Pros and Cons of Vacation Homes

Pros and Cons of Vacation Homes

There is a debate raging around the world right now about the pros and cons of vacation homes and pied-a-terre's in Southern California, Los Angeles, Santa Monica, or Northern California such as Napa, either owned for personal use, or rented out as an investment, or both..... EVERYTHING in life has pro's and con's.

Would you like to add to this list? 👇


1. High demand - and additional demand from those not seeking a full time home - fuels valuation for all properties surrounding vacation homes.
2. These homes generate real estate taxes that benefit all. If not used full-time, they pose less of a strain on local infrastructure, roads, schools, etc that are of benefit to locals.
3. These homes fuel employment: construction, renovation, maintenance, etc.
4. Some areas and buildings impose additional rental taxes....and transfer taxes.....more income for the locals.
5. People on vacation often spend more on restaurants, shopping and local amenities....all that collects sales taxes that benefit the locals.
6. Areas that have a mix of locals and visitors makes things locally more interesting for everyone.
7. Those renting out homes for shorter term vacation rentals often maintain the homes better to maintain high ratings and rates.


1. Additional demand for these homes fuels home prices for everyone most times. Local wages and incomes may not compete. Removing inventory for long term rentals/ownership deprives inventories which usually fuels pricing.
2. The behaviors of renters or those on vacation can be 'different' than the locals. Some simply do not respect local ordinances related to noise, parking, etc. We have all heard of the out-of-control party houses!
3. Some part-timers don't care for the properties the same way as full-timers.
4. During 'down' seasons, those employed temporarily are left unemployed.
5. Some who own a pied-a-terre do so primarily to avoid local taxes, but use that area to generate enormous personal wealth, depriving the locals of tax revenues that others have to compensate for.
6. Local laws can change, so what is allowed today may not be allowed tomorrow, or cost more. This can either elevate or depress home values.
7. Powerful hotel industry lobbyists see short term rentals as competition and will continue to fight this.

Short term rentals and part time ownership are something most of us are exposed to: knowing the pros and the cons and being able to message them clearly is valuable. Equally valuable is participating in the local political dialogue to ensure the end result is a win-win-for all.

According to Property Chomp, the median gross rents paid per month in California are: 

Studio: $1,698 (+10% YoY) 1-Bedroom: $2,395 (+7% YoY) 2-Bedroom: $3,190 (+7% YoY)Feb 20, 2024

Let's connect!

Alena Lehrer, Compass, Beverly Hills
[email protected]

Work With Alena

It's a tremendous pleasure helping someone buy or sell their home—that's why I make sure my clients' needs come first. I have a proven system that ensures sellers' homes stand out on the market.

Follow Me on Instagram