(831) 655-7840 info@MontereyRentals.com

Is Buying a Vacation Rental in Monterey County a Smart Investment? What National Articles Get Wrong

Thinking about buying a vacation rental in Monterey County? Before you invest, get the facts on occupancy rates, short-term rental laws, and real estate pricing on the Monterey Peninsula.

If you’re a Realtor or investor exploring a vacation rental in Monterey County, you’ve probably come across glowing articles promising big returns from short-term rentals. But one recent article on Realtor.com (https://www.realtor.com/advice/hyperlocal/renting-second-home-monterey-bay/ paints an overly optimistic—and, frankly, misleading—picture of the Monterey vacation rental investment market. To protect your clients (or your own portfolio), here’s what that article got wrong—and what you really need to know before investing in a vacation rental in Monterey, Carmel, or Pacific Grove.

Casa Simpatico – Pacific Grove

🏠 Vacation Rentals in Monterey Don’t Earn 100% Occupancy

The article estimates income by multiplying the average nightly rate by 98 nights in summer—assuming 100% occupancy. That’s simply not how vacation rentals perform in the real world.  In the Monterey Bay market, even the most successful properties rarely exceed 75% summer occupancy, and average year-round rates often fall between 50% and 65%. When calculating your potential return on investment (ROI), a realistic occupancy estimate is essential.

🚫 Short-Term Rental Laws in Monterey County Are Strict

Here’s the part many out-of-area investors miss: Monterey County has some of the toughest short-term rental laws in California.

  • City of Monterey: Vacation rentals under 30 days are banned.
  • Carmel-by-the-Sea: No short-term rentals allowed.
  • Pacific Grove: STR licenses are capped and non-transferable.
  • Unincorporated Monterey County (including Pebble Beach, Carmel Valley, and Big Sur): A new STR ordinance enforces strict licensing, and zoning restrictions.

If your client wants to do nightly rentals, they may be out of luck—or face a costly legal battle. Always confirm regulations with local planning departments before making recommendations.

💰  Monterey Peninsula Home Prices Are Far Above the County Median

The article estimates mortgage payments based on the median home price for Monterey County—but that includes inland farming areas, not the high-demand coastal towns investors are actually targeting.

A few examples of actual entry prices for vacation rental-suitable homes:

Using county-wide median prices creates a false impression of affordability. If you’re advising clients, make sure they understand the real cost of buying a vacation rental in Monterey County—especially in STR-eligible zones.

🔍  Final Thoughts: Educate Before You Invest

Monterey is a beautiful, high-demand destination, and with the right property in the right location, a vacation rental can be a great long-term investment. But it’s not a passive or guaranteed income stream—especially under today’s legal and market conditions.

✅  Realtors: Guide your clients toward smart, compliant investments.
✅ Buyers: Consult a local property manager or short-term rental compliance expert before closing.

📣 Ready to Invest in Monterey Real Estate?

Our team at Monterey Bay Property Management has helped hundreds of owners successfully navigate the short-term rental market in Monterey County. Contact us for a customized rental income analysis, property review, or compliance consultation.  We will work with you and your Realtor to make sure you have all the information you need to make an informed decision.

 

Managing Broker

MontereyRentals.com

816 Wave Street
Monterey, CA  93940

831-402-1765

Vacation Rental Trends

Beachouse

One of the key vacation rental trends that vacation rental owners should be aware of in 2025 is the increased demand for unique stays. Unique stays often command higher nightly rates and attract more bookings.

Travelers are seeking one-of-a-kind experiences, such as remote cabins, tiny homes, treehouses, and luxury glamping.  These types of homes are unique just by their very nature.  But what if you have a vacation rental home that can best be described as “average?”  There are things you can do to turn an average house into a unique vacation rental. This can significantly increase bookings and nightly rates.

Here are some ways to make a property stand out:

  • Give your rental a distinct personality by creating a theme or concept
  • Coastal Retreat (nautical decor, surfboards, beach gear)
  • Mid-Century Modern (vintage furniture, retro appliances)
  • Boho Escape (earthy tones, hanging plants, rattan furniture)
  • Hollywood Glam (bold colors, velvet furniture, gold accents)
  • Name the property accordingly (e.g., “The Boho Hideaway”, “The Seaside Retreat”) for branding.
  • Have a custom logo or signage (e.g., a wooden entrance sign)

For lots more revenue-generating ideas, reach out to Jan@MontereyRentals.com!

 

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

Top 5 Things to Know About Renting Property on the Monterey Peninsula

Renting property on the beautiful Monterey Peninsula is an exciting opportunity for both tenants and property owners. With its breathtaking coastline, charming communities, and strong rental demand, the region offers plenty of benefits.

