What are the ongoing costs of owning a home in Beverly Hills?
What Are the Ongoing Costs of Owning a Home in Beverly Hills?
Buying a home in Beverly Hills is about more than the purchase price — it’s buying into a lifestyle of prestige, privacy, and high standards. But that lifestyle comes with ongoing costs that can be significantly higher than elsewhere. This guide breaks down the yearly and monthly expenses you should budget for if you own a luxury property in Beverly Hills: from property taxes and insurance to utilities, maintenance, staff, HOA dues, and the hidden line items that often surprise buyers. If you’re shopping Beverly Hills real estate, read this before you sign anything.
Quick overview — the major expense categories
Property taxes and local assessments.
Homeowners insurance (and specialized high-value policies).
Utilities: water, sewer, electricity, gas, trash.
HOA / condo fees (if applicable).
Routine and preventative maintenance (landscaping, pool, systems).
Security, staffing, and concierge services.
Capital reserves, repairs, and major upgrades (roofing, seismic retrofits, hillside stabilization).
Below we unpack each category with realistic ranges and examples so you can build a budget that actually matches Beverly Hills living.
1) Property taxes & city fees — often 1%+ of market value annually
California’s base property tax rate is about 1% of assessed value, but the effective tax bill in affluent Los Angeles neighborhoods — including Beverly Hills — tends to be higher once local assessments and special charges are included. In Beverly Hills the median effective property tax rate (tax bill ÷ market value) is commonly reported in the ~1.1%–1.3% range, producing six-figure annual tax bills on multi-million-dollar homes. For example, median effective rates and local schedules show Beverly Hills homeowners commonly paying well into the tens of thousands — or much more — depending on assessed value.
Practical budgeting rule: plan on 1.1%–1.5% of home value per year for property taxes and city fees unless you confirm actual assessed value and exemptions. So for a $10,000,000 estate, that’s roughly $110,000–$150,000 annually in taxes alone (before mortgage interest deductions and any exemptions).
2) Homeowners insurance & specialty policies — rising and variable
Insuring a standard single-family home is one thing; insuring an ultra-luxury Beverly Hills estate is another. National averages for homeowners insurance show wide variance year-to-year, and California has seen premium increases driven by wildfire exposure, inflation, and market changes. Luxury homes often require higher dwelling coverage, scheduled personal property coverage (art, jewelry, wine, cars), and for some buyers, special endorsements for seismic risk or high-value contents. Expect premiums to be well above the national average for basic policies, often several thousand to tens of thousands of dollars per year depending on coverage limits and risk profile.
Estimated range: $3,000–$50,000+ per year, depending on replacement cost, contents, and endorsements. For high-value estates with substantial collections or unique risks, insurers may require risk mitigation (sprinkler upgrades, seismic retrofits, monitored alarm systems) before issuing coverage.
3) Utilities — water, sewer, electricity, gas, trash
Utilities in Beverly Hills are not free — and for large properties with pools, extensive landscaping, guest houses, and high HVAC usage, utility bills can be substantial.
Water & wastewater: Beverly Hills periodically adjusts water and wastewater charges. Hillside estates with heavy irrigation needs (lawns, gardens) and pools will see higher volumetric charges and fixed service fees. Recent city notices show rate adjustments scheduled into 2025 and beyond.
Electricity & gas: Large homes with centralized HVAC, multiple kitchens, wine cellars, and EV chargers will have electricity bills considerably higher than the average household. Expect seasonal spikes in summer (AC) and winter (if heated pools/spas are used).
Trash & recycling: Beverly Hills’ municipal fees and private hauling options add regular charges; commercial-scale cleanup (gardening waste, large-item hauling) raises costs.
Estimated monthly utility budget for a full-size Beverly Hills estate: $1,000–$5,000+ per month, depending on property size, irrigation needs, pool heating, and EV charging.
4) HOA & condo association fees (if applicable)
If you own a condo or townhome in Beverly Hills, monthly HOA fees are a fixed ongoing cost. HOA dues in upscale buildings often cover security, common-area maintenance, concierge services, building insurance, and reserves. HOA fees can be modest for smaller boutique buildings or very high for full-service luxury towers.
Typical range: $200–$3,000+ per month. Luxury full-service towers that include valet, doorman, gym, and pool maintenance push the high end. Single-family homes in Beverly Hills generally don’t have HOAs, but planned communities and some gated enclaves may.
Sources tracking HOA averages show typical community dues in many areas fall between $200–$600/month, while high-end buildings spike above that.
5) Landscaping, pools & exterior maintenance — a major recurring bill
Beautiful exterior spaces are part of the Beverly Hills package, and they require professional care.
Grounds & landscaping: Professional landscape maintenance for a large estate commonly runs $500–$3,000+ per month, depending on garden complexity, plantings, irrigation systems, and frequency of service. For estates with formal gardens and specialized horticulture, monthly bills trend toward the higher end.
Pools & spas: Pool service (cleaning, chemicals, minor repairs) often costs $150–$600+/month depending on size and equipment. Heating a pool regularly or running waterfalls and features increases energy costs further.
Exterior services: Pressure washing, driveway maintenance, exterior painting, fencing repairs, and seasonal tasks add to yearly expenses.
Annual landscaping + pool budget: $6,000–$50,000+, depending on scale.
6) Routine systems maintenance & smart-home upkeep
Luxury homes are packed with systems: HVAC zoned systems, elevator(s), whole-house generators, home theaters, art-safe HVAC controls, centralized irrigation, and integrated smart-home systems. Each system needs regular service:
HVAC service & filter changes: $200–$1,200/year per system depending on complexity.
