If you’re considering diving into the short-term rental market, vacation rentals can seem like a dream investment — high nightly rates, steady tourist demand, and the allure of owning a property in a beautiful destination. But before you rush into the market, it’s crucial to understand the vacation rental cons before investing.
In this guide, we’ll break down four major drawbacks every potential buyer should know about, plus some extra considerations that can make or break your returns. These points aren’t necessarily deal breakers — many investors still succeed in this niche — but going in with eyes wide open will help you make smarter, more profitable decisions.
Beware Of These 4 Vacation Rental Cons Before Investing
Con #1. Location Is Everything — and It’s Expensive
When it comes to vacation rentals, location isn’t just important — it’s everything. Tourists are paying for convenience and experience, which often means they want to be close to beaches, ski slopes, city centers, or major attractions.
For example:
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In Fort Walton Beach (32548), guests may want to be within walking distance of the shoreline.
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In a mountain town, renters may prioritize ski-in/ski-out access.
The problem? Properties in prime tourist zones come with premium price tags. A beachfront condo in Destin or a Gulf-front home in Pensacola will cost significantly more than something 10 miles inland.
If your budget forces you farther from the attraction, you’ll need to consider:
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Will guests be willing to pay your rates if they must commute?
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How much will that impact your occupancy rates?
Pro Tip: Before buying, research tourist behavior in your area. Sites like AirDNA provide occupancy data and average daily rates so you can forecast returns based on location.
Con #2. Furnishing Costs Can Eat Into Your ROI
Unlike long-term rentals, where tenants bring their own furniture, vacation rentals need to be completely turnkey. That means:
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Beds, couches, and dining furniture
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Linens, towels, and blankets
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Kitchenware (pots, pans, cutlery, plates, glasses)
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Décor that matches the “vacation vibe” you’re selling
These upfront costs can be substantial. A small two-bedroom beach condo can require $8,000–$15,000 in furniture, décor, and kitchen essentials before you can even list it on Airbnb or Vrbo. And remember — you’ll need to replace or refresh these items over time.
Pro Tip: Consider shopping at outlet stores or bulk suppliers to reduce costs. Also, factor furniture depreciation into your long-term budget.
Con #3. Higher Maintenance and Frequent Cleaning
Vacation rentals turn over much more frequently than traditional rentals. Guests may stay only a few nights or a week at most, which means:
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Deep cleaning between stays
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Frequent linen laundering
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Restocking essentials like toiletries, coffee, and paper products
If you manage the property yourself, these tasks can quickly consume your time. If you hire a cleaning service, you’ll need to account for that expense in your budget. High-quality cleaning crews in Northwest Florida typically charge $150–$300 per turnover, depending on the size of the property.
Pro Tip: Build strong relationships with reliable cleaners — last-minute bookings and quick turnarounds are common in this market.
Con #4. Market Fluctuations and Seasonality
One major vacation rental con before investing is the unpredictability of the market. Even in high-demand tourist areas, your booking calendar can fluctuate due to:
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Seasonal demand (e.g., summer peaks in Florida, winter peaks in ski towns)
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Economic downturns reducing discretionary travel
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Weather events like hurricanes impacting coastal markets
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Increased competition from new rental listings
If your property relies on heavy summer bookings to carry you through slower months, a bad season could hurt your annual profits. Smart investors plan for at least a 20–30% cushion in their cash flow projections to handle off-peak dips.
Pro Tip: Explore ways to attract off-season guests, such as targeting remote workers with discounted monthly rates.
Extra Cons to Consider Before Buying a Vacation Rental
Beyond the big four, here are additional factors to keep in mind:
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Local Regulations – Many cities have strict short-term rental rules or require special permits. For example, some Florida municipalities limit the number of rental days per year or enforce noise ordinances that could impact your ability to host. Always check local zoning laws before purchasing.
→ Visit Florida Vacation Rental Laws Overview -
Management Costs – If you don’t live nearby, you’ll likely need a property manager. Professional management fees typically range from 15–30% of rental income.
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Guest Damage – While platforms like Airbnb offer host protection, claims can take time, and not all damage may be covered.
Summary
Owning a vacation rental property can be an amazing and lucrative investment. However, make sure you beware of these 4 vacation rental cons before investing and plan for them so you aren’t taken by surprise