Trying to decide if a Brentwood condo or a single-family home will make the stronger rental? You are not alone. Brentwood’s high rents and higher purchase prices make the math feel tricky. In this guide, you’ll learn how acquisition cost, carrying costs, rental demand, and local rules shape returns so you can buy with confidence. Let’s dive in.
Quick Brentwood rental snapshot
Brentwood is one of the Westside’s higher-rent neighborhoods. Recent aggregators show typical rents in the mid-thousands, with apartments averaging roughly in the $3,500 to $3,700 range and larger homes often commanding far more. You can explore current trends by bedroom count in Zumper’s Brentwood rent research.
On the purchase side, single-family homes in 90049 often trade in the multi-million-dollar range, while condos span from several hundred thousand to low millions depending on building quality and micro-location. That spread is why your yield depends so much on property type and address.
What drives returns in Brentwood
Purchase price and financing
Condos usually offer a lower entry price than detached homes. The catch is financing. Many condo projects must meet lender standards to be considered “warrantable.” If a building has inadequate reserves, litigation, high investor ratios, or insurance gaps, loans can be tougher and pricier. Learn why this matters in this overview of non-warrantable condo financing.
Single-family homes are typically simpler to finance since they are not subject to project-level reviews. That broader buyer pool can help on resale too.
Carrying costs and HOA vs maintenance
Condos come with monthly HOA dues that cover shared maintenance, common-area insurance, and amenities. In desirable Westside buildings, dues can materially reduce cash flow, and special assessments can pop up. Always review the HOA budget, reserve study, insurance, and board minutes.
Houses skip HOA dues in most cases, but you carry full responsibility for landscaping, roof and exterior work, pools, and higher insurance. Brentwood’s larger lots and finishes can mean higher maintenance line items, so budget with cushion.
Income, tenants, and stability
Houses typically draw longer-term tenants who value privacy and outdoor space. That can translate to longer leases and lower turnover when priced correctly.
Condos often appeal to professionals and downsizers who want walkable access to shops and cultural attractions. Amenities like a gym or concierge can lift rent, but remember they are funded by HOA dues that impact your net.
Yield math that actually matters
Because condos often cost less, their gross yield (rent divided by price) can look competitive. But HOA dues, financing premiums, and assessments can erode that advantage. Houses can generate higher absolute rents, yet require far more capital and more variable maintenance. Use real comps and build a net sheet that subtracts HOA dues, taxes, insurance, management, maintenance, and a vacancy allowance. Zumper’s Brentwood data is a practical starting point for rent assumptions.
Rules you must plan around
Short-term rentals in Los Angeles
Brentwood sits within the City of Los Angeles, which allows short-term rentals only in your primary residence with registration and clear display of your Home-Sharing number. The standard cap has been 120 days per year unless you obtain extended registration, and you must comply with tax and posting requirements. Read the city’s Home-Sharing Ordinance. Bottom line: buying a condo or house purely to run as a year-round short-term rental is generally not permitted.
Rent stabilization scope
The Los Angeles Rent Stabilization Ordinance often covers multi-unit buildings built before October 1978. Single-family homes and most condominiums are generally exempt. Always verify RSO status for the specific address before you underwrite rent increases or tenant timelines.
HOA rental limits in California
California law limits how far HOAs can restrict long-term rentals. Associations cannot impose caps below 25 percent of units and can only prohibit short-term stays of 30 days or less. New restrictions also typically do not apply retroactively to existing owners. For a plain-English overview, see this summary of AB 3182 and HOA rental rules.
Liquidity and resale exposure
Condo resale can be affected by building-level issues like insurance costs, litigation, and reserve funding. After the Surfside collapse, financing scrutiny increased and some buildings nationwide faced tighter lending, which can slow sales velocity. The Wall Street Journal has reported on how insurance and compliance pressures are impacting condo transactions and financing availability across markets here.
Single-family homes in Brentwood are often more liquid given broader buyer demand, though the luxury tier can be cyclical. Either way, plan for hold periods and verify lending options early.
A simple due diligence checklist
- Confirm property type and rules: Is it a condo, townhome, house, or a multi-unit building, and is it subject to RSO? This affects rent increases and tenancy timelines.
- Review HOA documents before you offer: CC&Rs, bylaws, rental caps, short-term prohibitions, current budget, reserve study, insurance certificates, delinquency rates, board minutes, and any pending litigation or special assessments.
- Build a true net sheet: Use local rent comps from sources like Zumper’s Brentwood page, then subtract HOA dues, taxes, insurance, maintenance, management, and vacancy to estimate net operating income.
- Verify short-term feasibility: Read the City of LA’s Home-Sharing rules. Most investor-owned STRs are not allowed.
- Check financing early: Ask lenders if a condo project is warrantable. If not, expect portfolio or non-QM options that can raise your cost of capital. See background on non-warrantable condos.
So, condo or house?
Choose a condo if you want a lower entry price, prefer amenity-rich buildings, and your underwriting remains strong after HOA dues and reserves. Be meticulous about HOA health and warrantability.
Choose a single-family home if your strategy favors longer leases and higher absolute rents, and you have the capital and appetite for maintenance and insurance. Underwrite with conservative rent and expense assumptions.
In Brentwood, both can work. The better rental is the one with clear rules, predictable carrying costs, and realistic rent comps that pencil out after all line items.
Let’s plan your Brentwood rental
If you want a clear buy box, we can help you match streets, buildings, and budgets to your goals, then run the numbers and navigate HOA and city rules. Reach out to Jasan Sherman for a focused Brentwood rental strategy and on-the-ground guidance.
FAQs
Can you run an Airbnb in a Brentwood condo or house?
- The City of Los Angeles allows short-term rentals only in your primary residence with registration and compliance, commonly capped at 120 days unless extended. Most investor-owned year-round STRs are not permitted. Review the city’s Home-Sharing Ordinance.
Are Brentwood condos easier to finance than houses?
- Not necessarily. Condo projects must meet lender standards to be warrantable. Non-warrantable projects can require larger down payments or higher rates. See this overview of non-warrantable condo financing.
Which type usually cash flows better in Brentwood?
- It depends on your basis and costs. Condos can show competitive gross yields due to lower prices, but HOA dues and assessments can reduce net. Houses can deliver higher absolute rent with larger capital and maintenance needs. Start with real rents from Zumper’s Brentwood data and build a net sheet.
What are the biggest condo-specific risks for investors?
- HOA financial issues, litigation, special assessments, and insurance challenges can affect cash flow, financing, and resale. Market reporting highlights how insurance and compliance pressures influence condo liquidity here.
Do California HOA rules let me rent long term?
- Yes, within limits. AB 3182 restricts associations from imposing broad long-term rental bans or caps below 25 percent of units, while allowing bans on stays under 30 days. See a summary of AB 3182.