Generator maintenance: $300–$1,500/year plus fuel costs.
Home automation & AV support contracts: Many owners pay annual maintenance or retainer fees for integrators to keep systems updated and secure. Budget $1,000–$10,000/year for significant systems.
7) Security & privacy — a priority in Beverly Hills
Security costs vary widely:
Basic monitored alarm service: $50–$200/month.
Advanced security with cameras, 24/7 monitoring, perimeter sensors, and cybersecurity for smart systems: $300–$2,000+/month.
Full-time on-site security or gated community guards: $5,000–$20,000+/month depending on number of guards, shift coverage, and specialized requirements.
Many high-profile buyers invest heavily in privacy upgrades (landscape screening, soundproofing, access control), which are typically one-time but can require ongoing management.
8) Staffing: gardeners, housekeepers, property managers, chauffeurs
Owning an estate often means employing people or contracting services:
Full-time housekeeper(s): $2,500–$6,000+/month depending on hours and benefits.
Live-in or full-time property manager/estate manager: $5,000–$15,000+/month including payroll taxes and benefits.
Part-time gardener/landscaper crew: $500–$3,000+/month.
Private chef, chauffeur, or butler: variable — from occasional bookings to tens of thousands per month for full-time staff.
For many owners, staffing is the largest ongoing discretionary cost after taxes and insurance. Budget conservatively and consider payroll and employment compliance costs in California.
9) Capital reserves & unexpected repairs — don’t skip this
Luxury properties have unique capital needs: roof replacement, pool equipment replacement, hillside stabilization, retaining wall repairs, termite remediation, or seismic retrofits. It’s prudent to set aside 1%–3% of home value per year for long-term capital expenses for older estates — or a targeted reserve plan for known issues.
Example: on a $5,000,000 home, a 1% reserve is $50,000/year. For ultra-high-value properties or hillside estates, owners often maintain larger reserves because specialized repairs are costly and timelines unpredictable.
10) Transactional and recurring municipal costs
Beyond property taxes, Beverly Hills levies fees and charges for permits, business licenses, parking, and certain services (see city schedule of taxes, fees, and charges). If you plan construction, major landscaping, or events, expect permit fees and possible impact fees. Also, verify whether your property falls within special assessment districts (e.g., lighting, landscaping, or public safety zones) that add annual charges.
Sample annual budget (rounded example for planning)
Below are three conservative example budgets to help visualize the magnitude of ongoing costs.
Luxury condo in Golden Triangle (couple, no staff) — $3–7M purchase
Property taxes: $30,000 (estimate)
Insurance: $3,000–$8,000
HOA: $1,200–$6,000/month ($14,400–$72,000/yr)
Utilities: $4,000–$12,000
Maintenance & reserves: $5,000–$15,000
Total annual ongoing: ~$60,000–$140,000
Mid-size Beverly Hills estate (4–6 bed) — $6–12M purchase
Property taxes: $66,000–$150,000
Insurance: $6,000–$30,000
Utilities: $12,000–$60,000
Landscaping & pool: $12,000–$40,000
Security & AV maintenance: $6,000–$36,000
Staff (part-time): $30,000–$120,000
Reserves & repairs: $50,000–$150,000
Total annual ongoing: ~$182,000–$586,000
Ultra-luxury estate / Holmby Hills or Trousdale — $25M+ purchase
Property taxes: $275,000–$375,000+
Insurance & specialty coverages: $25,000–$150,000+
Utilities & pool heating: $50,000–$200,000
Full staff + security: $250,000–$1,000,000+
Landscaping & gardens: $100,000–$500,000+
Reserves & capital projects: $250,000–$1,000,000+
Total annual ongoing: $1M–$3M+ depending on scale and services
These are illustrative ranges — your property and lifestyle choices determine the final numbers. The key point: ongoing costs scale quickly with home size, amenities, and service level.
Ways to manage and reduce ongoing costs
Negotiate property purchase with an allowance or seller credit for immediate repairs or mandatory permits.
Shop insurance annually — carriers and underwriting change; sometimes you can lower premiums by improving mitigation (sprinklers, security, retrofits).
Consolidate service contracts — a single estate manager can often coordinate vendors more efficiently than multiple ad-hoc contractors.
Install water-efficient landscaping & drip irrigation to reduce volumetric water charges. Beverly Hills has recent water rate changes, so minimizing usage saves meaningfully.
Build capital reserves into your monthly budget rather than relying on emergency draws — this smooths cash flow and avoids rushed, expensive repairs.
Audit recurring subscriptions and HOA services — ensure you only pay for services you use.
Final notes — planning is everything
Owning a home in Beverly Hills is a statement of lifestyle and investment. But smart ownership is about foresight: budgeting for taxes, insurance, utilities, maintenance, staff, and capital projects. The sticker price is only the start — ongoing costs can materially affect your net return and enjoyment.
If you’re considering a purchase, insist on a detailed operating budget from your agent and, for estates, a full walk-through with contractors to estimate maintenance and upgrade needs. Ask for recent utility bills, insurance history, landscaping contracts, and any HOA financial statements or reserve studies.
Ready to budget for your Beverly Hills home?
If you want a custom, line-by-line ongoing cost estimate tailored to a specific Beverly Hills property, I can build one for you — using the home’s square footage, amenities (pool, guest house, elevators), and your service preferences (staffed vs. self-managed). I’ll include property-tax scenarios, insurance estimates, and a 5-year capital reserve plan so you know exactly what to expect.
Contact me today to get a personalized Beverly Hills Home Operating Budget and walkthrough plan — because the right numbers make luxury living worry-free. 📞