Renting property on the beautiful Monterey Peninsula is an exciting opportunity for both tenants and property owners. With its breathtaking coastline, charming communities, and strong rental demand, the region offers plenty of benefits. However, navigating the rental market here requires an understanding of local trends, regulations, and best practices. Whether you’re a homeowner looking to rent out your property or a tenant searching for the perfect place to call home, here are the top five things you should know:

1. Demand Is High, but So Is Competition

The Monterey Peninsula is a highly desirable place to live, thanks to its stunning scenery, temperate climate, and proximity to world-class attractions. As a result, demand for rentals remains strong year-round. However, competition can be intense, especially for well-maintained properties in prime locations like Pacific Grove, Carmel, and Pebble Beach. Renters should be prepared to act quickly when they find a suitable home, while landlords should focus on presenting their properties in the best possible condition to attract quality tenants.

2. Local Rental Regulations Vary by City

Each city within the Monterey Peninsula—Monterey, Pacific Grove, Carmel-by-the-Sea, and others—has its own set of rental laws and regulations. Some areas have strict short-term rental restrictions, while others require permits or specific lease terms. For example, Pacific Grove has a limited number of short-term rental licenses, and Carmel-by-the-Sea prohibits most short-term vacation rentals altogether. If you’re a property owner, understanding these local laws is crucial to avoiding fines and ensuring compliance.

3. Seasonal Rental Trends Impact Pricing and Availability

The rental market on the Monterey Peninsula experiences seasonal fluctuations, particularly in coastal areas where tourism is a major factor. During peak travel months (spring and summer), short-term rental rates can be higher, while long-term leases tend to be more stable year-round. Homeowners looking to maximize rental income should consider these trends when deciding whether to offer short-term or long-term leases. Tenants, on the other hand, may find better deals in the off-season when demand is lower.

4. Property Maintenance and Amenities Matter

Due to the coastal climate, rental properties in the Monterey Peninsula require regular maintenance. Salt air, moisture, and seasonal weather changes can contribute to wear and tear, making upkeep essential for landlords. Properties with modern upgrades, energy-efficient features, and well-maintained outdoor spaces tend to attract higher-quality tenants. Renters often prioritize amenities such as in-unit laundry, updated appliances, and private outdoor areas—features that can set a rental apart from the competition.

5. A Property Management Team Can Make a Big Difference

Whether you’re a homeowner renting out your property or a tenant looking for a reliable landlord, working with a professional property management company can simplify the process. A knowledgeable management team handles everything from tenant screening and lease agreements to maintenance and compliance with local laws. At Monterey Bay Property Management, we specialize in helping property owners maximize their rental investment while ensuring tenants have a seamless rental experience.

Final Thoughts

The Monterey Peninsula offers a unique and dynamic rental market, full of opportunities for both landlords and tenants. By understanding local regulations, market trends, and best practices for property maintenance, you can make informed decisions that benefit your rental experience. If you’re looking to rent out your property or find a rental home in the area, Monterey Bay Property Management is here to help.

Need expert advice on renting in Monterey? Contact us today at www.MontereyRentals.com to learn more!

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

VACATION RENTAL ⭐ SEA BLINK CARMEL

SeaBlink Carmel

 ⭐ Introducing ⭐
SEA BLINK 

Just a “blink” away from the beach, this executive 3,200 sf. home is located in Carmel’s coveted Golden Rectangle. The tri-level design sleeps 8 has four bedrooms, 3.5 baths, three workspaces, multiple outdoor patios, glorious gardens and an evergreen lawn.

Monterey Bay Property Management
DRE #01263576 #01936813

BOOK TODAY!

Do you need property management in Monterey County?

Contact Managing Broker:
Jan@MontereyRentals.com – (831) 402-1765

Monterey Bay Property Management was established in 1986 and is the “go-to” company for premier property management services.

A large percentage of our current customers have come through the referrals of previous and current satisfied clients.

Monterey Bay Property Management specializes in the property management of single-family homes, condos, and apartment buildings in Monterey County.

#Monterey #MontereyBay #propertymanagement

DEJA VIEW – CARMEL ⭐ VACATION RENTAL OF THE WEEK

www.MontereyRentals.com/pacific-grove/asilomar/license-to-chill

Deja View – Carmel

Located in #Carmel this 4 bedroom 3 bath –  2,700 sf home that sleeps 8 has forever views of Mission Trail Park and the Santa Lucia mountains.

Expansive back deck features a swim spa/hot tub, deluxe fire pit, and a barbecue…..

BOOK TODAY!

Rose Garden ⭐ Vacation Rental of the Week!

Boathouse - Vacation Rental of the Week!

Rose Garden ⭐ Vacation Rental of the Week!

Garden view 3 bed 3 bath – 3232sqft. home. From the ivy-covered walls to the polished hardwood floors, curved wrought iron railings and antique chandeliers, this is quintessential #Carmel.
Situated on a generous one third acre, the home is lushly landscaped with ferns, wisteria, and banks of roses that bloom several times….
Dog Friendly (<25 lbs) (1)

BOOK TODAY!

