About Russell Thompson Expertise I can answer most questions relating to the hidden issues behind owning a vacation home, and how to manage and maximize your investment. This includes tax issues, demographics, the process of buying and selling a home, how to structure the purchase, the level of yields to expect and the issues to consider that you might not have thought of.
Experience I am the owner of a Fund investing in Resort Real Estate, and also own a Company specializing in Property Management and Investment in North America. We own and manage vacation homes for our clients, and I am familar with many resorts within North America. I am based in Whistler B.C.
Expert: Russell Thompson Date: 4/26/2004 Subject: Managing a vacation rental in Hawaii
Question My husband and I recently bought a condo on Kauai as a vacation rental. Right now, we have Garden Island Rentals managing it, but I don't think they are aggressive in getting bookings. As a result, we have subscribed to several web sites and have booked the condo ourselves. I want to quit Garden Island, but am not sure about the best accounting system to use to keep track of income and expenses generated. I am also a little nervous about the tax Hawaii requires and some of those logistics. Can you advise me? Any advise you can give me as a new owner of a vacation rental would be appreciated. Thank you
Pat
Answer Pat
I am not familiar with local rules for Hawaii, and i would strongly advise that you talk to a local accountant, and a) get professional advice as to what taxes to charge and b) retain them to submit you taxes on your behalf. The expense will more than justify itself.
In order to rent your home out successfully, you need to do several things;
1. Open an account with Overture, and research keyword buying. It is key in generating volume.
2. Get good quality photo's taken by a professional. Do NOT use your own. Again it will make all the difference.
3. Make sure your descriptions that you either say on your website, or send to prospective clients are fair and accurate. Research them.
4. Research any so called "portal" rental sites that you pay for inclusion, or even worse, pay a percentage to. In my experience most of them are useless, and you will do much better with your own website, and Overture.
5. Keep up to date on all aspects of the finacials, and have a lawyer draw up both a liability waiver, and a rental contract. Ensure that the waiver covers all aspects of the rental including damage, strata noise violations, phone, cleaning etc etc. Make sure you have thought through all aspects of the rental contract, and be very clear on your cancellation policy.
6. Keep a database of guests, and offer them discounts for repeat stays, and for their friends.
7. Have someone available for 24 hour emergency calls, and to check the guests in and out.
If you follow these few steps, you will have a long and successful experience with renting out your rental home.
