capital Expenditure Surcharge
5
City of Beverly Hills. Tenant Eviction Protections
6
American Legal Publishing. Beverly Hills Code 4-6-6 – Evictions
7
American Legal Publishing. Beverly Hills Code 4-6-9 – Relocation Fee
8
City of Beverly Hills. Rental Unit Registration and Appeals