Home Buying in Waikiki>Question Details

 DarthBL, Real Estate Pro in Dublin, CA

Is it a good idea to buy a property for short-term rental like using airbnb?

Asked by DarthBL, Dublin, CA Fri May 10, 2013

What are the pro's and con's?

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Answers

3
Hi,
Short-term rentals can offer owners a better return in many cases. However, on Oahu, short-term rentals (less than 30 days) are restricted to resort-zoned areas of the island as new permits for this kind of rental are no longer issued.
There are also condotels for owners who would like to own a hotel unit and have the hotel management pool take care of everything (the bookings, the cleanings and the maintenance). Owners typically get 50% of the income generated and also can reserve the unit for their own use or for friends. Since you own it, you can also pull it out of the hotel management and rent it yourself (short or long-term). However, financing for these "lodging units" will require a higher down payment and in some cases, a cash buyer. I recently helped a buyer get one in the Palms Waikiki.
Let me know if you'd like more information - I'm happy to help.
Aloha,
Cindy Siok, R
At Home Hawaii
0 votes Thank Flag Link Fri May 10, 2013
Short term rentals can yield great income, but you must first run the figures on the property you are looking at to see if it would be feasible after all expenses, i.e real property tax, transient rental GE tax, management fees, etc. I am a property manager and a licensed agent. Contact me for more info. Helps to have a realtor born and raised in the state who has life-long neighborhood knowledge.
0 votes Thank Flag Link Fri May 10, 2013
It's a lot of work! I would say more cons than pros. I had a vacation rental in Waikiki for several years.
High turnover causes a lot of problems and exposes you to more risk with each change in tenants.
Be sure to check with the AOAO for your building, many do not allow rentals less than one month.
0 votes Thank Flag Link Fri May 10, 2013
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