What You Need to Know Before Buying a Vacation Home Rental in Kona, Hawaii
Are you considering buying a vacation home in Kailua-Kona, Hawaii? First, let me say that buying a vacation rental is currently one of the best investments you can make. You get a home that will most likely appreciate in the years to come and a place of your own to enjoy paradise with family and friends. In Kailua-Kona Hawaii, successful vacation rentals can maintain average occupancy rates of 80% year round, generating cash flow that far exceeds a long term rental. There aren't many other places in the United States that can match those occupancy rates.
Not all Vacation Home Rentals are Successful:
Before you run out and start looking for a vacation home to buy, here's a word of caution. Not all vacation home rentals are successful. That's right, after 15 years of experience selling, owning and managing vacation rentals in Hawaii, I have seen vacation homes that sat empty, causing negative monthly cash flow. I have also seen homes that are booked almost every day year round with hardly a gap between groups. I have owned rentals that were initially, unsuccessful and after making the necessary changes, they turned into top producers. Just like every other business, there is a formula for success which is usually developed through trial and error. Fortunately, I have a successful formula and am happy to share my knowledge and vacation rental ownership experience with you. As your Realtor, I can help you find a vacation home or condo that you will not only enjoy, but also benefit from it's strong production as an investment.
Here are a Few Tips to Help you Find the Perfect Vacation Home Rental in Kona Hawaii:
Check the neighborhood or development CC&R's to make sure that leasing your home or condominium for less than 30 days is allowed. Some neighborhoods in Hawaii have bylaws that do not allow rentals for stays less than 30 days. While this may not be a deal killer, it restricts your ability to tap into the lucrative one to two week stay, vacation rental market. If you prefer to limit the usage that your home receives and offset dome of the costs of owning a second home in Hawaii, a neighborhood with 30 day restrictions might be just what you are looking for.
Who Rents a Vacation Home in Kona Hawaii, and What Do They All Want?
Most families on vacation prefer to stay in a home or condominium. It just makes the vacation more enjoyable when everyone is together.The price of a hotel suite large enough to accommodate most family groups is prohibitive, not to mention eating out every meal. In many cases there are three generations staying together, grandparents, parents and the kids. What do families want in a vacation home in Hawaii....and I mean almost EVERY family? Call me and lets talk. There are some things that I can only share with my clients...but you can be one.
Modern amenities and upscale furnishings:
Some folks will never touch a remote while on vacation but a substantial percentage of visitors do and they want flat screen tv's not the old gigantic set with the tiny screen; that will turn many people away. Speaking of technology, wireless Internet access is a must as well. Today you are bound to have more than one guest in the home with a laptop, tablet or other wireless device, and they all want access. There is plenty of competition these days, upscale furnishings and tropical artwork can boost nightly rates and occupancy.
Where's the Beach?
Can you walk to the beach? Something almost every vacation rental inquiry in Hawaii asks. While it is not necessary to be within walking distance, anything longer than a short drive could be a problem. If the beach is within biking distance, providing beach criusers is a plus. An ocean view is a big plus. You also need to provide beach chairs,towels and coolers. Nobody wants to buy that stuff for a week long vacation in Hawaii.
Where's My Bedroom?
A successful vacation home must have a minimum of three bedrooms and two bathrooms. For a condominuim this is not necessary because your customer is in a different demographic. A home needs to sleep six people in bedrooms. If you have a home with four bedrooms that is a major bonus. Now you can sleep eight people and your nightly rate just went up.
Lose the Personsal Effects:
Personal items like family pictures need to be stored in a secure owners closet for when you return. Vacation renters do not want to feel like they are in someones personal space. They want a clean well appointed home without too many knick nacks. Think of a nice hotel suite.
Do You Need a Property Manager?
Managing a vacation home involves advertising, answering calls and emails,typing invoices, collecting money, coordinating arrivals and check outs, scheduling the cleanings, repairs and usually a fair amount of washing laundry. It can be hard work, especially if you own more than one property.It can also be stressful when you have a group waiting to check in and something like the refrigerator is not working. If you would rather have someone else handle this for you, make sure you find someone that does all of these things and doesn't just sit in the office handing out keys. Hire a property manager that takes too many shortcuts and your rental will start looking run down. Stay on top of maintenence and cleaning and you will get repeat business, referrals and high occupancy rates.
How Do You Advertise my Vacation Rental?
If you do decide to self manage your vacation home or condo, you are going to need to advertise for renters. Web sites that advertise vacation rentals have flourished in recent years. There are surely thousands of them. However, just a handful of the web sites that advertise vacation rentals dominate the bookings and Internet traffic. Don't spend money on the sites that do not produce inquiries. How would you know which sites to avoid? The answer to that question is very simple. I'm here to walk you through the process.
Hire me to find you the perfect vacation rental in Kailua-Kona Hawaii and I will show you the web sites that will produce renters . I will also share everything else that you need to know to get you started including setting up your first advertisement on a vacation home rental listing site. Call or email to discuss buying and managing a successful vacation rental in Kailua-Kona, Hawaii.
Rich Bosselmann R(S)
MacArthur Sotheby's International Realty