Six Tips for Purchasing a Vacation Rental on Kauai, HAWAII

Real Estate Broker/Owner with KAUAI DREAMS REALTY Kauai Real Property Specialist RB-14203

 Listed are 6 summarized tips for purchasing a Kauai Vacation Rental:

1. Is it Legal? –

For a vacation rental home to be legal it must be in a Vacation Destination Area (VDA) of have a registered Transient Vacation Rental (TVR) number. Most of the VDA areas are in Princeville, Poipu and along the coast of the east shore/Kapaa. There are a number of homes outside these areas that are legal and have a TVR number. No new TVR numbers will be givin out. Once a owner no longer registers their TVR it will loose its vacation rental ability. 

2. Hiring the right agent –

Working with the right buyers agent is essential in searching for a vacation rental condo. Use an agent like myself or a member of my team who is familiar with all sides of the island and can tell you the ins and outs of each condominium project or home.

3. Sharing your goals –

Sharing your goals with your buyer's agent is important. This way we can determine which condo project would fit your needs best. If you are currently undecided on which area or project to go for we can help to narrow your focus.

4. Look at the rental statements –

This will get you a general idea of the income and expenses. Remember these items could change depending on the rental management company and depending on which months the statements are for, and what deductions are takin from the statements.

 5. Financing (if applicable)  –

Using an on island lender is best! They are familiar with the terms we use like condo-hotel and know 100% if they are able to seal the deal. A few lower priced projects require cash only like Kauai Beach Resort, The Islander on the Beach, and Kiahuna Plantation.

Lenders often require a minimum of 25% down payment for investment properties.

6. Taking the plunge –

Remember our market on Kauai appreciates quickly. Even if your investment is not making you a millionaire monthly (its probably not), it could make money years later when and if selling the property.

You cant go wrong in Hawaii especially on Kauai!

Pono Kai 4


For a list of kauai vacation rentals go to Feel free to email me if you have more questions on Kauai Vacation rentals.


Posted by

CLMHS CRS GRI Realtor/Broker/Owner Kauai Dreams Realty 

Comments (2)

John Juarez
The Medford Real Estate Team - Fremont, CA

I am not a buyer of a Kauai vacation property. I am a user! I own a timeshare at the Club Wyndham Bali Hai Villas in Priceville. We were there last month and loved it!

Oct 28, 2021 07:51 PM
Julie A. Black
KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI
CLHMS, CRS, GRI, Realtor, Broker

I hope you enjoyed your stay.

Oct 29, 2021 03:44 PM