It might still profitable to rent the house for the busy season and let it sit vacant the other half of the year. A friend who owns three VRBOs in Santa Cruz basically does that. (he's a decent guy but an opportunistic and terrible landlord)
It is possible to think through the law and write it well to avoid that sort of situation. In this case, a clause stating that 1) a primary residence can only be rented out x days a year while the owner is not present, but may be rented an additional x days a year with the owner present 2) A secondary or vacation home can only be rented out x days a year with a minimum of x days between rentals, and the owners must be present at least x days out of year. 3) A non-primary or secondary home may only be leased out x days of the year, with longer x days in between. 4) A unit that would otherwise be a unit for longer habitation can only be rented out a smaller x times a year, and must be offered for long-term renting at competitive prices in between times. 5) All other residences being rented out must be registered and liscenced as a resort or a hotel and uphold the regulations of those. 6. All must register their rentings with the city and obtain the appropriate permits (simple stuff for single home owners looking to supplement income, of course).