Pros and Cons of Owning a Vacation Rental in Los Angeles

owning a vacation rental in Los Angeles

LA has always been one of the most famous cities in the country. It’s the world’s entertainment capital, and people come for the movie industry, nightlife, wineries, theme parks, and so much more. Almost half of the residents in Los Angeles rent their homes, which makes it an attractive location for those who want to invest in rental real estate. However, this venture has both positives and negatives to think about, and this guide will tell you all about it. Here are the pros and cons of owning a vacation rental in Los Angeles, the city of Angels.

Pros of owning a vacation rental in Los Angeles

Let’s start this guide on a positive note. There are plenty of reasons why buying a vacation rental is a great idea – let’s see why you should go for it.

LA is a popular vacation destination

Being one of the most attractive cities in the country, LA is visited with so many tourists each month. It’s a multi-cultural place with a huge potential to grow over time, which means investing in real estate in this city is only a good idea. With so many people coming to the city, it will make it fairly easy to find new renters all the time. Even considering the fact that there are plenty of vacation rentals around the city, it’s still easy to find people who fill stay at your place. And if you promote your property in the right place, renters will find you with ease.

The Hollywood sign in LA

The income

Owning a vacation rental provides you with the extra income you can use in many different ways. After you list your rental on a couple of famous travelers’ platforms, you can expect regular visitors, which results in consistent income.

Building equity

Investing in real estate brings another great advantage, and that’s building equity over time. It’s a great way to secure financial stability in the future without investing so much effort. The value of such properties increases over time, which increases the chances of earning a lot more in case you decide to sell.

Remember: the value of your property will not increase by itself, especially with the high traffic of residents. Don’t forget to consider occasional improvements that will increase the value of the property but also attract high-quality tenants.

A vacation location that’s always available to you

When you own a vacation rental, you always have a place to go when you decide to take a break. It’s a safe spot whenever you want to have a vacation with your family. It saves you so much time browsing locations and finding accommodation, but it also saves you money! Furthermore, Los Angeles is a great place to spend your retirement days. Its residents enjoy an active, health-conscious lifestyle perfect for retirees. So, when the time comes to retire, you’ll have a place to go. Just be sure to handle this relocation with the highest safety levels – experts recommend always hiring a moving team with a lot of local experience.

Cons of investing in a vacation rental

Surely, every business venture has a couple of downsides. Be sure to consider them as well and see if they affect your decision to invest in vacation rentals in LA.

The competition

As we once said, Los Angeles is a popular place to go. This means tons of vacation rentals all over the city compete for visitors. Even though this is not necessarily an issue, it requires you to invest more effort in promoting and designing the place. You should use the correct marketing technique and list your property on popular rental platforms. Also, you must ensure your property is attractive to the renters. The safest way to do this is to trust a professional – a designer who will accentuate all the great things about your property and make it stand out.

a person handing over the key to a vacation rental in Los Angeles

The costs

Even though owning a vacation rental in Los Angeles brings a significant income, they also cost a lot. Due to the high traffic of renters, everyday wear and tear are typical for such properties, so they require regular maintenance. For the same reason, unexpected expenses are ordinary for such properties. That’s why you should set aside some money as an emergency fund. This way, you’ll be able to fix everything and make the place ready for the new tenants. It’s essential to act quickly here and avoid unnecessary negative reviews. 

Bonus tip: sometimes, unexpected damage will require you to act quickly and replace some of the furniture or appliances rapidly. That’s why renting a storage unit close to your Los Angeles rental is wise. You can use it to store all the items that need an upgrade or to have a place when you decide to remove all the clutter from your home and save the items until the next time you need them.

The time

One of the downsides of owning and managing a vacation rental is that the task can be a bit time-consuming. When you get new tenants frequently, the place needs more regular maintenance and cleaning schedule. However, a property manager can help you with most of the tasks, so it can be a great idea to hire one.


It’s amazing to have an oceanfront vacation property. However, this beautiful view will cost you more when it comes to insurance. Such locations are considered riskier, which is why oceanfront properties have higher insurance rates. However, don’t forget that owning a rental comes with certain tax deductions, which can make budgeting a lot easier.

The final words

It’s true that owning a vacation rental in Los Angeles requires some effort, time and money for the upkeep, and attracting new tenants. Nevertheless, it’s still a great way to create an additional source of income. Also, it’s great to have a place in this amazing city where you can unwind from time to time. Even though there are both pros and cons, it certainly pays off to invest in a vacation rental in the City of Angels.

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