AirBnB how does this work (inspection, renters, inexpensive, state)

[prospectheightsresident]

Originally Posted by reed303

Have you checked on the legalities of short-term rentals in Hawaii ? If not, you might start here:
https://realhawaii.co/blog/airbnb-on...and-isnt-legal

Many areas now require that the rental also be the owner's main residence. No "absentee" landlords.

I was just going to write something similar.

OP, where in Hawaii are you looking? I own a condo on Oahu, and I can tell you that there are VERY few legal short-term rental zoned areas on the entire island; and most are in Waikiki.

While short term vacation rentals outside of these so-called resort areas have always been illegal, the laws haven't always been enforced. However, that's changing and the City and County of Honolulu last year passed a law that greatly increases fines for both renting and even advertising illegal short term vacation rentals; the fines are pretty hefty. https://www.usnews.com/news/best-sta...erm-rental-law

So unless you're willing to buy in an official resort area and pay the applicable resort taxes, I would not be looking to make such a plan work on Oahu.

Note, even on Oahu, there are ways to get around short-term rental rules legally (loopholes), but it requires more work and considerably more risk (happy to discuss more in length if you'd like) for you as a property owner.

[Va83]

Well originally I wanted to do this in Puerto Rico and spent most of last week researching but thought Hawaii would offer less risk. I guess not.

[Parnassia]

Originally Posted by Va83

I want to relocate in a few years to the area. It's cheap and I can make money off of it and if need be move into it later.

Have you ever spent time there? If not how do you know you'd even want to relocate there?

[Va83]

Originally Posted by Parnassia

Have you ever spent time there? If not how do you know you'd even want to relocate there?

I have never been to Hawaii but figure it's a nicer more isolated version of Puerto Rico with better living conditons.

[luv4horses]

The property manager doesn’t do the cleaning himself. He hires someone each time and gives the bill to you, or takes it out of the visitor payment. That 10% is for paperwork and watching the property.

[prospectheightsresident]

Originally Posted by MTNE

It’s not.

Admittedly subjective, but curious to know why you believe this I'm asking to provide some insight for the OP and others who may be thinking of a similar move/choice.

I've lived in Hawaii for years, but have never visited Puerto Rico, so can't make a comparison myself.

[CGab]

Originally Posted by Va83

I have never been to Hawaii but figure it's a nicer more isolated version of Puerto Rico with better living conditons.

I would NEVER buy sight unseen! And personally if I was going to Hawaii on vacation, i would want to stay at a place on the beach or 2 minutes away, not 10!

[CGab]

Originally Posted by Va83

I have never been to Hawaii but figure it's a nicer more isolated version of Puerto Rico with better living conditons.

Been to both, Puerto Rico is NOTHING like Hawaii

You need to visit these places and do more homework on buying a rental property there. Everything from law, to insurance costs, taxes, etc.

[hotzcatz]

Originally Posted by Va83

So I want to obtain a very inexpensive remodel in Hawaii. If I get a property manager to do what they do and give them 10% will it be worth the money? First a little about me. I rent. I'll be using my savings as a down payment and I live in Richmond, Virginia. Any advice is welcome.

There are no "very inexpensive remodels" in Hawaii. That's "no" as in "none", "zero" and "not any". Even extreme fixers are expensive. Should something be inexpensive, there's MAJOR things wrong with it and most likely major unfixable things. Either legality, location, condition, etc., etc.


Buy something in Richmond, you'll be able to see it in person and you'll know the area a lot better.


Also, because too many other people wanted to buy a vacation rental in Hawaii, there are now lots of restrictions on them. Lots of vacation areas are now restricting vacation rentals, especially those where the owner doesn't live in them. So, this plan isn't going to be a viable plan for multiple reasons.

[Va83]

Originally Posted by hotzcatz

There are no "very inexpensive remodels" in Hawaii. That's "no" as in "none", "zero" and "not any". Even extreme fixers are expensive. Should something be inexpensive, there's MAJOR things wrong with it and most likely major unfixable things. Either legality, location, condition, etc., etc.


Buy something in Richmond, you'll be able to see it in person and you'll know the area a lot better.


Also, because too many other people wanted to buy a vacation rental in Hawaii, there are now lots of restrictions on them. Lots of vacation areas are now restricting vacation rentals, especially those where the owner doesn't live in them. So, this plan isn't going to be a viable plan for multiple reasons.

The way I feel about it... buying in Richmond would put me in being a residential landlord where the payments will be smaller and if I don't vet well my home could be destroyed on the inside. With an AirBnB it's only a week or so. Not as much damage can be done in a week as a month to a year. Being residential I have to give them a month or two to catch up on rent with a vacation rental they pay upfront. Things like that are why I don't want to do that.