There are lots of different reasons you may want to turn your condo into a vacation rental cash cow. But first make sure the Home Owner’s Association (HOA) allows it. The best question to ask any listing agent: “Is there a minimum night stay?”. This will give you the answer you need to know for your marketing strategy.
This means just what it sounds like – that you are not allowed to rent to more than one person/family within a 30-day period. This is to minimize the in-and-out traffic in a complex OR subdivision where there may be a lot of full time residents. One way around this little rule is to rent out your unit for a one-month rate of, let’s say $2,500. The renter can stay for as little or as long as their heart desires in that 30-day period, leaving you with the freedom to utilize your unit at times throughout the year.
Keep in mind that you do need to have an on-island manager for your unit. This is a Hawaii State Law. That way if anything comes up or goes wrong with your unit, there is a person locally who can address the issues. There are many management companies on island that will take a percentage of your booking fee and take care of pretty much everything under the sun in regards to your unit. So if you are an off-Island buyer or investor ensure you incorporate those costs into the equation.
What does a Management Company do for you?
Generally speaking, a vacation rental management company will handle all of the bookings and marketing, schedule cleanings, pay utility bills, and be able to delegate any maintenance issues that may arise. They also will keep financials on the unit which really come in handy when it’s time to sell. This way you can show any prospective buyer what an excellent little cash cow your unit is. Their fees are usually between 25-30% of the booking fee.
Chelsea Rosario found her transition into real estate a natural fit after owning a local business where she had the opportunity to educate and support people in meeting personal health goals. She finds that working with clients in either searching for, or selling, their home, is also a way to support people in reaching goals that help them live the lives they imagine.