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.
Cindy Siok, R
At Home Hawaii
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.