CDPM CURRENT
Insights & Guidance for Property Owners Across Los Angeles
After the devastating 2025 fires, many Malibu and Pacific Palisades owners have been forced to ask the same question:
Should I rent the home, or keep it vacant until I return?
Between rising insurance premiums, wildfire risk, and California tenant protections, the decision is less about rent price and more about flexibility and liability. The wrong structure can prevent you from moving back when plans change.
1. Understand What Changes the Moment Someone Moves In
Once a person occupies the property, California landlord law applies, including the California Tenant Protection Act of 2019 and habitability standards under California Civil Code Section 1941.
That means:
- You may need legal cause to end the tenancy
- Notice procedures become mandatory
- Verbal or “temporary” agreements still create tenants
In coastal areas, most owner disputes happen because the owner expected flexibility after allowing occupancy.
Unsure if occupancy would limit your ability to move back in?
Many owners only realize the legal timeline after someone has already moved in.
If you want a quick second opinion before making the decision, we can review your situation and outline the safest structure.
Request a quick occupancy check.
(10–15 minutes, informational only)
2. Leaving the Property Vacant
Vacancy provides maximum control but has tradeoffs.
Advantages
- Immediate move-back ability
- No eviction risk
- Easier construction scheduling
- No wear on high-end finishes
Risks
- Higher insurance premiums
- Potential vacancy exclusions
- Ongoing maintenance costs
- Security exposure
Vacant homes often require documentation showing active maintenance and monitoring.
3. Renting the Property
Renting offsets costs but reduces flexibility.
Advantages
- Offsets insurance increases
- Property is regularly occupied and maintained
- Lower security concerns
Risks
- Loss of possession control
- Delays returning to the home
- Legal removal requirements
- Coordination challenges during repairs
Many owners underestimate how quickly short-term occupancy becomes long-term tenancy.
4. Coastal Rules Still Apply
Properties in Malibu and parts of Pacific Palisades may require clearance from the California Coastal Commission before lawful occupancy. Even rebuilt homes cannot be rented until final conditions are satisfied. This often delays leasing after construction.
5. Insurance and Fire Risk Considerations
Carriers increasingly require:
- proof of habitability before occupancy
- updated replacement cost coverage
- defensible space maintenance during tenancy
When Renting Makes Sense
Renting is usually appropriate when:
- You will not return for 12+ months
- The home is fully approved for occupancy
- Insurance allows tenant occupancy
- You want to offset carrying costs
When Vacancy Is Safer
Keeping the property vacant is often safer when:
- You may move back soon
- Construction or repairs may restart
- You want full scheduling flexibility
- You cannot risk removal delays
Common Owner Mistakes
- Allowing friends or contractors to stay informally
- Using short agreements expecting easy move-out
- Renting before final approval
- Not confirming insurance terms first
BOTTOM LINE
If your timeline is uncertain, vacancy preserves control.
If your timeline is stable, a properly structured lease reduces cost.
In Malibu and Pacific Palisades, the real decision is not rent versus empty.
It is flexibility versus financial offset.
Not Sure Which Option Fits Your Situation?
Every property is different. Timeline certainty, insurance terms, and rebuild status often change the correct decision.
We offer a brief rental readiness review where we look at:
- your expected return timing
- whether a lease could restrict possession
- insurance occupancy requirements
- whether the home is safer vacant or leased
The goal is simply to prevent an expensive mistake before a tenant moves in.
Request a rental readiness review and get the info. you need!