VACATION RENTAL OF THE MONTH ⭐ WISTERIA

VACATION RENTAL OF THE MONTH * Wisteria

Wisteria a Carmel Treasure!

Partial Ocean View – 3 Bedroom, 3 Full Baths – 2,733sf #Carmel home sleeps 6 and is dog friendly.

Enter through a garden gate draped in wisteria vines, a riot of purple blossoms in spring. Step into the great room: vaulted ceilings, exquisite original art and distant ocean views.

Are you looking for the best of both worlds? Look no further: this Carmel home is a treasure. The spacious layout provides numerous locations inside and out for relaxing, socializing, or working from home.

BOOK TODAY!

CONCOURS D’ELEGANCE – VACATION RENTALS – #PEBBLEBEACH

Available – August 20-27, 2018

5 Bedroom Ocean View Estate
Cypress Point – Pebble Beach Estate

cypress pt view - pebble beach
5000 sq. ft. | 5 Bedroom | 4 ½ Bath | Sleeps 10 (3K, 1Q, 2T) Max. Occupancy 10

Book Cypress Point Now!

With dramatic ocean views from the entire top floor, this luxury estate is located on the first hole of Cypress Point -one of the most exclusive golf courses in the world. “Champagne at Five” was the original owners’ motto, and it’s easy to see why: this home was made for entertaining. Drive down a private lane onto a circular driveway with parking for over a dozen cars…a rarity in Pebble Beach.

3 Bedroom Golf Course Home
Marcheta Lane – Monterey Peninsula Country Club – Pebble Beach

Marcheta Lane - pebble beach
2842 sq. ft. | 3 Bedroom | 3 Bath | Sleeps 6 (3K, 1T) Max. Occupancy 8

Book Marcheta Lane Today!

Situated on the 16th tee of the Monterey Peninsula Shore Course, this stunning home features a sweeping 180-degree panorama that captures 17-Mile Drive, Bird Rock, Monterey Bay and several holes of the MPCC course.

17-Mile Drive – Pebble Beach Estates
2 Bedroom Golf Course Mediterranean

17 mile dr - pebble beach

2000 sq. ft. | 2 Bedroom | 2 Bath | Sleeps 4 (1K, 1Q) – Max. Occupancy 4

Book 17 Mile Drive!

Location, Location, Location! This “petit” chateau on a gated estate is directly across from the 15th Fairway of the Pebble Beach Golf Links, less than a half mile to the Lodge.

3 Bedroom Ocean View Beach House
Seacliff – Carmel Highlands

Seacliff carmel highlands
3280 sq. ft. | 3 Bedroom | 3 ½ Bath | Sleeps 6 (1K, 1Q, 2T) Max. Occupancy 7

Book Seacliff in Carmel Highlands!

Located just south of Point Lobos at Yankee Point—“Carmel’s Riviera”—this area exudes the peace and beauty the Big Sur coastline is renowned for.

#PebbleBeachConcours #pebblebeach #vacationrentals #montereycarweek #montereycarweek2018 #carmel #carmelhighlands

 

Carmel Mid Valley Vacation Rental – Story Road #BookDirect

Valley View Home – Story Road – Mid Carmel Valley


3000 sq. ft. | 3 Bedroom | 2 ½ Bath | Sleeps 6 (3K) | Max. Occupancy 6

BOOK DIRECT – BOOK NOW

Enter through ornate, arched wooden doors and pass through a fern-lined corridor to a sunny patio with a Koi pond and bubbling fountain, fruit trees, flowers, and majestic views of Carmel Valley. This comfortable, single story Spanish style “hacienda” features Saltillo floors, plaster walls, and Mexican tile counters. The owners extensive collection of native art is on display everywhere: from hammered silver platters to colorful woven textiles and hand-painted pottery.

The home is designed around the patio and the view. The main living room (with fireplace and large TV), a small office/library, a guest room, laundry room and powder room are opposite the kitchen, which features a ceramic cooktop, two ovens, a built-in microwave and a a butcher block island.

On the other side of the dining area, there’s a second small sitting room with a fireplace, a hallway with a long loveseat, and two additional guest rooms. A bath with a stall shower is accessed via the hallway and guestroom two. The valley view master suite has a King bed, a TV in the armoire, a massage chair, and a private bath with two lav sinks, a soaking tub, and a walk in shower.

You’ll be spending considerable time outdoors, relaxing in a rocking chair, barbecuing, or dining al fresco. In the evening you can warm yourself by the wood-burning chiminea under a canopy of stars, absorbing the peace and contentment this area is noted for. And when you’re ready to leave this idyllic retreat, you’re less than five minutes away from fine restaurants and a plethora of excellent wineries and tasting rooms.

BOOK DIRECT – BOOK NOW