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10 Best California Vacation Rental Towns

It’s widely known that California is one of the most popular vacation destinations in the U.S. However, in a state known just as much for its sheer size as it is for its sunny weather, it’s not easy to find the best places to buy and rent out property. While some choices might be obvious, it’s worth looking all across the state to find places where people tend to enjoy traveling, for the sake of finding select areas where you can invest in property and potentially turn a profit by renting it out short-term.

Here are 10 great places in the Golden State to look for your next vacation rental investment property.

  • 1. Los Angeles

Let’s start with a more obvious one. If you’re lucky enough to afford or own property in Los Angeles, you’ve got the real potential for high returns on your investment. Thousands of tourists from around the world come in to get a taste of Hollywood, and they all need an affordable place to stay. If you play your cards right, these can all be thousands of potential opportunities to help you turn a profit, as well. Los Angeles vacation rentals is at the top of our list for most desirable properties.

  • 2. San Francisco

If Los Angeles is the hottest vacation destination in Southern California, then San Francisco is the hottest destination up north. From the Golden Gate Bridge to the San Francisco Giants to an extensive offering of Asian cuisine, there are plenty of good reasons that tourists continuously come up to this city each year. So again, if you’re lucky enough to afford the increasingly expensive property in this city, consider investing here, as the tourists who turn to you for a place to stay are willing to pay a premium for such a hot location.

  • 3. Anaheim

Whether it’s a trip to Disneyland or to see their favorite hockey team in person, this city is easily one of the more underrated but still frequented tourist destinations in California. However, not everyone wants to – or can afford to – stay in a Disney resort. So who better to turn to, if they’re on a budget, then an inexpensive rental offered by a local property owner such as yourself?

  • 4. San Diego

Another famous name that you might be familiar with, right by the Pacific Ocean. From the San Diego Zoo to a world-renowned art scene, there are plenty of reasons why tourists keep coming back to this city in southern California. It’s almost a given that this is a city that tourists will continue to be traveling to for years to come, so consider investing here while you can, and while it’s still profitable.

  • 5. Santa Monica

As much as people love Los Angeles, there’s also plenty of fun to find for travelers if they head further west. From Santa Monica Pier to Pacific Park, plenty of exciting attractions await tourists who travel to this gem of a city. So as long as there are plenty of great reasons for people to stay here, why not be the person to offer people an affordable place to stay?

  • 6. San Clemente

For beach-lovers, this is an especially popular destination in Orange County. While it’s another initially expensive purchase, it’s worth looking into any property that is as close to the beaches as possible. Beachfront or beach access properties rent for far and book faster than other urban locations.

  • 7. Santa Cruz

One of the overlooked gems in central California, this city is well-known for its boardwalk, and is a popular tourist destination for people looking to get a taste of sunny California. If you can find a suitable property to invest in here, this is entirely a place worth considering, if you’re hoping to turn a profit in the long-term.

  • 8. Santa Barbara

Another popular destination in central California, this city is known for its beautiful architecture, and is also home to hundreds of animals at the Santa Barbara Zoo. So naturally, people who are traveling to California in the hopes of finding beauty in other forms, rather than the hyper-glamorous beauty associated with Hollywood, are especially likely to keep visiting here, so it’s bound to be another area that will continue to produce profitable vacation rentals.

  • 9. Laguna Beach

Looking for a fun day on a sunny beach? A quiet and thought-provoking look at some incredible work in an art gallery? This coastal town has it all, and plenty more, including plenty of available properties which can be your next short-term rental – for those looking to escape to this paradise.

  • 10. Bodega Bay

From the beaches to the campgrounds, this town is an increasingly popular place for people to go and enjoy a sunny outdoor getaway. However, while it’s unlikely that the tourists here will want to spend too much time indoors, there’s still a strong chance that people may desire a roof over their heads at night. Real estate is sparse, but with only three hotels in town, local vacation rentals are a hot commodity.

With all the tourist attractions in California, it’s hard to imagine there is a wrong place to buy your next vacation rental. While you seemingly can’t go wrong choosing a location, you can go wrong when it comes to managing your property. Check out our compare and save page to see how PMBO stacks up against owner managed properties and using a property management company.

Stay tuned to our blog for more insights into the best locations in America to buy your next vacation rental. We’ll even revisit California to discuss some of the mountain towns.

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