Questions that always come up when thinking about buying a vacation rental. Who or how will I manage it?
Since I work with a 95% client base that is not from Hawaii I have to know a little about the way vacation rentals work. From who and how they manage it, who cleans it and who can repair it. We have contacts for all of these because this is what we do. You also have a few different options in management types and styles. I will try to explain.
The bigger resort companies ie; Outrigger, Aston Resorts and a couple others. These companies are very efficient in what they do because the have holdings in many parts of the world and the internet websites to navigate their rentals. They place your property into a rental pool. The one bedrooms in one pool and the two bedrooms into another. They have like kind rentals so that they can move guests around as needed. As an owner you are guaranteed a certain number of nights in rental income per month in these pools. (They have been running above 80% occupancy for sometime now). This is a very hands off, stress free way of ownership for those that don’t want to think about it at all. The only draw back to the rental pool scenario is the fees they charge you for their service. Generally at least 50% of your gross. Choke on that for a minute. Not much money being made by owners here but also no hassle or stress.
The other way is the smaller mom and pop property managers here locally. These guys have been in business for some time and continue to attract more and more clients. They usually specialize in certain areas, they generally will offer the owner a fee discount if the owner provides the client on their own. They have their own websites to attract clients and these all have a snowball effect if they provide great service. Their fees start around 25% and can go upwards to 35%. A little more flexible for the owners and more hands on. If you decide to purchase a property that has bookings already you will have to honor those if they have received deposits. You of course will receive those deposits. You do not have to stay in a rental pool either. You are free to choose who to manage your property.
For all those that are tech savy and are thinking they will be able to manage their property via the internet and wireless locks from the mainland I have news for you. It is Hawaii law that you must have a property manager here locally with keys and the ability to respond to clients emergencies with the unit.
We at HawaiiLife have the #1 website in the state of Hawaii. We also have our own management team using that website attracting clients from all over the world to your properties. I’m including our company brochure showing all that we offer to new clients. Please let me know what questions you have concerning rentals.