Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
Brentwood is a neighborhood of the City of Los Angeles, not its own city. So a Brentwood rental answers to Los Angeles for its business tax, its rent rules, its short-stay rules, and its transfer tax. We help Brentwood owners keep those filings straight and plan around them.
LaviCPA is Shawn Lavi, CPA and Elias Lavi, CPA. We work from one office, 7707 Sunset Blvd in Los Angeles, and see Brentwood clients there or by Zoom.
Rent is business income to the City of LA
The Office of Finance treats renting out a dwelling in the city as a business activity under LAMC Section 21.43. That means a Business Tax Registration Certificate and an annual renewal.
Smaller owners often owe nothing. They still have to file. The Small Business Exemption covers businesses with $100,000 or less in worldwide gross receipts for the prior year, and you lose it if the renewal is late. For 2026, renewals were due March 2.
RSO and JCO fees, per unit, every January
The Rent Stabilization Ordinance generally covers units built on or before October 1, 1978. Newer units can fall under the Just Cause Ordinance instead. The Housing Department bills both each January:
- RSO: $38.75 per unit, rising to $58.13 if unpaid after the last day of February
- JCO: $31.05 per unit
These fees are rental expenses. What tenants reimburse is rental income. We book both sides on Schedule E.
Home-sharing a Brentwood house
Los Angeles lets you host short stays only in your primary residence. You register with the city, and there is a 120-day yearly cap unless you qualify for extended home-sharing. A guest house or second home you do not live in does not qualify.
Selling in Brentwood
A Brentwood sale pays the county tax of $1.10 per $1,000 plus the City of LA base tax of 0.45%. For closings after June 30, 2026, Measure ULA adds 4% when the price is above $5,400,000 and under $10,900,000, and 5.5% at $10,900,000 or more.
ULA is charged on the full price once you cross a threshold. A sale just over $5.4 million can net less than one just under it. We model both before you list. See our Los Angeles real estate practice.
Brentwood FAQs
Is Brentwood its own city for tax purposes?
No. It is part of the City of Los Angeles, so LA business tax, RSO and JCO fees, the home-sharing ordinance, and ULA all apply.
Do I owe LA business tax on one rental house?
You need to register, because the city treats renting a dwelling as a business. If your worldwide gross receipts are $100,000 or less and you renew on time, the Small Business Exemption can bring the tax to zero.
What are the ULA rates for a Brentwood sale?
For closings after June 30, 2026: 4% above $5,400,000 and under $10,900,000, and 5.5% at $10,900,000 or more, on top of the 0.45% base tax.
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General information only, not advice for your situation. Rules and rates change, so we confirm them before you act.